Military personnel and retirees have some deadlines coming soon for retirement plan selection and Tricare benefits. (Photo: Shutterstock)
Eligible servicemembers only have till December 31, 2018, to decide whether to choose the legacy retirement plan offered by the armed forces or to go with the new blended plan.
And retirees need to sign up for dental and vision benefits or switch health benefit plans by December 10.
Stars and Stripes reports that while servicemembers who joined the military on or after January 1, 2018, have been automatically enrolled in the new retirement plan—called the Uniformed Services Blended Retirement System—those who joined on or before December 31, 2017, are grandfathered into the legacy retirement system, which requires them to serve for 20 years before they are eligible for benefits.
The blended system, or BRS, became available January 1, and combines automatic and matching contributions to a servicemember's Thrift Savings Plan, continuation pay and monthly pay upon retirement, according to the Defense Department.
The legacy system offers a higher pension benefit, but only 19 percent of active duty and 14 percent of Reserve troops stay in for at least 20 years to qualify for the legacy retirement benefit.
The BRS, on the other hand, means that 85 percent of servicemembers will get retirement benefits after they serve at least two years.
The new plan has not proved too popular up till now, with just 1 out of 6 servicemembers opting in as of the end of September.
Military retirees, too, have choices ahead, and a much shorter deadline.
According to the Defense Health Agency, the Tricare retiree dental program ends on December 31 and those who are enrolled in or eligible for benefits need to check their eligibility for the Federal Employees Dental and Vision Insurance Program (FEDVIP) for 2019—and sign up by December 10.
In addition, retiree Prime and Select enrollees must switch benefit plans, if they choose to do so, by December 10.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
