Reservist

ISS4 2017

Reservist Magazine is the award-winning official publication of the United States Coast Guard Reserve. Quarterly issues include news and feature articles about the men and women who comprise America's premier national maritime safety and security

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Just the Facts Estimate Your CP ____________ X ________ = ________ - ________ = _________ Monthly Basic Pay (Over 12 Amount) 2.5 Gross CP Net CP (what you take home) What Is Continuation Pay (CP)? • A mid-career, one-time pay out to service members enrolled in the Blended Retirement System at 12 years of service, based on their Pay Effective Base Date (PEBD) • Active Component (AC): CP = 2.5 times one month's basic pay • Cannot elect after 12 years of service • Must commit to an additional 48 months of service which can be served in concurrence with other service commitments • CP is in addition to any other career field-specific incentives or retention bonuses Carefully choose which installment plan is right for YOU! Understand that CP is TAXABLE – subject to both Federal and State Income tax liabilities. Continuation Pay Timeline CP Eligibility Notification You MUST elect to receive CP PRIOR to completing your 12 th Year of Service and be enrolled in the BRS Prior to completion of 12 th Year of Service Continuation Pay Received Approximately 180 Days before completion of the 12 th year of Service Complete documentation of service commitment through unit administration 1 st Pay Period AFTER completion of the 12 th Year of Service and providing documentation of service committment Taxes (Federal & State) Members who do not complete their obligated service are subject to repayment provisions Section 373 of Title 37, U.S.C., and the DoD Financial Management Regulation, Vol 7A, Chapter 2. Continuation Pay Payment Options for Continuation Pay Payment Options: Members can choose between a lump sum payment or spread the bonus in equal installments over a two to four year period according to the chart below. INITIAL YEAR YEAR 2 YEAR 3 YEAR 4 100% 0 0 0 50% 50% 0 0 33.34% 33.33% 33.33% 0 25% 25% 25% 25% Reserve Component (RC): CP = 0.5 times one month's basic pay • 0.5 (Reserves)

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