1. FINANCIAL MANAGEMENT
ELEMENT 42

2. Financial Management is about security for your loved ones.

4. Thrift Savings Plan (TSP) Options
Leave funds in TSP account (if balance is more than $200)
Roll your TSP into another eligible account (i.e., IRA, annuity, civilian 401k)
Withdraw your TSP funds completely
Contact TSP:
(1-TSP-YOU-FRST)
Must decide to do something by April 1st following the year you turn 70 ½

5. SURVIVOR BENEFIT PLAN (SBP) ONLY FOR RETIREE’S
PROTECT SURVIVORS AGAINST THE RISK OF:
MEMBERS EARLY DEATH
SURVIVOR OUTLIVING THE BENEFIT
INFLATION
SPOUSE MUST SIGN ELECTION FORM/IF DIVORCED SERVICE MEMBER MUST REVIEW DIVORSE DECREE TO DETERMINE IF THE COURT REQUIRES MEMBER TO ELECT COVERAGE
FAILURE IN ELECTING WILL RESULT IN AUTOMATIC COVERAGE
MONTHLY PAYMENTS ARE DETERMINED BY “BASE AMOUNT”
Full coverage spouse would receive 55% of the members retirement pay
If lesser coverage is selected spouse receive 55% of elected “base amount”

6. MILITARY VS. CIVILIAN PAY & BENEFITS
Monthly Military Pay
(Single E5>4 years)
BASE Pay $
BAH $948.00
BAS $367.92
Fed Tax $
State Tax $-32.45
FICA (SS & Medicare TX) $
NET PAY $
Monthly Civilian Pay
($26.00/hr)
Base Pay
Fed Tax $751.14
State Tax $213.33
FICA (SS & Medicare Tx) $
State Disability Ins. (SDI) $-45.07
Medical $126.00
NET PAY $
A Difference of $973

7. INDIRECT COMPENSATION: for Military
Medical Care/Prescriptions/Dental
Federal/State Tax Advantage
BAH/BAS
SGLI/TSP/TA
Commissary/NEX
Legal/FFSC/Counseling
Gym Membership

8. CIVILAIN BENEFITS

9. Military One Source (Guard/Reservists) 1-800-342-9647
RESOURCES TO HELP:
Fleet & Family Support Center (FFSC) Personal Financial Manager (PFM)
Command Financial Managers (CFS)
Navy Marine Corps Relief Society (NMCRS)
Military One Source (Guard/Reservists)

10. SUMMARY: Developing a 12 month spending plan TSP/SBP
CAPSTONE - REQUIRMENT
TSP/SBP
Analyze military compensation and compare to civilian compensation
Other Company Benefits/Perks