The benefits of affiliating via the CTO are substantial. Here are some key benefits:
- 2-Year Involuntary Mobilization Deferment
- TAMP Medical Benefits¹
- Financial Incentives
- Reserve Retirement
- Life and Long-term Care Insurance
- Post 9/11 GI-Bill Transferability¹
- Reduced Medical Screening
- Reserve Oath of Office Management²
¹must complete processing in time to transition as a SELRES the day after separation from active duty (AD) to maintain active participation.
²Reserve Oath of Office must be signed no later than the day after separation to avoid break in service, i.e., continuous military service with no time gaps.
2-Year Involuntary Mobilization Deferment
All Navy Veteran (NAVET) who affiliate SELRES are granted an involuntary mobilization deferment to afford them time to set up a new career and establish themselves in their community. NAVADMIN 070/07
- NAVETs who affiliate with the Navy Reserve within 6 months (183 days) of release from AD qualify for a 2-year deferment from involuntary mobilization, commencing on the date they affiliate with the Navy Reserve. CTO will ensure Reserve databases are updated with the appropriate mobilization availability status (MAS) code to prevent mobilization.
- NAVETs who affiliate between 7 and 12 months (184-365 days) of release qualify for a 1-year deferment from involuntary mobilization commencing on the date they affiliate with the Navy Reserve. Members affiliating during this time need to affiliate via a Navy recruiter.
Note: service members may volunteer for mobilization or recall any time during the deferment period.
TAMP Medical Benefits
By transitioning via the CTO, service members are more likely to avoid a break in active participation, i.e., AD or SELRES, and become eligible for 6 months (180 days) of family Tricare benefits (same benefits enjoyed by AD members). After the 6 months, service members can then enroll in Tricare Reserve Select for the remainder of their SELRES career.
Service members who qualify for Transitional Assistance Management Program (TAMP or TA-180), receive dental care under the Tricare Active Duty Dental Program for 6 months. After 6 months, service members may opt to receive coverage under the Tricare Dental Program for Guard and Reserve service members. Eligible family members may purchase dental coverage separately.
OPNAVINST 1900.2B - TAMP
CTO transition assistants (TAs) are well-versed on the financial incentives available to separating service members. Your TA will ensure the timely processing of your bonus and answer any questions you may have. Please refer to NAVADMIN 165/13 for eligible designators and bonus amounts. This NAVADMIN covers the affiliation bonus and medical subspecialty pay.
Note: taking the affiliation bonus incurs a 3-year SELRES obligation. The first 2 years run concurrent with the mobilization deferment, i.e., you can collect the bonus and not be mobilized for the first 2 years. However, unless you intend to fulfill this 3-year SELRES commitment, do NOT take the bonus.
Service members serving in a critical shortage subspecialty as defined by the "FY14-15 Reserve Component Wartime Healthcare Specialties with Critical Shortages" memo of 13 September 2013 are eligible for annual specialty pay. Acceptance of this specialty pay incurs a 3-year drilling obligation with the SELRES.
Most service members leaving AD have already earned a substantial number of points towards Reserve retirement. The CTO will help you transition to the SELRES the day after you separate from AD so you do not miss any opportunities to begin earning retirement points immediately. More points = more $$.
Example*: A 28-year old LT with 6 years of AD time has already accumulated 2,190 points (365 points per year of AD service) towards retirement. If this LT eventually promotes to CDR and earns the minimum 75 points per year (15 gratuity points, 12 annual training, 48 monthly drills) for the next 14 years, it will total 20 years of service and 3,240 points (note: 2/3rds were already earned from AD service). Using an estimated 3% annual pay raise will earn you approximately $4,090 per month beginning at age 60. Using a 2.7% annual cost of living allowance and an annual 4% compounded interest, if you live to 100, you would have earned a total of approximately $1,279,406! You would need to save approximately $42,965 at 4% compounded interest per year for 20 years to get the same amount.
Doctors, who participated in the Health Professions Scholarship Program (HPSP) and drill in a critically undermanned subspecialty, can earn 1 year toward retirement for each year of drill, up to a maximum of 4 years. DoDI 1215.07, page 15 and the DoD memo on retirement HPSP credit.
HPSP retirement example*: A CDR, who serves in a DoD Critical Wartime Specialty, participated in the HPSP program for 4 years and separates with 12 years of AD service. For each year the officer completes a satisfactory year towards Reserve retirement, the officer can convert 1 year of time served in HPSP to a qualifying year towards Reserve retirement. That CDR would need to serve in the SELRES for 4 years to reach retirement eligibility. The first 2 years run concurrent with the 2-year involuntary mobilization deferment.
*data based off of estimated retirement calculator available on BUPERS Online.
Note: in some cases it is possible to reduce your retirement age from 60 down to as little as 50 by taking on AD orders while in the Navy Reserve. DoDI 1215.07, page 16.
For in-depth authoritative information about Reserve retirement, refer to BUPERSINST 1001.39F, chapter 20.
Life and Long-term Care Insurance
Service Member’s Group Life Insurance (SGLI) is a program that provides low-cost term life insurance coverage to eligible service members (AD and SELRES). If eligible, you are automatically issued the maximum SGLI coverage of $400,000 and do not need to apply for coverage.
Family Service Member's Group Life Insurance (FSGLI) is also available for spouses and dependent children. FSGLI provides a maximum of $100,000 of low-cost insurance for spouses, not to exceed the service member's SGLI coverage amount, and $10,000 for dependent children (included in service member's SGLI premium.
Service Members' Group Life Insurance (SGLI)
Family Service Member's Group Life Insurance (FSGLI)
The Federal Long Term Care Insurance Program provides long term care insurance to help pay for costs of care when you need help with activities you perform every day, or you have a severe cognitive impairment, such as Alzheimer's disease. The program is open to AD and SELRES service members.
Post 9/11 GI-Bill Transferability
Service members eligible for the Post-9/11 GI-Bill program can transfer unused educational entitlement to their eligible dependents. The transferability option must be elected while actively serving (AD or SELRES) with no breaks in active participation.
Note: Officers who graduated from the Naval Academy or received ROTC scholarships do qualify for the new GI-Bill benefit. However, time spent satifsying the ROTC/Naval Academy AD obligation does not count towards the AD service necessary to qualify for the benefits.
Example: A LT with 9 years of AD service elected to transfer his unused benefit to her spouse. As a condition of this benefit, the service member must serve 4 years in either the SELRES or on AD with no breaks in active participation, i.e., not one day spent in the IRR. This service member has served 3 of 4 years satisfactorily and now wishes to transition from AD to the SELRES. She would work with the CTO to ensure she is processed on time to transition seamlessly to the SELRES so she does not break her commitment. If this service member went to the IRR, even for one day, she would be required to sign a new page 13 obligating to serve those 4 years from the beginning.
The Navy is committed to providing service members the means to reach their educational goals through various programs and services available. Please browse through the links below to explore your options.
Reduced Medical Screening
Service members who transition to the SELRES within 6 months of their separation date are reviewed under medical retention standards. Service members fit to separate from AD may retain their current medical waivers. After 6 months, you may need to start the medical screening process from the beginning via the Military Entrance Processing Station (MEPS) just as you did when you first joined the Navy. If you are qualified to serve on AD, then you are typically qualified to serve in the Reserve.
Note: You may be eligible to actively drill and receive both Reserve pay and VA disability pay.
For example: LT Sailor drilled 2 days in the month of November. He can still receive 28 days of disability pay, but he must decide whether he would prefer to receive either Reserve pay or disability pay for those 2 drill days. Most people will choose to receive their Reserve pay since it is generally higher. Hence, LT Sailor would receive his drill pay for his 2 drill days and $1,400 in disability pay for the other 28 days. Refer to VA Form 21-8951-2 for more details.
Reserve Oath of Office Management
The Oath of Office is an affirmation a service members takes before undertaking the duties of a commissioned officer. It is the most important document an officer signs before transitioning to the Reserve. As such, it MUST be signed and witnessed BEFORE the officer separates from AD to avoid a break in service, i.e., continuous active military service with no time gaps.
Separating officers in-zone for promotion must avoid a break in service to be considered in the next Reserve promotion board. See BUPERSINST 1001.39F, Chapter 1.105 for more information.
CTO TAs will make every effort to deliver the Reserve Oath of Office to an officer before their separation date to prevent a break in service and subsequent loss of benefits. However, due diligence on the part of the officer is required.
In order to receive a Reserve Oath of Office, officers must first be scroll-approved by the secretary of defense (SECDEF). Scrolls are lists consisting of name, rank, and SSN, which are sent to SECDEF requesting appointment approval. SECDEF approval generally takes 9-12 weeks.
Navy Reserve service members are entitled to the same base privileges as enjoyed while on AD, which includes unlimited Commissary and Exchange visits and unlimited use of Morale, Welfare and Recreation (MWR) programs and facilities.
Navy Exchange and MWR Programs
The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) is a federal law that establishes rights and responsibilities for uniformed service members and their civilian employers. It is intended to ensure that persons who serve or have served in the military: (1) are not disadvantaged in their civilian careers because of their service; (2) are promptly reemployed in their civilian jobs upon their return from duty; and (3) are not discriminated against in employment based on past, present, or future military service. The law is intended to encourage uniformed service so that the United States can enjoy the protection of those services, staffed by qualified people, while maintaining a balance with the needs of private and public employers who also depend on these same individuals
For additional information on Navy Reserve benefits, please visit the additional benefits information page.
Disclaimer: This page represents a summary of the benefits available to Navy Reservists. The CTO does not assume any responsibility for any errors in misrepresentation of these benefits nor does the CTO claim responsibility over the policy governing these benefits. Please refer to the source of these benefits for authoritative information.