Edit by JDO 8/2/22

National Guard/
Naval Militia

Retirement System

Read about the National Guard/Naval Militia Retirement System (NGNMRS) and see if you are eligible.

The National Guard/Naval Militia Retirement System (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.

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.

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 7%. 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.

Survivor Benefits

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.

Monthly Benefit

When electing a monthly benefit you must complete an IRS Form W4-P specifying one of the tax withholding options. If a W-4P is not received at the time your monthly benefit is to begin, we will withhold federal income tax from your monthly benefits at the tax rate for a married person with three allowances.

NGNMRS monthly benefits are for a set period of months equaling the number of months of NGNMRS service you have. If you are under 59 ½ your monthly payment may be subject to an additional 10 percent early withdrawal penalty. Please contact the Internal Revenue Service or your tax advisor for information regarding the penalty and its affect on your benefit.

Lump Sum Benefit

Taxable portions of distributions you receive will be subject to income taxes in the current year unless you roll it over into a tax qualified plan. In addition, the taxable portion will be subject to an additional 10 percent early withdrawal penalty if you receive your distribution before you reach age 59 ½. The penalty may not apply if you at least age 55 at the time you terminated with the guard, or if distributions are made due to permanent disability or for a qualified domestic relations order (QDRO). Contact the Internal Revenue Service or your tax advisor for more information.

The federal tax law requires the NGNMRS to withhold, and send to the internal Revenue Service, 20 percent of the taxable amount of any distribution we pay directly to you, even if you intend to do a rollover within the 60 day rollover period. If you want to include the 20 percent withheld in your rollover, you must supply it from another source. If the withholding exceeds the actual taxes due, a refund is obtained through your federal income tax return. You can avoid the withholding tax by requesting a direct transfer to another tax qualified plan that accepts your transfer, such as an Individual Retirement Arrangement (IRA). Only taxable money may be direct transferred or rolled over, and any taxable portion that is not direct transferred will be subject to withholding. No income tax will be withheld on the transferred amount and it will not be taxed until you later take it out of the IRA or qualified plan.

Page Last Modified: 08/02/22 14:46:59