1. ELEMENT 42: FINANCIAL MANAGEMENT
November 1, 2017

2. Purpose Financial Management can be used to serve as;
- Personal Financial Resource
- Retention
- Transitioning

3. OBJECTIVES THRIFT SAVING PLAN (TSP) SURVIVOR BENEFITS PLAN (SBP)
MILITARY VS. CIVILIAN PAY AND BENEFITS
INDIRECT COMPENSATION
NOTES:
The CAPSTONE event is not intended to be a pro-forma review of course work completion. It is intended to provide a forum where the desired outcomes of transition services/activities are verified.
Service members are evaluated in all dimensions of post-Service preparedness, and where final interventions are made to ensure Service members are career ready to include:
Career Readiness Standards
Verification that an Individual Transition Plan (ITP) is in place/in progress
Pre-separation Counseling was completed
Verification that a short-term budget was completed
Review common risks, and provide recap of available resources
Verification Sailors received VA Benefits Brief/Sign-Up
CAPSTONE Event – to facilitate continued and/or follow-up support as needed by agency partners prior to separation and/or retirement.
DoL, VA, and SBA staff will be present for warm hand-offs.

4. What is the Thrift Savings Plan (TSP)
Congress established the Federal Employees' Retirement System Act in 1986.
TSP is a retirement savings and investment plan for Federal employees, active military and Ready Reserve.
TSP offers savings and tax benefits to private corporations under 401(k) plans.
Website:

5. TSP Cont… There are two types of post-separation withdrawals:
partial withdrawal(1,000 or more)
Full withdrawal;
(has three options when withdrawing: single, lump sum or monthly payments or annuity

6. SURVIVOR BENEFIT PLAN (SBP)
Survivor Benefit Plan is used in the military when the retiree dies their retirement pay stops. The SBP is an insurance plan that will pay your surviving spouse and or child a monthly payment (annuity) to help make up for the loss of your retirement income.

7. SBP Cont… SBP Cost Example Spouse Spouse and Child*
Monthly retired pay covered by SBP
$2,000.00
Monthly cost
$130.00
$130.38
Retired pay after cost of Survivor Benefits Plan
$1,870.00
$1,869.62
Spouse's survivor benefit (55% of amount covered)
$1,100.00

8. SBP Cont…
To learn more about Survivors Benefit Plan Contact Location: C-9 Base Theater Auditorium, Naval Station Norfolk Doors open at – No Pre-Registration is required to attend. Classes are held the fourth Tuesday of the month Retiree Benefits Brief/Topics Covered: - Tricare Medical - Tricare Dental - Survivors Benefits.

9. MILITARY VS. CIVILIAN PAY AND BENEFITS
MILITARY PAY Basic pay, special pay. With tax advantages, pay is comparable to civilian sector pay. CIVILIAN PAY Usually higher than military pay. However, there are usually no tax advantages.

10. MILITARY VS. CIVILIAN PAY AND BENEFITS
MILITARY HOUSING
Provided by military. If you live off base, the military provides a Basic Allowance for Housing, tax free.
CIVILIAN HOUSING
Your responsibility. Usually you cover all costs.
Other examples;
Medical
Insurance
Education
Travel

11. INDIRECT COMPENSATION
While serving in the military we have access to many of the programs for free or little to no cost, such as:
- Legal ( assistance, referrals , POA, wills etc…)
Tricare ( either little or no cost)
Gym ( free)
Tax advantage on BAH and BAS
Pension ( once retire/or Fleet Reserve)
Severance pay ( involuntary on a case by case basis)
FFSC access for free
MGIB/911( transfer over to dependents)
Tuition Assistance

12. RESOURCES
THRIFT SAVINGS PLANS SBP Spouse Cost and Benefits DFAS MILITARY.COM

13. QUESTIONS