FY08 UPDATE ON CAREER STATUS BONUS (CSB)/REDUX

MARADMINS : 699/07

UNCLASSIFIED//
280729Z NOV 07
MARADMIN 699/07
MSGID/GENADMIN/CMC WASHINGTON DC MRA MM//
SUBJ/FY08 UPDATE ON CAREER STATUS BONUS (CSB)/REDUX//
REF/A/MSGID:MSG/CMC/YMD:20010208//
REF/B/MSGID:MSG/CMC/YMD:20010518//
REF/C/MSGID:MSG/CMC/YMD:20020708//
NARR/REF A IS MARADMIN 056/01, CAREER STATUS BONUS (CSB)/REDUX. REF B IS MARADMIN 241/01, CAREER STATUS BONUS (CSB)/REDUX-UPDATE ONE. REF C IS MARADMIN 265/02, CAREER STATUS BONUS (CSB)/REDUX INSTALLMENT OPTIONS.//
POC/J.T. MURPHY/MAJ/MMSR/-/TEL:703-784-9304//
GENTEXT/REMARKS/1. AS A RESULT OF THE FY00 NATIONAL DEFENSE AUTHORIZATION ACT, ACTIVE DUTY MEMBERS WHO ENTERED SERVICE AFTER JULY 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 $7,500 IN FEDERAL TAXES), BUT EXPERIENCES REDUCED RETIREMENT INCOME FOR LIFE.
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 5 YEARS TO ABOUT 25 PERCENT. IN FY07, THE TAKE RATE INCREASED TO JUST OVER 26 PERCENT.
3. THE PURPOSE OF THIS MARADMIN IS TO ENSURE MARINES ARE COGNIZANT OF THE EFFECTS 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 CHAINS OF COMMAND:
   A. CENTER FOR NAVAL ANALYSES CORPORATION'S RETIREMENT CHOICE CALCULATOR (HTTP://WWW.CNA.ORG/NATIONALSECURITY/RAD/RETIREMENTCALC.ASPX
<HTTP://WWW.CNA.ORG/NATIONALSECURITY/RAD/RETIREMENTCALC.ASPX> ) - CNAC'S 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) MAINTAINS A WEBPAGE
(HTTPS://WWW.MANPOWER.USMC.MIL/PORTAL/PAGE?PAGEID=278,1954242&_DAD=PORTAL&_SCHEMA=PORTAL
<HTTPS://WWW.MANPOWER.USMC.MIL/PORTAL/PAGE?PAGEID=278,1954242&_DAD=PORTAL&_SCHEMA=PORTAL> )
WITHIN THE PORTAL THAT 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", "CSB". UNDER THE "MAKE AN INFORMED CHOICE" BANNER IS A LINK RETIREMENT CHOICE, COMPARING THE CHOICES, DETAILS TOWARD MAKING AN INFORMED DECISION (HTTPS://TFAS.MOL.USMC.MIL/MOLPUB/INDVIEW/RETIREMENTDOCS/CSB_REDUX_CNA_2.PDF
<HTTPS://TFAS.MOL.USMC.MIL/MOLPUB/INDVIEW/RETIREMENTDOCS/CSB_REDUX_CNA_2.PDF> )
WHICH CONTAINS A REPORT BY THE CENTER FOR NAVAL ANALYSES. THIS REPORT SPECIFICALLY COMPARES THE TWO RETIREMENT PLANS AND DETAILS THE POTENTIAL REDUCTION OF NEARLY $300,000 IN RETIREMENT COMPENSATION OVER A LIFETIME IF CSB/REDUX IS ELECTED.
5. 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. EFFECTIVE WITH THE RELEASE OF THIS MARADMIN, IF CSB/REDUX IS ELECTED, BLOCK 13 OF DD FORM 2839 (WITNESS BLOCK OF CSB ELECTION FORM) MUST BE COMPLETED BY EITHER 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 SERVICE TO 20 YEARS. LACK OF SUCH A RECOMMENDATION FOR A CAREER MARINE REQUIRES NOTIFICATION TO CMC (MM) FOR A DETERMINATION OF FUTURE SERVICE.
6. COMMANDERS SHALL ENSURE WIDEST DISSEMINATION AND COMPLIANCE WITH THIS MARADMIN.
7. PER THE REFERENCES, THIS MARADMIN APPLIES TO THE TOTAL FORCE.
8. RELEASE AUTHORIZED BY LTGEN R. S. COLEMAN, DEPUTY COMMANDANT, MANPOWER AND RESERVE AFFAIRS.