Dave Smith wrote:
> On 2019-03-05 4:10 p.m., graham wrote:
> > How come he was homeless after retiring form the Coast Guard. Don't
> > they get pensions?
>
> From what I could find out, the full pension is 50% of their pay, but
> they have to have 20 years service. It seems that anyone who has
> spent any amount of time in the military gets to be called a veteran.
> This guy was apparently in the CG and then, while volunteering,
> someone hired him and he started as a dishwasher. One might expect
> anyone who had a career in the CG would have had a trade of some
> sort. While working in the restaurant he screwed up one of their
> trademark dished and there was some serendipitous results.
Correct Dave. A veteran is someone who served. An Hpnorable vet got a
good conduct discharge. A retired Vet (will have a good conduct
discharge) served 20 or more and gets a portion of their actual active
duty 'pay'. How much depends on how long they served and when they
entered.
Example: I came in in 1983. I was delayed entry to a year which
counted then towards 'years' but only for increments of pay. An E7
with 10 years of service makes less than an E7 with 20. If an
increment would kicl over at say 10 years, I got it with actually only
9 years in service. My deal then was 50% at 20 years then a prorated
increment higher per year over 20. I think it was 2.5% base pay per
year. Now it's 40% base pay at 20 but the increment for years over 20
is something like 3.5% so if you do 30 years, it's 75% of base pay. I
am at 65% of base pay.
Note I mention base pay. Military get all sorts of things that aren't
base pay, like a housing allowance based on where you are stationed and
the local costs, clothing allowances (enlisted only), sea pay, special
duty pays for certain jobs and so on. Those things do not carry over
to retirement but but generally offset costs just enough to keep us off
foodstamps while active duty. Without them, try living in Japan with
no free housing available on a 1500$ a month takehome pay.
Free housing is a misnomer BTW. Generally there is room for 20% at
best in any area to get in it (and of course, you don't get the housing
allowances if in it which are calculated to be no more than 80% of the
local cost).
So some brass tacks added. Congress seems to mandate Retired Vets only
get *at most* 1% less cost of living increase from the actuve duty. So
if Active duty get 2% in a particular year, Retired vets get 1% if
lucky. Slowly, they slip behind the ball curve. Don is now about 28%
behind on COLA raises. His 22 years of service yields less than
minimum wage today. Without me and my income, he'd be homeless and
that includes his Social Security which was based on his 'base pay'.
We aren't whining. We both chose to serve and had a good time in our
military years even if finances were thin. We get it though how even a
person pulling military 'retirement' money can go homeless.
Yes, that 'military retirement income' is taxable as is social security
though some states don't tax it. Federal still does.