The 5 Waypoints to CIVMAR Retirement

When new MSC employees in NEO (New Employee Orientation) are informed that they can retire at age 57 with 30 years of service, age 60 with 20 years, or age 62 with 5 years, the distant nature of these goals can feel overwhelming. This may lead to disengagement from career development and higher turnover rates.

A better way to view your professional career is to compartmentalize your service into "Time and Achievement Waypoints." These waypoints provide tangible, shorter-term goals, making the journey toward retirement more manageable and engaging. This structure is particularly important for current CIVMARs who have already made significant investments in their career.

Why Stay with Military Sealift Command?

Staying with MSC offers job stability, growth opportunities, professional credentialing, and comprehensive retirement benefits through the Federal Employees Retirement System (FERS). Here's a breakdown of the key advantages:

Federal Employees Retirement System (FERS)

FERS is more than just a pension—it's a three-part system designed to ensure financial security throughout your retirement:

1. Basic Benefit Plan (Pension) — Your guaranteed monthly retirement income
2. Social Security — Additional monthly benefits based on your earnings history
3. Thrift Savings Plan (TSP) — The federal government's version of a 401(k), offering employer matching contributions

Two of these benefits (Social Security and TSP) are portable, meaning if you choose to leave federal service, you can take them with you. However, staying in federal service ensures full access to all three benefits and a more stable, guaranteed retirement package.

Waypoint 1: Day 1

Your benefits begin immediately when you start your MSC career:

• FERS Pension Plan — Employees hired on or after January 1, 2014 contribute 4.4% of their pay, while MSC adds 9.6%, building a solid foundation for retirement
• Thrift Savings Plan (TSP) — Immediate enrollment with a 1% automatic agency contribution and up to an additional 4% match on your contributions
• Health, Life & Additional Benefits — Access to Federal Employee Health Benefits (FEHB), life insurance (FEGLI), long-term care, and dental/vision programs. These benefits continue into retirement
• Leave Accrual — Annual, Sick, and Shore Leave starts accruing immediately

Waypoint 2: 3 Years of Service

After three years of continuous service, you reach a critical milestone:

• TSP Fully Vested — You keep all matching funds the government contributed to your TSP. If you separate before 3 years, you forfeit these employer contributions
• Creditable Service — You now have 3 years counting toward your federal retirement
• Increased Leave — Annual leave accrual increases from 4 hours to 6 hours per pay period
• Military Time Deposit — If you served in the military, active-duty time can be credited toward your federal service, boosting your retirement benefits

The TSP is portable—your retirement savings go with you wherever your career takes you and can be rolled over into other retirement systems.

Waypoint 3: 5 Years of Service

At five years, you unlock significant career flexibility:

• Resign or Take a Break — You can leave and return to MSC or any federal position, with your service time carrying over
• Transition Ashore — Explore opportunities to continue your federal career in shore-based positions
• Age 62 Retirement — If you're 62 or older, you're eligible for immediate retirement with a lifetime FERS Annuity, plus continued health, life, and dental/vision coverage
• Deferred Retirement — If you're under 62, you can apply for a deferred retirement that begins at age 62 (note: health benefits not included with deferred retirement)
• Military Time Deposit — Credit your military service toward retirement eligibility

Waypoint 4: 10 Years of Service

A decade of service opens early retirement options:

• Early Pension at Age 57 — With 10 years of service and at least age 57, you can apply for an optional reduced federal pension, allowing earlier retirement with fewer penalties
• Lifetime Benefits — Continue enjoying health, life, and dental/vision benefits for the rest of your life
• Career Flexibility — Continue your MSC career or explore new federal roles, knowing your benefits carry forward
• Military Time Deposit — Your military service continues to count toward eligibility requirements

Waypoint 5: 20 Years of Service

Twenty years of service provides maximum flexibility:

• Continue with MSC — Remain in your current role with Military Sealift Command
• Resign or Break in Service — Keep the option to return as a CIVMAR or in any federal position. Your prior service counts toward leave seniority and creditable service time
• Transition Ashore — Pursue a career in a different federal role
• Age 60 Retirement — If you're 60 or older, you're eligible for full retirement with health, life, dental, and vision benefits. You'll also receive a supplemental monthly payment from FERS in lieu of Social Security until age 62
• Increased Leave — Annual leave accrues at 8 hours per pay period (starting at 15 years)

Making It Real

By viewing your career as a series of waypoints, you shift focus from the distant goal of retirement to the progress you're making right now. As you pass these milestones, each accomplished waypoint encourages you to continue federal service and reach the next one. Even if gaps between milestones occur, this structured approach highlights the advantages of long-term employment.

Staying with MSC offers career and retirement security, with benefits that support you and your family for life. As a Civilian Mariner, you are part of a community dedicated to service.

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Need Individual Retirement Help?

The High 3 Team provides group retirement and benefits workshops, individual retirement projections, and complete retirement package preparation through the ORA (Online Retirement Application) system.

Contact Mark Brown:

• Website: high3team.com
• Phone: 214-649-3580
• Email: markbrown@high3team.com