Will my retirement pay be based on the actual date of my retirement and the current pay chart at that time? I am just wondering if the new NDAA will be passed and my pay will be calculated on the proposed 2021 pay...it amounts to about $250 more a month.
May be a silly question
- Thread starter usmc2651usa73a
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It will be based on the total of the highest 36 months of base pay divided by 36.
Ron
Continued.
The retired pay is computed using the higher of
the disability percentage OR the longevity multiplier (using active duty equivalent x2.5%) x average high three base pay.
Your VA compensation rating will be separate and the VA considers all service-connected disabilities.
Your disability retired pay will be reduced dollar for dollar in the amount of the VA compensation received. You will be able to keep any residual (left over) retired pay after the reduction/waiver. I should add at this point that I have never seen one case where it was more beneficial to decline VA compensation since the residual retired pay benefit will apply when applicable.
Ron
The retired pay is computed using the higher of
the disability percentage OR the longevity multiplier (using active duty equivalent x2.5%) x average high three base pay.
Your VA compensation rating will be separate and the VA considers all service-connected disabilities.
Your disability retired pay will be reduced dollar for dollar in the amount of the VA compensation received. You will be able to keep any residual (left over) retired pay after the reduction/waiver. I should add at this point that I have never seen one case where it was more beneficial to decline VA compensation since the residual retired pay benefit will apply when applicable.
Ron
Since I am guard the higher should be the percentage instead of high three base pay. Which would be based off of the current pay charts at time of retirement correct? My 199 says that DFAS will calculate my pay. I'm just unsure of when they calculate that...now or at the time of my actual retirement date. I should have retirement orders within 2-4 weeks. If NDAA gets approved in that time then my pay would go up $250, unless they calculate it now based off of 2020 rates since NDAA is not in effect with the pay raise.
If the disability percentage is the higher (quite likely), the formula will be:
Disabilty percentage x average high three base pay = retired pay
The final pay amount will be used only as part of the 36 months.
Ron
Disabilty percentage x average high three base pay = retired pay
The final pay amount will be used only as part of the 36 months.
Ron
Final Pay for Retirement:
| Final Pay | Defined Benefit that equals 2.5% times the number of years of service times the member’s final basic pay on the day of retirement | Primary retirement plan for Reserve members with initial date of entry into service prior to September 8, 1980 |
You said: “Since I am guard the higher should be the percentage instead of high three base pay.”
You are confusing how those elements are used.
The disability percentage is a multiplier.
High three average base pay is an amount which is used with the multiplier as I showed in an earlier post’
There is no high three retired pay “retirement “.
There is no retired pay using final pay unless one entered the service prior to 8 September 1980.
Edited to add: The longevity computation is:
active duty equivalent years x 2.5% = longevity multiplier
longevity multiplier x average high three base pay = retired pay if longevity is higher percentage than disability percentage
Retired pay is reduced by amount of VA compensation.
Ron
You are confusing how those elements are used.
The disability percentage is a multiplier.
High three average base pay is an amount which is used with the multiplier as I showed in an earlier post’
There is no high three retired pay “retirement “.
There is no retired pay using final pay unless one entered the service prior to 8 September 1980.
Edited to add: The longevity computation is:
active duty equivalent years x 2.5% = longevity multiplier
longevity multiplier x average high three base pay = retired pay if longevity is higher percentage than disability percentage
Retired pay is reduced by amount of VA compensation.
Ron
I was pretty much told that I will get 75% of my base pay which is my current rank and years of service using my retirement points divided by 360. That would make me O3E with 8 years of service.
From my 199:
Although the Soldier's disability is presently rated at 90 percent, the Soldier will actually receive 75 percent of the Soldier's monthly base pay, or 75
percent of the retired pay base depending on the Soldier's active duty entry date, unless Soldier is eligible for a higher percentage based on years of
service. DFAS will calculate the Soldier's pay using the method most favorable for the Soldier.
From my 199:
Although the Soldier's disability is presently rated at 90 percent, the Soldier will actually receive 75 percent of the Soldier's monthly base pay, or 75
percent of the retired pay base depending on the Soldier's active duty entry date, unless Soldier is eligible for a higher percentage based on years of
service. DFAS will calculate the Soldier's pay using the method most favorable for the Soldier.
But the question I was looking to get answered seemed to be on one of your comments...."on day of retirement".
Ok...I understand your first paragraph. The pay will be 75% x average high three base pay. This is not what someone told me; it is current law. The “active duty entry date “ alludes to the 8 September 1980 date.
I have explained this to the best of my ability. I have done hundreds of these computations, likely thousands.
Ron
Army Finance Corps 20+ AD years
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How would one calculate high three base pay for a guardsman? I see what you are saying but also see what my DA 199 states. 75% of monthly base pay...or percent of the retired pay base.
The retired pay base for a qualified reserve retirement under the High-36 retirement plan is the total amount of monthly basic pay to which the member was entitled during the member's high-36 months divided by 36. This includes months to which the member would have been entitled if the member had served on active duty during the entire period. Usually this will be the average of the 36 months for the member's pay grade and years of service taken from the pay tables in effect for the 36 months immediately preceding the date that retired pay begins, regardless of when the member stopped participation (i.e. went into the gray area).
Ron
Ron
Reference: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 3
0302 BASIC COMPUTATION 030201.
LINK <----
Ron
0302 BASIC COMPUTATION 030201.
LINK <----
Ron
Thank you. It seems that some documents I have gotten and the DA 199 have been misleading. Good to have sources.
It is confusing. I spent most of my career in infantry and armor divisions (Army). Each division had a finance company of around 125 soldiers.
I admit my bias, but I think matters were handled much better when one has personalized local service.
If you have other questions later, such as CRSC, etc., please return with them . All the IDES/MEB/PEB stuff is expertly handled by others.
Ron
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