Military retirement pay is one of the top three benefits of military service along with medical and other benefits. Also, all military retirements are protected from inflation by annual Cost of Living Adjustments (COLAs), based on changes in the Consumer Price Index (CPI) as measured by the Department of Labor.
A military retirement plan could be considered one of the best retirement plans around. There are a few options depending on when you began your service. Know your options and how to calculate your military retirement pay to find out which option is best for you.
If you began your military service before Sep. 7, 1980, you’re eligible for the Final Pay Retirement system. Your retired pay is calculated by multiplying your final base pay by 2.5% for every year of service.
If your military service began between Sep. 8, 1980, and July 31, 1986, you are eligible for the High 36 Retirement System. High 36 is very similar to the Final Pay Retirement System except your retired pay is calculated using an average of the three highest paid years of service.
If your military service began between Aug. 1, 1986, and Dec. 31, 2017, you qualify for REDUX Retirement System or the High 36 System. This system is based on your highest 36 months base pay. After your 15 year service anniversary you will receive a Career Status Bonus (CSB) and your retirement pay is reduced. If you have 30 years or more of service, there is no pay reduction.
If you began your military service after Jan. 1, 2018, you are eligible for the Blended Retirement System (BRS). With BRS, you will receive 40% of your base pay after 20 years and a bonus at 12 years, which is 2.5% of your annual base pay. The military will contribute 1% of your base pay to your Thrift Savings Plan (TSP).
If you are determined to be medically unfit for service with a DoD disability rating of at least 30%, you are eligible for disability pay.
This is calculated using percentage of disability or years of credible service.
There are two ways of calculating your military retired pay base, the final pay method and the high 36 method. The final pay method sets the retired base pay equal to the final basic pay. The high 36 method is the average of your highest 36 months of basic pay. The date you began your military service will determine which method is used to calculate your retired pay base.
For the Final Pay and High 36 retirement plans each year of service is 2.5% to your retirement multiplier. Depending on the type of service, active duty or reserve, your years of creditable service will be calculated differently.
If you qualify for the REDUX retirement plan, your multiplier is reduced for each year less than 30 years of service at retirement.
The disability retirement multiplier will be the highest of the assigned disability percentage at retirement not exceeding 75% or by the applicable retirement plan multiplier and years of service.
| Years of Service | 20 | 21 | 22 | 23 | 24 | 25 | 30 | 35 | 40 | 41 |
| Final Pay | 50% | 52.5% | 55% | 57.5% | 60% | 62.5% | 75% | 87.5% | 100% | 102.5% |
| High-36 | 50% | 52.5% | 55% | 57.5% | 60% | 62.5% | 75% | 87. | 100% | 102.5% |
| REDUX | 40% | 43.5% | 47% | 50.5% | 54% | 57.5% | 75% | 87.5% | 100% | 102.5% |
| BRS | 40% | 42% | 44% | 46% | 48% | 50% | 60% | 70% | 80% | 82% |
All military retirement plans include an annual Cost of Living Adjust (COLA). Each retirement plan adjustment is based on changes with the Consumer Price Index.
For the Final Pay, High 36, Disability, and BRS retirement plans, the yearly cost of living adjustment is equal to the percentage increase of the CPI.
For the REDUX retirement plan the COLA is about one percentage point less than the other retirement plans. If you have the REDUX plan you’ll be given a on time adjustment at 62 years of age to make up the difference in COLA to equal what it would have been for High 36. The COLA will then revert to the previous percentage.
The Blended Retirement System Explained
Should you switch to the new Blended Retirement System? We have the details to help you decide.
Guard And Reserve Retirement
National Guard & Reserve members who complete a minimum 20 qualifying years of service become eligible for retired pay at age.
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Thrift Savings Plan Overview
The Thrift Savings Plan (TSP) offers service members flexibility in investment planning.
Concurrent Retirement and Disability Pay (CRDP) Overview
Concurrent Receipt of Disability Pay lets you get military retirement pay and VA disability compensation at the same time.
Keeping Retiree Pay Records Up-to-Date
It's important that all retirees periodically review their military retirement pay to ensure all information is up-to-date.
Military Retirement Paychecks
Retirees residing in the United States can have their paychecks sent by EFT to a financial institution.
Retired Military Pay Days for 2023
Military retiree and annuitant payday is always on the first business day of the month.
Retired Pay Allotments
Retired servicemembers are permitted to continue some allotments that they had in effect while on active duty.
If you recently retired from the military, you may want to know how much you will receive in retirement pay and how the benefit is computed. The military has various retirement systems for determining retirement pay.
The amount you receive in military retirement pay depends on the length of service and rank at the time of retirement. If you are eligible for the final pay retirement system, your retirement pay will be 2.5% of your basic pay for every year of service. However, if you are eligible for the high-36 retirement system, your retirement pay will be the average of your 36 highest-earning months of basic pay times 2.
5% for every year of service. Other methods of determining retirement pay include disability, REDUX, and the blended retirement system.
The amount you receive from a military retirement plan depends on the year when you started military service. If you retired due to a disability, you may decide to have your retirement pay calculated based on your disability or length of service.
Here are various ways how military pay is calculated:
If you started military service before September 8, 1980, you are eligible for the final pay retirement system. Your retirement pay will be calculated by multiplying your final basic pay by 2.5% for every year of active duty or reserve service.
For example, if you served in the military for 20 years, your retirement pay will be 50% (2.5% x 20) of your final basic pay. If you served for 30 years, your retirement pay will be 75% (2.5% x 30) of your final basic pay.
The High-36 retirement system is available to service members who began active duty or reserve service after September 8, 1980, and July 31, 1986.
If you are eligible, your retirement pay is calculated by taking the average of the three highest 36 months of basic pay.
If you started military service after August 1986, your retirement pay is calculated under the REDUX system. You can also elect to use the High-36 retirement system. On your 15 anniversary of military service, you will receive a Career Status Bonus (CSB) of $30,000, and your retirement pay will reduce by 40% of the average of the highest 36 months of basic pay. If you have served in the military for at least 30 years, your retirement pay will not be subject to the pay reduction.
If you joined military service after January 1, 2018, you may be eligible for the blended retirement system. You will receive 40% of your basic pay after 20 years of military service, and a bonus on your 12anniversary.
Additionally, the military automatically contributes 1% of your salary to a Thrift Savings Plan. The military matches up to 5% of your salary each year, and you can elect to contribute more than the 1% automatic contribution.
Once you retire or leave military service, you can rollover the Thrift Savings to an IRA.
If you are medically found unfit to continue serving in the military due to a disability, you will be eligible to receive disability pay. You must have at least a 30% disability score, which is based on your years of service or percentage of disability. The retirement pay is calculated based on your highest 36 months of pay or final basic pay.
Once you retire from the military, your retirement pay will be based on your retirement plan and military status. Generally, you can expect to receive 2.5% of the final basic pay for every year of military service.
If you retire after 20 years in the military, your retirement pay will be equal to 50% of your final basic pay, while service members who complete 40 years of service can expect to receive 100% of their final basic pay as retirement pay.
If you retired as an enlisted service member with 20 years of service, you could receive an average military pay of $30,000 to 35,000 per year while a service member who retired as a typical officer could receive an average of $60,000 to $70,000 per year.
Once you retire from the military, you will receive both military retirement pay and social security. The amount you receive as social security income is not based on your military retirement pay, but your previous earnings.
However, the military retirement pay may affect the amount you receive as supplemental security income (SSI). SSI is a federal benefit for low-income people, and you will only be eligible to receive this benefit if your overall income is below the limit set by the Social Security Administration. The military retirement pay counts towards your overall income, and if it pushes your income beyond the set limit, you won't be eligible for SSI.
Amendments to the legislation have been introduced to the State Duma, which propose that military pensioners who resumed service during the period of counter-terrorist and other military operations conducted by the Russian Armed Forces receive pensions corresponding to higher positions.
The authors of the draft law are Chairman of the State Duma Vyacheslav Volodin Volodin
Vyacheslav Viktorovich Chairman of the State Duma of the Federal Assembly of the Russian Federation of the eighth convocation. Elected in constituency No. 163 (Saratov - Saratov region) , chairmen of defense committees Andrey Kartapolov Kartapolov
Andrey Valerievich Deputy of the State Duma elected as part of the federal list of candidates put forward by the All-Russian political party "UNITED RUSSIA" , Security and Anti-Corruption Vasily Piskarev Piskarev
Vasily Ivanovich Deputy of the State Duma elected as part of the federal list of candidates put forward by the All-Russian political party "UNITED RUSSIA" , for Labour, Social Policy and Veterans Affairs Yaroslav Nilov Nilov
Yaroslav Evgenievich Deputy of the State Duma was elected as part of the federal list of candidates put forward by the Political Party of the LDPR - the Liberal Democratic Party of Russia and other deputies of the State Duma.
As noted in the document, the service pension guarantees the maintenance of a certain level of material support, taking into account the positions held on the day of dismissal and military rank.
At the same time, among military pensioners there are citizens who are ready to serve in the period of counter-terrorism and other operations in positions with a salary lower than those on the basis of which their pension was calculated. However, according to the current legislation, after the end of their service, when payments are resumed, the calculation of the pension will be based on a lower salary and its size will be lower.
“It appears that the said legal regulation does not meet principle of social justice," the explanatory note emphasizes.
In connection with this draft law, it is proposed to establish that when resuming the payment of pensions to persons from among those indicated, for whom it was suspended upon entering the military service during the period of special operations conducted by the Armed Forces, salaries corresponding to military positions and ranks and used to calculate pensions up to suspension of payment.
If there is no place of residence in the territory of the Russian Federation, a document confirming the place of stay in the territory of the Russian Federation is required, and if there is no place of residence and place of stay in the territory of the Russian Federation, a document confirming the place of actual residence in the territory of the Russian Federation.
In the event that the place of actual residence does not coincide with the place of residence, place of stay on the territory of the Russian Federation, a document is required confirming the place of actual residence of a citizen on the territory of the Russian Federation.
If a citizen of the Russian Federation who is receiving a pension permanently resides outside the territory of the Russian Federation, a document confirming the place of permanent residence outside the territory of the Russian Federation is required. To establish a pension for a foreign citizen, a stateless person, a document confirming permanent residence in the Russian Federation is required.
An application for the establishment of a pension submitted on behalf of a citizen by his legal representative, in addition to the documents specified in paragraph 2 of this list, documents certifying the powers of the legal representative, as well as documents proving his identity and place of residence, and for an organization, which is entrusted with the performance of the duties of guardians or trustees by Article 35 of the Civil Code of the Russian Federation (Collected Legislation of the Russian Federation, 1994, no. 32, art. 3301; 2006, N 52, Art. 5497; 2008, N 17, Art. 1756) - documents proving the identity of the head of the organization and his appointment to the appropriate position.
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