Page 9 - ACT-0918-0008 The Technician September - October 2018

Cover Story
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considerably Additionally any pay pay grade in in the the GS or or or WS pay pay pay scale narrows the the the margin even more Another thing most folks forget – drill pay pay and the the “double “double dip dip ” ” The TDY’s that you once counted as a a a a a “double “double dip dip trip” now becomes one one with the minimum per diem rates The drill check that pays your car payment is gone You will perform drill weekends for for free Once retired most most AGR’s must begin another career in in order to make end’s meet On the the the other other hand most most existing retirement plan In January of of 2018 members were required to become part of of the the new new “blended” retirement system system Under the the new new system system personnel will receive only 2% per per year of of service with the the government throwing in in in in a a a a a a a a bit of of matching to the the the TSP that you you must elect as your savings plan plan Essentially the the the the AGR retirement retirement plan plan is just another form of the the the civil service retirement retirement system However you you only have 20 years to save as as much as as you you can You would only draw 40% of your base pay (high 3) Hopefully you’re an E-9 for all 20 of those years! Alternatively if you you begin and stay under the the Technician program you you are afforded the the matching of of 1-5% of of your own savings in in addition to 1% per year of your service Without going into a a a a long long drawn-out explanation in in in the long-term Technicians will not work past the the the age of of 57 if they’ve saved the the the minimums of of his or her pay Let’s look at retirement on on a a a a deeper comparison Now that we’ve established the pay issue let’s
talk retirement retirement For an AGR retirement retirement will come at the 20 year mark If
you’re you’re lucky you’re you’re in a a a a a a a a critical
career field and you you you may be able to to go to to 21-22 years Know
this this – your your retirement pay pay at 20 years years is is is going to to to be half (50%) of your your base pay pay pay only After this this you you you must pay pay for health care insurance insurance life insurance insurance taxes any other deductibles you may have Having personally seen a a a a a a a a a retired E-6’s bring bring home home pay just know you you will bring bring home home less less than than $2000 per per month month Can you you you live off o of less less than than $2K a a a a a a a month month for life? This is is assuming that you you are on on on the a a a a a a a a a a Techician can save a a a a a a a a a a considerable amount of money with the the matching option as as well as as the the 1% per per year he he he he or she will draw Having personally viewed a a a a a a a a MSgt/WG-12’s retirement retirement at at age 57 it it goes without saying the retirement retirement is considerably more more – a a a a a a a a lot more more Then at at 60 your your military retirement kicks in If
you you you want to see for yourself do the math