The Military Money Manual Podcast Continuation Pay Calculation & Timing With BRS & TSP With Brandon Lovingier, the Enlisted Money Guy #128
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Confused about continuation pay? Join the club. Unfortunately, too many servicemembers and their leaders are confused about the continuation pay benefit in the BRS. In today's episode with Brandon Lovingier, ChFC®, MQFP® aka The Enlisted Money Guy™, we share all you need to know to understand the benefit.
For active duty, it's currently:
- 2.5 times your monthly base pay in either a lump sum or up to 4 equal, annual payments.
For example, a monthly base pay of $4,252 x 2.5 = $10,630 bonus or $8,684 monthly base pay x 2.5 = $21,710 bonus (pre-tax)
Other important points from the episode:
- When am I eligible for continuation pay?
- Does it come automatically?
- Does the program vary by service?
- How does the payment come to me?
- Does it reduce my pension?
- What is the service commitment after taking the bonus?
- Does it impact my eligibility for other bonuses like a re-enlistment bonus or aviation bonus?
Links discussed:
- EnlistedMoney.com http://enlistedmoney.com/
- Brandon's Continuation Pay article https://enlistedmoney.com/continuation-pay-benefits/
- Air Force link (CAC restricted)
- Financial Readiness flyer on Continuation Pay https://finred.usalearning.gov/assets/downloads/FINRED-ContinuationPay-FS.pdf
- EnlistedMoneyGuy on Instagram https://www.instagram.com/enlistedmoneyguy/
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If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email podcast@militarymoneymanual.com.
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