Life After the MiLitAryMiLitAry

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our Mission

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What you should Know 2An introduction

A new Career 4Choosing and searching for your desired job

enhancing your education 7Education counseling, financial aid and other matters

relocation 8Understanding available services

Assessing finances 9Developing a financial strategy for your transition

transition Countdown 14Keeping up with details

Civilian Life 16Learning from your experience

tAbLe of ContentsOctober 2010

2

Whatever your rank or length of service, you have invested yourself in the armed services and have grown accustomed to the military’s unique lifestyle. Leaving the military involves decisions and activities. With preparation, you can enjoy a smooth transition and many rewarding years as a civilian.

talk to othersUpon leaving the military, some individuals experience a sense of instability, a lack of confidence or self-esteem and loneliness. Remember that you are not alone. Contact former servicemembers who are pursuing civilian careers and ask about their experiences. They can become helpful sources of support and advice.

Prepare MentallyThink about the differences between military and civilian life. Consider how the change will affect you and your family:

What aspects of military life will you miss?•What aspects of civilian life are most exciting to you?•After the discipline of military life, how will you respond to a less structured civilian life?•If you have lived on military installations, how will you adjust to apartment or neighbor-•hood living?

How will you stay in touch with military friends?•Will your spouse need to find or change jobs? •Will your children need to change schools?•

be healthyTo help maintain emotional balance throughout your transition, you and your family should establish and maintain healthy routines including the following:

Get plenty of rest. Maintain a regular sleep schedule. •Exercise regularly. Continue to stay physically fit.•Eat well. It is important to eat regular, nutritious meals. •Continue social and family activities. Family and friends can provide needed support.•Schedule personal time. Each family member needs time for something just for them.•

WhAt you shouLd KnoW

3

seek helpIf stress becomes unmanageable during your transition, seek help from the following sources:

Military Family Support Services. Active military bases offer an Army Community Service •Center, Marine Corps Community Service Center, Navy Fleet and Family Support Center or Air Force Family Service Center — all of which offer similar services.

Military clergy members and enlisted religious support personnel.•Your state’s Department of Social Services or Department of Public Health.•Community resources such as United Way funded agencies, the Salvation Army or the •YMCA/YWCA.

A local place of worship.•The self-help section of a nearby library or bookstore.•

4 A neW CAreer

Even though you have gained knowledge, training, and skills that civilian employers value, it may take some time to find the job or career that is right for you. The Department of Defense offers a Transition Assistance Program (TAP) to help guide you through this process.

TAP services include comprehensive coaching and instruction in the following areas:

Transition planning.•Career assessment.•Resumé, cover letter and job application preparation.•Job interview techniques.•Job search techniques.•

Contact a military transition center at least 12 to 18 months before your separation or retirement date. To locate a transition center near you, visit www.turbotap.org. Do not hesitate to ask questions or consult your transition center as often as necessary. For detailed TAP information, visit the U.S. Department of Labor at www.dol.gov/vets/programs/tap/main.htm.

Choose A CareerDetermine the type of job or career you want to pursue and the level of income you need. You should select something that is a good fit based on your military experience, education level, skills and personality. Consider your strengths and what type of work most interests you:

What do I want to do?•What are my skills?•What industry or type of employer interests me?•Where do I want to live and work?•

To better understand your talents and interests and the types of jobs that match them, you may wish to consult career guides, complete online career assessments, attend veteran’s job fairs or work with a career counselor. They can help as you define goals and narrow your choices.

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Create A resuméA resumé is often your first introduction to a prospective employer. Create one that clearly demonstrates how your experience and abilities apply to the job you are seeking.

Sometimes it can be difficult to communicate military job skills in terms a civilian employer can appreciate. Avoid using military service titles, jargon and acronyms. If some aspects of your military experi- ence are classified, ask your transition office for appropriate ways to convey that experience.

networkBecause many positions are filled without employer advertising, you should ask people you know for help in your job search. Make a list of family members, friends, fellow servicemembers and other individuals who might be able to help you with the following:

Advise you about a company or industry. •Introduce you to others in a company or an industry. •Help you find job leads. •

To broaden your network, join appropriate professional organizations and get to know individuals who work in your chosen field. The following military support and veteran’s service organizations also offer oppor-tunities to network:

Military Officers Association of America, www.moaa.org.•The Retired Enlisted Association, www.trea.org.•Non-Commissioned Officers Association, www.ncoausa.org.•Marine for Life, www.m4l.usmc.mil.•Army Career and Alumni Program, www.acap.army.mil.•

resuMé tiPs

Keep it short, pref- •erably no more than two pages.

Use action words to •describe your skills and abilities.

List your experience in •chronological order.

Make sure there are no •typos or grammatical errors.

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Conduct A Job searchApproach your job search as if it were a work project. Maintain a weekly schedule that includes the following activities:

Searching the Internet or classified ads for opportunities.•Researching companies of interest. Do not overlook employment opportunities at nonprofit •organizations, schools, hospitals and small businesses.

Making phone calls or personal visits to prospective employers.•Participating in professional associations related to your desired field.•Writing letters and completing job applications.•Interviewing.•Completing administrative activities.•Attending veteran’s job fairs.•

other ConsiderationsIf you start your own business, you should develop a solid business plan. Contact the U.S. •Small Business Administration at www.sba.gov for loan assistance.

If you apply to work with the federal government, you may receive preferences and benefits •associated with your military service. Consult your transition office for specific application instructions.

If you are unable to find a job after your separation date, you may qualify for Unemploy-•ment Compensation for Ex-servicemembers (UCS). For information visit the U.S. Depart-ment of Labor at www.workforcesecurity.doleta.gov/unemploy/ucx.asp.

be Confident Many companies value military experience and seek opportunities to hire former servicemembers.

You have been held to high standards of performance and behavior throughout your •military career.

You have been trained to succeed in stressful, high-pressure situations.•You understand time and task management and customer satisfaction. •You may have acquired security clearances essential for many government- and defense-•industry jobs.

You have much to offer as a civilian employee. •

7enhAnCing your eduCAtion

As you transition from a military to a civilian career, you may need additional education or training to reach your work goals. The job market is highly competitive, so college, vocational training or a specialized course can help you earn your job of choice.

Visit your education officeBefore leaving the military, visit your installation’s education office for information on your aca-demic or vocational needs and how to fulfill them. An education counselor can help you with the following:

Determining if you qualify for any education benefits.•Selecting an appropriate academic institution.•Completing necessary enrollment paperwork.•Determining whether portions of your military training may count for academic credit.•Considering non-traditional educational opportunities, such as distance learning or •vocational training.

testing opportunitiesWhile you remain on active duty, you may take the following exams and tests free of charge through your education office:

Academic entrance exams, such as the Scholastic Aptitude Test •(SAT), American College Testing (ACT) Assessment Program or Graduate Record Exam (GRE).

Exams for earning college credits, such as the College Level •Examination Program (CLEP) or DANTES Subject Standardized Tests (DSST).

Licensing or certification examinations for occupational specialties.•

financial AidMilitary veterans and their dependents may be eligible for one of the following assistance programs:

The Montgomery GI Bill — Active Duty.•The Montgomery GI Bill — Selected Reserve.•Veterans Educational Assistance Program.•Survivors and Dependents Educational Assistance Program.•

For details of these programs, visit www.gibill.va.gov.

for More inforMAtion

For additional educational counseling and information, you may consult the veterans counselor at the admissions office of most colleges and universities.

8

Whether you are relocating from overseas or across town, this move is unique. You are moving out of the military into civilian life and it is especially important to understand the services available. Your nearest family support center will be your best source of information and advice.

relocation Assistance ProgramTake advantage of the military’s Relocation Assistance Program (RAP) to begin planning your move to a new home. The program offers counseling and detailed information to help you choose a destina-tion, find and purchase a home and settle into a new community. RAP specialists can provide the following:

Information on your chosen location.•An assessment of what you will need to make this move a smooth one.•Help in developing a relocation plan for your situation.•Referrals to other programs or services as appropriate.•Workshops and counseling on managing relocation stress.•Packets from the chamber of commerce, housing information, child care, school listings •and more.

Where to LiveWhen considering locations, ask these questions:

Do I have nearby family or friends?•Does it offer job opportunities that match my interests and abilities?•Is this location affordable?•Is this location a good fit for my family?•

transportation supportAs soon as you have chosen your new location, schedule an appointment with your installation’s transportation office. Depending on your years of service and type of separation, you may receive support for the following: job- and house-hunting travel expenses; shipping and storage of house-hold goods; and transportation to your new home.

buying A homeIf you are buying a home, consider a Veterans Administration (VA) loan. The Department of Veter- ans Affairs (VA) offers loans to individuals with qualifying lengths of military service, which gener- ally require a funding fee, but no down payment. VA-financed homes must pass property valuations and be your primary residence. Consult your lender or the VA at www.homeloans.va.gov for more information. Some states also have their own veteran home purchase programs. Your financial institution can work with you to apply for a mortgage.

reLoCAtion

9

Financial planning is essential to a smooth transition. Take time to review your financial status and future needs so you can develop a financial strategy to reach your goals. The following steps can keep your personal finances on track through your transition and beyond.

develop A strategyAs soon as you know where you will live and have a sense of what your civilian income will be, complete the following steps:

Estimate your future monthly income and expenses and update your budget and financial •plan as appropriate.

Build an emergency fund of 3 to 6 months of basic living expenses.•Calculate your separation and/or retirement pay.•Review your options with the Thrift Savings Plan (TSP) at www.tsp.gov.•Plan now to establish and contribute to a retirement plan, such as your new employer’s •401(k), 403(b) or an Individual Retirement Account (IRA). Most plans will accept a direct rollover of funds from the TSP.

Review your benefits and insurance coverages.•Consider working with a C• ertified Financial Planner™ (CFP) professional. These planners must pass rigorous tests, meet high standards of professionalism and abide by a strict code of ethics.

Certified Financial Planner™ is a certification mark owned by the Certified Financial Planner Board of Standards, Inc. This mark is awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

retirement from the MilitaryYour military retired income is a valuable retirement asset. It is a defined benefit retirement plan that pays a percent of your active duty base pay for the rest of your life, depending on the retire-ment system applicable to you. The amount is adjusted annually for inflation. There are now three different retirement systems in effect, depending on the date on which you first became a member of the military.

Assessing finAnCes

10

MiLitAry retireMent systeMs

final Paysystem

Applies to members who first entered active duty before September 8, 1980.•To calculate retired income, multiply years of service by 2.5 percent. Multiply the •result by your final base pay. Allowances for housing, subsistence or other special income are not included in any retired income calculation.Under this system, members retiring at 20 years receive 50 percent of their base •pay. Those who serve beyond 30 years will receive 2.5 percent for each year and a longevity increase at 32, 34 and 36 years. This equals, but is not limited to, 100 percent for 40 years.

high-3retire- mentsystem

Applies to members who first entered active duty on or after September 8, 1980, but •before August 1, 1986.Multiply years of service by 2.5 percent, which equals 50 percent at 20 years and •75 percent at 30 years, the same as in the Final Pay System.Multiply the result by the average base pay for the highest 36 months of the service- •member’s career, which typically but not always will be the final 3 years of service.

Csb/ reduXoptionsystem

Three-phased retirement program designed to encourage servicemembers to remain •on active duty past 20 years of service. Results in reduced retirement pay, but it includes a $30,000 Career Status Bonus at the 15th year of active duty.Servicemembers have a choice of High-3 or CSB/REDUX if they entered active duty •after August 1, 1986.At the 15th year of service, these servicemembers have two options:•

Take the pre-1986 High-3 Retirement System.•Receive a one-time lump sum Career Status Bonus and have their retired income •calculated under the new system.

If the servicemember chooses the CSB/REDUX option, two levels of multipliers are used to calculate retired pay.

Each of the first 20 years of service is equal to 2.0 percent.•Each year from 20 to 30 years of service is equal to 3.5 percent.•

A servicemember retiring at 20 years, for example, will receive only 40 percent of base pay in retirement. But the longer the servicemember remains on active duty, the higher the multiple, until retired pay at 30 years equals 75 percent of base pay, the same as under High-3. Consult with your financial planning professional when making this deci-sion to ensure the most appropriate choice.

Career status bonusAlthough retired pay under CSB/REDUX is less than under High-3, the $30,000 bonus payable at 15 years may be a financial incentive to choose the lower retired pay. The $30,000 is subject to federal income tax. To reduce federal income taxes, you can contribute to an IRA if you are other-wise eligible and to the Thrift Savings Plan which is now available to servicemembers.

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Additional informationNational Guard and Reserve duty personnel are eligible for retirement pay after completing at least 20 years of service and reaching age 60. The amount of pay is based on a point system geared to the type of active and inactive duty performed.

Under the Fiscal Year (FY) 2009 National Defense Authorization Act, National Guard and Reserve members with 20 or more years may be eligible to receive retired pay prior to age 60. Retirement eligible personnel are able to reduce their retirement age by three months for every 90 consecutive days spent mobilized. Provisions of the law include:

Involuntary mobilization or voluntary active duty in support of contingency operations, to •include deployment for war or national emergency.

Active duty outside the continental United States is not required.•Training, operational support and school tours are generally included in active duty time.•Law applies to deployed time served after January 28, 2008.•

You will receive retirement income as long as you live. It will be periodically adjusted to the cost of living index. Upon your death, payments to your spouse and children will be made only if you have made arrangements through the Survivor Benefit Plan (SBP) before you retire.

When reviewing projected military retired pay, consider whether you will choose to participate in any military financial programs available to veterans. Allotments for participating in certain pro- grams, such as the SBP, are deducted from your military retired pay. You will need to subtract these payments from the calculated retirement benefit amount.

Remember, too, that the provisions and rules of military pensions and other public sector plans may differ from those of private corporations. You may want to seek legal and tax advice regarding your specific situation.

thrift savings Plan (tsP)Servicemembers have another retirement option. The government-sponsored Thrift Savings Plan (TSP) generally works like a 401(k) plan offered by some civilian employers. You may contribute any whole percentage of your basic pay, bonuses, incentives or special pays, before federal income taxes, up to an allowable maximum. The plan offers a variety of options.

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feAtures of A tsP

You can contribute to the TSP and to an IRA, although your IRA contribution may not be tax-•deductible based on IRS rules.

You can contribute tax-exempt contributions to the TSP while deployed in a designated combat •zone.

You can borrow from your TSP account without penalty; repayments and interest go back into •your account.

As with any retirement account, you are subject to federal income taxes and penalties if you •withdraw your money before you are age 591/2. If, however, you separate from military service at age 55 or older, withdrawals from your TSP are not subject to IRS penalties.

When you leave military service you have several options with your TSP. ••Take the money in a lump sum. •Select an annuity. •Establish monthly payments. •Leave the money in the TSP until you must withdraw at age 701/2.•Roll over into an IRA or other retirement account.

To learn more about the TSP, visit the Thrift Savings Plan Web site at www.tsp.gov.

The Heroes Earned Retirement Opportunities (HERO) Act allows servicemembers to contribute federal income tax-free combat pay to a Roth or traditional IRA.

health insuranceWhen you retire, health care from military facilities may be limited and most retirees will turn to the TRICARE program. Gaps in TRICARE coverage are more significant for retirees and their families than for active duty personnel and out-of-pocket expenses can be much higher.

Medicare-eligible military retirees age 65 and older, their family members and survivors are now covered under the TRICARE program as secondary coverage to Medicare. This is called TRICARE For Life and it restores the military’s promise of lifetime health care for those who retired from military service. Medicare pays first and TRICARE pays second. Medicare-eligible retirees can useTRICARE pharmacy benefits, including military pharmacies, retail pharmacies and the TRICARE mail-order pharmacy. Also, TRICARE will cover most out-of-pocket costs after Medicare has paid its share.

If you leave the military before retirement, you can purchase health insurance similar to TRICARE for up to 18 months for servicemembers and up to 36 months for family members.

13

Life insurance When you retire from the military, Servicemembers’ Group Life Insurance (SGLI) remains in effect at no cost for 120 days. It can be converted to Veterans’ Group Life Insurance (VGLI) without proof of good health within 120 days of retirement, usually with an increased premium. VGLI is renewable term insurance and may be converted to a commercial life insurance policy from a participating company at any time. Check civilian life insurance options to maximize your coverage.

Spouse receives the benefit for life (unless remarries prior to age 57).•Child receives the benefit until age 18 (23 if in school).•Benefit is exempt from federal income tax.•

dependency And indemnity Com-pensation (diC)

survivor benefit Plan (sbP)

No cost while on active duty.•Once you retire you can choose to buy SBP coverage up to certain limits.•Spouse receives the benefit for life (unless remarries prior to age 55).•Reduced by amount of DIC benefit for spouse.•Child may receive benefit until age 18 (unless married or active duty);•

until age 22 (if full-time student).

Benefit is taxable for federal income tax purposes.•

social security survivor benefits (if qualified)

Spouse receives the benefit until youngest child is age 16.•Child receives the benefit until age 18 (19 if in school).•Benefit may be taxed for federal income tax purposes or reduced • de- pending on other sources of income.

AdditionAL surViVor benefits

benefit desCriPtion

review other insurance CoveragesReview your insurance coverages to make sure your family, your assets and your earning potential will be protected from possible loss.

Auto insurance. Requirements vary by state. Most states require you to carry a minimum •amount of liability coverage, and many require uninsured motorist coverage.

Dwelling and personal property coverage is not provided by the military. •Disability insurance. If you will have higher earning potential in your civilian job, you may •need to purchase or increase disability coverage.

To find a trustworthy insurer, consult your state’s department of insurance and industry analyst companies. Look for a record of fair claims handling and review rankings on customer satisfaction and financial security.

14 trAnsition CountdoWn

5 to 6 Months before separationSchedule a preseparation counseling appointment.•Attend a TAP workshop. If disabled, attend the Disabled TAP workshop.•Develop an individual transition plan with the assistance of your transition office or •command career counselor.

Review the Preseparation Counseling Checklist (DD Form 2648), provided by your •transition office.

Begin developing a career plan and researching career options.•Contact your installation’s education office for help assessing your job skills and interests.•Complete a first draft of your resumé.•Review and copy your personnel records.•Start networking for job opportunities and begin attending job fairs.•Begin researching specific job opportunities in the areas you want to live.•Take appropriate academic entry exams or other tests if you are going to continue •your education.

Create a financial strategy for your transition to civilian life. Estimate your monthly income •and expenses and establish a budget and financial plan for your transition.

4 to 5 Months before separationBegin saving to pay for non-reimbursable expenses you may incur during your move.•Seek assistance with transition-related stress, if necessary.•Receive your Verification of Military Experience and Training (DD Form 2586).•Explore special federal programs and federal government hiring opportunities for veterans. •If considering federal employment, consult your transition office for application instructions.

Visit your RAP office for information on relocation options, entitlements and assistance.•As soon as you know your departure date, contact the housing office to ensure a smooth •move out of government housing, if applicable.

Learn about education benefits under the Montgomery GI Bill.•Schedule your separation physical examination.•Learn about your medical care and health insurance options.•

15

3 to 4 Months before separationStart a subscription to a major newspaper where you plan to live. Begin replying to •classified ads regarding employment opportunities.

Send out resumés, and continue to network.•Contact the transportation office to learn about options for shipping and storing household •goods. Find out how much of your personal property will be insured by the moving company. A temporary renters insurance policy is a convenient way to cover the difference.

Obtain and make duplicate copies of your personnel records.•Schedule medical and dental examinations. Review and copy your medical and dental records.•Determine whether you are eligible for separation pay, and consider saving unused leave •time and “cashing it in” to help fund your transition.

Obtain free legal advice through your transition office if you would like to prepare and •execute a will or have other legal questions.

2 to 3 Months before separationVisit the area to which you plan to relocate. Schedule job interviews. Visit a private •employment agency or executive recruiter.

Review your Certificate of Release or Discharge from Active Duty (DD Form 214).•Ask your local VA office about special loans and programs for veterans.•Ask your local state employment office whether you will qualify for unemployment •compensation once you are a civilian.

Decide whether to sign up for optional Continued Health Care Benefit Program (CHCBP) •medical coverage.

Ask your local transition office about completing your Veteran’s Affairs Disability •Application (VA Form 21-526).

Review insurance needs and make appropriate changes.•Learn about resources available through military Wounded Warrior programs.•

1 Month before separationRevisit your monthly income and expenses and update your budget and financial •plan accordingly.

Continue your job search if necessary.•Review your transition countdown “to do” list to ensure everything is in order.•

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Civilian Life When you become a “civilian” again, stay in touch with your military friends and connected with the military community. Showing support for those serving in the military will continue to provide you with a great sense of patriotism and keep you connected to the life you once led.

You should also open yourself up to your new life and get involved in activities and organizations within your new community. This will provide a valuable opportunity to make friends and establish new support systems as you transition into civilian life.

Once your transition is complete and you are settled into civilian life, think about your transition experiences. Write down what you learned and set aside your notes for future reference. Refer to them when you start planning your transition into civilian retirement. Although this transition will differ in many ways from your military separation, or retirement, there will be important similarities.

Continuing to serve Upon leaving the military, you may miss the sense of fulfillment you gained from serving your country. Consider volunteering for charitable, religious, educational or other organizations that may provide opportunities to give of yourself in other ways. The leadership, discipline, honor and commitment you have gained through military service will be valued by many.

CiViLiAn Life

resourCes

PLAnning your PCs (#598)

buiLding And MAintAining good Credit (#536)

finAnCiAL PLAnning And goAL setting (#511)

MAKing Money WorK for you (#523)

PLAnning for retireMent (#508)

Auto insurAnCe (#526)

hoMeoWners insurAnCe (#558)

heALth insurAnCe (#545)

Life insurAnCe (#507)

buying or refinAnCing A hoMe (#502)

seLLing A hoMe (#519)

PLAnning A MoVe (#509)

Choosing A heALthy LifestyLe (#546)

bALAnCing fAMiLy And CAreer (#529)

ChAnging Jobs (#532)

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