Former Officer enlists and wonders what retired 20 AFS pay will be

Rappelmaster115

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I am a Former Army officer (04) that served 17 years AGR. I came up on MRD and had to enlist as an E5 to get my last 3 years of AD, no one can tell me if I will retire and be paid as an 04 or E5 for my retirement upcoming? Anyone shed some hopefully good news for me and the REG that has it in writing. Thanks
 

heathro1281

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Most people would say "Last 3 years" because in effect, your highest 3 years of pay would normally be your last 3 of service.

In your case the qualifier is the "highest 36 months of pay" , DFAS will use your entire service to find this.

This is why "Rank" and "Pay Grade" do matter to a few people, it can be different for many reasons.
 

RonG

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Hello @Rappelmaster115 ,

The following is one of the sources DFAS uses for its info regarding retired pay.

Reference: Under Secretary of Defense (Comptroller) > FMR > vol7b_chapters <---LINK
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3

030205. Reservist (Meets Age and Service Requirements) (Table 3-1, Rule 13)

2. For a member who entered service after September 7, 1980, the retired pay base is determined as prescribed in subparagraph 030201.
A. The high-36 months of such a member are the 36 months for which the pay was the highest, whether or not consecutive, out of all the months before the member became entitled to retired pay or would have become entitled to retired pay. This will be the 36 months immediately preceding receipt of retired pay even though the member may not have been in an active status during such time. However, DFAS may only use months during which the individual was a member of a uniformed service for this purpose.

B. The retired pay multiplier for a non-regular retirement is determined by multiplying the applicable percentage in accordance with subparagraph 030201.B times the years of service credited for percentage purposes. See Chapter 1 for service credited for percentage purposes. NOTE: Pursuant to 10 U.S.C. § 12733, the formula for converting retirement points into percentage years is the total number of retirement points divided by 360. Carry the result to three decimal places; round to two decimal places. Example: 4,735 retirement points divided by 360 equals 13.152 years or 13.15 years for percentage purposes.
----

Basically, the computation for reserve pay includes the following:
1. High three average base pay (discussed above)
2. Longevity multiplier (aka active duty equivalent multiplier) This is determined by dividing creditable points for retirement by 360 (see B above) =active duty equivalent.
The active duty equivalent is multiplied by 2.5% = longevity multiplier For those who chose the Blended Retirement System, the percentage is 2%.
3. High three x longevity multiplier = reserve retired pay once the retiree meets the age requirement.
4. This is a bit more complicated than what is said here, but if your have a VA rating of 50% or more, you will receive all your longevity retirement pay plus your VA compensation.
5. CRSC, if eligible, replaces waived retirement pay for combat related disabilities.
A Supplement to CRSC Information | Physical Evaluation Board Forum (pebforum.com) <---LINK

I did not discuss DoD disability retired pay since it was not mentioned in the initial post.

Ron

Added:
Active Guard Reserve (AGR) refers to a United States Army and United States Air Force federal military program which places Army National Guard and Army Reserve soldiers and Air National Guard and Air Force Reserve airmen on federal active duty status under Title 10 U.S.C., or full-time National Guard duty. If your 20 years is all AGR, I suspect you will be able to retire immediately, without meeting an age requirement. @heathro1281 might have additional info on this matter.
 
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