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The following is an exerpt from a Naval News Service message released by the Chief of Naval Personnel Public Affairs Office. The subject line is "CSB and Redux: Immediate Gratification or Long-Term Financial Stability?"

Wasington (NNS) - Reverting to Redux for retirement and receiveing a Career Status Bonus (CSB) is an option Sailors and officers who entered the Navy since 1986 are being offered; however, Sailors may want to study long and hard before deciding if it is right for them.

Informing Sailors and their families of this option and its long-term benefits gives them the necessary information and tools to make the right decision for their future. As of February 15, 2002, only 5.2 percent of eligible officers and 23 percent of elibible enlisted Sailors have elected to take CSB and reduce their retirement pay with Redux
(emphasis added).

"Excellent counseling, financial management training, and command leadership had led the majority of Sailors choosing to remain under the usually more lucrative High-Three retired pay system," said Vice Adm. Norb Ryan, Jr., Chief of Naval Personnel. "Though the bonus may be enticing in the short run, long-run benefits must be seriously looked at before taking this option."....

"None of us should be living payday to payday, especially in retirement. When our Sailors retire from the Navy after a 20-year career, we want to make sure they have a solid financial plan that meets their long-range goals," said Senior Chief Journalist (SW/AW) Gregg Snaza, Operations Department Leading Chief Petty Officer and Public Affairs Officer for USS Kearsarge (LHD-3). Educating our Sailors on retirement benefit options is a major element of our financial education program in Kearsarge," he added. Snaza explained that the philosophy on the deck plates is that the success on board ship is directly proportional to command leadership. Leadership involvement is essential to giving Sailors the best information to base life-long decisions.

Chief Aviation Support Equipment Technician (AW) Maryella Mitchell decided to stay with the High-Three Retirement pay when offered CSB and Redux. "I saw that it would pay me more to have half my basic pay when I retire ... My chain of command, career counselor, word of mouth and Redux literature were all information resources. I was able to make the right decision for me when the program was offered. Even more than the idea of receiving 50 percent of my pay at retirement through High-Three, as opposed to 40 percent through Redux, I was persuadeed by the reduced cost-of living adjustment offered by Recus," said Mitchell...

Sailors should thoroughly review their financial needs and long-term goals before opting for CSB and Redux....


Considering that the initial Navy Times estimate was that 42% of officers and 48% of enlisted planned to take the bonus, I think that figures of 5% and 23% respectively are very encouraging.

Mike L.
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...Sailors should thoroughly review their financial needs and long-term goals before opting for CSB and Redux....

Considering that the initial Navy Times estimate was that 42% of officers and 48% of enlisted planned to take the bonus, I think that figures of 5% and 23% respectively are very encouraging.

Mike L


Thanks for the info Mike, I'll pass this on to Jeff in the local Navy recruiting office. I pass anything I see useful to all the pertinent service branch offices here.

Tigerman
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Hey Mike L.

I agree that the numbers are encouraging. However, here in the ground pounder part of the world I think that a lack of notification is a prime reason. I work in the Transition center and I get about 5 calls a week from people who went over 15 years this year, but were not notified. (I know, it was on their LES, on AFRTS news spots, in the base newspapers, and in a bunch of other forums, but the info often doesn't get to where it should be.) I've figured out where to send them, but only after showing them a slide showing the difference between payments and emphasizing the loss of 1%.

fredinseoul
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Mike,

Thanks for posting that info! The low percentages (of those opting for the "bonus" that isn't) are encouraging -- I remember that article that gave the projections you listed, and it's great to see that they haven't come true. One thing to clarify is that it wasn't a Navy Times estimate but rather an official Pentagon one.

Not sure whether the low numbers are due to a lack of information promulgation...the chain of command and word of mouth factors are playing a role as well.

The disparity between officer and enlisted bothers me -- why do you think there's such a gap? Is it because among our enlisted troops there are still too many short-term pulls on their finances? 1 of 5 eligible isn't bad, and hopefully as time goes on that number will decrease -- the same way that the value of the fixed amount of $30K is decreasing each day (but don't forget folks, you pay it back with a percentage of your retirement, which will automatically adjust for inflation. Thoughtful of our congressional staffer friends, huh?).

frog6
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