TERA UPDATE 01:
Public Law 102-484 granted temporary authority
for the
>> military services to offer early retirements to members with more than
15
>> but less than 20 years of service. The retired pay was calculated in
the
>> usual way except that there was a reduction of 1% for every year below
20
>> years of service. Part or all of this reduction can be restored at age
62
>> if the retired member works in a qualified public service job during
the
>> period from the date of retirement to the date on which the retiree
would
>> have completed 20 years of service. Unlike members who leave military
>> service before 20 years with voluntary separation incentives or special
>> separation benefits, these early retirees are generally treated like
>> regular military retirees for the purposes of other retirement
benefits.
>> This authority expired on 1 SEP 02. As of 30 SEP 06 & 07, there
were
>> approximately 58,000 TERA retirees receiving retired pay. In FY 2006,
>> TERA
>> retirees were paid approximately $769 million in 2006 and $841 million
in
>> 2007. [Source: DoD FY07 Military Retirement Fund Audited
Financial
>> Statement 30 Nov 08 ++]