When do Tera retirees apply for PACS credit?

The Public and Community Service (PACS) Program allowed TERA retirees to apply some post-retirement employment (with certain pre-approved employers) towards their military retirement starting at age 62. PACS credit was authorized up to the time the member would have met 20 years of military service had they remained on active duty.

How is Tera pay calculated for military retirees?

TERA retired pay is generally calculated using the same formula that is used for 20-or-more-year retirements, but it includes an early retirement reduction factor. The calculation is 2.5 percent of the average of the highest 36 months of base pay times the number of years of service, times the TERA reduction factor.

When did the Army end the TERA program?

Benefit Fact Sheet. Summary. The Army has ended the Temporary Early Retirement Authority (TERA) program. Service members eligible for TERA must have submitted a request through their chain of command by January 15, 2018 for early retirement consideration. The authority to approve TERA was terminated on February 28, 2018.

What is the pension for a 17 year TERA?

Your 17-year TERA retirement would be 36 months short of 20 years so from FMR Table 3-5 ( page 3-38) your reduction factor is 0.97000: your pension is reduced by three percent. Your TERA pension would be $6226 x (17 x 2.5%) x 0.97000 = $ 2566/month or $30,972/year starting on 1 January 2015.

When does temporary early retirement authority ( Tera ) end?

Temporary Early Retirement Authority (TERA) authorized members with over 15, but less than 20 years of total active duty service to apply for early retirement. The opportunity to retire under this TERA program is expected to end by December 31, 2025. TERA retired pay is initially computed using the length of service retirement formula.

What is the retirement factor for a tera?

Active duty pay x Percent Multiple x Reduction Factor = TERA Retired Pay So, let’s put forth the scenario that a service member is retiring at 15 years under TERA – here’s what they are going to be looking at: 15 (Years of Service) x 2.5 (the traditional retirement factor) x 0.95 (TERA penalty*) = 35.625 percent retirement factor.

When does the Tera for active duty end?

In the National Defense Authorization Act for Fiscal Year 2012, TERA was again reinstated, still allowing authorized members with over 15, but less than 20 years of total active duty service to apply for early retirement. The opportunity to retire under this TERA program still ongoing, and is expected to end by December 31, 2018.

When did the TERA program come into effect?

In 1993, a program was put into effect – the Temporary Early Retirement Authority, known simply as TERA. Under the program, authorized members with over 15, but less than 20 years of total active duty service were allowed to apply for early retirement. It allowed the military to help in the drawdown following the end of the Cold War.