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VOLUME 7B, CHAPTER 3: “GROSS PAY COMPUTATION”
SUMMARY OF MAJOR CHANGES
All changes are denoted by blue font.
Substantive revisions are denoted by an asterisk (*) symbol preceding the
section, paragraph, table, or figure that includes the revision.
Unless otherwise noted, chapters referenced are contained in this volume.
Hyperlinks are denoted by bold, italic, blue, and underlined font.
The previous version dated March 2013 is archived.
PARAGRAPH
EXPLANATION OF CHANGE/REVISION
PURPOSE
All
Updated references, hyperlinks and format to comply with
current administrative instructions.
Revision
0301
Added the General Overview, Authoritative Guidance.
Addition
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Table of Contents
VOLUME 7B, CHAPTER 3: “GROSS PAY COMPUTATION” ................................................ 1
*0301 GENERAL .................................................................................................................. 4
030101. Overview .............................................................................................................. 4
030102. Authoritative Guidance ........................................................................................ 4
0302 BASIC COMPUTATION .............................................................................................. 4
030201. Overview .............................................................................................................. 4
030202. Disability Retirement (Table 3-1, Rules 1 and 2) ................................................ 6
030203. Voluntary Retirement (Table 3-1, Rules 3 through 8) ......................................... 7
030204. Mandatory Retirement (Table 3-1, Rules 9 through 12) ...................................... 9
030205. Non-Regular Service Retirement (Table 3-1, Rule 13) ....................................... 9
030206. Fleet Reserve and Fleet Marine Corps Reserve (FR/FMCR) Transfer (Table 3-1,
Rule 14) 10
030207. Historical Pay Computations.............................................................................. 11
030208. Service Credit Rounding of Months .................................................................. 12
030209. Rounding Retired Pay ........................................................................................ 13
030210. Special Computations for Career Status Bonus with Reduced Retirement
(CSB/REDUX) ..................................................................................................................... 14
030211. Temporary Early Retirement Authority (TERA) ............................................... 14
030212. Exception to High-36 Month Retired Pay Computation for Members Retired
Following a Disciplinary Reduction in Grade........................................................................ 16
0303 APPLICATION OF SAVED PAY .............................................................................. 17
030301. Career Compensation Act, Effective October 1, 1949 ....................................... 17
030302. Military Pay Act, Effective June 1, 1958 ........................................................... 18
030303. Military Pay Act, Effective October 1, 1967 ..................................................... 18
0304 TOWER AMENDMENT ............................................................................................. 19
030401. Basic Provisions ................................................................................................. 19
030402. Earlier Computation Dates ................................................................................. 20
030403. Computation at the Time of Retirement or Transfer to the FR/FMCR .............. 20
0305 SPECIAL PROVISIONS ............................................................................................. 21
030501. Entitlement Under More Than One Pay Formula .............................................. 21
030502. Commissioned Officer With More Than Four Years of Active Enlisted and/or
Warrant Officer Service ......................................................................................................... 21
030503. Commissioned Officer Serving in a Special Position ........................................ 21
030504. Officer in Grade O-9 or O-10............................................................................. 22
030505. Enlisted Member Serving in a Special Position ................................................. 23
030506. Heroism Pay ....................................................................................................... 23
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Table of Contents (Continued)
030507. Computation Under the Uniformed Services Pay Act, October 2, 1963 ........... 23
030508. Computation Under the Military Pay Act, May 20, 1958 .................................. 24
030509. Retired Pay Base for Officers Retired in General or Flag Officer Grades ......... 24
Table 3-1. Computation of Retired Pay .................................................................................... 25
Table 3-2. Historical Pay Computations – Fleet Reserve and Fleet Marine Corps Reserve .... 29
Table 3-3. Pre-1982 Retirement Percentage Multiple Conversions ......................................... 32
Table 3-4. Post-1981 Retirement Percentage Multiplier Conversions ..................................... 33
Table 3-5. Reduction Factors Applicable to Temporary Early Retirement Authority ............. 37
BIBLIOGRAPHY ..................................................................................................................... 38
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CHAPTER 3
GROSS PAY COMPUTATION
*0301 GENERAL
030101. Overview
This chapter provides the standard way of computing basic retired pay, which includes
Application of Saved Pay, Tower Amendment, and Special Provisions.
030102. Authoritative Guidance
The bibliography at the end of this chapter lists the authoritative references.
0302 BASIC COMPUTATION
030201. Overview
In most cases, retired or retainer pay is the product of multiplying the retired pay base by
the years of service multiplier. In some military disability retirement cases, retired pay is the
product of multiplying the retired pay base by the percentage of disability determined by the
military service.
A. Retired Pay Base. The retired pay base is determined by using the
active-duty basic pay entitlement of the member.
1. Pre-September 8, 1980 Member. For individuals who first became
members before September 8, 1980, the retired or retainer pay base is the basic pay of the
member on the day before retirement. See paragraphs 030202 through 030206 for exceptions.
2. Post-September 7, 1980 Member. For individuals who first
became members after September 7, 1980, the retired or retainer pay base is the average of the
highest 36-months of basic pay received.
a. The retired pay base for a member with 36 or more months
of active service is the average monthly basic pay the member received over their highest
earning 36-months. In the case of a Reserve component member, this is the total amount of
basic pay to which the member was entitled during the member’s high 36-months or to which the
member would have been entitled if the member had served on “active-duty” during the entire
period of the member or former member’s high 36-months. Only months during which the
individual was a member of a uniformed service may be used. Starting with the highest rate of
pay, add together the monthly basic pay amounts until the total number of months equals 36-
months. Divide the total pay derived from the sum of months by 36, and round to the nearest
cent to obtain the retired pay base applicable to the member. Any lost time the member had is
not to be included in the computation.
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b. The retired pay base for a member with less than
36-months of active service is the member’s basic pay for the entire period of the member’s
active service added together divided by the number of months (including any fractions thereof)
of the member’s active service. In the case of a Reserve component member, this is the total
amount of basic pay to which the member was entitled or to which the member would have been
entitled if the member had served on active-duty during the entire period before being retired.
Divide the total pay by the total time expressed as months and days, count days that are less than
30 as 1/30th of a month. Round the result to the nearest cent.
c. A full month served counts as 1-month regardless of any
interruption by a pay rate change and regardless of the number of days in that month. Service for
an entire calendar month at a single rate of basic pay counts as 1-month under that rate of basic
pay, regardless of the number of days in the month, i.e., 28, 29, 30, or 31-days. For a calendar
month that has multiple rates of basic pay, compute service for an entire calendar month, for the
number of days paid at each rate. For example, if a member has a longevity pay increase
effective February 11, the old rate is applicable for 10-days and the new rate is applicable for 20-
days (regardless of leap year). If a month has 31-days, ignore the 31
st
. For example, if the
member has a longevity pay increase effective August 11, the old rate is applicable for 10-days
and the new rate is applicable for 20-days. The 30-day months are allocated in a straightforward
manner.
d. When a member serves less than a full month, count only
the number of days actually paid so that each total of 30-days equals one month. If a member
serves less than a full month and one or more rates of basic pay apply, compute each rate as
applicable for the number of days paid the member at the particular rate. For example, assume
the member had a break in service and returned to active-duty on February 8, but has a longevity
increase effective February 11. When a member serves through the end of February, consider
the month to have 30 days. This member receives 3-days at one rate and 20-days at the new rate
or 23-days of pay.
Example: A member receives monthly basic pay of $17,658.30 over 14-months and
11-days:
$17,658.30 $17,658.30
14-months + 11-days = 14.36667 = $1,229.12 Retired Pay Base
$1,229.12 Retired Pay Base
x % Retired Pay Multiplier
= $x,xxx.xx Retired Pay Rounded
3. An individual is considered to have first become a member of a
Uniformed Service when that individual, on or after September 8, 1980, is first appointed or
enlisted in the Uniformed Services. A member who first enlists before September 8, 1980 under
the delayed entry program; in a Reserve Component as part of the Senior Reserve Officers’
Training Corps (ROTC) or ROTC Financial Assistance programs; as a student at the Uniformed
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Services University of Health Sciences; or as a participant in the Armed Forces Health
Professions Scholarship Program, is considered to have first become a member before
September 8, 1980.
4. When it is to the member’s advantage, a saved pay rate under the
provisions of the Tower Amendment may be used to compute retired pay. See paragraph 030303
for eligibility. The Tower Amendment authorizes the use of the basic pay rates in effect on the
day before the effective date of the rates of monthly basic pay on which the member’s retired pay
would otherwise be based.
B. Retired Pay Multiplier
1. In computing retired or retainer pay, other than for disability or
non-regular service retirement, the retired pay or retainer pay multiplier is the product of two and
one-half percent and the member’s years of creditable service. The term “years of creditable
service” means the number of years of service that are creditable to a member in computing the
member’s retired or retainer pay, including credit for each full month of service in addition to
full years of service. See Chapter 1, section 0103 for determining creditable years of service for
computing retired pay.
2. The retired pay or retainer pay multiplier for a post-July 1986
member who has accepted the Career Status Bonus (CSB) and who retires with less than 30
years of creditable service is reduced at the time of retirement, if under age 62. See
paragraph 030210 and Chapter 8, paragraph 080215 for the restoring of retired pay at age 62.
3. If retired before January 1, 2007, the retired pay or retainer pay
multiplier is limited to 75 percent for a member with more than 30-years of creditable service. If
retired after December 31, 2006, for other than disability, there is no restriction on the retired pay
multiplier.
030202. Disability Retirement (Table 3-1, Rules 1 and 2)
A. The retired pay base pay for a disability retirement is determined as
follows:
1. For a member who entered service before September 8, 1980, the
retired pay base is the monthly basic pay of the grade or rank in which the member was serving
when placed on the Temporary Disability Retired List (TDRL) or the highest temporary grade or
rank in which the member served satisfactorily or to which the member was entitled on the day
before retirement or placement on the TDRL, whichever is the higher.
2. For a member who entered service after September 7, 1980, the
retired pay base is determined as prescribed in subparagraph 030201.A.
B. The retired pay multiplier for a disability retirement is determined as
follows:
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1. A member permanently retired for disability receives retired pay
that is equal to the retired pay base under Table 3-1, Rule 1, multiplied by the member’s election
of either:
a. Two and one-half percent times the years of service
credited for percentage purposes, except as provided in subparagraph c; or,
b. Percentage of disability, not to exceed 75-percent, on date
retired.
c. For a member with 30 or more years of service, retiring on
or before January 7, 2011, the retired pay multiplier may not exceed 75-percent. The retired pay
multiplier is not limited for members with 30 or more years of service who retire on or after
January 8, 2011.
2. A member placed on the TDRL receives retired pay that is equal to
the retired pay base under Table 3-1, Rule 2, multiplied by the member’s election of either:
a. Two and one-half percent times the years of service
credited for percentage purposes; or,
b. Percentage of disability, not to exceed 75-percent, on the
date when his or her name was placed on the TDRL.
3. If neither multiplier above is at least 50-percent, a minimum of 50-
percent of the retired pay base shall be paid while the member is on the TDRL.
4. For a member placed on the TDRL on or before January 7, 2011,
the retired pay multiplier may not exceed 75-percent. The retired pay multiplier is not limited
for members with 30 or more years of service who retire on or after January 8, 2011.
C. If a member is retired for disability and is eligible under another provision
of law, follow the rule in Table 3-1 applicable to the section of law that is more advantageous to
the member.
D. Since disability retired pay is not computed using a retired pay multiplier
that is determined under Title 10, United States Code (U.S.C.) section 1409, an adjustment
under paragraph 030210 is unnecessary.
030203. Voluntary Retirement (Table 3-1, Rules 3 through 8)
A. The retired or retainer pay base pay for a voluntary retirement is
determined as follows:
1. For a member who entered service before September 8, 1980, the
retired or retainer pay base is the monthly basic pay rate applicable on the date of the member’s
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retirement for the grade or rank in which the member was retired or to which the member is
advanced on the retired list. Compute the retired pay base as shown in Table 3-1, Rules 3
through 8, subject to subparagraphs a through d.
a. A Reserve enlisted member, who is retired in the highest
enlisted grade satisfactorily held on active-duty (or in which the member served on full-time
National Guard duty satisfactorily) after being administratively reduced in grade not as the result
of the member’s misconduct, may use the basic pay rate of the retired grade.
b. For Army and Air Force Reserve enlisted personnel, the
basic pay applicable on the member’s date of retirement for the retired grade is the retired pay
base, in lieu of the retired pay base under 10 U.S.C. 1406(c) or (e).
c. For Navy and Marine Corps Reserve enlisted personnel
transferred to the Fleet Reserve/Fleet Marine Corps Reserve (FR/FMCR) in the highest grade
satisfactorily held on active-duty after being administratively reduced in grade not as the result of
the member’s misconduct, use the basic pay rate of the grade in which the member transferred
for the retired or retainer pay base. This provision applies to the member who entered a
Uniformed Service before September 8, 1980 and who retired (or transferred to the FR/FMCR)
after September 30, 1996.
d. For warrant officers, compute the retired pay base on the
monthly basic pay to which the member would be entitled if serving on active-duty in the retired
grade on the day before retirement. If the member, however, is entitled to a higher rate of pay
using any other warrant officer grade satisfactorily held by the member on active-duty, retired
pay may be computed using the basic pay for that warrant officer grade.
2. For a member who entered service after September 7, 1980, the
retired pay base is determined as prescribed in subparagraphs 030201.A.2.a and b.
a. An Army or Air Force enlisted member with less than
30-years of service who is retired under 10 U.S.C. 3914 or 8914
will have the retired pay base
computed using only the rates of basic pay for months of active-duty as an enlisted member.
b. A Navy and Marine Corps enlisted member who is
transferred to the FR/FMCR in accordance with 10 U.S.C. 6330 will have the retired pay base
computed using only the rates of basic pay for months of active-duty as an enlisted member.
B. The retired or retainer pay multiplier for a voluntary retirement is
determined in accordance with subparagraph 030201.B.
1. For service credited for percentage purposes of enlisted members, see
Chapter 1, subparagraph 010302
2. For service credited for percentage purposes of commissioned
officers, see Chapter 1, subparagraph 010303.
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3. For service credited for percentage purposes of warrant officers, see
Chapter 1, subparagraph 010304.
4. The retired pay multiplier for a member who enters a Uniformed
Service after July 31, 1986, and who has accepted the CSB, is determined under subparagraph
030201.B.2.
5. See paragraph 030111 for retired pay computation for a member
retired under the Temporary Early Retirement Authority (TERA).
C. Retired or retainer pay may be increased by 10 percent of retired pay for
extraordinary heroism in the line of duty. See paragraph 030406.
030204. Mandatory Retirement (Table 3-1, Rules 9 through 12)
A. The retired pay base pay for a mandatory retirement is determined as
follows:
1. For a member who entered service before September 8, 1980, the
retired pay base is the basic pay rate of member’s grade that is applicable on member’s date of
retirement. Do not use the grade of brigadier general if the member was a permanent professor
at a military academy and was conferred such a title upon retirement. If a warrant officer is
entitled to a higher rate of pay using any other warrant officer grade satisfactorily held by the
member on active-duty, retired pay may be computed using the basic pay for that warrant officer
grade.
2. For a member who entered service after September 7, 1980, the
retired pay base is determined as prescribed in subparagraph 030201.A.
B. The retired pay multiplier for a mandatory retirement is determined in
accordance with subparagraph 030201.B.
1. For service credited for percentage purposes of Army and Air
Force retirees, see Chapter 1, subparagraph 010305.A.
2. For service credited for percentage purposes of Navy and Marine
Corps retirees, see Chapter 1, subparagraph 010305.B.
3. The retired pay multiplier for a member who enters a Uniformed
Service after July 31, 1986, and who has accepted the CSB, is determined under subparagraph
030201.B.2.
030205. Non-Regular Service Retirement (Table 3-1, Rule 13)
A. The retired pay base pay for a non-regular retirement is determined as
follows:
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1. For a member who entered service before September 8, 1980, the
retired pay base is the monthly basic pay at the rate applicable on the date when retired pay is
granted, of the highest grade held satisfactorily at any time in the Armed Forces.
2. For a member who entered service after September 7, 1980, the
retired pay base is determined as prescribed in subparagraph 030201.A. The high 36-months of
such a member are the 36-months for which the pay was the highest, whether or not consecutive,
out of all the months before the member became entitled to retired pay or would have become
entitled to retired pay. This will be the 36-months immediately preceding receipt of retired pay
even though the member may not have been in an active status during such time. However, only
months during which the individual was a member of a uniformed service may be used for this
purpose.
B. The retired pay multiplier for a non-regular retirement is determined by
multiplying two and one-half percent times the years of service credited for percentage purposes.
See Chapter 1; subparagraph 010407 for service credited for percentage purposes. (Pursuant to
10 U.S.C. 12733, the formula for converting retirement points into percentage years is total
number of retirement points divided by 360. Carry the result to three decimal places; round to
two decimal places. Example: 4,735 retirement points divided by 360 equals 13.152-years or
13.15-years for percentage purposes.)
030206. Fleet Reserve and Fleet Marine Corps Reserve (FR/FMCR) Transfer
(Table 3-1, Rule 14)
A member transferred to the FR/FMCR is entitled, when not on active-duty, to retainer
pay computed by multiplying the retainer pay base times two and one-half percent times the
years of service credited for percentage purposes. In lieu of the retainer pay base computed in
accordance with 10 U.S.C. 1406(d), a Reserve enlisted member may use the monthly basic pay
for the highest enlisted grade in which the member served satisfactorily, as determined by the
Secretary of the Navy. This provision applies to an individual who first became a member of the
Uniformed Service before September 8, 1980, and who at the time of transfer is serving on
active-duty in a grade lower than the highest enlisted grade held by the member while on active-
duty not as a result of the member’s misconduct.
A. Pre-September 8, 1980 Member. The retainer pay base is the basic pay
that the member received at the time of transfer to the FR/FMCR. The retainer pay base is
multiplied by two and one-half percent times the number of years of active service (as adjusted
in subparagraph 030201.A) in the Armed Forces.
B. Post-September 7, 1980 Member. The retainer pay base is the person’s
high-three average. The high-three average is the total amount of monthly basic pay for the
highest 36-months of member’s active service, whether or not consecutive, divided by 36. When
a member is transferred to the FR/FMCR with less than 30-years of service, the high-36 average
is computed using only rates of basic pay applicable to months of active-duty as an enlisted
member.
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030207. Historical Pay Computations
A. The laws that governed the computation of retainer pay for a member
transferred to the FR/FMCR from its inception in 1916 through June 30, 1938 are of no value
since assimilated in the Naval Reserve Act of 1938, effective July 1, 1938. Therefore, the earlier
computations are not included in this Regulation since they were restated effective July 1, 1938.
See Table 3-2 for the pay computations.
B. A member transferred to the FR/FMCR was administratively placed in a
class to differentiate between laws and conditions governing the computation of these pay
entitlements. The following classes are applicable to these members:
COMPONENT
CODE
APPLICABLE TO
FR
FMCR
F-4c
1-b
Member who is in the Naval service on July 1, 1925 and
later transferred to the FR/FMCR after completion of
16-years but less than 20-years of active service.
FR
FMCR
F-4d
1-c
Member who was in the Naval service on July 1, 1925
and later transferred to the FR/FMCR after completion
of 20-years but less than 30-years of active service.
FR
FMCR
F-5
H-1
Member who first enlisted in the Naval service after
July 1,
1925, and later transferred to the FR/FMCR
before August 10, 1946, after completion of 20-years
but less than 30-years of active service.
FR
FMCR
F-6
1-d
Member who first enlisted in the Naval service after
July 1, 1925, and later transferred to
the FR/FMCR on
or after August 10, 1946, after completion of 20-years
but less than 30-years of active service.
C. Longevity is the length of service performed by each member.
1. Before October 1, 1949, longevity pay was a significant factor in
computing retainer pay. Certain pay laws contained provisions for computing longevity pay.
Such pay was based on the length of service. During this period, base pay and longevity fitted
into the framework of pay formulas to arrive at retainer pay. The computation for the longevity
pay changed several times before being superseded by basic pay. The various computations and
the periods applicable are:
a. Until May 31, 1942, for Navy members, the computation
was 10-percent of base pay for the first increment of 4-years of Naval service, plus 5-percent of
base pay for each 4-year increment thereafter, not to exceed 16-years, or 25-percent.
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Example: Member served 18-years; on transfer to the Fleet Reserve, the longevity pay
credit computed:
1. 10-percent – 4-years
2. 5-percent – 4-years
3. 5-percent – 4-years
4. 5-percent – 4-years
5. 0-percent – 4-years
b. From June 1, 1942 to September 30, 1949, the computation
was 5-percent of base pay for each 3-years of service up to 30-years, maximum of 50-percent.
2. On October 1, 1949, when basic pay became an important factor,
longevity pay was not computed separately but was included in the rate of basic pay.
a. A member who transferred to the FR/FMCR on or after
October 1, 1949 was required to elect the formula under which their pay would be computed.
The two formulas were the fractional (under which a member would receive one third or one half
of base pay) and the percentage (two and one-half percent times years of active Federal service
times basic pay). Such election was indicated on the authorization for transfer to the Fleet
Reserve.
b. Under Public Law 1028, effective August 10, 1956, a
member who transfers to the FR/FMCR receives retainer pay computed on the formula included
in the codification of the military pay laws under Title 10 U.S.C.. The prior computations were
still in effect for the members to whom they applied. A member who enters a Uniformed Service
before September 8, 1980 receives retainer pay computed under this formula.
c. A member who enters the Uniformed Service after
September 7, 1980 receives retainer pay under the formula codified in 1956, except the retainer
pay base is used instead of a monthly basic pay rate.
030208. Service Credit Rounding of Months
For percentage purposes in computing retired or retainer pay:
A. A member who retired before January 1, 1982 receives credit for any
fractional part of a year that is 6-months or more as an additional year. Disregard any portion of
a year that is less than 6-months. See Table 3-3. This applies to any member who, before
January 1, 1982:
1. Applied for retirement;
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2. Applied for transfer to the FR/FMCR;
3. Was being processed for retirement under the provisions of
10 U.S.C. Chapter 61; or
4. Was on the TDRL and thereafter retired under the provisions of
10 U.S.C. 1210(c) or (d).
B. Unless covered by subparagraph 030201.A, a member who became
entitled to retired or retainer pay January 1, 1982 through September 30, 1983, inclusive,
received credit on a month-by-month basis for each full month served of 6-months or more.
Disregard any fraction of a year less than 6-months. See Table 3-3.
C. A member who became entitled to retired or retainer pay on or after
October 1, 1983 receives credit for each full month served. Disregard less than full months. See
Table 3-4.
NOTE: If a member retires October 1, 1983 or later and the member is entitled to retired pay
under 10 U.S.C. 1401a(f) using a hypothetical retirement date which is before January 1, 1982,
service credit of 6-months or more was rounded to a full year; however, funding limitations each
fiscal year prohibited payment for months in excess of whole months actually served until
permanent codification was effective July 1, 1986.
D. In calculating the percentage factor under subparagraphs 030208.B or C,
round the percent to the nearest 1/100 of one percentage point. For example, 20-years, 7-months
(20.58-years) time’s 2.5-percent equals 51.45-percent. See Table 3-4. This rounding method
will also be used if the member is entitled to retired pay computed under the saved pay provision
in paragraph 030203 or under 10 U.S.C. 1401a(f) in section 0303.
030209. Rounding Retired Pay
Under Public Law 98-94, the 1984 DoD Authorization Act, monthly retired or retainer
pay entitlement is rounded as initially computed and as subsequently adjusted.
A. Effective October 1, 1983, the initial computation of gross retired pay, if
not a multiple of $1, round down to the next lower multiple of $1. All further reductions,
deductions, withholdings, and allotments are made from this rounded figure. When retired pay is
subsequently increased under 10 U.S.C. 1401a by cost-of-living adjustments, the retired or
retainer pay, if not a multiple of $1, is rounded down to the next lower multiple of $1.
B. The retired or retainer pay for a member already retired on
September 30, 1983 was not rounded until the next cost-of-living adjustment, December 1, 1984.
The retired or retainer pay, if not a multiple of $1, was rounded to the next lower multiple of $1.
The same rounding procedure applies to all subsequent cost-of-living adjustments.
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030210. Special Computations for Career Status Bonus with Reduced Retirement
(CSB/REDUX)
A. The retired pay or retainer pay multiplier of members who elected the
CSB with REDUX retirement will be reduced one percentage point for each full year of
creditable service less than 30 and 1/12th of one percent for each full month of creditable service
less than a full year.
B. Effective on the first day of the month following the member’s 62nd
birthday, the retired pay of members who elected the CSB with REDUX will be recomputed to
equal the amount of retired pay to which the member would have been entitled on that date if the
member had not taken the CSB with REDUX retirement and had no reduction in their multiplier
or COLA (see Chapter 8, paragraph 080315). Following the restoration discussed in the
preceding sentence, the annual COLA reduction will continue to be applied to the member’s
retired pay each year throughout the member’s retirement.
C. Members who elected the CSB/REDUX retirement and accepted early
retirement under the TERA program will have their retired pay recomputed as discussed in
subparagraph 030210.A; however, they will be subject to the TERA reduction factor from Table
3-5 for the entirety of their retirement with no restoration of that reduction at age 62 or at any
other time.
030211. Temporary Early Retirement Authority (TERA)
The Secretary of Defense was provided a temporary additional force management tool
under TERA legislation with which to affect the drawdown of military forces from
October 23, 1992 through September 1, 2002. That legislation was amended to reinstate certain
TERA provisions for the period beginning December 31, 2011 and ending on
December 31, 2018. The basic TERA retired pay entitlement for members of the Army, Navy,
Marine Corps and Air Force will be computed as described in this paragraph.
A. Computation of Retired Pay. The amount of retired pay otherwise
prescribed for a retiring member using years of creditable service, high-36 monthly average basic
pay and a 2½ retired pay percentage factor is multiplied by the applicable reduction factor from
Table 3-5. The resulting reduced amount of retired pay, if not a multiple of $1, round to the next
lower multiple of $1. This rounded amount is the initial gross monthly retired pay entitlement.
B. Reduction Factor. To determine the appropriate reduction factor from
Table 3-5, take the difference between 240-months (20-year career) and the number of months of
active service as of the date of the member’s retirement or transfer to the Fleet Reserve or Fleet
Marine Corps Reserve under TERA.
1. Any portion of a month of active service in excess of a whole
month is rounded up to the next whole month. For example, total active service of 15-years,
7-months, and 13-days round up to 15-years, 8-months. The reduction factor based on 15-years
and 8-months is computed as: (15 × 12) + 8 = 188-months and the applicable reduction factor
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corresponds to the Table 3-5 entry for 240 less 188 or 52-months. The applicable reduction
factor for 52-months from Table 3-5 is .95667.
NOTE: In computing the retired pay, disregard the 13-days in excess of 187-months of service,
retired pay is based on 187-months. The rounding up is applied only to determine the TERA
reduction factor.
2. As an example, the retired pay for a member retired under TERA
as an E-7, with 15-years, 7-months, 13-days of creditable service and a high 36-monthly average
basic pay of $3,783.50 would be computed as follows:
RPB - Retired Pay Base (i.e. high 36 monthly average basic pay)
AS - Active Service (in months)
MO - Months in a year
RPF - Retired Pay Percentage Factor
TRF - TERA Reduction Factor (Table 3-5)
RPB × ((AS ÷ MO) × RPF) × TRF =
$3,783.50 × ((187 ÷ 12) × .025) × .95667 =
$3,783.50 × (15.5833 ×.025) × .95667 =
$3,783.50 × .3896 × .95667 =
$1,410.18
(Since this is not a multiple of $1, round down to $1,410.00.)
* C. TERA Computation Modified for Career Status Bonus (CSB)/Reduced
Retirement (REDUX). The basic TERA retired pay entitlement must be modified if a member
has elected to receive a CSB and is subject to the REDUX retirement plan. In such case, the
normal retired pay multiplier shall first be reduced by one twelfth of one percentage point for
each month that the member’s creditable service is less than 30-years (360-months) under the
REDUX computation before the application of the TERA reduction factor from Table 3-5.
Using the example in 030211.B.2, the TERA retired pay for a member who has elected to
receive a CSB would be computed as follows:
RPB - Retired Pay Base
360 - 30-Years (360-months)
AS - Active Service (in months)
MO - Months in a year
RPF - Retired Pay Percentage Factor
RRF - REDUX Reduction Factor (1%)
TRF - TERA Reduction Factor (Table 3-5)
RPB × ((AS ÷ MO) × RPF) – (((360 – AS) ÷ MO) ×RRF)) × TRF =
$3,783.50 × ((187 ÷ 12) × .025) – (((360 – 187) ÷ 12) × .01)) × .95667 =
$3,783.50 × ((15.5833 ×.025) – ((173 ÷ 12) × .01)) × .95667 =
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$3,783.50 × (.3896 – (14.42 × .01)) × .95667 =
$3,783.50 × (.3896 – .1442) × .95667 =
$3,783.50 × .2454 × .95667 =
$888.24
(Since this is not a multiple of $1, round down to $888.00.)
The amount determined in 030211.C will be increased by annual Cost of Living Allowances
(COLA) as determined for other members who have elected the CSB and REDUX retirement.
The result is COLA is reduced by one percentage whenever the standard military retirement
COLA is greater than one percent and the same COLA whenever the standard is one percent or
less.
D. Unlike the prior TERA eligibility period from 1992 through 2002, under
the new TERA authority members may not earn additional credit for purposes of re-computing
retired pay for any employment by a public service or community service organization.
E. Persons retired under the TERA provisions have all the same entitlement
rights, privileges and responsibilities of participation in the Survivor Benefit Plan (SBP), as
retired members of their respective branch of service.
1. Full coverage under SBP means coverage on the amount of retired
pay computed in subparagraph 030211.A which is the initial computation of TERA retired pay
as reduced by the applicable reduction factor from Table 3-5.
2. For a CSB/REDUX member, the base amount for full SBP
coverage is the amount computed using the TERA formula in 030111.A including the reduction
from Table 3-5. The SBP full base amount for a CSB recipient does not include the REDUX
retirement reduction in subparagraph 030211.C. If the member elects a reduced base amount,
with spouse concurrence, at the time of retirement, even if based on the REDUX re-computation
in subparagraph 030210.C, no increase will be made in that base amount as a result of the re-
computation at age 62 other than an increase to restore the elected base amount to what it would
have been in effect had full COLAs been in effect. No increase will be made in that base amount
as a result of the re-computation at age 62 for the restoration of the retired pay multiplier.
030212. Exception to High-36 Month Retired Pay Computation for Members
Retired Following a Disciplinary Reduction in Grade
Members or former members who entered the Uniformed Services on or after
September 8, 1980 will have their retired pay base computed using the high 36-month average,
except for the members described as follows, whose retired pay base is based on the final basic
pay of the grade prescribed in title 10 U.S.C. 1406, rather than the highest 36-month average of
basic pay.
A. Affected Members. A member or former member subject to the above
exception is one who, by reason of conduct occurring after October 30, 2000:
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1. In the case of an enlisted member retired or transferred to the
FR/FMCR, is reduced in grade as a result of court-martial sentence, nonjudicial punishment, or
an administrative action, unless the member was subsequently promoted to a higher enlisted
grade or appointed to a commissioned or warrant grade, in which case see subparagraph
030212.B.
2. In the case of an officer, is retired in a grade lower than the highest
grade in which the officer served by reason of denial of a determination or certification under
10 U.S.C. 1370 that the officer served on active-duty satisfactorily in that grade. This
determination is to be applied only in those circumstances where such determination is the result
of conduct occurring after October 30, 2000. Conduct, for the purposes of this provision shall
not include failure to complete the time necessary for certification under 10 U.S.C. 1370, absent
any other conduct bearing on such certification.
B. Special Rule for Enlisted Members. In the case of an enlisted member
retired within 3 years after having been reduced in grade as prescribed in
subparagraph 030212.A.1, and who was not subsequently promoted to a higher enlisted grade (or
appointed to a warrant or commissioned grade), the retired pay base will be computed using the
final basic pay rather than the high 36-month average. If, however, the member is subsequently
promoted to a higher enlisted grade (or appointed to a warrant or commissioned grade), the
member’s retired pay will be computed using a high 36-month average computation. The
computation will use the final 36-months of basic pay, except for the months in which the
member served in a grade higher than the grade in which retired. The basic pay for such months
shall be the rates that would have applied to the member at that time if serving in the grade in
which retired.
Examples:
1. An E-7 is reduced to E-5 and retired as E-5. This member comes
under subparagraph 030212A.1., with retired pay base computed under the pre-September 1980
system, which is final pay rules using the pay of an E-5.
2. An E-7 is reduced to E-5 two years before retirement, is promoted
1-year later to E-6 and retired as an E-6. This member uses the “Special Rule” and computes a
high 36 as specified in subparagraph 030211.B rather than using the final pay of an E-6. In
computing the high 36-average, it would include 12-months as an E-7, 12-months as an E-5, and
12-months as an E-6. The “Special Rule” requires that the time as an E-7 will be replaced in the
high 36 formula with pay rates of an E-6.
0303 APPLICATION OF SAVED PAY
030301. Career Compensation Act, Effective October 1, 1949
A. An officer retired for disability before October 1, 1949 who failed to elect
within a 5-year period to receive pay under the 1949 Act, or who did not qualify for pay under
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the 1949 Act, continued to receive pay under laws in effect before October 1, 1949, computed at
75-percent of the basic pay of the grade authorized.
B. A member who, on October 1, 1949, was a hospital patient and who,
before January 1, 1951, retired for disability as the result of the disease or injury for which
hospitalized could elect to receive retired pay:
1. Computed under laws in effect on September 30, 1949 at
75-percent of the basic pay of the grade authorized; or
2. Computed under section 402(d) of Public Law 81-351.
C. A member who, on October 1, 1949, was receiving or was entitled to
receive retired pay under any provision of law was authorized to continue the entitlement to
receive the pay to which entitled under the laws in effect on September 30, 1949.
030302. Military Pay Act, Effective June 1, 1958
A. A member who retired or transferred to the FR/FMCR on or after
June 1, 1958 and before April 1, 1963, and who was receiving active-duty basic pay under the
April 1, 1955, saved pay rates, continued to receive pay computed under the 1955 rates, based
upon service credited for basic pay purposes as of June 1, 1958.
B. A member who retired or transferred to the FR/FMCR on June 1, 1958
was entitled to pay computed on the June 1, 1958 active-duty basic pay rates, or on the
April 1, 1955 active-duty basic pay rates plus 6-percent, whichever was greater.
C. A member retired or transferred to the FR/FMCR after June 1, 1958, who
was receiving active-duty saved pay, was entitled to retired pay computed on the April 1, 1955
active-duty basic pay rates, but was not entitled to the additional 6 percent increase.
030303. Military Pay Act, Effective October 1, 1967
A. With respect to a member entitled to retired pay computed under this
paragraph, the retired or retainer pay may not be less than it would have been if the member had
become entitled to that pay based on the same basic pay grade, years of service for basic pay and
percentage purposes, and percent of disability (if any) on the day before the effective date of the
rates of monthly basic pay on which retired or retainer pay is based. Such members receive pay:
1. Computed under the current basic pay rates in effect on the date of
retirement or transfer, or
2. Computed under the rates of basic pay in effect immediately before
the current rates, whichever is greater.
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B. The above computations were, in some instances, subject to the provisions
of the Uniform Retirement Date Act. For application of this Act, see Chapter 1, paragraph
010502.
C. The “1-year look-back” provision codified at 10 U.S.C. 1401a(e) was
repealed by section 921 of the DoD Authorization Act, Fiscal Year 1984. Under the provisions
of that repeal, this paragraph now applies only to:
1. A member retired or transferred to the FR/FMCR October 1, 1967,
through September 24, 1983, inclusive; and
2. A member eligible for retirement or transfer on or before
September 24, 1983, provided the member retires or transfers on or before September 24, 1986.
If the member retires or transfers after September 24, 1986, the retired or retainer pay may not be
less than it would have had the member actually retired or transferred on September 23, 1986.
0304 TOWER AMENDMENT
030401. Basic Provisions
A. A member, who retires or transfers to the FR/FMCR on or after
January 1, 1971, and who fully qualifies for retirement on a date earlier than the actual retirement
date, receives the most favorable rate of pay as though the member had actually retired or been
transferred on the earlier date:
1. After becoming retirement-eligible on or after January 1, 1971 (see
Chapter 1, section 0102),
2. Based upon the grade and the service creditable on the earlier
computation date. (For retirements on or after October 5, 1994, the grade used in the
computation cannot be higher than the grade in which the member is retired.),
3. Using the rate of basic pay applicable to the member on the earlier
computation date in determining the retired pay base, or
4. Subject to the provisions of paragraph 030303.
B. A member, who retired or transferred to the FR/FMCR before
October 7, 1975, the effective date of the Tower Amendment, is entitled to pay adjusted from
October 7, 1975. No adjustment is authorized under the provisions of the amendment for any
period before October 7, 1975.
C. A member who retired between October 1, 1988 and October 4, 1994 and
who is reduced in grade under sentence of court-martial after initially becoming eligible for
retired pay is not entitled to computation on a grade higher than the grade in which retired.
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D. See subparagraph 030503.A for provision concerning an officer who
served in a special position as Chairman or Vice Chairman of the Joint Chiefs of Staff or as a
Chief of Service.
E. See paragraph 030505 for the provision concerning an enlisted member
who served in a special position as a senior enlisted member.
030402. Earlier Computation Dates
A. Predetermined earlier computation dates are established for uniformity in
computing the pay of a member who qualifies under 10 U.S.C. 1401a(f), and the Tower
Amendment, as amended. Generally, the day immediately preceding an active-duty basic pay
rate change is the earlier date of voluntary retirement eligibility, unless the computation is more
favorable based on the first day of the month preceding an active-duty basic pay rate change.
B. A member of the FR/FMCR may transfer on any intermediate day of a
month. Therefore, the earlier computation date for this member is the day before new active-
duty basic pay rates are effective.
C. A warrant officer retired under provisions of 10 U.S.C. 1293 (see
Table 3-1, rule 3), on the effective date of a change in the active-duty pay rates, receives retired
pay computed by using the rate of basic pay in effect on the day before the date of retirement.
Thus, the earlier retirement eligibility date under 10 U.S.C. 1401a(f) computation would be
one year earlier with retired pay based upon rates in effect on the day before the earlier eligibility
date. If the member is entitled to use the saved pay rate under paragraph 030203, the rate in
effect immediately prior to the rate in effect on the day before the earlier retirement eligibility
date is used.
030403. Computation at the Time of Retirement or Transfer to the FR/FMCR
A. A member receives the most favorable retired pay, as adjusted by
applicable cost-of-living adjustments, computed by using:
1. The active-duty basic pay rate applicable on the actual retirement
or transfer date, or
2. One prior active-duty basic pay rate at the same grade and service
applicable on the actual retirement or transfer date if the provisions of paragraph 030203 apply.
3. Any active-duty basic pay rate in effect on or after
January 1, 1971, at the grade and service credited on the earlier computation date, if retirement-
eligible on the earlier date. After this rule is used, apply subparagraph 030403.A.2 without
further loss of grade and service.
B. A member retiring for disability who is eligible for voluntary retirement or
transfer to the FR/FMCR on an earlier date may have gross retired pay entitlement computed in
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accordance with the provisions of 10 U.S.C. 1401a(f) when more favorable; however, the basic
pay rate applicable for an earlier retirement date under this condition for gross pay computation
cannot be used for computing pay based upon the disability rating. The rate of pay based upon
degree of disability may be calculated only on the basic pay rate applicable under subparagraph
030403.A.1 or A.2 (if applicable).
0305 SPECIAL PROVISIONS
030501. Entitlement Under More Than One Pay Formula
A member who is entitled to pay computed under more than one pay formula or
provision of law is entitled to be paid under the formula that is most favorable.
030502. Commissioned Officer With More Than Four Years of Active Enlisted
and/or Warrant Officer Service
A member, who at the time of retirement, is in pay grade O1E, O2E, or O3E, having
served more than 4-years of active-duty as an enlisted member and/or warrant officer, receives
pay computed on the special basic pay rate that is authorized.
030503. Commissioned Officer Serving in a Special Position
A. Joint Chief of Staff and Chief of Service. An officer who serves as
Chairman or Vice Chairman of the Joint Chiefs of Staff or as a Chief of the Service may receive
retired pay which is computed on the highest rate of basic pay applicable to the member while
serving in the special position, if that rate is higher than the rate otherwise authorized as a retired
pay base for a member who first became a member before September 8, 1980. Except as
provided in paragraph 030509, effective January 1, 2007, the rate of basic pay cannot exceed
Level II of the Executive Schedule. The term “Chief of Service” refers to one of the following:
1. Chief of Staff of the Army,
2. Chief of Naval Operations,
3. Chief of Staff of the Air Force,
4. Commandant of the Marine Corps, or
5. Commandant of the Coast Guard.
NOTE: The member may not use the rate of the special position for computation of retired pay
if, during or after serving in the special position, and by the member’s conduct after
October 16, 1998, the officer is not certified as having served satisfactorily in the grade of
general or admiral while serving in that position.
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B. Special Rule for Computation of Retired Pay Base for Commanders of
Combatant Commands. An officer who serves as a Commander of a Unified or Specified
Combatant Command may receive retired pay that is computed on the highest rate of basic pay
applicable to the member while serving in that position. The member may not use the rate of the
special position for computation of retired pay if, during or after serving in the special position
and by the member’s conduct after October 16, 1998, the officer is not certified as having served
satisfactorily in the grade of general or admiral while serving in that position. Effective
January 1, 2007, the rate of basic pay cannot exceed Level II of the Executive Schedule. This
special rule shall apply with respect to officers who first become entitled to retired pay on or
after November 23, 2004.
030504. Officer in Grade O-9 or O-10
A. An officer who served in grade O-9 or O-10 for not less than 3-years is
entitled to retired pay based on that grade if the Secretary of Defense certifies in writing to the
President and the Congress that the officer served on active-duty satisfactorily. The 3-year
requirement may be reduced to not less than 2-years for retirements effective during a specified
period (see Chapter 1, subparagraph 010501E.5). The 3-year time-in-grade requirement may not
be reduced or waived if the officer is under investigation for alleged misconduct or while an
adverse personnel action is pending against the officer for alleged misconduct.
B. An officer who served in grade O-9 or O-10 for a period of less than
3-years before retirement will have retired pay based on the next lower grade, unless a waiver of
the time in grade requirement has been granted by the appropriate authority. The granting of the
waiver will affect only the pay computation for the date of retirement. Computations for earlier
dates on which eligible to retire must be based on the next lower grade.
C. Section 601(e) of Public Law 106-65, October 5, 1999, provides that
retired pay be recomputed effective January 1, 2000 for certain members who retired during the
period April 30, 1999 through December 31, 1999. As a result, the retired pay of members’
grade 0-9 with over 26-years of service and 0-10s with over 16-years of service will be
recomputed. The new rates will be for months beginning on or after January 1, 2000 and will be
computed as if the Level II limit had applied at the time of a qualified member’s retirement. No
increased amount is payable for any period before January 1, 2000 as a result of this provision.
Retired pay rates for affected members should be recomputed as though the following rates of
basic pay had been applicable at the time of retirement:
0-9 Over 26-years of service: $9,528.00
0-10 Over 16-years of service: $9,528.00
0-10 Over 18-years of service: $9,528.00
0-10 Over 20-years of service: $10,167.00
0-10 Over 22-years of service: $10,167.00
0-10 Over 24-years of service: $10,167.00
0-10 Over 26-years of service: $10,491.60
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030505. Enlisted Member Serving in a Special Position
The senior enlisted member of an Armed Force may receive retired pay, which is
computed on the highest rate of basic pay applicable to the member while serving in that special
position, if that rate is higher than the rate otherwise authorized as a retired pay base for a
member who first became a member before September 8, 1980. The term “senior enlisted
member” refers to one of the following:
A. Sergeant Major of the Army,
B. Master Chief Petty Officer of the Navy,
C. Chief Master Sergeant of the Air Force,
D. Sergeant Major of the Marine Corps, or
E. Master Chief Petty Officer of the Coast Guard.
NOTE: The member may not use the rate of the special position for computation of retired pay
if, during or after serving in the special position, and by member’s conduct after
October 16, 1998, the member is reduced in grade by court-martial, nonjudicial punishment, or
other administrative process.
030506. Heroism Pay
An enlisted member retired after 20-years of service, to include an enlisted member
retired due to disability, may be entitled to an additional 10-percent retired pay for extraordinary
heroism, if authorized. See Chapter 1, Section 0108.
030507. Computation Under the Uniformed Services Pay Act, October 2, 1963
A. Beginning October 1, 1963, a member retired between October 1, 1949
and May 31, 1958, including a member retired before October 1, 1949, receiving pay under the
1949 Act, received the greater of:
1. An increase of 5-percent in the retired pay to which entitled on
September 30, 1963; or
2. Pay computed on the basic pay rates established under the
June 1, 1958 Act without a 5-percent increase.
B. Beginning October 1, 1963, a member retired for service before
October 1, 1949 and being paid under laws in effect on September 30, 1949 receives the greater
of:
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1. An increase of 5-percent in the retired pay to which entitled on
September 30, 1963; or
2. Pay recomputed on the basic pay rates established by the Military
Pay Act of 1958 without a 5-percent increase, based on actual active service creditable.
030508. Computation Under the Military Pay Act, May 20, 1958
A. A member who first became entitled to retired pay on June 1, 1958 was
authorized to receive pay computed on the new June 1, 1958 basic pay rates or on the
April 1, 1955 active-duty basic pay rates plus 6-percent, whichever is greater.
B. A member retired after June 1, 1958 who was receiving active-duty saved
pay was entitled to retired pay computed on the April 1, 1955 active-duty basic pay rate, but was
not entitled to the additional 6-percent increase.
C. The basic pay rate used in the computation of pay was increased by
increments of $200 for generals and admirals and $100 for lieutenant generals and vice admirals
before the 6-percent increase on June 1, 1958 for a retired officer who:
1. Served in that grade for at least 180-days, and
2. Was entitled to retired pay on the day before the effective date of
the Military Pay Act of 1958.
030509. Retired Pay Base for Officers Retired in General or Flag Officer Grades
A. The retired pay base of a general or flag officer who retires after
September 30, 2006 will not be restricted by the requirement in 37 U.S.C. 203 (a)(2) to reduce
basic pay in excess of Level II of the Executive Schedule.
B. The retired pay base shall be determined using the rate of basic pay for
such period provided by law, rather than such rate as reduced.
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Table 3-1. Computation of Retired Pay
COMPUTATION OF RETIRED PAY
R
U
L
E
A
B
C
D
E
F
G
A
member
of the
who is
under
provision
s of 10
U.S.C.
receives the
retired pay
base
multiplied by
plus
minus (note
8)
1
Armed
Forces
retired for
disability
1201
1204
computed
under
10 U.S.C.
1406(b) or
1407
(note 1)
the percentage of
disability
assigned, not to
exceed
75-percent or
2.5-percent times
the years of
service credited
for percentage
purposes, except
for a member
retiring on or
before
January 7, 2011,
the multiplier is
limited to
75-percent
(note 3)
2
1202
1205
the amount
necessary to
increase the
product of
columns D
and E to
50-percent of
retired pay
base
3
voluntarily
retired
1293
the retired pay
multiplier from
10 U.S.C. 1409
for the years of
service credited
for percentage
purposes
(note 3)
excess over
75-percent of
retired pay
base upon
which
computation
is based if
member
retires before
January 1,
2007
(note 6)
4
Army or
Air
Force
3914
3917
8914
8917
computed
under
10 U.S.C.
1406(c) -
for Army,
1406(e) -
for Air Force
or 1407
(notes 1
and 10)
10-percent of
the product
of
Columns D
and E, if
applicable
(note 2)
5
3911
3918
3920
3924
8911
8918
8920
8924
6
Navy or
Marine
Corps
6321
6323
computed
under
10 U.S.C.
1406(d) or
1407
(note 1)
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Table 3-1. Computation of Retired Pay (Continued)
COMPUTATION OF RETIRED PAY
R
U
L
E
A
B
C
D
E
F
G
A
member
of
who is
under
provision
s of 10
U.S.C.
receives the
retired pay
base
multiplied by
plus
minus/add
(note 8)
7
Navy or
Marine
Corps
voluntarily
retired
6322
6326
computed
under
10 U.S.C.
1406(d) or
1407
(note 1)
retired pay
multiplier from
10 U.S.C. 1409
for years of
service credited
for percentage
purposes
(note 3)
10-percent of
columns D
and E if
applicable
(note 2)
excess over
75-percent of
retired pay
base upon
which
computation
is based, if
the member
retired before
January 1,
2007
(note 6)
8
6327
50- percent
(note 5)
9
Armed
Forces
Involuntari
ly retired
580
633
634
635
636
1251
1263
1305
(note 9)
computed
under
10 U.S.C.
1406(b) or
1407
(note 1)
retired pay
multiplier from
10 U.S.C. 1409
for years of
service credited
for percentage
purposes
(note 3)
excess over
75-percent of
retired pay
base upon
which
computation
is based, if
the member
retired before
January 1,
2007
(note 6)
10
Army
3920
3921
(note 6)
computed
under
10 U.S.C.
1406(c) or
1407
(note 1)
11
Navy or
Marine
Corps
6371
6383,
(note 6)
computed
under
10 U.S.C.
1406(d) or
1407
(note 1)
12
Air
Force
8920
8921
(note 6)
computed
under
10 U.S.C.
1406(e) or
1407
(note 1)
retired pay
multiplier for the
years of service
credited for
percentage
purposes
(note 3)
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-27
Table 3-1. Computation of Retired Pay (Continued)
COMPUTATION OF RETIRED PAY
R
U
L
E
A
B
C
D
E
F
G
A
member
of
who is
under
provision
s of 10
U.S.C.
receives the
retired pay
base
multiplied by
plus
minus/add
(note 8)
13
Armed
Forces,
Reserve,
or
National
Guard
Reservist
(meets age
and
service
require-
ment)
12731
computed
under
10 U.S.C.
1406(b) (2)
or 1407
(note 1)
2.5-percent times
the years of
service credited
for percentage
purposes
(notes 3 and 4)
10-percent of
the product
of columns
D and E
(note 2)
excess over
75-percent of
retired pay
base upon
which
computation
is based if
member
retired before
January 1,
2007
(note 6)
14
Navy or
Marine
Corps
transferred
to the
FR/FMCR
6330
computed
under
10 U.S.C.
1406(d) or
1407
(notes 1
and 7)
the retainer pay
multiplier for the
years of service
credited for
percentage
purposes
(note 3)
NOTES:
1. For applicable active-duty basic pay rate, see sections 0304 and 0305 and paragraphs 010502 and 030301.
For a person who first became a member of a uniformed service after September 7, 1980, use the high 36-month
average. For exception to high 36-months retired pay computation for members retired following a disciplinary
reduction in grade, refer to paragraph 030212.
2. Enlisted members credited with an act of extraordinary heroism in the line of duty. For Army and Air
Force enlisted members, the total retired pay to include the 10-percent increase, may not exceed the maximum pay
of 75-percent. For Navy and Marine Corps enlisted members, the total maximum retired pay is 75-percent plus the
10-percent increase. Members with more than 30-years of creditable service should also have retired pay computed
without the 10-percent add-on and awarded the higher of the two calculations. All members who retire under the
provisions of 10 U.S.C. 12731
with credit for extraordinary heroism are restricted to a maximum pay of 75-percent.
3. See Chapter 1 of this volume for service creditable for percentage purposes:
Voluntary retirement:
Paragraph 010402—Enlisted members
Paragraph 010403—Commissioned Officers
Paragraph 010404—Warrant Officers
Disability retirement:
Paragraph 010406
Mandatory retirement:
Subparagraph 010405.A—Army and Air Force
Subparagraph 010405.B—Navy and Marine Corps
Reservist age and service retirement:
Paragraph 010407
4. Total number of retirement points divided by 360. Carry the resultant figure to three decimal places, round
to two decimal places. EXAMPLE: 4735 retirement points divided by 360 = 13.152 or 13.15-years of service for
percentage purposes (for the section 12731 retiree only) to be multiplied by 2-1/2-percent.
5. Members retired under 10 U.S.C. 6327
are authorized to receive retired pay at 50 percent of the active-duty
basic pay of their grade when not on active-duty. This provision applies only to persons who were members of the
Naval Reserve or Marine Corps Reserve on January 1, 1953. The provisions of 10 U.S.C. 6327 terminated on
January 1, 1973. However, termination of the section did not affect any accrued rights to retired pay.
6. For members who retired on or after January 1, 2007, the retired pay multiplier is the sum of 75-percent for
30-years of service plus 2-1/2-percent for every year over 30-years.
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-28
Table 3-1. Computation of Retired Pay (Continued)
NOTES
7. In lieu of the retainer pay base computed under 10 U.S.C. 1406(d), a Reserve enlisted member may be
entitled to retainer pay computed by using the monthly basic pay for the highest enlisted grade in which the member
served satisfactorily, as determined by the Secretary of the Navy. This provision applies to an individual who first
became a member of the Uniformed Service before September 8, 1980 and who, at the time of transfer, is serving on
active-duty in a grade lower than the highest enlisted grade held by the member while on active-duty not as a result
of the member’s own misconduct.
8. If a member was initially retired on or after October 1, 1983, the amount computed, if not a multiple of $1,
shall be rounded to the next lower multiple of $1. Any future adjustments to such pay must be made on the rounded
figure. Retired pay of members retired on September 30, 1983 will not be rounded until there is an adjustment
under 10 U.S.C. 1401a; then, and with each subsequent adjustment, the amount as adjusted, if not a multiple of $1,
shall be rounded to the next lower multiple of $1. The rounded amount becomes the member’s entitlement and any
future adjustments shall be based on this rounded entitlement.
9. Section 564 repealed by Public Law 102-190, December 5, 1991. Section 1255 repealed by Public
Law 90-130, November 8, 1967. An officer who was on active-duty on September 15, 1981 and who is retired
under Section 1251 is entitled to retired pay of at least 50-percent of the basic pay upon which the retired pay is
based.
10. For a Reserve enlisted member retired under 10 U.S.C. section 3914 or 8914 after September 30, 1996, the
retired pay base is the monthly basic pay of the member’s retired grade (based on rates applicable on date of
member’s retirement) in lieu of the retired pay base under 10 U.S.C. 1406(e).
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-29
Table 3-2. Historical Pay Computations – Fleet Reserve and Fleet Marine Corps Reserve
HISTORICAL PAY COMPUTATIONS – FLEET RESERVE AND FLEET MARINE CORPS RESERVE
R
U
L
E
A
B
C
D
E
F
If
member
retires
in class
during
period
with
years of
service
at least
then pay computation
formula is
plus
and
applicable
law is
1
F-4c
1-b
pre-1938 to
May 31,
1942
16; less
than 20
1/3 x base pay rating in
which transferred
(note 1)
longevity pay
(25-percent
maximum),
extraordinary heroism
(10-percent)
52 Stat 1179,
section 203,
34 U.S.C. 854b.
2
F-4d
1-c
20; less
than 30
1/2 x base pay rating in
which transferred
(note 1)
longevity pay
(25-percent
maximum),
extraordinary heroism
(10-percent), or
good conduct
(10-percent)
3
F-5
H-1
52 Stat 1179,
section 204,
34 U.S.C. 854c.
4
F-4c
1-b
June 1,
1942 to
August 9,
1946
16; less
than 20
1/3 x base pay rating in
which transferred
(note 1)
longevity pay
(50-percent
maximum),
extraordinary heroism
(10-percent)
56 Stat 359,
Public Law 607,
June 6, 1942.
5
F-4d
1-c
20; less
than 30
1/2 x base pay rating in
which transferred
(note 1)
longevity pay
(50-percent
maximum), extraordi-
nary heroism
(10-percent), or
good conduct
(10-percent)
6
F-5, H-1
7
F-4c
1-b
August 10,
1946 to
September
30, 1949
16; less
than 20
(note 2)
1/3 x base pay rating in
which transferred
(notes 1 or 2)
longevity pay
(50-percent
maximum),
extraordinary heroism
(10-percent)
60 Stat 993,
Public Law 720,
August 10, 1946.
8
F-4d
1-c
20; less
than 30
1/2 x base pay rating in
which transferred
(note 2)
longevity pay
(50-percent
maximum),
extraordinary heroism
(10-percent), or
good conduct
(10-percent)
9
F-6
(note 3)
1-d
20
1/2 x base pay rating in
which transferred
(note 1) or
2.5-percent x years of
active federal service
multiplied by base pay
of rating in which
transferred (note 2)
longevity pay
(75-percent
maximum),
extraordinary heroism
(10-percent)
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-30
Table 3-2. Historical Pay Computations – Fleet Reserve and Fleet Marine Corps Reserve
(Continued)
HISTORICAL PAY COMPUTATIONS – FLEET RESERVE AND FLEET MARINE CORPS RESERVE
R
U
L
E
A
B
C
D
E
F
If
member
retires
in class
during
period
with
years of
service
at least
then pay computation
formula is
plus
and
applicable
law is
10
all
classes
transferred
before
October 1,
1949,
effective
on October
1, 1949
at least
20
pay received on
9/30/49 (saved pay)
or
2.5-percent x years of
active service =
percent; percent x basic
pay of highest federally
recognized rating
satisfactorily held
(note 4)
Public Law 351,
81st Congress,
October 1, 1949.
11
F-4c
1-b
on or after
October 1,
1949
1/3 x basic pay
receiving at transfer
(note 5)
or
2.5-percent x years of
active federal service =
percent; percent x basic
pay of rating in which
transferred
(notes 6 and 8)
extraordinary heroism
(10-percent)
12
F-4d
1-c
1/2 x basic pay
receiving at transfer
(note 5)
or
2.5-percent x years of
active federal service =
percent; percent x basic
pay of rating in which
transferred
(notes 6 and 8)
extraordinary heroism
(10-percent),
or good conduct
(10-percent)
13
F-6
1-d
1/2 x basic pay
receiving at transfer
(note 5)
or
2.5-percent x years of
active federal service =
percent;
extraordinary heroism
(10-percent)
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-31
Table 3-2. Historical Pay Computations – Fleet Reserve and Fleet Marine Corps Reserve
(Continued)
HISTORICAL PAY COMPUTATIONS – FLEET RESERVE AND FLEET MARINE CORPS RESERVE
R
U
L
E
A
B
C
D
E
F
If
member
retires in
class
during
period
with
years of
service at
least
then pay computation
formula is
plus
and
applicable
law is
14
F-6
1-d
on or after
August
10, 1956
at least
20-years
2.5-percent x years of
active service in Armed
Forces = percent;
percent x basic pay
receiving at transfer
(notes 7 and 8)
extraordinary heroism
(10-percent)
Public Law
1028, August 10,
1956, 10 U.S.C.
6330.
NOTES:
1. Fractional year of 6 months or more not creditable as 1 year for longevity or transfer.
2. Fractional year of 6 months or more creditable equals’ full year for transfer and longevity, effective
August 10, 1946.
3. Effective August 10, 1946, class F-5 changed to class F-6.
4. Six months or more equals 1 year for active service; 6 months or more does not equal 1 year for basic pay; nor
good conduct or extraordinary heroism.
5. Six months equals 1 year for basic pay and not for computing years of Naval service for transfer.
6. Six months or more equals 1 full year for active service and basic pay.
7. Six months equals 1 year for active service (include constructive service in active service). Six months equals
1 year for basic pay (do not include constructive service in service for basic pay).
8. If member entered a Uniformed Service after September 7, 1980, substitute the retainer pay base for the base
or basic pay.
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-32
Table 3-3. Pre-1982 Retirement Percentage Multiple Conversions
PRE-1982 RETIREMENT PERCENTAGE MULTIPLE CONVERSIONS
At Least
Not More Than
Years
Months
Days
Years
Months
Days
Converted Years
Percentage
0
6 0 1
5 29 1 2.5
1
6 0 2
5 29 2 5
2
6 0 3
5 29 3 7.5
3
6 0 4
5 29 4 10
4
6 0 5
5 29 5 12.5
5
6 0 6
5 29 6 15
6
6 0 7
5 29 7 17.5
7
6 0 8
5 29 8 20
8
6 0 9
5 29 9 22.5
9
6 0 10
5 29 10 25
10
6 0 11
5 29 11 27.5
11
6 0 12
5 29 12 30
12
6 0 13
5 29 13 32.5
13
6 0 14
5 29 14 35
14
6 0 15
5 29 15 37.5
15
6 0 16
5 29 16 40
16
6 0 17
5 29 17 42.5
17
6 0 18
5 29 18 45
18
6 0 19
5 29 19 47.5
19
6 0 20
5 29 20 50
20
6 0 21
5 29 21 52.5
21
6 0 22
5 29 22 55
22
6 0 23
5 29 23 57.5
23
6 0 24
5 29 24 60
24
6 0 25
5 29 25 62.5
25
6 0 26
5 29 26 65
26
6 0 27
5 29 27 67.5
27
6 0 28
5 29 28 70
28
6 0 29
5 29 29 72.5
29
6 0 30 75
NOTE: This Table applies to members retired before January 1, 1982, with several exceptions covered in
paragraph 030208.
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-33
Table 3-4. Post-1981 Retirement Percentage Multiplier Conversions
POST-1981 RETIREMENT PERCENTAGE MULTIPLIER CONVERSIONS
Service Multiplier Service Multiplier Service Multiplier Service Multiplier
Years Months (%) Years Months (%) Years Months (%) Years Months (%)
00.
3
7.50
6
15.00
9
22.50
1
00.20
3
1
7.70
6
1
15.20
9
1
22.70
2
00.43
3
2
7.93
6
2
15.43
9
2
22.93
3
00.63
3
3
8.13
6
3
15.63
9
3
23.13
4
00.83
3
4
8.33
6
4
15.83
9
4
23.33
5
1.05
3
5
8.55
6
5
16.05
9
5
23.55
6
1.25
3
6
8.75
6
6
16.25
9
6
23.75
7
1.45
3
7
8.95
6
7
16.45
9
7
23.95
8
1.68
3
8
9.18
6
8
16.68
9
8
24.18
9
1.88
3
9
9.38
6
9
16.88
9
9
24.38
10
2.08
3
10
9.58
6
10
17.08
9
10
24.58
11
2.30
3
11
9.80
6
11
17.30
9
11
24.80
1
2.50
4
10.00
7
17.50
10
25.00
1
1
2.70
4
1
10.20
7
1
17.70
10
1
25.20
1
2
2.93
4
2
10.43
7
2
17.93
10
2
25.43
1
3
3.13
4
3
10.63
7
3
18.13
10
3
25.63
1
4
3.33
4
4
10.83
7
4
18.33
10
4
25.83
1
5
3.55
4
5
11.05
7
5
18.55
10
5
26.05
1
6
3.75
4
6
11.25
7
6
18.75
10
6
26.25
1
7
3.95
4
7
11.45
7
7
18.95
10
7
26.45
1
8
4.18
4
8
11.68
7
8
19.18
10
8
26.68
1
9
4.38
4
9
11.88
7
9
19.38
10
9
26.88
1
10
4.58
4
10
12.08
7
10
19.58
10
10
27.08
1
11
4.80
4
11
12.30
7
11
19.80
10
11
27.30
2
5.00
5
12.50
8
20.00
11
27.50
2
1
5.20
5
1
12.70
8
1
20.20
11
1
27.70
2
2
5.43
5
2
12.93
8
2
20.43
11
2
27.93
2
3
5.63
5
3
13.13
8
3
20.63
11
3
28.13
2
4
5.83
5
4
13.33
8
4
20.83
11
4
28.33
2
5
6.05
5
5
13.55
8
5
21.05
11
5
28.55
2
6
6.25
5
6
13.75
8
6
21.25
11
6
28.75
2
7
6.45
5
7
13.95
8
7
21.45
11
7
28.95
2
8
6.68
5
8
14.18
8
8
21.68
11
8
29.18
2
9
6.88
5
9
14.38
8
9
21.88
11
9
29.38
2
10
7.08
5
10
14.58
8
10
22.08
11
10
29.58
2
11
7.30
5
11
14.80
8
11
22.30
11
11
29.80
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-34
Table 3-4. Post-1981 Retirement Percentage Multiplier Conversions (continued)
POST-1981 RETIREMENT PERCENTAGE MULTIPLIER CONVERSIONS
Service Multiplier Service Multiplier Service Multiplier Service Multiplier
Years Months (%) Years Months (%) Years Months (%) Years Months (%)
12
30.00
15
37.50
18
45.00
21
52.50
12
1
30.20
15
1
37.70
18
1
45.20
21
1
52.70
12
2
30.43
15
2
37.93
18
2
45.43
21
2
52.93
12
3
30.63
15
3
38.13
18
3
45.63
21
3
53.13
12
4
30.83
15
4
38.33
18
4
45.83
21
4
53.33
12
5
31.05
15
5
38.55
18
5
46.05
21
5
53.55
12
6
31.25
15
6
38.75
18
6
46.25
21
6
53.75
12
7
31.45
15
7
38.95
18
7
46.45
21
7
53.95
12
8
31.68
15
8
39.18
18
8
46.68
21
8
54.18
12
9
31.88
15
9
39.38
18
9
46.88
21
9
54.38
12
10
32.08
15
10
39.58
18
10
47.08
21
10
54.58
12
11
32.30
15
11
39.80
18
11
47.30
21
11
54.80
13
32.50
16
40.00
19
47.50
22
55.00
13
1
32.70
16
1
40.20
19
1
47.70
22
1
55.20
13
2
32.93
16
2
40.43
19
2
47.93
22
2
55.43
13
3
33.13
16
3
40.63
19
3
48.13
22
3
55.63
13
4
33.33
16
4
40.83
19
4
48.33
22
4
55.83
13
5
33.55
16
5
41.05
19
5
48.55
22
5
56.05
13
6
33.75
16
6
41.25
19
6
48.75
22
6
56.25
13
7
33.95
16
7
41.45
19
7
48.95
22
7
56.45
13
8
34.18
16
8
41.68
19
8
49.18
22
8
56.68
13
9
34.38
16
9
41.88
19
9
49.38
22
9
56.88
13
10
34.58
16
10
42.08
19
10
49.58
22
10
57.08
13
11
34.80
16
11
42.30
19
11
49.80
22
11
57.30
14
35.00
17
42.50
20
50.00
23
57.50
14
1
35.20
17
1
42.70
20
1
50.20
23
1
57.70
14
2
35.43
17
2
42.93
20
2
50.43
23
2
57.93
14
3
35.63
17
3
43.13
20
3
50.63
23
3
58.13
14
4
35.83
17
4
43.33
20
4
50.83
23
4
58.33
14
5
36.05
17
5
43.55
20
5
51.05
23
5
58.55
14
6
36.25
17
6
43.75
20
6
51.25
23
6
58.75
14
7
36.45
17
7
43.95
20
7
51.45
23
7
58.95
14
8
36.68
17
8
44.18
20
8
51.68
23
8
59.18
14
9
36.88
17
9
44.38
20
9
51.88
23
9
59.38
14
10
37.08
17
10
44.58
20
10
52.08
23
10
59.58
14
11
37.30
17
11
44.80
20
11
52.30
23
11
59.80
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-35
Table 3-4. Post-1981 Retirement Percentage Multiplier Conversions (Continued)
POST-1981 RETIREMENT PERCENTAGE MULTIPLIER CONVERSIONS
Service Multiplier Service Multiplier Service Multiplier Service Multiplier
Years Months (%) Years Months (%) Years Months (%) Years Months (%)
24
60.00
27
67.50
30
75.00
33
82.50
24
1
60.20
27
1
67.70
30
1
75.20
33
1
82.70
24
2
60.43
27
2
67.93
30
2
75.43
33
2
82.93
24
3
60.63
27
3
68.13
30
3
75.63
33
3
83.13
24
4
60.83
27
4
68.33
30
4
75.83
33
4
83.33
24
5
61.05
27
5
68.55
30
5
76.05
33
5
83.55
24
6
61.25
27
6
68.75
30
6
76.25
33
6
83.75
24
7
61.45
27
7
68.95
30
7
76.45
33
7
83.95
24
8
61.68
27
8
69.18
30
8
76.68
33
8
84.18
24
9
61.88
27
9
69.38
30
9
76.88
33
9
84.38
24
10
62.08
27
10
69.58
30
10
77.08
33
10
84.58
24
11
62.30
27
11
69.80
30
11
77.30
33
11
84.80
25
62.50
28
70.00
31
77.50
34
85.00
25
1
62.70
28
1
70.20
31
1
77.70
34
1
85.20
25
2
62.93
28
2
70.43
31
2
77.93
34
2
85.43
25
3
63.13
28
3
70.63
31
3
78.13
34
3
85.63
25
4
63.33
28
4
70.83
31
4
78.33
34
4
85.83
25
5
63.55
28
5
71.05
31
5
78.55
34
5
86.05
25
6
63.75
28
6
71.25
31
6
78.75
34
6
86.25
25
7
63.95
28
7
71.45
31
7
78.95
34
7
86.45
25
8
64.18
28
8
71.68
31
8
79.18
34
8
86.68
25
9
64.38
28
9
71.88
31
9
79.38
34
9
86.88
25
10
64.58
28
10
72.08
31
10
79.58
34
10
87.08
25
11
64.80
28
11
72.30
31
11
79.80
34
11
87.30
26
65.00
28
72.50
32
80.00
35
87.50
26
1
65.20
29
1
72.70
32
1
80.20
35
1
87.70
26
2
65.43
29
2
72.93
32
2
80.43
35
2
87.93
26
3
65.63
29
3
73.13
32
3
80.63
35
3
88.13
26
4
65.83
29
4
73.33
32
4
80.83
35
4
88.33
26
5
66.05
29
5
73.55
32
5
81.05
35
5
88.55
26
6
66.25
29
6
73.75
32
6
81.25
35
6
88.75
26
7
66.45
29
7
73.95
32
7
81.45
35
7
88.95
26
8
66.68
29
8
74.18
32
8
81.68
35
8
89.18
26
9
66.88
29
9
74.38
32
9
81.88
35
9
89.38
26
10
67.08
29
10
74.58
32
10
82.08
35
10
89.58
26
11
67.30
29
11
74.80
32
11
82.30
35
11
89.80
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-36
Table 3-4. Post-1981 Retirement Percentage Multiplier Conversions (Continued)
POST-1981 RETIREMENT PERCENTAGE MULTIPLIER CONVERSIONS
Service Multiplier Service Multiplier Service Multiplier Service Multiplier
Years Months (%) Years Months (%) Years Months (%) Years Months (%)
36
90.00
38
95.00
40
100.00
42
105.00
36
1
90.20
38
1
95.20
40
1
100.20
42
1
105.20
36
2
90.43
38
2
95.43
40
2
100.43
42
2
105.43
36
3
90.63
38
3
95.63
40
3
100.63
42
3
105.63
36
4
90.83
38
4
95.83
40
4
100.83
42
4
105.83
36
5
91.05
38
5
96.05
40
5
101.05
42
5
106.05
36
6
91.25
38
6
96.25
40
6
101.25
42
6
106.25
36
7
91.45
38
7
96.45
40
7
101.45
42
7
106.45
36
8
91.68
38
8
96.68
40
8
101.68
42
8
106.68
36
9
91.88
38
9
96.88
40
9
101.88
42
9
106.88
36
10
92.08
38
10
97.08
40
10
102.08
42
10
107.08
36
11
92.30
38
11
97.30
40
11
102.30
42
11
107.30
37
92.50
39
97.50
41
102.50
43
107.50
37
1
92.70
39
1
97.70
41
1
102.70
43
1
107.70
37
2
92.93
39
2
97.93
41
2
102.93
43
2
107.93
37
3
93.13
39
3
98.13
41
3
103.13
43
3
108.13
37
4
93.33
39
4
98.33
41
4
103.33
43
4
108.33
37
5
93.55
39
5
98.55
41
5
103.55
43
5
108.55
37
6
93.75
39
6
98.75
41
6
103.75
43
6
108.75
37
7
93.95
39
7
98.95
41
7
103.95
43
7
108.95
37
8
94.18
39
8
99.18
41
8
104.18
43
8
109.18
37
9
94.38
39
9
99.38
41
9
104.38
43
9
109.38
37
10
94.58
39
10
99.58
41
10
104.58
43
10
109.58
37
11
94.80
39
11
99.80
41
11
104.80
43
11
109.80
NOTE: To derive multipliers for service in excess of 43-years and 11-months, divide the number of whole months
by 12, compute the quotient to 3 digits, round to 2 digits, and add this to the number of years. Then, multiply by
.025.
Example 1: 20-years, 7-months, 13-days
7-months ÷ 12 = .583 (.58)
20.58 × .025 = 51.45%
Example 2: 44-years, 8-months, 28-days
8-months ÷ 12 = .667 (.67)
44.67 × .025 = 111.68%
Exception: Members who retire between January 1, 1982 and September 30, 1983 and meet
requirements of paragraph 030207 will round service credit of 6-months or more, as shown on the Table.
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-37
Table 3-5. Reduction Factors Applicable to Temporary Early Retirement Authority
REDUCTION FACTORS APPLICABLE TO TEMPORARY EARLY RETIREMENT AUTHORITY
Months Less
than 240
Reduction
Factor
Months Less
than 240
Reduction
Factor
Months Less
than 240
Reduction
Factor
1
.99917
2
.99833
3
.99750
4
.99667
5
.99583
6
.99500
7
.99417
8
.99333
9
.99250
10
.99167
11
.99083
12
.99000
13
.98917
14
.98833
15
.98750
16
.98667
17
.98583
18
.98500
19
.98417
20
.98333
21
.98250
22
.98167
23
.98083
24
.98000
25
.97917
26
.97833
27
.97750
28
.97667
29
.97583
30
.97500
31
.97417
32
.97333
33
.97250
34
.97167
35
.97083
36
.97000
37
.96917
38
.96833
39
.96750
40
.96667
41
.96583
42
.96500
43
.96417
44
.96333
45
.96250
46
.96167
47
.96083
48
.96000
49
.95917
50
.95833
51
.95750
52
.95667
53
.95583
54
.95500
55
.95417
56
.95333
57
.95250
58
.95167
59
.95083
60
.95000
NOTE: Mathematically, the reduction factor (RF) is one minus one twelve hundredth of
the difference between 240 and the number of months or remaining portion of a month of active
service of such member. Thus, for 188-months the reduction factor is computed as:
RF = 1.0 – [(240-188)/1200]
1.0 – [52/1200]
1.0 – .04333
.95667
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-38
BIBLIOGRAPHY
CHAPTER 3 – GROSS PAY COMPUTATION
0201 – BASIC COMPUTATION
030201.A.1 10 U.S.C. 1406
030201.A.2.a 10 U.S.C. 1407
030201.A.2.b 10 U.S.C. 1407(c)(2)
030201.A.2.c 10 U.S.C. 1407(d)(2)
030201.B.3 Public Law 109-364, section 642, October 17, 2006
10 U.S.C. 1409(b)
Public Law 110-181, section 646, January 28, 2008
10 U.S.C. 6333(a)
030202.A.1 10 U.S.C. 1406(b)(1)
10 U.S.C. 1372
030202.A.2 10 U.S.C. 1407
030202.B.1 Public Law 111-383, section 631, January 7, 2011
10 U.S.C. 1401(a)
10 U.S.C. 1402(d)
10 U.S.C. 1402a(d)
030202.B.2 Public Law 111-383, section 631, January 7, 2011
10 U.S.C. 1401(a)
10 U.S.C. 1402(d)
10 U.S.C. 1402a(d)
030203.A.1 10 U.S.C. 1406(b)(1)
10 U.S.C. 1372
030203.A.2 10 U.S.C. 1407
030204.A.1 10 U.S.C. 1406(b)(1)
030204.A.2 10 U.S.C. 1407
030205.A.1 10 U.S.C. 1406(b)(2)
10 U.S.C. 1370(d)
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-39
BIBLIOGRAPHY (Continued)
030205.A.2 10 U.S.C. 1407
030205.B 10 U.S.C. 12733
10 U.S.C. 12739
030209 Public Law 98-94, section 922, September 24, 1983
10 U.S.C. 1401
OSD/MP&FM Memo, September 29, 1983
030210 10 U.S.C. 1401a(b), 1409, 1410
DoD Office of the Actuary Memo, May 5, 1987
OUSD (MPP) Memo, April 12, 2012
030211 Public Law 102-484, section 4403, 4417,
October 23, 1992
10 U.S.C., Chapter 67
10 U.S.C. 1293 note
Public Law 112-81, section 504,
December 31, 2011
OUSD (MPP) Memo, April 12, 2012
030211.A 10 U.S.C. 1401
10 U.S.C. 3991(a)
10 U.S.C. 6333(a)
10 U.S.C. 8991(a)
10 U.S.C. 12739
030211.C 37 U.S.C. 322 (renumbered 354)
10 U.S.C. 1409
030211.D Public Law 112-81, section 504,
December 31, 2011
10 U.S.C. 1293 note
OUSD (MPP) Memo, April 12, 2012
030211.E OUSD (MPP) Memo, April 12, 2012
030212 Public Law 106-398, sec 651, October 30, 2000
10 U.S.C. 1406
10 U.S.C. 1407
030212.A.2 OASD/MPP Memo, December 20, 2001
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-40
BIBLIOGRAPHY (Continued)
0304 – TOWER AMENDMENT
030401 10 U.S.C. 1401a(f)
030401.C Public Law 100-456, section 622,
September 29, 1988
10 U.S.C. 1401a(f)
030402.A MS Comp Gen B-189029, September 2, 1980
030403 Public Law 103-337, section 633, October 5, 1994
10 U.S.C. 1401a(f)
MS Comp Gen B-189029, September 2, 1980
70 Comp Gen 398
MS Comp Gen B-231406, March 22, 1989
66 Comp Gen 425
MS Comp Gen B-204120, March 25, 1982
0305 – SPECIAL PROVISIONS
030503.A 10 U.S.C. 601(b), 1406(i), 3991, 6325, 6333, 8991
37 U.S.C. 203
030503.B Public Law 108-136, section 643,
November 24, 2003
10 U.S.C. 1406
37 U.S.C. 203
030504 10 U.S.C 1370
030505 10 U.S.C. 1406(i)
DoD General Counsel Opinion, April 21, 1998
030506 10 U.S.C. 3991(a), 6330(c), 8991(a)
55 Comp Gen 701
MS Comp Gen B-259559, June 6, 1995
10 U.S.C. 1402
030507 Public Law 88-132, section 5, October 2, 1963
10 U.S.C. 1402
030509 Public Law 109-364, section 641, October 17, 2006
10 U.S.C. 1407a.
37 U.S.C. 203(a)(2)
2BDoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
* April 2015
3-41
BIBLIOGRAPHY (Continued)
Table 3-1, Rule 1 and 2 Public Law 111-383, section 631, January 7, 2011
10 U.S.C. 1401(a)
10 U.S.C. 1402(d)
10 U.S.C. 1402a(d)
Table 3-1, Note 4 10 U.S.C., Chapter 1223
Table 3-1, Note 7 Public Law 96-342, September 8, 1980
10 U.S.C. 1406(d)
Table 3-2, Note 8 Public Law 96-342, September 8, 1980
10 U.S.C. 1401(a)
Table 3-5 ASD/FM & P(MM & PP) Memo, April 22, 1993
