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Career Status Bonus (CSB)

Hot Topics: | Career Status Retention Bonus (CSRB) | When can I reenlist? | QSP | IMREPR Codes | Voluntary Separation

Before you consider CSB/REDUX, read this! Redux retirement: $30,000 'loan' costs you $390,000

Those members who elect the CSB/REDUX retirement system at their 15th year of service receive a $30,000 Career Status Bonus.

To receive this bonus, the member must agree to complete a twenty-year active duty career with length-of-service retired pay under the 1986 Military Retirement Reform Act -- 1986 MRRA or REDUX.

Note: Fill out the Career Status Bonus (CSB) Election form and bring to your personnel service/S-1 office.

You may be eligible to elect a Career Status Bonus (CSB). To be eligible, you must:
(1) Be on active duty,
(2) Complete 15 years of active duty service,
(3) Have a DIEMS of August 1, 1986 or later, and
(4) Qualify under Service regulations for retention to 20 years of active duty service.

CSB/REDUX Retirement System

The Military Reform Act of 1986 created the REDUX retirement system and it applied to all members who joined on or after August 1, 1986. The National Defense Authorization Act (NDAA) for FY2000 amended this system. The NDAA made two major changes: 1) it allows those in this group to choose between the High-3 retirement system and the REDUX retirement system and 2) it added a $30,000 Career Status Bonus as part of the REDUX retirement system.

The CSB/REDUX retirement system applies to those who entered Service on or after August 1, 1986, AND who elected to receive the $30,000 Career Status Bonus at their 15th year of service.

The REDUX retirement system and Career Status Bonus is a "package deal." It is the combination of these two items that can be advantageous to many individuals. The REDUX portion determines retirement income (the longer one's career, the higher that income) and the $30,000 Career Status Bonus provides current cash---available for investing, major purchases, or setting up a business after retirement.

REDUX System Details

The REDUX multiplier calculation and annual cost of living adjustments differ from the other systems. Also, REDUX has a catch-up increase at age 62 that brings the REDUX retired pay back to the same amount paid under the High-3 System. REDUX is the only military retirement system with a readjustment feature.

Each of the first 20 years of service is worth 2.0% toward the retirement multiplier. But each year after the 20th is worth 3.5%. Hence, 2.0% x 20 years = 40%. But a 30-year career is computed by 2.0% times the first 20 years plus 3.5% for the 10 years beyond 20, resulting in the maximum of 75%. The table below summarizes the initial multiplier at various years of service under REDUX.

For more specifc information on the CSB/REDUX Retirement System, go to: http://militarypay.defense.gov/retirement/ad/04_redux.html



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