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AIR FORCE SERGEANTS ASSOCIATION

AIR FORCE SERGEANTS ASSOCIATION. YOUR ENLISTED VOICE FOR OVER 39 YEARS. RETIREMENT REFORM (ALL AIRMEN 9/8/80 AND LATER ARE NOW UNDER SAME FORMULA). FINAL 36 MONTHS AVERAGED TO DETERMINE AN AVERAGE MONTHLY BASE PAY. THOSE RETIRING AT 20 YEARS GET 50 PERCENT

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AIR FORCE SERGEANTS ASSOCIATION

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  1. AIR FORCE SERGEANTS ASSOCIATION YOUR ENLISTED VOICE FOR OVER 39 YEARS

  2. RETIREMENT REFORM (ALL AIRMEN 9/8/80 AND LATER ARE NOW UNDER SAME FORMULA) • FINAL 36 MONTHS AVERAGED TO DETERMINE • AN AVERAGE MONTHLY BASE PAY. • THOSE RETIRING AT 20 YEARS GET 50 PERCENT • OF THE AVERAGED BASE PAY - AN ADDITIONAL • 2.5 PERCENT FOR EACH YEAR OF SERVICE OVER • 20, UP TO 75 PERCENT FOR 30 YEARS OF SERVICE. • A FULL ANNUAL RETIREE COLA (CPI-BASED)

  3. RETIREES WHO ENTERED SERVICE ON OR AFTER AUGUST 1, 1986 WILL BE OFFERED A $30,000 LUMP-SUM, TAXABLE, “CAREER STATUS” BONUS TO AGREE TO GIVE UP THE 50 PERCENT, FULL-COLA RETIREMENT PRO- GRAM AND RETIREE UNDER THE 40 PERCENT, REDUCED-COLA REDUX SYSTEM: • 40 % OF BASE PAY AVG AT 20 YEARS • 3.5 % FOR EVERY YEAR OVER 20 -- UP TO • 75 % AT 30 YEARS OF SERVICE • 1 % ANNUAL COLA REDUCTION • ONE-TIME COLA CATCH-UP AT AGE 62

  4. Multipliers High Three - 2.5% every year REDUX - 2% to 20; 3.5% from 20 - 30 Years of service202224262830 High Three50%55%60%65%70%75% REDUX40%47%54%61%68%75% Percentage of Base Pay

  5. ASSUMPTIONS: • MSGT RETIRING AT 20 YEARS • $2,500 FINAL PAY AVERAGE • 2.2 PERCENT ANNUAL CPI RETIREMENT PAY IN FIRST 20 YEARS OF RETIREMENT: HIGH THREE FORMULA: $371, 808 REDUX FORMULA: $269, 434 DIFFERENCE: $102,374

  6. ASSUMPTIONS: • CMSGT RETIRING AT 30 YEARS • $4,000 FINAL PAY AVERAGE • 2.2 PERCENT ANNUAL CPI RETIREMENT PAY IN FIRST 20 YEARS OF RETIREMENT: HIGH THREE FORMULA: $892, 339 REDUX FORMULA: $808, 303 DIFFERENCE: $84, 036

  7. INVEST IT ? • [ CMSGT: $84, 036 MSGT: $102, 374 ] • ASSUMPTIONS: • $25, 000 TO INVEST AFTER TAXES • NO WITHDRAWALS • STRAIGHT ANNUAL INTEREST • 20-YEAR INVESTMENT SIX PERCENT:$80, 178 TEN PERCENT:$168, 188

  8. E-7 Retiring at 20 Years of Service

  9. E-7 Retiring at 20 Years of Service

  10. “WE ALL BENEFIT FROM THE HARD WORK AFSA DOES, BOTH IN WASHINGTON AND THROUGHOUT OUR AIR FORCE COMMUNITIES. . . ALTHOUGH PARTICIPATION IN AFSA ACTIVITIES IS A PERSONAL AND COMPLETELY VOLUNTARY CHOICE, I ENCOURAGE YOUR SUPPORT AS WE WORK TOGETHER WITH AFSA TO CONTINUE TO ENHANCE THE QUALITY OF LIFE FOR US ALL.” FREDERICK J. FINCH CHIEF MASTER SERGEANT OF THE AIR FORCE MARCH 22, 2000

  11. HOW TO CONTACT US • 1-800-638-0594 • http://www.afsahq.org • staff@afsahq.org

  12. Questions ? http://pay2000.dtic.mil Retirement Choice

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