10 U.S.C. § 1401: Computation of retired pay

The monthly retired pay of a person entitled thereto under this subtitle is computed according to the following table. For each case covered by a section of this title named in the column headed “For sections”, retired pay is computed by taking, in order, the steps prescribed opposite it in columns 1, 2, and 3, as modified by the applicable footnotes. Formula No. For sections Column 1 Take Column 2 Multiply by Column 3 Add 1 Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month. 1 1201 1204 Retired pay base as computed under section 1406(b) or 1407. As member elects— (1) the retired pay multiplier determined for the member under section 1409 of this title ; or 1 (2) the percentage of disability, not to exceed 75%, on date when retired. 2 1202 1205 Retired pay base as computed under section 1406(b) or 1407. As member elects— (1) the retired pay multiplier determined for the member under section 1409 of this title ; or 1 (2) the percentage of disability, not to exceed 75%, on date when his name was placed on temporary disability retired list. Amount necessary to increase product of columns 1 and 2 to 50% of retired pay base upon which computation is based. 4 580 1263 1293 1305 Retired pay base as computed under section 1406(b) or 1407. The retired pay multiplier prescribed in section 1409 for the years of service credited to him under section 1405. 5 633 634 635 636 1251 1252 1253 Retired pay base as computed under section 1406(b) or 1407. The retired pay multiplier prescribed in section 1409 for the years of service credited to him under section 1405. If a person would otherwise be entitled to retired pay computed under more than one formula of the table in subsection (a) or of any other provision of law, the person is entitled to be paid under the applicable formula that is most favorable to him. Service as a member of the Alaska Territorial Guard during World War II of any individual who was honorably discharged therefrom under section 8147 of the Department of Defense Appropriations Act, 2001 ( Public Law 106–259 ; 114 Stat. 705 ) [amending section 106 of Title 38 , Veterans’ Benefits, and enacting provisions set out as a note under section 106 of Title 38 ] shall be treated as active service for purposes of the computation under chapter 61, 71, 371 [now 745], 571 [now 841], 871 [now 945], or 1223 of title 10, United States Code, as applicable, of the retired pay to which such individual may be entitled under title 10, United States Code. Subsection (a) shall apply with respect to amounts of retired pay payable under title 10, United States Code, for months beginning on or after the date of the enactment of this Act [ Oct. 28, 2009 ]. No retired pay shall be paid to any individual by reason of subsection (a) for any period before that date. In this section, the term ‘World War II’ has the meaning given that term in section 101(8) of title 38 , United States Code.” Retired pay or retainer pay may not be paid to a covered member of the Armed Forces (as defined in paragraph (3)) for any month in an amount that is greater than the amount otherwise determined to be payable after such reductions as may be necessary to reflect adjusting the computation of retired pay or retainer pay that includes credit for a part of a year of service to permit credit for a part of a year of service only for such month or months actually served. applied for retirement or transfer to the Fleet Reserve or Fleet Marine Corps Reserve; was being processed for retirement under the provisions of chapter 61 of title 10, United States Code, or who was on the temporary disability retired list and thereafter retired under the provisions of section 1210(c) or 1210(d) of such title; or was retired or in an inactive status and would have been eligible for retired pay under the provisions of chapter 67 [now 1223] of such title, but for the fact that the person was under 60 years of age. For the purposes of this subsection, the term ‘covered member of the Armed Forces’ means a member of the Armed Forces who became entitled to retired or retainer pay during the period beginning on January 1, 1982 , and ending on September 30, 1983 . Section 8054 of the Department of Defense Appropriations Act, 1985 (as contained in section 101(h) of Public Law 98–473 ) [formerly set out as a note below], is repealed. For the effective date of October 1, 1983 , for provisions making permanent programmatic changes in law to accomplish the policy provided in such section 8054 (and prior provisions of law), see section 923(h) of the Department of Defense Authorization Act, 1984 ( Public Law 98–94 ) [probably means section 923(g) of Pub. L. 98–94 , set out as an Effective Date of 1983 Amendment note under section 1174 of this title ].” The Act of March 23, 1946 , chapter 112 ( 60 Stat. 59 ). The Act of June 26, 1948 , chapter 677 ( 62 Stat. 1052 ). The Act of September 18, 1950 , chapter 952 (64 Stat. A224).” The Act of March 23, 1946 , chapter 112 ( 60 Stat. 59 ). The Act of June 26, 1948 , chapter 677 ( 62 Stat. 1052 ). The Act of September 18, 1950 , chapter 952 (64 Stat. A224).” Except for members covered by section 7 of this Act, members and former members of the uniformed services who are entitled to retired pay, retirement pay, retainer pay, or equivalent pay, on the day before the effective date of this Act [ June 1, 1958 ], shall be entitled to an increase of 6 per centum of that pay to which they were entitled on that date. Notwithstanding any other provision of law, a member of a uniformed service retired under any provision of law, or transferred to the Fleet Reserve or Fleet Marine Corps Reserve, on the effective date of this Act [ June 1, 1958 ] shall have his retired pay or retainer pay computed on the basis of the rates of basic pay set forth in the Career Compensation Act of 1949, as amended by this Act, or on the rates of basic pay set forth in the Career Compensation Act of 1949 on the day before the effective date of this Act, plus 6 per centum of that pay, whichever is greater. Section 5 of the Career Incentive Act of 1955 ( 69 Stat. 22 ) does not apply to any person who is retired, or to whom retired pay, retirement pay, retainer pay, or equivalent pay (including temporary disability retired pay) is granted, on or after the effective date of this Act [ June 1, 1958 ]”.