10 U.S.C. § 1409 (ARMED FORCES)
§ 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 certain 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 elected to receive a bonus under section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354 of title 37, 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) 30 years of service.—
(A) Retirement before january 1, 2007.—
In the case of a member who retires before January 1, 2007, with more than 30 years of creditable service, the percentage to be used under subsection (a) is 75 percent.
(B) Retirement after december 31, 2006.—
In the case of a member who retires after December 31, 2006, with more than 30 years of creditable service, the percentage to be used under subsection (a) is the sum of—
(i) 75 percent; and
(ii) the product (stated as a percentage) of—
(I) 2½; and
(II) the member’s years of creditable service (as defined in subsection (c)) in excess of 30 years of creditable service, under conditions authorized for purposes of this subparagraph during a period designated by the Secretary of Defense for purposes of this subparagraph.
(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; Pub. L. 106–65, div. A, title VI, §§ 641(a), 643(b)(2), Oct. 5, 1999, 113 Stat. 662, 664; Pub. L. 109–364, div. A, title VI, § 642(a), Oct. 17, 2006, 120 Stat. 2259; Pub. L. 110–181, div. A, title VI, § 661(b)(3), Jan. 28, 2008, 122 Stat. 178.)
heading: References in Text
text: Section 322 of title 37 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008), referred to in subsec. (b)(2), means section 322 of title 37 as in effect before enactment of Pub. L. 110–181. Section 322 of title 37 was renumbered as section 354 of title 37 and amended by Pub. L. 110–181, div. A, title VI, § 661(b)(1), (2), Jan. 28, 2008, 122 Stat. 178.
heading: Amendments
text: 2008—Subsec. (b)(2). Pub. L. 110–181, in introductory provisions, substituted “section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354” for “section 322”.
2006—Subsec. (b)(3). Pub. L. 109–364 amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “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.”
1999—Subsec. (b)(2). Pub. L. 106–65 inserted “certain” after “Reduction applicable to” in heading and “has elected to receive a bonus under section 322 of title 37,” after “July 31, 1986,” in introductory provisions.
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.
heading: Effective Date of 1999 Amendment
text: Amendment by Pub. L. 106–65 effective Oct. 1, 1999, see section 644 of Pub. L. 106–65, set out as a note under section 1401a of this title.
heading: Effective Date of 1994 Amendment
text: 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.