Getting out, military retirement, military to civilian transition - Military Times

Early Retirement

The Voluntary Separation Incentive program, the 15-year retirement option for voluntary separations, was discontinued Dec. 31, 2001, after Congress refused to extend the authority for it.

Members who signed up before the program ended continue to receive annual payments, as agreed.

Civil service. If VSI recipients earn retirement benefits under the federal civil service system, active-duty time used to compute VSI payments also can be used to compute civil service retirement. Civil service retirees are not required to repay VSI benefits.

Divorce. Division of VSI payments in divorce settlements varies by state and by case. Federal law does not prevent a spouse from claiming part of the VSI benefits in a divorce.

Survivor benefits. In the event a VSI recipient dies before receiving all payments, all remaining payments go to the veteran's designated beneficiaries.