Members who entered the service after July 31, 1986 are given a choice of two retirement plans when they reach their 15th year of active service:
- High-3 Year Average
- Career Status Bonus (CSB)/REDUX
Military members who elect CSB/REDUX are eligible to receive a $30,000 bonus when they reach their 15th year of active service but will also have their retired pay calculated at a reduced rate.
CSB/REDUX is a two-part deal. It includes the $30,000 bonus, but also results in a reduced retired pay. While the $30,000 Career Status Bonus may seem like an incentive now, it is important to be aware of the effects electing to retire under CSB/REDUX will have on your retired pay.
CSB REDUX Retired Pay Calculation
Your monthly pay may differ from the calculator’s estimate. The formulas used to calculate retired pay are complex and differ depending on individual circumstances.
CSB/REDUX Retirement Calculator
Non-Disability retirees will have their percent multiplier reduced by:
- 1 percent for each full year of creditable service less than 30, and
- 1/12th of 1 percent for each full month of creditable service less than a full year.
This will also affect your retired pay by reducing the cost of living adjustments (COLA) by one percent.
This reduction remains in effect up to the age of 62. Once you reach age 62, your retired pay will be restored to the same amount paid under the High-3 System. Full COLA rates will be applied to your new computation, but the COLA will continue to be applied at the reduced rate each year following.
Disability Retirees and Reserve/Guard members retiring at age 60 (or younger in some cases) are exempt from all provisions of the CSB/REDUX provisions except the 1 percent COLA reduction.
Read more about CSB/REDUX on the OSD website.
SBP participants who elected CSB/REDUX reduce their gross pay, which is used to compute your premium for SBP coverage. This may cause reduced coverage to your SBP beneficiary, so CSB retirees are offered additional SBP coverage based on their unreduced gross retired pay.
This coverage would be computed as though you had NOT selected CSB/REDUX and would provide a higher annuity base amount.
Married members who do not choose unreduced coverage for their spouse (or spouse and child) are required to provide spousal concurrence. Election for Natural Interest Person coverage must be at the unreduced level of coverage.
Survivor Benefit Plan
Page updated December 28, 2015