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NAVADMIN 161/16

MSGID/GENADMIN CNO WASHINGTON DC/N1/JUL//

SUBJ/U.S. NAVY FINANCIAL LITERACY EDUCATION IMPLEMENTATION PLAN//

REF/A/DOC/NDAA/29SEP15//
REF/B/DOC/U.S.C./25NOV15//
REF/C/MSG/CNO WASHINGTON DC/081342ZSEP15//
REF/D/DOC/OPNAV/3SEP15//
NARR/ REF A IS NATIONAL DEFENSE AUTHORIZATION ACT FISCAL YEAR 2016.
REF B IS SECTION 992 OF TITLE 10 U.S. CODE, FINANCIAL LITERACY TRAINING:  
FINANCIAL SERVICES.  REF C IS NAVADMIN 213/15, FY-16 GENERAL MILITARY 
TRAINING SCHEDULE.  REF D IS OPNAVINST 1500.22H, GENERAL MILITARY TRAINING 
PROGRAM.//

RMKS/1.  This NAVADMIN is the first in a series of NAVADMINS designed to 
inform and educate Service Members and their families so that they can make 
sound financial decisions.  The Navy recognizes that personal financial 
readiness of Sailors and their families must be maintained to sustain mission 
readiness.  Personal financial readiness is a key component of the overall 
Family Readiness System, a network of agencies, programs, services and 
individuals that work in a collaborative manner to assist Service Members and 
their families to meet the unique challenges associated with military 
service.  Reference (a) announced significant changes to the military 
retirement system and Financial Literacy Education and Readiness Program 
within the United States military services.  Per references (a) and (b), Navy 
must commence expanded financial literacy education to support implementation 
of the blended retirement system (BRS) and enhancement of current financial 
education and training.

2. To meet this need, the Navy provides a range of tools and services, 
including personal financial management counselors, to help Service Members 
and their families establish a clear picture of their unique financial 
situation, prioritize their financial goals, and identify appropriate 
strategies to attain them.  The Navy has developed financial readiness 
programs that begin at an entry level, are reinforced at the first duty 
station and progresses throughout a Service Member's military career 
lifecycle to assist Sailors in identifying their individual financial 
training needs at required touch points.

3.  Navy will implement financial literacy education using a lifecycle 
approach to address the required touch points spanning existing personal 
financial management curricula and the financial literacy training 
requirements set forth in reference (c) while leveraging the existing 
military life cycle career development process.  Information on financial 
literacy education, including a matrix of recommended topics for each touch 
point, is available at
http://www.public.navy.mil/bupers-
npc/support/21st_Century_Sailor/readiness/Pages/Personal-Financial
-Management.aspx.

These topics include, but are not limited to:
    a.  Life insurance, casualty insurance, and other insurance.
    b.  Investments in securities or financial instruments.
    c.  Banking, credit, loans, deferred payment plans, and
        mortgages.
    d.  Health insurance, budget management, Thrift Savings Plan,
        retirement lump sum payments including rollover options and
        tax consequences, and Survivor Benefit Plan.

4.  Additionally, BRS will require Service Members to make financial 
decisions affecting their current readiness and long-term financial well-
being.  BRS is effective 1 January 2018 and service members eligible to opt-
into BRS will have until 31 December 2018 to decide if they want to switch to 
the new plan.  Everyone serving today can stay under the current system, 
however, those with fewer than 12 years of service as of 31 December 2017 
will have an opportunity to opt-into the new retirement system. The training, 
education, and opt-in procedures regarding the new military retirement 
system, will be addressed in future NAVADMINs.

5.  This NAVADMIN will remain in effect until cancelled or superseded.

6.  Point of contact is Mr. David Greene, OPNAV N170C, at (901) 874-6545/DSN 
882 or via e-mail at navyfinancialmanagement@navy.mil.

7.  Released by Vice Admiral R. P. Burke, N1.//

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