BRS Continuation Pay Info, Air Force

[mohamad]

I always said I would share some info once I had gone through the process. It's not technically complete yet, but here's a rundown of how things have gone:

105 days/15 weeks before my 12 year mark I got the notification from MyPers. When i acknowledged it also gave me a link to a Statement of Understanding and Election form. Below is the meat and potatoes of the (unnumbered) form

1. I am under the Blended Retirement System, will satisfactorily complete a minimum of 12 years of qualifying service, and I am eligible for Continuation Pay (CP), as an Active Component or Reserve Component member on qualifying AGR orders at a multiple of 2.5 times my monthly basic pay or as a Reserve Component member at a multiple of 0.5 times my monthly basic pay paid at the "over 12 years" of service rate.
2. I have been provided CP benefit information and understand this is a mid-career incentive bonus to be received at the 12 year anniversary of my Pay Date (CP effective date) as a lump sum, or with equal installments paid on the anniversary of the initial payment within the next four years.
3. I understand it is my responsibility to have or obtain the required 48 months of retainability (calculated from the CP effective date) within 30 days (if applicable) of the date of this election to fulfill the required service obligation.
4. I understand, should I not acquire the necessary retainability to satisfy the ADSC/SRSC, my eligibility for CP is forfeited upon reaching 12 years and one day of service, as calculated by the Pay Date.
5. I understand failure to complete the period of obligated service or failure to maintain the skills for which an amount greater than the minimum amount was paid is subject to full or partial repayment or termination of future payments, as applicable, IAW and subject to the exceptions of Section 373 of Title 37, U.S.C. and the DoD FMR, Volume 7A, Chapter 2.
6. I understand that entering into a service obligation for the purpose of CP renders me ineligible for voluntary retraining during the period of service obligation associated with the acceptance of CP; however, I may still be subject to involuntary retraining.
7. I understand that my election to accept or decline CP is final and irreversible.
8. My core ADSC/CAFSC is _______. My current DOS is ______.

Under that you can accept or decline the Continuation Pay, and then you can choose Option A, B, or C. Lump Sum, 2 50% payments, or 4 25% payments. then your name and signature, and then your CC's approval/disapproval and signature.

The main takeaways, and some questions that i think a few people still had lingering: You will get paid out specifically at the 12 year mark, at the OVER 12 year base pay.

I have submit this, but still need to get my retainability and then still have a couple months until my 12 year mark.

Submitting for CC signature went just about as I expected. When it got to my shirt and chief, the shirt pulled me into his office concerned I was essentially doing the REDUX bonus or something "Are you okay financially? why are you doing this?" They were all good once they fully understood the continuation pay(which i don't blame them, 3 years into BRS existing and I think what I'm posting is now the clearest information anyone has had).

 

[sjasti]

@mohamad Thanks for posting. Hit my 12 year mark next year. Crossing my fingers that they raise the multiplier but not counting on it.

 

[mohamad]

@sjasti Ya..... I'll be very surprised if they ever do.

 

[g54]

@mohamad I’m guessing it’s taxable and option C may be the most tax efficient based on tax brackets? Or luck out what pick option A in a CZTE zone?

 

[mohamad]

@g54 Yeah. But technically you're losing to inflation, and in future years you likely have higher income anyways. So..... It's a toss up and depends on your situation

 

[g54]

@mohamad You wouldn’t make more since it would only be 1 year later at most since it’s 4 payments and your next longetivity raise would be at 14 years. Unless you mean the annual cost of living increase. I’m fairly sure taxes would be the biggest factor for most people.

 

[katan]

@sjasti They aren't really going to be raising the multiplier until they actually need to retain people. I'm guessing that the majority of people that would take continuation pay didn't take the BRS in your year group.

Once we get around 8 years of BRS, the multiplier might start ticking up. But COVID is changed the way force retention was going last year, and the long term effects are going to be interesting as well.

In the end, the multiplier is a force retention tool. If people are staying in, multiplier is low, if people are getting out, multiplier increases. I'm intrigued to see how it grows/matures and when people will realize that there is more than money that will help people stay in.

 

[jewlyen]

@sjasti Doesn't seem likely with the current retention.

 

[mohamad]

pinging /@bellpepper and /@cassidy

 

[cassidy]

@mohamad Thank you for the follow-up. One question: were you given an option to go direct to your TSP or does it go to your standard pay account?

 

[mohamad]

@cassidy Doesn't specify anywhere on that form. In mypay you can turn incentive and bonus to 100% contribution though, so that ought to do it. Not sure if this falls specifically under incentive or bonus though.

 

[bellpepper]

@mohamad https://militarypay.defense.gov/Por...stions 03282018.pdf?ver=2018-03-28-235150-797

Q7.11 it is a "BONUS"

 

[bellpepper]

@mohamad I have mine set already and it’s 9 months away.

 

[bellpepper]

@mohamad Hey thanks for the update!!! I would guess we are some of the few that took the option to BRS. I really appreciate the update!

 

[tlotw]

@mohamad So I did research into it because I am processing the BRS paperwork for my spouse who is at 11 years in the army and under the BRS system. I was surprised to find out that the ADSO is effective the day the service member signs it. And not even when the O6 signs it. I was also under the impression that it pays out when it is processed. Honestly, i would rather wait for it to process because the army is behind on promotions due to COVID so my wife should have been promoted to O4 already. The board results came out late so no we are estimating that she will promote about 1-2 months before her 12 year mark. That would pay out more and would be more favorable.

 

[mohamad]

@tlotw The way this Air Force form reads, definitely suggests it pays out at the 12 year mark, but i can't confirm yet, as I just turned in my form last week, and won't hit 12 years until may. I saw some other posts on here recently that i believe said they got it during the mid month after they hit 12 years.

 

[tlotw]

@mohamad It could be different by proponent? The policy letterI read was army, and I had my retention NCO look at it too and thats how he read it. I wouldn’t mind waiting until November for it to pay out if its at a higher rank.

Unrelated, but I plan to use it to max each of our IRA’s for 2021.

 

[allyson]

@mohamad I'm also worried about this. Not as knowledgeable for the Cont Pay but I did ask Finance, she said I should get notified 180 days out and everything should be automatic paid to me. I was worried because I just reenlisted for another 6 years to go overseas last year, and the MPF (personnelist) said I should wait for reenlistment and just extend so I can get the money, but at the time I just wanted to make sure I have retainability. So I'm not sure if I still going to get the Cont Pay coz I reenlisted. I'm like less than 250 days to my 12 year mark. Hopefully I get it coz that'll be good money. Thanks for sharing your experience.

 

[mohamad]

@allyson You should get it anyways. You just need to get retainability within 30 days of the CC signing it, according to this. Shouldn't be anything stopping you

 

[bevm]

@mohamad 2.5x for 4 additional years? They can fuck off for that.

I might do it for MAYBE a 10x multiplier. Even that thats still abysmal, for a 4 year ADSC.

2.5x is 20k for an O-4/Major, or a bit over 10k for an E-6/ Tech.

That is literally offensive to expect people to sign that.

Even a 10x multiplier is worse than most retention/ enlistment bonuses.