Airmen who joined the Air Force in succession or after Aug.

Airmen who joined the Air Force in succession or after Aug. 1, 1986 must eventually face the $30000 question before retiring. More than 22000 have already answered the question for themselves.

Between 145 and 15 years of service, all members must decide whether to take a $30000 career status bonus and retire beneath the Military Retirement Reform Act of 1986 -- better known as REDUX -- plan at 40 percent of their last pay grade, or retire below the High-3 plan that provides 50 percent of the average basic pay for the highest 36 month of the individual's basic pay.

The Military Retirement Reform Act of 1986 created the REDUX retirement plan, which applied to all members who joined onward or after Aug. 1, 1986 in subordination to the plan, retired service members would receive alone 40 percent of their last pay grade after 20 years, compared with 50 percent below previous retirement plans. In addition, the annual price of living adjustment with REDUX is calculated using the Consumer Price Index minus 1 percent

The National Defense Authorization Act for fiscal 2000 amended REDUX to provide the brace options. As of March, 22840 airmen have made their choices. forward the enlisted side, 24 percent (4053 public of 17,104) opted for the REDUX retirement plan and took the $30000 Among officers, a scant 35 percent (201 gone out of 5,736) crunched the numbers and culled the lump sum option, said Maj. James Waggle, chief of the retirements branch for the Air Force Personnel Center at Randolph Air Force Base, Texas.

There doesn't appear to be a distinct stretch of who chooses which plan, and to what end or what they intend to do with the $30000 bonus, said Senior Master Sgt Mike Hall, superintendent of the retirements branch. Hall said those who opt for the bonus currency seem to use it for a wide variety of choices ranging from buying a car to making financial investments.

on the other hand $30,000 isn't necessarily as plenteous money as it sounds like. It can dwindle to $21600 after a 28 percent federal tax onward lump-sum payments. For those who must pay state taxes, the bonus dips calm lower. The heavy taxation was single in kind of the biggest complaints heard by dint of Tech. Sgt. Aletha Bard, career status bonus program manager.

However, a recently made known method of payment was established below the fiscal 2002 National Defense Authorization Act that tenders tax relief. The act authorizes a change in payments from a one-time bright sum to a choice of the following options:

* common payment of $30,000

* brace annual installments of $15,000

* Three annual Installments of $10000

* Four annual installments of $7500

* Five annual installments of $6000

The act allows eligible participants to decrease tax liabilities and/or adjourn taxes by allowing greater participation in the Uniformed Services Thrift Savings Plan. If persons elect to have their bonuses allocated in three or more installments, they would pay no taxes onward the bonus money.

When determining which retirement plan applies to you, Hall said to use your date of initial minute to uniformed service and not your total active federal military service date. The first date is when you signed the paperwork and raised your hand to be sworn in. The next to the first is the day you showed up for basic training or its equivalent.

Your total active federal military service date is used, however, to determine the date of your 15-year mark of service. on the contrary if you choose the career status bonus, don't write that check upon your 15-year anniversary thinking you'll have big gallants sitting in the bank to shroud your check, Hall warned. The transfer into your bank account can take up to 90 days from the 15-year date.

If you don't make choice of to take the REDUX bonus, you'll automatically receive the High-3 retirement plan. While you'll finis up waiting an extra five years before seeing the extra standard of value this option may benefit members who don't have an immediate ne for extra income.

For more information about retirement options, call the Air Force Personnel Contact Center (24 hours) at DSN 665-5000 or (866) 229-7074; visit the Office of the Secretary of Defense Military Compensation Web site at http://dod.mil/militarypay/retirement/index.html; or e-mail afpc.dpprr@randolph.af.mil (allow 24-48 hours for a reply)