Retired pay for Airmen who first joined any military service before Sept. 8, 1980, is based on the pay scale in effect when they start receiving retired pay. This formula applies to Airmen retiring under 10 U.S.C., Sections 12731 (Reserve), 8911 (active-duty officer) and 8914 (active-duty enlisted).
Retired pay for Airmen who first joined any military service on or after Sept. 8, 1980, is computed using the average of the 36 months of base pay for the Airman’s grade and years of service before the effective date of retired pay, normally the 60th birthday.
Total the military base pay for the 36 months before receiving retired pay and divide by 36. Total retirement points will still be used to compute retired pay for Airmen retiring under 10 U.S.C. 12731.
This formula applies to Airmen retiring under 10 U.S.C., Sections 12731, 8911 and 8914.
Those who joined any military service on or after Aug. 1, 1986, and elect to receive a 15-year career status bonus under Title 37, U.S.C., Section 322, will have their retired pay reduced by 1 percent for each year of service short of 30 years.
The 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.
* Applies only to Airmen accepting 15-year career status bonus. If declining bonus, then “ON or AFTER Sept. 8, 1980‚” rule applies.
** 2016 Basic Pay figures available here.
** 2016 Drill Pay figures available here.
Notes:
10 USC 12731 - Guard and Reserve retirement annuity (normally age 60)
10 USC 8911 - Active duty retirement (officers - regular, Guard, Reserve) immediate annuity
10 USC 8914 - Active duty retirement (enlisted - regular, Guard, Reserve) immediate annuity
The 2007 National Defense Authorization Act changed the retired pay multiplier for Airmen retiring after Dec. 31, 2006, with more than 30 years of service, from a maximum of 75 percent to the sum of 75 percent and the product (stated as a percentage) of 2.5 percent and the Airman’s years of creditable service in excess of 30 years of creditable service.
| If you first joined any military component: |
MONTHLY RETIRED PAY BASIS |
Annual increased by COLA to equal to: |
| BEFORE Sept. 8, 1980, retired under 10 USC 12731, 8911, 8914 |
(years of service) x (2.5%) x (Basic pay in effect when retired pay starts **) =
Monthly Retired Pay
|
Annual change in Consumer Price Index (CPI) |
| ON or AFTER Sept. 8, 1980, retired under 10 USC 12731, 8911, 8914 |
(years of service) x (2.5%) x (average of highest 36 months of basic pay) =
Monthly Retired Pay
Note: Guard/Reserve who separate before age 60 have High 36 pegged at time of separation. Those who transfer to Retired Reserve at age 60 have High 36 computed at age 60 or retired pay effective date
|
Annual change in CPI |
| Aug. 1, 1986 and AFTER, retire under USC 8911, 8914* |
(years of service) x (2.5%) [Reduced 1% per year short of 30; restored permanently at age 62] x (average of highest 36 months of basic pay) =
Monthly Retired Pay
|
Annual change in CPI less one percentage point with one-time catch-up adjustment at age 62 |
| Retired under 10 USC 12731 |
<Guard and Reserve> Retirement Points/360 |
Years of Service |