§12739 . Computation of retired pay

(a) The monthly retired pay of a person entitled to that pay under this chapter is the product of-

(1) the retired pay base for that person as computed under section 1406(b)(2) or 1407 of this title; and

(2) 2½ percent of the years of service credited to that person under section 12733 of this title.

(b) The amount computed under subsection (a) may not exceed 75 percent of the retired pay base upon which the computation is based.

(c) Amounts computed under this section, if not a multiple of $1, shall be rounded down to the next lower multiple of $1.

(Added Pub. L. 103–337, div. A, title XVI, §1662(j)(1), Oct. 5, 1994, 108 Stat. 3004 .)

Prior Provisions

Provisions similar to those in this section were contained in formula 3 of the table in section 1401(a) of this title, prior to amendment by Pub. L. 103–337, §1662(j)(2).

Effective Date

Section effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as a note under section 10001 of this title.

Section Referred to in Other Sections

This section is referred to in section 12731 of this title.