1. Financial Management
Element 42 Page 193

2. Purpose
To inform the member of the financial resources available to help with the transition

3. Overview
Unless the member has a career lined up, finding a job could take some time
Careful financial planning is key to managing limited income
Command Financial Specialist can be used to assist
Courses are offered at Military OneSource and Fleet and Family Support Centers
Budgets MUST and will be developed when attending TGPS

4. Thrift Savings Program (TSP)
A savings/retirement plan that is similar to a 401k
Purpose: to provide retirement income
The amount contributed and the earnings attributable to the contributions belong to the member, even if they do not serve 20 or more years
Post sep withdraw: partial ($1,000 or more) and full (lump sum, monthly payments, or life annuity)
Must withdraw by April 1 the year after the member turned 70 ½ yrs old

5. Blended Retirement System (BRS)
Moves from a vested defined retirement plan to a reduced benefit plan
Major changes:
The military will contribute 1%
Service members automatically enrolled to contribute 3%
Military will match dollar for dollar up to 3% and .50 on the dollar for the next 2%
The contributions will go to “age appropriate” lifecycle (L) fund, unless service members choose otherwise
2% a year at 20 years of service instead of 2.5% a year

6. Survivor Benefit Plan (SBP)
All AD covered under SBP while on AD
SBP is a form of life insurance for retired pay
Alternatives to the SBP that the member and spouse are equally responsible for
Provides an annuity to make up the loss for retirement income

7. Indirect Compensation
Medical Care (free prescriptions, Ms. Carlson LIKES A LOT)
Tricare Dental Program
Federal Tax Advantage on BAH and BAS
State/Local Tax advantage
Military Pension
Serviceman’s Group Life Insurance
Discounted Services at the Commissary and NEX
Etc, etc, etc……….

8. Resources http://militarypay.defense.gov/Calculators/RMC-Calculator
TSP:
BRS:
SBP:
Start turning ideas into reality.

9. Questions? 1) 2)