EXAMPLE: A member with 22 years, 7 months, and 23 days would have a multiplier of 56.45 percent. The 23 days are dropped since they are not a full month.
Members who entered the service after 31 July 1986 will be given a choice of retirement plans at their 15th year of service. There are two options.
An officer, warrant officer, or enlisted person who first became a member of a Uniformed Service on or after 1 August 1986 can elect the post-1986 retirement system (Military Retirement Reform Act of 1986) commonly referred to as REDUX and take a $30,000 career retention bonus. For members who retire with less than 30 years of creditable service, the percentage of two and one-half percent shall be reduced:
One percentage point for each full year that the member's years of creditable service are less than 30; and
One-twelfth of one percentage point for each month by which the member's years of creditable service (after counting all full years of such service) are less than a full year.
EXAMPLE: A member with 22 years, 7 months, and 23 days would have a multiplier of 49.04 percent. The 23 days are dropped since they are not a full month.
An officer, warrant officer, or enlisted person who first became a member of a Uniformed Service on or after 1 August 1986 can take the pre-1986 retirement system (High-36 month average system). See below 3.b below.
On or after 8 September 1980. An officer, warrant officer, or enlisted person who first became a member of a Uniformed Service on or after 8 September 1980 will have a retired pay base established by their high 36-month average of basic pay, whether or not consecutive. Normally, this would be the average of the basic pay received in the last 36 months of active duty prior to date of retirement.
Dual Compensation Offset. Prior to 1 Oct 1999 all retired Regular commissioned officers and warrant officers who held Federal Government civilian jobs were subject to dual compensation offsets. They received the full pay of the civilian position but their annual retired pay was reduced by one-half the difference above an annually adjusted base amount. Dual Compensation as it was applied to those effected was repealed in the National Defense Authorization Act of FY2000.