ARPC   Right Corner Banner
Join the AF Reserve

Library > Factsheets > Regular, Guard and Reserve retired pay formulas

REGULAR, GUARD AND RESERVE RETIRED PAY FORMULAS

Posted 4/26/2013 Printable Fact Sheet

There are three formulas used for computing retired pay. To determine which formula to use, you will need to know the date you first went into the military service--this is referred to as the DIEMS (Date of Initial Entry into the Military Service) date. 

Before Sept. 8, 1980

(Years of service) X (2.5%) X (basic pay for grade and years of service) = monthly retired pay 

Reserve years of service = retirement points divided by 360
Basic pay, for grade and years of service, on retired pay effective date.

Retired pay is based on the pay scale in effect on the retired pay effective date--for Reserve retired pay this is normally age 60.  Years of service for Reserve retired pay = retirement points divided by 360.  

This formula applies to both Reserve 10 U.S.C. Section 12731 and active duty (10 U.S.C. Section 8911  for officers and 10 U.S.C. Section 8914 for enlisted) retired pay. 

On or after Sept. 8, 1980:  

(Years of service) X (2.5%) X (average of highest 36 months of basic pay) = monthly retired pay 

Reserve retired pay (10 U.S.C., Section 12731):  Retired pay is based on the average of the 36 months of base pay for the Airman's grade and years of service. To get the average, total the 36 months of base pay prior to the retired pay effective date (normally age 60) and divide by 36. 

Active duty retired pay (10 U.S.C. Section 8911-officers; 8914-enlisted):  Retired pay is based on the average of the 36 months of base pay for the Airman's grade and years of service.  To get the average, total the amount of monthly basic pay to which the member was entitled for the 36 months of active service prior to the retired pay effective date and divide by 36. 

On or after Aug. 1, 1986

Retired pay is based on the average of the 36 months of base pay for the Airman's grade and years of service. The percentage multiplier will be reduced by 1 percent for each year of service short of 30 years. The one (1) percent reduction is removed and retired pay permanently restored at age 62. 

This formula only applies to Airmen retiring under 10 U.S.C. 8911 and 8914 who elected to receive a 15 Year Career Status Bonus (CSB) under Title 37, Section 354


Phone
Total Force Service Center-Aurora
(800) 525-0102 // DSN 847-3294





 Inside ARPC

ima cornerSearch

ima cornerPA FS-DPP-Retirements

 




Site Map      Contact Us     Questions     USA.gov     Security and Privacy notice     E-publishing  
Suicide Prevention    SAPR   IG   EEO   Accessibility/Section 508   No FEAR Act