Military retirement pay is different from civilian retirement pay in many ways. For members of the Air National Guard, the system can seem confusing. To estimate ANG retirement pay, you need to meet certain requirements and the amount you will receive is based on a points system. Let’s see if we can simplify it.
Military Pension System
How is a military pension calculated? First, it is important to understand that military retirement pay is not the same as a VA pension. Military retirement is based on the number of years served. A VA pension is based on having a service-related injury and need.
Military retirement uses two different systems. If you joined the service before January 1, 2006, you will be under the legacy High-3 system. If you joined on or after that date, retirement will be calculated using the Blended Retirement System (BRS). The BRS did not take effect until January 1, 2018, and you had a choice of the two systems before then.
National Guard Retirement Age
Standard retirement from the military is after 20 years of qualifying service, as long as they are completed before you reach 60. A qualifying year is one in which you earned 50 retirement points.
You earn one point for every day of service for both active duty and active duty for training. You earn points for being a service member. You also earn one point for the completion of accredited correspondence courses and one for each unit of training assembly.
From this point forward is where it gets complicated. For instance, you are limited in the number of points you can earn from inactive duty. Also, if you retired before September 23, 1996, the number of allowable points from inactive duty is 60.
Calculate Air National Guard Retirement Pay
The amount of retirement pay you will receive is based on the number of points earned over your military career. To calculate your retirement pay, you must first total the number of points earned during your career. This is then multiplied by 2.5 percent to determine the benefit multiplier.
Once you know the benefit multiplier, you must then find the average basic pay for your last 36 months of service.
Now, you can estimate ANG using the following formula.
total points/360 X 2.5 = Estimated ANG percent
Air National Guard Retirement Calculator
National Guard retirement calculator points have several requirements. You must have at least 50 points per year for at least 20 years, which is equal to 1,000 National Guard retirement calculator points. You must meet the National Guard retirement calculator points requirement, and your retirement pay must be equal to or greater than 6.94 percent.
If you entered the ANG after January 1, 2018, you will be paid according to the BRS. This system combines elements of the legacy system and elements that are similar to a private sector 401(k).
If you are eligible for the legacy retirement system, you can use this Air National Guard Retirement Calculator. If your service entry date makes you eligible for the BRS, this Air National Guard Retirement Calculator will help you determine your retirement pay. If you have any questions about your points or pay calculation, the best place to visit is the Air Force Benefit Retirement site.
Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.