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Splitting military retirement can be complicated

October 29, 2009 • June Walbert

Q: My ex-husband entered the active army in 1973. We were married in 1974. He was active duty for 3 years; from 1976 to 1995 he was in the reserves. In 1995 he went into the AGR and is planning to retire in 2013 as an O6 with an active federal retirement. We were divorced in 2007 after 34 years of marriage. Our divorce decree states that I am to get 50% of the retirement he earned while married plus SBP. I am on track with all the paperwork according to the Former Spouse Division in Cleveland DFAS. My question is, how can I calculate what my monthly check will be in 2013 so I can work with my financial planners?

-Sandra, Wester, Ohio



A:  That’s a very good and forward-thinking question. Unfortunately, you have not provided enough information for me to provide an accurate estimate. If we assume 26 years of active service (21 on Active Duty or AGR and 5 equivalent years from his time in the reserves), O-6, and 3% inflation, his monthly retirement pay check in 2013 will be approximately $7,000. You can use the calculator at the Office of the Secretary of Defense website to determine his retired pay. 

However, for you, the more important question is how much will your benefit be worth and how will it be calculated? You need to head back to your attorney to clarify the answers to these questions. It’s more complicated since you were married both during reserve and active duty service. It almost seems as if your divorce decree was written purely for reserve retirement (in which points determine retirement benefit and points earned while married divided by total points, is an easy calculation). Talking with a financial planner is a good thing and finding out exactly what you can count on are all positive steps as you plan out your retirement. I do know that you don’t want a surprise in 2013, so start knockin’ on your attorney’s and DFAS’ door for more specifics. Good luck!

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Comments

My finance is getting ready to retire and we will not get married until after he retires, will he be able to add me to his insurance after he retires?

Posted by: Susan | November 05, 2009 at 08:27 PM

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