Calculating your compensation & retirement

Calculating your compensation & retirement

Navy Life… Getting Better Every Day

* REDUX retirement plan repealed. Now every service member can retire at 50% f base pay under either the Final Pay or High-3 retirement plans. Both of these plans include full cost of living allowance (COLA) increases.

* Expanded selective re-enlistment bonus (SRB) eligibility and amounts.

* The new Thrift Savings Plan offers participants the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

* Lifetime medical treatment and prescription drug coverage is now guaranteed to military retirees under on overhauled TRICARE program.

* Reduction of out-of-pocket housing costs from 19% in 2000 to 11% in 2002, with a commitment to completely eliminate them by 2005.

* Commanding officers now have the authority to cut one year from the advancement cycle for outstanding E-5s and E-6s.

* Revamped focus on career planning through Project Sailor

* The Navy’s new Customer Service Center will provide timely and accurate information to sailors and their families on a wide variety of subjects. Call 1-866-U-ASK-NPC (827-5672).

* Eliminated a number of major inspections to reduce sea time between deployments.

Is the Grass Greener on the Other Side?


* Responsibility comes earlier

* Mission-oriented focus

* Attend schools while drawing full pay

* Camaraderie and esprit de corps

* Predictable promotion & advancement

* Job security

* Generous retirement plan


* Responsibility comes later

* Profit-driven focus

* Limited educational opportunities

* “Dog eat dog” mentality

* May have to request/negotiate promotions

* Could get “pink slipped” anytime

Did You Know?

* 66% of Social Security beneficiaries over 65 derive at least half of their income from Social Security.

* Only 13% of all 401(k) plans are valued at more than $100,000.

Myths About Civilian Life

“Civilian medical care is better.” — TRICARE is very similar to civilian HMO care plans except that the Navy does not deduct a co-share payment each month. In the military, most prescriptions are provided free, and there is a $1,000 per year catastrophic cap on medical costs not covered under TRICARE for your protection.

“Affordable insurance is available everywhere, and my next job will offer a disability plan.” — Up to $250,000 of level-term Serviceman’s Group Life Insurance (SGLI) coverage is available to service members regardless of age, occupation or pre-existing health conditions. Military personnel are provided with long-term disability coverage at no charge while fewer than 55% of full-time civilian employees are covered by even a short-term disability plan. Additionally, while Navy retirees enjoy available medical benefits, fewer than half of the largest civilian employers offer medical insurance to their retirees.

“Most companies offer a pension, so I don’t need the Navy retirement.” — While approximately half of all full-time employees in medium to large companies participate in a pension plan, only 3% of those employees may retire under age 55 with less than 30 years of service. The Navy fully funds a retirement plan that features no pay deductions for its members. Additionally, only 3% of civilian retirement plans feature automatic COLA increases to protect retirees against inflation. 100% of Navy retirees receive COLA increases.

“Once I get out of the Navy and start a 401(k), I’ll be set for my retirement years.” — In fact, only 35.8% of all full-time employees participate in tax-deferred savings plans, such as the 401(k), where you put money away for retirement and employers help with matching contributions. The Navy fully funds your retirement, with no reduction based on your age.

“As a civilian, I won’t have to stand watch, work late or move any more.” — If you’re willing to accept a relatively low-paying job with little responsibility, this is probably true. If, however, you are interested in better pay, more responsibility and regular promotion opportunities, you can expect to put in extra hours and to relocate from time to time. Salaried employees in supervisory positions routinely work more than 40 hours a week, are often tied to cell phones and beepers 24/7, and usually without any additional compensation. Additionally, few companies offer 30 days of paid vacation each year.

Leisure & Recreation Benefits

Sailor Civilan

Fitness center or gym Free or affordable Expensive

Swimming pool Free or affordable Expensive

Golf Affordable Expensive

Movie/theme park/concert tickets Deep discounts Fewer discounts

Equipment rental Affordable Expensive

Median Monthly Gross Earnings for Various Civilian Jobs

All White Collar $3707

Engineers/Architect $4630

Physician $6730

Registered Nurse $4024

High School Teacher $3844

Social Worker $2442

Clinical Technician $2832

health Technician $2620

Electronic Technician $3097

Computer Programmer $3579

Legal Assistant $3304

Training Specialist $3524

Purchasing agent/Buyer $4312

Management Related $3714

Wholesale Sales Rep. $3338

General Office Supervisor $3207

Distribution Supervisor $3342

Computer Operator $2520

Personnel Clerk $2439

Insurance Adjuster $2586

Secretary $2583

All Blue Collar $2527

Precision Production $3083

Electronic Repair $2946

Heating/AC mechanic $2829

Electrician $3435

Production Supervisor $3431

Machinist $3520

Welder and cutter $2959

Assembler $2252

Bus Driver $2461

Material Moving Sup. $3701

Police and Detective $3243

Correctional Officer $2633

Food Service Supervisor $2425

Health Aid $1797

Cleaning Service Sup. $2141

Child Care Worker $1432

Automobile Mechanic $2884

Electrician Supervisor $4425

Industrial Equip. Operator $2453

Construction Laborer $2153

Median earnings taken from the 1998 Bureau of Labor Statistics, National

Compensation Survey assuming a 40-hour work week in theWashington

DC/Baltimore area.

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COPYRIGHT 2002 U.S. Navy

COPYRIGHT 2004 Gale Group