How to Calculate Reserve Retirement
Career Counselor's Corner
28 May 2015
What transitioning Sailors need to know about reserve retirement benefits. Let's get to the points. One drill weekend, an aviation ordnanceman first class entered my office to complete his retirement paperwork. After glancing at his annual retirement point record and annual statement of service history, I noticed he had served 12 years on active duty and eight years in the active reserve, but his records still read that he only had 19 years of qualifying service. He was unable to retire.
But how? He served 20 years.
As a Navy Reserve career counselor, I work with a lot of prior active duty Sailors who choose the active reserve component to earn their retirement benefits, but don't complete the service requirements necessary to retire right at 20 years. It is important that Sailors know how retirement in the Navy Reserve actually works.
Retirement for the Navy Reserve is based on a points system plus time in service.
Like an active duty Sailor, a reserve Sailor is authorized to retire at 20 years. However, because a reservist is only required to work for the Navy one weekend a month and two weeks a year, retirement points are based on service completed. A Sailor must receive a minimum of 50 points in a year to achieve a "good year," or a year that counts toward retirement.
A good year, at its simplest, may be comprised of the following:
* Drills. One day equals two points, and one drill weekend equals four points, for up to 48 points per year.
* Annual training. One day equals one point, with a minimum of 12 days on AT per year.
* Navy Reserve affiliation. A Sailor gets 15 points annually for belonging to the Navy Reserve.
By participating in standard drills and annual training, a Sailor is guaranteed at least 75 points per year.
Sailors can log on to BUPERS Online at www.bol.navy.mil to view their annual retirement point records and annual statements of service history, or ARPR/ASOSH, to view their points. The ASOSH breaks down a Sailor's annual points into inactive points - such as drills, courses and membership - and active points, such as active duty time and annual training. After each year, it lists total points accrued and whether the service year counts as qualifying.
Points are updated regularly and are calculated from the anniversary date of the Sailor's affiliation with the Navy or Navy Reserve.
If a Sailor serves his 20 years and each year is a good year, he can retire without a hitch.
Unlike his active duty counterpart, though, this Sailor cannot collect his pension until the age of 60. Pension amounts are calculated by a combination of years in service, points and paygrade at retirement. Bottom line: the more the merrier.
If the aviation ordnanceman had known how retirement points accrued when he made the transition to the reserve component, he could have ensured that every one of his years was a good year. In his case, the solution was to extend his contract for another year.
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