R 071029Z JUL 10
UNCLASSIFIED//
MARADMIN 372/10
MSGID/GENADMIN/CMC WASHINGTON DC MRA MM//
SUBJ/FY10 UPDATE ON CAREER STATUS BONUS (CSB) REDUX//
REF/A/MSGID:MSG/CMC/280729ZNOV2007//
AMPN/IS MARADMIN 699/07, CAREER STATUS BONUS (CSB) REDUX.//
POC/A. B. WILSON/MAJ/UNIT:MMSR/-/TEL:703-784-9304//
GENTEXT/REMARKS/1.  AS A RESULT OF THE FY 2000 NATIONAL DEFENSE AUTHORIZATION ACT, MEMBERS WHO ENTERED SERVICE ON OR AFTER 1 AUGUST 1986 HAVE A CHOICE, UPON COMPLETING 15 YEARS OF ACTIVE SERVICE, BETWEEN RETIRING UNDER THE "HIGH THREE" SYSTEM OR UNDER THE CSB/REDUX SYSTEM.  THE DECISION TO ELECT CSB/REDUX IS IRREVOCABLE. UNDER CSB/REDUX, A MARINE RECEIVES A ONE TIME BONUS OF THIRTY THOUSAND DOLLARS (LESS APPROX. 7,500 DOLLARS IN FEDERAL TAXES), BUT EXPERIENCES REDUCED RETIREMENT INCOME FOR LIFE.  REFERENCED REPORTS IN THIS MARADMIN SPECIFICALLY COMPARE THE TWO RETIREMENT PLANS AND DETAIL THE POTENTIAL REDUCTION OF AT LEAST 300,000 DOLLARS IN RETIREMENT COMPENSATION OVER A LIFETIME--THROUGH AGE 79--IF CSB/REDUX IS ELECTED.  FOR THOSE WHO LIVE PAST 79, THE LOSSES ARE EVEN GREATER.
2.  AUGUST 2001 MARKED THE INITIAL OPPORTUNITY TO ELECT CSB/REDUX. MARINES STARTED RETIRING UNDER CSB/REDUX IN AUGUST 2006.  WHEN FIRST ESTABLISHED, THE MARINE CORPS "TAKE RATE" FOR CSB/REDUX WAS IN THE VICINITY OF 60 PERCENT OF THOSE APPROACHING 15 YEARS OF SERVICE.  A STEADY DECLINE IN THE TAKE RATE OCCURRED OVER THE NEXT 8 YEARS. THROUGH THE END OF SEPTEMBER 2009, THE TAKE RATE FOR THE MARINE CORPS DECREASED TO UNDER 18 PERCENT.
3.  THE PURPOSE OF THIS MARADMIN IS TO ENSURE MARINES ARE COGNIZANT OF THE EFFECT THAT ELECTING CSB/REDUX HAS ON FUTURE RETIREMENT INCOME.  THE COMMANDANT OF THE MARINE CORPS HAS DIRECTED IMPLEMENTATION OF FURTHER EDUCATION AND SUPERVISORY CONTROLS TO ENSURE MARINES HAVE THE BEST INFORMATION TO SUPPORT A DECISION WITH SUCH SIGNIFICANT IMPACTS.
4.  NUMEROUS CALCULATORS AND FACT SHEETS ARE AVAILABLE ON THE INTERNET FOR REVIEW BY MARINES AND THEIR CHAIN OF COMMAND:
    A.  CENTER FOR NAVAL ANALYSES (CNA) (HTTP:WWW.CNA.ORG/NATIONALSECURITY/RAD/RETIREMENTCALC.ASPX) - CNA RETIREMENT CHOICE CALCULATOR IS A TOOL THAT SUPPORTS INFORMED RETIREMENT PLANNING BY MILITARY SERVICE MEMBERS.
    B.  MANPOWER AND RESERVE AFFAIRS PORTAL - THE SEPARATION AND RETIREMENT BRANCH (MMSR-2) WEBPAGE (HTTPS:WWW.MANPOWER.USMC.MIL/PORTAL/PAGE?_PAGEID=278,1954242&_DAD=PORTAL&_SCHEMA=PORTAL) COVERS THE DIFFERENT RETIREMENT CHOICES AND PAY PLANS AVAILABLE TO RETIREES.  ADDITIONALLY, THERE ARE LINKS TO CALCULATORS WHICH WILL ASSIST THE MARINE IN MAKING AN INFORMED CHOICE.
    C.  MARINE ONLINE - ALL MARINES ARE REQUIRED TO HAVE AN ACCOUNT ESTABLISHED WITH MARINE ONLINE.  NUMEROUS INFORMATIVE LINKS ARE PROVIDED UNDER "PERSONAL INFO", "PERSONAL REPORTS", "CAREER STATUS BONUS (CSB)".  UNDER THE "MAKE AN INFORMED CHOICE" BANNER IS A LINK "RETIREMENT CHOICE", COMPARING THE OPTIONS FOR MAKING AN INFORMED DECISION (HTTPS:TFAS.MOL.USMC.MIL/MOLPUB/INDVIEW/RETIREMENTDOCS/CSB_REDUX_CNA_2.PDF).
5.  MARINENET NOW OFFERS A SELF PACED TUTORIAL THAT ALLOWS MARINES TO REVIEW THE CURRENT INFORMATION ON THE CAREER STATUS BONUS.  ALL MARINES ELECTING TO RECEIVE THE CSB/REDUX MUST COMPLETE THE TUTORIAL AND PRESENT THE COMPLETION CERTIFICATE BEARING THE NAME OF THE MARINE TO THE WITNESSING OFFICIAL OF THE MARINE MAKING THE ELECTION. MARINES NOT ELECTING TO RECEIVE THE CSB/REDUX ARE ENCOURAGED BUT NOT REQUIRED TO COMPLETE THE TUTORIAL.
6.  COMMANDERS ARE REQUIRED TO ENSURE THAT ALL MARINES UNDER THEIR CHARGE, OFFICERS AND ENLISTED, RECEIVE APPROPRIATE COUNSELING ON THE IMPACTS OF THEIR RETIREMENT SYSTEM CHOICE.  PER REFERENCE A, IF ELECTING TO RECEIVE THE CSB, BLOCK 13 OF DD FORM 2839 (WITNESS BLOCK OF CSB ELECTION FORM) MUST BE COMPLETED BY THE COMMANDING OFFICER, EXECUTIVE OFFICER OR SERGEANT MAJOR OF THE MARINE MAKING THE ELECTION.  COMMAND ELEMENT WITNESS OF THE MARINE'S ELECTION CONSTITUTES APPROPRIATE LEADERSHIP INTEREST IN THIS IRREVOCABLE DECISION AND FURTHER INDICATES THE COMMAND'S ENDORSEMENT THAT THE MARINE IS QUALIFIED FOR ADDITIONAL SERVICE TO COMPLETE NO LESS THAN 20 YEARS.  LACK OF SUCH A ENDORSEMENT FOR A CAREER MARINE REQUIRES NOTIFICATION TO CMC (MM) FOR A DETERMINATION OF FUTURE SERVICE.
7.  SINCE ALMOST 18 PERCENT OF ALL ELIGIBLE MARINES (OFFICER AND ENLISTED) ARE STILL CHOOSING THE CSB THE NEED TO EDUCATE AND ADVISE OUR MARINES IS CRUCIAL.  THEREFORE NO DELEGATION OF COUNSELING IS AUTHORIZED.  CSB WITNESSING OFFICIALS SHALL ONLY BE THE COMMANDING OFFICER, EXECUTIVE OFFICER OR SERGEANT MAJOR.  COMMANDERS SHALL ENSURE WIDEST DISSEMINATION AND COMPLIANCE WITH THIS MARADMIN. 
8.  PER THE REFERENCES, THIS MARADMIN APPLIES TO THE TOTAL FORCE.
9.  RELEASE AUTHORIZED BY MAJGEN A. SALINAS, DIRECTOR, MANPOWER MANAGEMENT DIVISION.//