scope:

General

This section provides a general overview of the military retired pay entitlement. Specific details on eligibility, computation and payment are found in various chapters of this volume.

A. Military retired pay is divided into three general categories: retired pay for regular service, retired pay for non-regular (reserve/guard) service, and retired pay for physical disability. With the exception of retirement for physical disability and certain temporary authorities for early retirement, a member must be credited with completion of at least 20 years of service in order to be eligible for retired/retainer pay. See Section 0102 for determining years of service for retired/retainer pay eligibility.

B. Retired pay for all categories is computed by applying a percentage multiplier to the member's monthly retired pay base, as determined in section 0102. The percentage multiplier is generally 2.5 percent for each year of service; however, in the case of disability retirement, the percentage multiplier may optionally be the disability percentage awarded by the military service upon retirement.

C. All retiring members may participate in the Survivor Benefit Plan (SBP) that provides a continuing annuity for the lifetime of a surviving spouse or other beneficiary of up to 55 percent of the deceased member's retired pay. Both the retired pay and the survivor annuity are adjusted for inflation through annual Cost-of-Living Adjustments (COLA).