Does CH 61 retirement automatically change to RC retirement at age 60?

[MSG_Raven2-3]

For those medical retirees. If you get a medical retirement prior to the age of 60 (which would be the RC retirement age) what happens at age 60?

As a medical retiree let’s see I max out at 75% DOD retirement at that percentage let’s say my monthly retirement is 4000 a month.

However based on my reserve retirement (based on points) I would be at 2000 a month at 60.

What happens when I hit 60 does my Ch 61 retirement change to reserve retirement? I called DFAS they seemed uncertain, but they told me that my Ch 61 medical retirement still stays the same.

Obviously I am paying a way higher amount for SBP right now @55% of 4000/month vs @55% of 2000.

Also, obviously at age 60 the reserve retirement would be a lot less money compared to the CH 61 retirement.

Any advice from those reserve medical retirees that eventually hit the 60 mark? I thought as RC we would have to “apply for retirement” at 60. Does that mean don’t apply to continue the CH 61 disability retirement? I am currently getting CRSC so I’m already receiving longevity pay.

 

[Provis]

For those medical retirees. If you get a medical retirement prior to the age of 60 (which would be the RC retirement age) what happens at age 60?

As a medical retiree let’s see I max out at 75% DOD retirement at that percentage let’s say my monthly retirement is 4000 a month.

However based on my reserve retirement (based on points) I would be at 2000 a month at 60.

What happens when I hit 60 does my Ch 61 retirement change to reserve retirement? I called DFAS they seemed uncertain, but they told me that my Ch 61 medical retirement still stays the same.

Obviously I am paying a way higher amount for SBP right now @55% of 4000/month vs @55% of 2000.

Also, obviously at age 60 the reserve retirement would be a lot less money compared to the CH 61 retirement.

Any advice from those reserve medical retirees that eventually hit the 60 mark? I thought as RC we would have to “apply for retirement” at 60. Does that mean don’t apply to continue the CH 61 disability retirement? I am currently getting CRSC so I’m already receiving longevity pay.

Nothing happens at age 60 if you are maxed out. Your chapter 61 pension doesn't go away or anything. The only changes at age 60 are for DFAS to compute your retirement to reflect a 20 year letter to get VA + longevity but that's not needed in your case. Your SBP is higher but that's because you still have it at age 60.

So bottom line nothing happens. On the Tricare side once you reach age for medicare (age 65) you need to apply for it and then change your tricare plan to tricare for life. Its required or you lose your tricare.

No need to apply for reserve retirement at age 60. Nothing happens. Basically you are still chapter 61 and your SBP will stay the same for coverage. That's a good thing since at age 70 and with 30 or more years of payments you will no longer owe SBP premiums. So it would not be a good idea to lower it if you could after paying the higher premiums for 10+ years.

Later down the line you can terminated SBP if you want. Here are some options: If you are 100% P&T and have reached the age to have your spouse qualify for DIC you can cancel SBP if you like. Also from the 25th to 36th month of coverage, you can terminate your SBP election too.

 

[MSG_Raven2-3]

Thank you for that answer. Relieves some stress. It’s interesting how this community is so much more informative and helpful than DFAS or HRC. I’m very grateful to have access to this forum

 

[Provis]

Thank you for that answer. Relieves some stress. It’s interesting how this community is so much more informative and helpful than DFAS or HRC. I’m very grateful to have access to this forum

You are welcome. The problem with these other organizations is that they only know what's in their lane. They have no idea about the other agencies. Also, they have no clue how it all works when taking into account all of the different compensations and benefits.

 

[Oliver90]

Thanks