National Guard & Naval Militia Retirement System Frequently Asked Questions
What is the National Guard & Naval Militia Retirement System (NGNMRS)?
NGNMRS is a retirement system which can pay you a small benefit upon separation from the Alaska army guard, air guard, or naval militia if you meet minimum eligibility provisions.
What is the eligibility requirement?
To apply for NGNMRS benefits please contact the administrative section of your branch of the Alaska National Guard. They will provide you with the appropriate forms and verify your qualifying guard service.
You must have at least 20 years of combined Alaska guard service, guard service in any other state, active military service and the reserves of them, of which at least 5 years must have been satisfactory service in any branch of the Alaska guard. An involuntary discharge from the Alaska guard (for reasons other than misconduct) waives these eligibility requirements.
What does the system pay?
The base benefit is $100 per month for each month of satisfactory Alaska guard service. A lump sum payment option or an option for accelerated payments to be completed by age 72 may be elected in place of the base $100.00 per month. Upon certification of your service to the Division of Retirement and Benefits (DRB) by your guard headquarters following your separation, the Division of Retirement and Benefits will advise you of your payment options.
Under the lump sum option, future payments which would have been paid at $100.00 per month are discounted at the system's discount rate, which is currently 9%. For example, if you have 20 years of Alaska guard service you would receive $24,000 over 20 years. If you elect the lump sum, you would receive $11,481.24 before taxes and tax penalties, if applicable. This is the total present value of each individual future monthly $100.00 benefit.
Under the accelerated payment option, if you would attain age 72 prior to completion of the 20 years and you elected this option, the monthly payments would be increased but would end when you attained age 72. For example, if you had 20 years of service and are age 60 when payments commence, you would receive $134.42 per month under this option.
Are these benefits taxable?
All payments are taxable as ordinary income. A 20% federal tax withholding must be made on a lump sum distribution paid to you. Additionally, if you are younger than age 59-1/2 in the year payments are made, a 10% tax penalty may be assessed by the Internal Revenue Service on either lump sum or monthly payments. You may elect to have your lump sum rolled over to a qualified Individual Retirement Account of your choice and avoid taxes or tax penalties.
What if I die while in active service?
If you have at least 5 years of satisfactory Alaska guard service, your full accrued benefit (months of service x $100.00) is payable in one lump sum to your beneficiary or beneficiaries.
What happens to the remainder of my payments if I die?
The full remaining balance of your monthly payments is paid in one lump sum to your beneficiary or beneficiaries.