Career Status Bonus (CSB) - $30,000

The $30,000 Career Status Bonus (CSB)
Soldiers who elect the CSB/REDUX retirement system at their 15th year of service receive a $30,000 Career Status Bonus. To receive this bonus, the Soldier must agree to complete a twenty-year active duty career with length-of-service retired pay under the 1986 Military Retirement Reform Act -- 1986 MRRA or REDUX. Contination beyond twenty years is possible, subject to Service personnel management actions. However, the Soldier's commitment with the CSB is only to the 20-year point. The entire $30,000 bonus, or first installment payment for those electing a multi-year payment option, is paid shortly after the member makes the CSB/REDUX election and commits to the 20-years-of-service obligation.
(Exact mechanics should be provided by your Service near the point you have 14 and 1/2 years of service.

If the Soldier doesn't complete the obligation of the twenty-year career, the Soldier must repay a pro-rated share of the bonus.

You can see your Personnel Office when you have 14 years and 6 months of active federal service and fill out a DD Form 2839.

http://www.dod.mil/militarypay/retirement/ad/04_redux.html
Original Post
It should be noted that the retirement rates from 20-29 years are reduced under this plan. Most enlisted soldiers will hit RCP before it evens out at 30 years.

I would only recomend this to soldiers who plan to make a significant investment (such as a retirement fund, college for your children, or purchasing a home)

Example: a SFC retiring at 20 years will make 10% less with the career bonus. After only 9 years that's a difference of over $30,000. $345 a month difference in pay.
Just a caveat on this, but for every year after the 20th year of active federal service, the pay increase is 3.5% instead of 2.5%.

Therefore, if you stay a mere 3 years longer, or 23 years total, your retirement will be 50.5%.

DW is correct in saying it would be wise to invest a large portion of this bonus. You'll thank yourself (and DW) later.
quote:
Sorry to resurrect an old thread, but when it comes to getting the $30,000 (or whatever you get when your not deployed), do they go by the BASD, or by the BEPD listed on the LES?

Your DIEMS Date determines is you qualify for this or not.

Your BASD is what they base the 15-year mark off.
I am an AGR soldier currently deployed to Iraq. I have 14yrs 7mos and have decided to take the REDUX retirement plan. According to the website, if I understand it correctly, I can choose this retirement now. Does the Career Bonus pay out as soon as you elect the REDUX or do you have to wait until you reach the 15yr mark? Thanks.
quote:
Originally posted by drose:
What exactly is your DIEMS date? And does that date include your National Guard time?

DIEMS (date initially entered military service) is the date an individual was initially enlisted, inducted, or appointed in a regular or reserve component of a uniformed service as a commissioned officer, warrant officer, or enlisted member. Breaks in service do not affect a DIEMS date. United States Military Academy cadets (date of entry into the academy), ROTC cadets (date of scholarship contract or date the cadet began the advanced ROTC course, whichever is earlier) and members of the delayed entry program (DEP) (date enlistment contract signed, regardless of when the soldier entered active duty) are considered under these provisions. This date is used solely to indicate which retirement plan a member is under. The DIEMS is the first time any contract was signed obligating the soldier to any type of military service, even if it was later voided.
quote:
Originally posted by A143Gunny:
I am an AGR soldier currently deployed to Iraq. I have 14yrs 7mos and have decided to take the REDUX retirement plan. According to the website, if I understand it correctly, I can choose this retirement now. Does the Career Bonus pay out as soon as you elect the REDUX or do you have to wait until you reach the 15yr mark? Thanks.

You should receive the payment within 30 days after the form has been submitted.
Thanks that's what I thought. Finance office here in Iraq was telling us that it does not payout until after your 15 yr mark regardless of when you opt for it. I am going through my finance office back in my state now as the finance office here does not understand AGR anyway.
I completed the forms and had the money in my bank within a week. I do not hit my 15 year mark until May 8th so you get it soon after you submit the paperwork. Just make sure that an O5 or above signs it. I ran into a snag when I had my company commander sign it. Took me another month to resubmit.
My husband never received any notification about his eligibility for the CSB but he did go about doing everything he needed to do on his own. He turned in the paperwork in November and his 15 year mark according to the person who helped him was on 04 Jan 08. He has not heard anything further about his bonus and we are wondering whether or not he is going to get it? Is there any way we can check this out to find out what the status is? I appreciate any help with this matter! Thank you!
I know this is going to sound redundant but I'm trying to follow this as well as I can.

So is the CSB a permanent available bonus, completely different from the MILPER messages released concerning reenlistment bonuses?

From what I can gather you are saying it is only beneficial to use this program if you can stay in past the 25 year mark, or the 29 year mark?

Lastly, my husband hits 14 years on 29 November and will be reenlisting within the next couple of months. When he hits the 14.5 mark, is he still eligible for the CSB even though he had just reenlisted within such a small time frame?

Thank you for your time and knowledge....
quote:
Originally posted by whiskeywife:
From what I can gather you are saying it is only beneficial to use this program if you can stay in past the 25 year mark, or the 29 year mark?

This is a personal issue ... if you need the money and use it to pay off high interest bills, it's a great thing.

If you want the money just to blow it, you can do this, but might not be fiscally responsible.
Thank you, and trust me, it would definitely go to pay off some bills, but I know my husband and before I could use it to pay stuff off he might spend a bit of it on a fishin boat. He's going to stay in till the Army tells him to get the hell out, but just in case, I still want to be prepared for the future and wouldn't want a bonus to effect a lifetime, you know?
I just wanted to say thank you. He went to S1 and they had to resubmit the paperwork, I think they did it too early originally, but now they say that it will be paid within 30 days, so we shall see. I'll have to let you know if and when it finally comes. Thanks again!
At the 14 1/2 you should receive the paperwork to elect to receive the CSB. If you do not want to take part in the CSB, do nothing, do not turn the paperwork in, you will not receive the bonus. If you want to take part in the program, fill out the paperwork and submit to the retirement section. If you elect to take part in the CSB, elect the lump sum. This way they only tax you once, not on each and every anniversary payment.
quote:
Originally posted by kendrick31313:
CAN SOMEONE PLEASE HELP ME OUT ON THIS!! CAN YOU OR CAN YOU NOT OPT AND RECEIVE THIS BOUNUS AT 14 1/2 YEARS. IF YOU CAN< PLEASE EXPLAIN HOW. THANKS

Geez, why are you yelling? Razzer

http://www.defenselink.mil/militarypay/retirement/ad/04_redux.html

The $30,000 Career Status Bonus
Those members who elect the CSB/REDUX retirement system at their 15th year of service receive a $30,000 Career Status Bonus. To receive this bonus, the member must agree to complete a twenty-year active duty career with length-of-service retired pay under the 1986 Military Retirement Reform Act -- 1986 MRRA or REDUX. Contination beyond twenty years is possible, subject to Service personnel management actions. However, the member's commitment with the CSB is only to the 20-year point.
The entire $30,000 bonus, or first installment payment for those electing a multi-year payment option, is paid shortly after the member makes the CSB/REDUX election and commits to the 20-years-of-service obligation. Exact mechanics should be provided by your Service near the point you have 14 and 1/2 years of service.)

I don't think you'll be provided the paper ... just in case you want to get it filled out, here it is ... http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2839.pdf
I don't know if anyone else noticed this, but....

"A feature unique to REDUX is a re-computation of retirement pay at age 62. Two adjustments are made. The first adjusts the multiplier to what it would have been under High-3. For example, a 20-year retiree's new multiplier would become 50%, a 24-year retiree's multiplier would become 60% but a 30-year retiree's would remain 75%. This new multiplier is applied against the individual's original average basic pay for his or her highest 36 months. Then the second adjustment is done. Full CPI for every retirement year is applied to this amount to compute a new base retirement salary. At age 62, the REDUX and High-3 retirement salaries are equal. But, REDUX COLAs for later years will again be set at CPI minus 1%"

Found at http://www.defenselink.mil/militarypay/retirement/ad/06_rc_thechoice.html
He has to be in a tax free zone when he requests it right? Not when he gets paid?

Another question, if he has to be in a tax free zone when he requests it, can he do it prior to 14 1/2? Oh and sorry, how long is the option available? Obviouslyno later than your 20th year of service, but if you/ can you do it at say 16 years and just get it prorated, or how does that work?

Sorry, it's midnight here and I tend to think of the most questions late at night... Smiler
My 15-year BASD anniversary is early next April, which means, if I'm reading this thread correctly, that early next month I should be able to apply for the CSB. There seem to be two answers on when I would actually receive the bonus--either within 30 days of turning in the paperwork (say early November), or when I hit 15 years (early April). I'm downrange, and I may be leaving in April, so I want to be proactive on this so I can get the money tax-free. I went down to my finance office here, and a SPC there told me that I wasn't even allowed to fill out the paperwork until I had hit the 15-year mark. So what's the real deal?
quote:
Originally posted by waynicus:
My 15-year BASD anniversary is early next April, which means, if I'm reading this thread correctly, that early next month I should be able to apply for the CSB. There seem to be two answers on when I would actually receive the bonus--either within 30 days of turning in the paperwork (say early November), or when I hit 15 years (early April). I'm downrange, and I may be leaving in April, so I want to be proactive on this so I can get the money tax-free. I went down to my finance office here, and a SPC there told me that I wasn't even allowed to fill out the paperwork until I had hit the 15-year mark. So what's the real deal?
You can apply for the CSB as early as 14 1/2 years, you will not receive the payment until your 15-year BASD anniversary. I wouldn't listen to that SPC at finance, if you plan on taking it and want the full amount; you need to submit the paperwork prior to 15 years, once received by finance it will be placed in the system to be paid at 15 years.
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