§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) If a person entitled to retired pay under this chapter has been credited by the Secretary concerned with extraordinary heroism in the line of duty and if the highest grade held satisfactorily by that person at any time in the armed forces is an enlisted grade, the person's retired pay shall be increased by 10 percent of the amount determined under subsection (a). The Secretary's determination as to extraordinary heroism is conclusive for all purposes.

(c)(1) Except as provided in paragraph (2), the total amount of the monthly retired pay computed under subsections (a) and (b) may not exceed 75 percent of the retired pay base upon which the computation is based.

(2) In the case of a person who retires after December 31, 2006, with more than 30 years of service credited to that person under section 12733 of this title, the total amount of the monthly retired pay computed under subsections (a) and (b) may not exceed the sum of-

(A) 75 percent of the retired pay base upon which the computation is based; and

(B) the product of-

(i) the retired pay base upon which the computation is based; and

(ii) 2½ percent of the years of service credited to that person under section 12733 of this title, for service under conditions authorized for purposes of this paragraph during a period designated by the Secretary of Defense for purposes of this paragraph.

(d) 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 ; amended Pub. L. 107–314, div. A, title VI, §632(a), (b), Dec. 2, 2002, 116 Stat. 2572 ; Pub. L. 109–364, div. A, title VI, §642(b), Oct. 17, 2006, 120 Stat. 2259 .)

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).

Amendments

2006-Subsec. (c). Pub. L. 109–364 designated existing provisions as par. (1), substituted "Except as provided in paragraph (2), the" for "The", and added par. (2).

2002-Subsec. (b). Pub. L. 107–314, §632(a)(2), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 107–314, §632(a)(1), (b), redesignated subsec. (b) as (c) and substituted "total amount of the monthly retired pay computed under subsections (a) and (b)" for "amount computed under subsection (a)". Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 107–314, §632(a)(1), redesignated subsec. (c) as (d).

Effective Date of 2002 Amendment

Pub. L. 107–314, div. A, title VI, §632(c), Dec. 2, 2002, 116 Stat. 2572 , provided that: "The amendments made by subsections (a) and (b) [amending this section] shall take effect on October 1, 2002, and shall apply with respect to retired pay for months beginning on or after that date."

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.