Thread: CSB/REDUX 30,000$ question.

If you get medically discharged after receiving the CSB/REDUX you do not have to pay it back nor will it be "extracted" from your severance package/medical retirment.

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Strategically, if one has medical issues near your 15th year and could make it to their 15th year(without being boarded) but probably not their 20th year, one would be wise to take the REDUX. That would be extra cash for you & your family above and beyond any medical retirement/severance. Heck it would be 100% tax free [if] you rolled it in to your TSP. (your doing the TSP right!)

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IF A MEMBER FAILS TO SERVE CONTINUOUSLY ON ACTIVE DUTY UNTIL
HIS 20TH ANNIVERSARY, THE LAW STIPULATES THAT A PROPORTIONATE SHARE
OF THE CSB MUST BE REPAID. SECDEF HAS WAIVED BONUS REPAYMENT IF A
MEMBER DIES ON ACTIVE DUTY, IS SEPARATED OR RETIRED AS A RESULT OF A
PHYSICAL DISABILITY UNDER CHAPTER 61 OF TITLE 10 U.S. CODE, OR
SEPARATED UNDER A SERVICE OFFER FOR EARLY RETIREMENT (SUCH AS TERA)
OR SEPARATION PROGRAM. THIS WAIVER IS NOT AVAILABLE IF A MEMBER IS
SEPARATED DUE TO MISCONDUCT OR IF THE WAIVER WOULD BE INCONSISTENT
WITH OTHER PRESCRIBED LAW, REGULATION, OR POLICY.



X

CSB/REDUX?

The Military Reform Act of 1986 created the REDUX retirement system and it applied to all members who joined on or after August 1, 1986. The National Defense Authorization Act (NDAA) for FY2000 amended this system. The NDAA made two major changes: 1) it allows those in this group to choose between the High-3 retirement system and the REDUX retirement system and 2) it added a $30,000 Career Status Bonus as part of the REDUX retirement system.
The CSB/REDUX retirement system applies to those who entered Service on or after August 1, 1986, AND who elected to receive the $30,000 Career Status Bonus at their 15th year of service.


I'm guessing you have not been in for 15+ years.


X

Not unless my PEB takes over a decade to get finished.

X,

You hit the nail on the head:

Financial Management Regulation 7A, Chapter 66:

"660302. Waiver of CSB Recoupment. The Secretary of the Military Department concerned may waive, in whole or in part, the required CSB refund if the Secretary determines that recovery would be against equity and good conscience or contrary to the best interests of the
United States.
A. The Secretary of the Military Department shall waive the required refund if the member:
1. Dies, or
2. Is separated or retired as a result of a physical disability under 10
U.S.C., Chapter 61, or
3. Is separated under a Service offer for early retirement (such as

TERA (Temporary Early Retirement Authority)) or separation program."

Yea, I was kinda worried about it. Now though, one less worry.

X

i just want to make sure I understand this correctly...

i just received my paperwork for hte 30K (just went over 15yrs)

i have a pending IPEB recommendation.

can i put in for the 30K and not have to pay it back with a Permanent Disability Retirement?

Yes, that is what the FMR says.

We just went through this getting a waiver for the repayment of the REDUX. In order for the waiver to be approved, you have to be in good health when you elect to take the REDUX. If you are pending an IPEB, do not take it because you will have to pay it back. Hope this helps.
Mel

Mel,

That is very helpful that you posted your experience. But I am curious if you have any cite or regulation that states that you must be in good health....I am curious especially if this is a service specific regulation and how that comports with the DODFMR. I don't doubt that you were told this, I am just unsure if this was a correct statement of the law.