R 191539Z JUL 16
FM CNO WASHINGTON DC
INFO CNO WASHINGTON DC
PASS TO OFFICE CODES:
FM CNO WASHINGTON DC//N1//
INFO CNO WASHINGTON DC//N1//
MSGID/GENADMIN CNO WASHINGTON DC/N1/JUL//
SUBJ/U.S. NAVY FINANCIAL LITERACY EDUCATION IMPLEMENTATION PLAN//
REF/C/MSG/CNO WASHINGTON DC/081342ZSEP15//
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
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
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
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(at)navy.mil.
7. Released by Vice Admiral R. P. Burke, N1.//