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Facts About Military Retired/Retainer Pay

Facts about the Military Retired/Retainer Pay. Why the pay should not be considered a property asset in a Divorce.

1. The Military retirement system exists for one purpose and one purpose only-- to help meet the National Defense requirements with a ready force during both peace and conflict.

2. The military retirement system is not an old-age pension plan, as are other systems.

3. There is no comparison between the military retirement system and other retirement programs.

4. Military retired members retain their military status.

5. They are under the jurisdiction of the uniform code of Military Justice.

6. They are restricted on what kind of work they can perform after retirement.

7. It is not designed or intended to fulfill an old- age income maintenance function.

8. It does not offer any capital accumulation.

9. It does not provide any deferred income provision.

10. It does not offer any thrift plan features, nor does it have any matching saving supplemental plans.

11. The military retirement system helps keep our forces vital.

12. It ensures that a smooth promotion flow continues.

13. It operates to keep the force young with the skill and experience mix we need.

14.It forms an integral part of the military compensation system.

15. Contingency mobilization plans include the recall to active duty of between 22 to 86 percent of the military retired force.

16. Thousands of military members already have their recall orders in hand should it become necessary to be recalled to active duty. Note: 3,000 were recalled to active duty during Desert Storm.

17. In short, the military system doesn1t look anything like a normal retirement plan for a very good reason, it isn't one.

18. No other retirement system, public or private, faces such a unique requirement.

What is military retired pay? Why is it paid? Military retired pay is current wages, paid for reduced services still being rendered. Thus the name Retired/Retainer Pay.

These facts were presented by the Deputy Assistant Secretary Of Defense for Military Personnel and Force Management, Feb. 7, 1985. These facts was published in the Defense/85 Magazine.


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