Members who entered the service after July 31, 1986, will be given a choice of retirement plans at their 15th year of service. There are two options:
- Take the post September 1980 retirement plan (High-36 Month Average System) OR
- Elect the post-1986 retirement plan (Military Retirement Reform Act (MRRA) of 1986, commonly referred to as REDUX) and take a $30,000 Career Status Bonus (CSB).
Both options have their own merits. Neither is universally better than the other. However, the REDUX plan has serious long term reductions to retired pay in order to receive the one time bonus and should be considered very cautiously. Which option is more advantageous can only be determined by each individual for his or her own unique circumstances and preferences. The following topics provide more depth to this discussion: