§1409. Retired pay multiplier

(a) Retired Pay Multiplier for Regular-Service Nondisability Retirement.-In computing-

(1) the retired pay of a member of a uniformed service who is entitled to that pay under any provision of law other than-

(A) chapter 61 of this title (relating to retirement or separation for physical disability); or

(B) chapter 1223 of this title (relating to retirement for non-regular service); or

(2) the retainer pay of a member who is transferred to the Fleet Reserve or the Fleet Marine Corps Reserve under section 6330 of this title,

the retired pay multiplier (or retainer pay multiplier) is the percentage determined under subsection (b).

(b) Percentage.-

(1) General rule.-Subject to paragraphs (2) and (3), the percentage to be used under subsection (a) is the product (stated as a percentage) of-

(A) 2½, and

(B) the member's years of creditable service (as defined in subsection (c)).

(2) Reduction applicable to new-retirement members with less than 30 years of service.-In the case of a member who first became a member of a uniformed service after July 31, 1986, has less than 30 years of creditable service, and is under the age of 62 at the time of retirement, the percentage determined under paragraph (1) shall be reduced by-

(A) 1 percentage point for each full year that the member's years of creditable service are less than 30; and

(B) 1/12 of 1 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.

(3) 75 percent limit.-In the case of a member with more than 30 years of creditable service, the percentage to be used under subsection (a) is 75 percent.

(c) Years of Creditable Service Defined.-In this section, the term "years of creditable service" means the number of years of service creditable to a member in computing the member's retired or retainer pay (including 1/12 of a year for each full month of service that is in addition to the number of full years of service of the member).

(Added Pub. L. 99–348, title I, §101, July 1, 1986, 100 Stat. 683 ; amended Pub. L. 101–189, div. A, title VI, §651(b)(3), Nov. 29, 1989, 103 Stat. 1460 ; Pub. L. 103–337, div. A, title XVI, §1662(j)(6), Oct. 5, 1994, 108 Stat. 3005 .)

Amendments

1994-Subsec. (a)(1)(B). Pub. L. 103–337 substituted "chapter 1223" for "chapter 67".

1989-Subsec. (a)(1). Pub. L. 101–189 substituted "who is entitled to that pay" for "who is retired" in introductory provisions.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1401, 1402a, 1410, 1447, 1451, 1452, 3991, 3992, 6151, 6333, 6334, 8991, 8992 of this title; title 14 section 423; title 33 section 853o; title 42 sections 211, 212.