Hpsp fast retirement

[CLAUdetteher]

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I was wondering if you could get 20 “good” years in less than 20 years? If so what can I do to get enough points to make this happen? I actually don’t care about the money of retirement I just want to retire fast. AF hpsp

 

[backrow]

You can’t get more than one years credit in any one year, so there really isn’t a “fast” way to get to 20, you simply have to do 20 years.

Now, there is a way you could cut it to 16 after medical school graduation and that would be so HPSP, do your active time and then transfer to the Selected Reserve in a critical wartime specialty. If you do that you could get retroactive credit for your 4 years in HPSP (credited as 50 points for each year) and theoretically retire out of the Reserves at 16 years after medical school. You’d then have to wait until age 62 (or whatever it is) to collect any retired pay and since you don’t care about the money the likely small check wouldn’t be an issue.


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[USArmyHPSP]

If you do that you could get retroactive credit for your 4 years in HPSP (credited as 50 points for each year) and theoretically retire out of the Reserves at 16 years after medical school.

@backrow - Not to be argumentative, but I've always heard that you need to retire at 20 (with 50 points for Reserve years) and THEN they can add on the four years for HPSP or USUHS giving you 24 years at 20. You can't retire at 16 with 20. This seems to be what it says in
Title 10 Title 10 › Subtitle A › Part III › Chapter 105 › Subchapter I › § 2126 (6).

 

[Gastrapathy]

There is a deal in the Navy that allows you to count the years early if you are in a critical wartime specialty. He's right.

 

[John1513]

@Gastrapathy may you please elaborate more?

 

[backrow]

Instruction:

https://mccareer.files.wordpress.co...olarship-and-financial-assistance-program.pdf


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[j4pac]

OP...FYI

 

[DrMetal]

I was wondering if you could get 20 “good” years in less than 20 years? If so what can I do to get enough points to make this happen? I actually don’t care about the money of retirement I just want to retire fast. AF hpsp

Never mind doing 20. If you're HPSP, you can invest in the blended retirement system, and 'retire' at the 8-, 10-, or even 12-year mark. This might be lucrative even for primary care specialties. The blended retirement system is going to essentially kill the MC....but then again, I don't think the inventors of the blended system cared all that much about it's effect on the MC!

 

[armytrainingsir]

Backrow, thanks for the link.

That has been policy for 18 years and this is the first I’ve seen or heard of it.


Anyway, it’s not that you are getting a 16 yr retirement, it is just now the Army recognizes those four years you did in the reserves as a medical student.

I always thought it was cheesy none of that time counted. Finish Medical Officer Basic and a couple of ADTs and they don’t count? In uniform and subject to UCMJ? And not count it? That was a sucky policy. Nice they fixed it.

 

[LTC Rob]

So, I'm coming from the back end on this policy...
I've done my 4 years of HPSP in 96-2000.
I've done 18 years active duty until now.
So, if I get out of active duty Army now and go into the Reserves as a critical war time specialty for just one year, I would retire?
Do they match year for year or do they just apply the full 4 year amount even if you sign up for only, say one year?
I'm guessing I would then NOT draw until 60 years of age as that is the Reserves retirement plan, but at least I would retire two years early from active duty?

You wouldn't believe how many docs in the Army don't understand this policy!

 

[usma05]

My understanding the last time i read it was each of your hpsp years was activated for each reserve year you did. Thus for my situation...i could get out at 13 yrs, pull 4 years reserve, and get 4 years credit for 21 years total but if i only did 3 reserves then i would only get 3 credit and put me at 19 instead. Basing this of someone else's experience in my current department and reading regs...please let me know if I'm wrong.

On another note, you can work for 2 pensions if you grab a reserve retirement and gain federal employment (e.g. MEDCEN contract or VA doc). Federal law allows it with a reserve retirement but not an active duty one. Combine that with better pay, fewer hours, less admin b.s., more retirement fund matching, acess to TSP and TSP catchup if you stsy in long enough and i don't see why anyone stays in 20 active for the retirement.

 

[usma05]

The caveat to all this is you better enjoy or be able to tolerate government work and all the layered beaurcracy that comes with it.

My understanding the last time i read it was each of your hpsp years was activated for each reserve year you did. Thus for my situation...i could get out at 13 yrs, pull 4 years reserve, and get 4 years credit for 21 years total but if i only did 3 reserves then i would only get 3 credit and put me at 19 instead. Basing this of someone else's experience in my current department and reading regs...please let me know if I'm wrong.

On another note, you can work for 2 pensions if you grab a reserve retirement and gain federal employment (e.g. MEDCEN contract or VA doc). Federal law allows it with a reserve retirement but not an active duty one. Combine that with better pay, fewer hours, less admin b.s., more retirement fund matching, acess to TSP and TSP catchup if you stsy in long enough and i don't see why anyone stays in 20 active for the retirement.

 

[pgg]

i don't see why anyone stays in 20 active for the retirement.

Well there's that "totally free of the government at a young age, except for the burden of accepting direct deposit retirement checks at that young age" thing.

 

[backrow]

Well there's that "totally free of the government at a young age, except for the burden of accepting direct deposit retirement checks at that young age" thing.

I look at it as a way to be extremely flexible in choosing my next job at the old age of 46. Want to work academics and take the “academic pay cut”?? Well not as big a deal when you’re making 50-60k/yr just for waking up. Want to take a part time job and work 3 days a week? Awesome, you’ll probably make more than you did working 5-7 days a week on active duty. Want to just retire to the mountains and live in a cabin? Well you could do that too.

Staying to 20 certainly has its disadvantages too, but for some it makes sense.


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[pgg]

I look at it as a way to be extremely flexible in choosing my next job at the old age of 46. Want to work academics and take the “academic pay cut”?? Well not as big a deal when you’re making 50-60k/yr just for waking up. Want to take a part time job and work 3 days a week? Awesome, you’ll probably make more than you did working 5-7 days a week on active duty. Want to just retire to the mountains and live in a cabin? Well you could do that too.

Staying to 20 certainly has its disadvantages too, but for some it makes sense.

It's a great FU account. Will never feel obligated or pressured to stay in a lousy job or location because the bills have to be paid.

Also, healthcare insurance. Having it as a retiree can change the math for choosing between W2+benefits vs 1099 positions. I'm not exactly sure how to value Tricare as a retiree, but it's not worth nothing, and might be worth a lot. Healthcare premiums for a couple in their late 40s and 50s, plus or minus some kids on the ticket, can easily get well into five figures ...