This first chart depicts the estimated gross monthly retired payments under both retirement options. Taxes and participation in the SBP are not considered. The REDUX jump reflects the cost-of-living catch up adjustment and multiplier re-adjustment at age 62. In comparing your options, focus on the differences on the level of retired pay. You need to determine whether your $30,000 bonus at the 15th year will make up for these reductions.

In the following chart, the amounts shown are the accumulation of after-tax savings from electing the $30,000 bonus at year 15 compared to the accumulation from saving the after-tax difference in the High-36 (High Three Pay) retired pay over the REDUX retired pay. In this case, the savings of extra retired pay in the High-36 option surpasses the accumulated savings from the bonus when the member is 60. This cross-over would happen earlier if after tax earnings from the mutual fund/savings were much less than 8 percent and would happen later if higher than 8 percent.

These results will vary depending on your choices and the assumptions. The above example is only a simple comparison of the essential differences between electing CSB/REDUX or accepting High-36. See the Considerations section for a more in-depth discussion on factors that will affect the results depicted.