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Old 12-09-2009, 10:08 AM
Lumber Joe Lumber Joe is offline
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Join Date: Apr 2009
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Default High-3 Year Average or Redux?

I am trying to figure out which military retirement plan do retirees prefer: High-3 Year Average or Redux? I personally prefer High-3 Year Average, since it has higher replacement ratio.

High-3 Year Average plan is applicable to individuals that joined the army after September 8, 1980 and served at an active duty for at least twenty years as in the case of Final Pay plan. The basic variables that you need to enter into the military retirement calculator are age of an individual, number of active years at the army and base pay as in the case of Final Pay plan, but with the difference that in case of High-3 Year Average plan as base pay the average base pay for those 36 months in individuals career that paid the highest base pay is used.

Redux plan is applicable to individuals that joined the army after August 1, 1986 and served at an active duty for at least twenty years as in previous two plans. Under this plan one time fixed premium of $30,000 is also input into the military retirement calculator. You need to take into consideration that this sum of money can be deposited in an offshore banking institution and can earn interest income.

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What is your opinion?

Last edited by Lumber Joe; 01-05-2010 at 10:33 AM.
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