
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1402]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                 CHAPTER 71--COMPUTATION OF RETIRED PAY
 
Sec. 1402. Recomputation of retired or retainer pay to reflect 
        later active duty of members who first became members before 
        September 8, 1980
        
    (a) A member of an armed force who first became a member of a 
uniformed service before September 8, 1980, and who has become entitled 
to retired pay or retainer pay, and who thereafter serves on active duty 
(other than for training), is entitled to recompute his retired pay or 
retainer pay upon his release from that duty according to the following 
table.

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---------------------------------
         Column 1  Take                        Column 2  Multiply by           
          Column 3  Subtract
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---------------------------------
Monthly basic pay \1\ of the     2\1/2\ percent of the sum of--                
     Excess over 75 percent of
 grade in which he would be          (1) the years of service that may be credi
ted   pay upon which computation
 eligible--                       to him in computing retired pay or retainer p
ay;   is based.
    (1) to retire if he were      and
 retiring upon that release          (2) his years of active service after
 from active duty; or             becoming entitled to retired pay or retainer
    (2) to transfer to the        pay.\2\
 Fleet Reserve or Fleet Marine
 Corps Reserve if he were
 transferring to either upon
 that release from active duty.
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---------------------------------
  \1\ For a member who has been entitled, for continuous period of at least two
 years, to basic pay under the
  rates of basic pay in effect upon that release from active duty, compute unde
r those rates. For a member who
  has been entitled to basic pay for a continuous period of at least two years 
upon that release from active
  duty, but who is not covered by the preceding sentence, compute under the rat
es of basic pay replaced by those
  in effect upon that release from active duty. For any other member, compute u
nder the rates of basic pay under
  which the member's retired pay or retainer pay was computed when he entered o
n that active duty.
  \2\ Before applying percentage factor, credit each full month of service that
 is in addition to the number of
  full years of service creditable to the member as one-twelfth of a year and d
isregard any remaining fractional
  part of a month.

However, an officer who was ordered to active duty (other than for 
training) in the grade that he holds on the retired list under former 
section 6150 of this title, or under any other law that authorized 
advancement on the retired list based upon a special commendation for 
the performance of duty in actual combat, may have his retired pay 
recomputed under this subsection on the basis of the rate of basic pay 
applicable to that grade upon his release from that active duty only if 
he has been entitled, for a continuous period of at least three years, 
to basic pay at that rate. If, upon his release from that active duty, 
he has been entitled to the basic pay of that grade for a continuous 
period of at least three years, but he does not qualify under the 
preceding sentence, he may have his retired pay recomputed under this 
subsection on the basis of the rate of basic pay prescribed for that 
grade by the rates of basic pay replaced by those in effect upon his 
release from that duty.
    (b) A member of an armed force who first became a member of a 
uniformed service before September 8, 1980, and who has been retired 
other than for physical disability, and who while on active duty incurs 
a physical disability of at least 30 percent for which he would 
otherwise be eligible for retired pay under chapter 61 of this title, is 
entitled, upon his release from active duty, to retired pay under 
subsection (d).
    (c) A member of an armed force who first became a member of a 
uniformed service before September 8, 1980, and who--
        (1) was retired for physical disability under section 1201 or 
    1204 of this title or any other law or whose name is on the 
    temporary disability retired list;
        (2) incurs, while on active duty after retirement or after his 
    name was placed on that list, a physical disability that is in 
    addition to or that aggravates the physical disability for which he 
    was retired or for which his name was placed on the temporary 
    disability retired list; and
        (3) is qualified under section 1201, 1202, 1204, or 1205 of this 
    title;

is entitled, upon his release from active duty, to retired pay under 
subsection (d).
    (d) A member of an armed force covered by subsection (b) or (c) may 
elect to receive either (1) the retired pay to which he became entitled 
when he retired, increased by any applicable adjustments in that pay 
under section 1401a of this title after he initially became entitled to 
that pay, or (2) retired pay computed according to the following table.

-------------------------------------------------------------------------------
-------------------------------------------------------------------------
          Column 1  Take                          Column 2  Multiply by        
                       Column 3  Add                  Column 4  Subtract
-------------------------------------------------------------------------------
-------------------------------------------------------------------------
Highest monthly basic pay that     As member elects--                          
         Add amount necessary to increase product   Excess over 75% of
 member received while on active       (1) 2\1/2\% of years of service credited
 under    of columns 1 and 2 to 50% of pay upon      pay upon which
 duty after retirement or after     section 1208 of this title; \1\ or         
          which computation is based, if member is   computation is
 date when his name was placed on      (2) the highest percentage of disability
          on temporary disability retired list.      based.
 temporary disability retired       attained while on active duty after retirem
ent or
 list, as the case may be.          after the date when his name was placed on
                                    temporary disability retired list, as the c
ase may
                                    be.\1\
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-------------------------------------------------------------------------
  \1\ Before applying percentage factor, credit each full month of service that
 is in addition to the number of full years of service creditable to the
  member as one-twelfth of a year and disregard any remaining fractional part o
f a month.

If, while on active duty after retirement or after his name was placed 
on the temporary disability retired list, a member covered by this 
subsection was promoted to a higher grade in which he served 
satisfactorily, as determined by the Secretary concerned, he is entitled 
to retired pay based on the monthly basic pay to which he would be 
entitled if he were on active duty in that higher grade.
    (e) Notwithstanding subsection (a), a member covered by that 
subsection may elect, upon his release from active duty, to have his 
retired pay or retainer pay--
        (1) computed according to the formula set forth in subsection 
    (a) but using the rate of basic pay under which his retired pay or 
    retainer pay was computed when he entered on active duty; and
        (2) increased by any applicable adjustments in that pay under 
    section 1401a of this title after he initially became entitled to 
    that pay.

    (f)(1) In the case of a member who is entitled to recompute retired 
pay under this section upon release from active duty served after 
retiring under section 3914 or 8914 of this title, the member's retired 
pay as recomputed under another provision of this section shall be 
increased by 10 percent of the amount so recomputed if the member has 
been credited by the Secretary concerned with extraordinary heroism in 
the line of duty during any period of active duty service in the armed 
forces.
    (2) The amount of the retired pay as recomputed under another 
provision of this section and as increased under paragraph (1) may not 
exceed the amount equal to 75 percent of the monthly rate of basic pay 
upon which the recomputation of such retired pay is based.
    (3) The determination of the Secretary concerned as to extraordinary 
heroism is conclusive for all purposes.

(Aug. 10, 1956, ch. 1041, 70A Stat. 107; Pub. L. 86-559, Sec. 1(5), June 
30, 1960, 74 Stat. 265; Pub. L. 88-132, Sec. 5(l)(1), Oct. 2, 1963, 77 
Stat. 214; Pub. L. 90-207, Sec. 2(a)(2), Dec. 16, 1967, 81 Stat. 653; 
Pub. L. 96-342, title VIII, Sec. 813(b)(2), Sept. 8, 1980, 94 Stat. 
1102; Pub. L. 96-513, title V, Sec. 511(50), Dec. 12, 1980, 94 Stat. 
2924; Pub. L. 98-94, title IX, Secs. 922(a)(3), (4), 923(a)(1), (2)(B), 
(C), Sept. 24, 1983, 97 Stat. 641, 642; Pub. L. 99-348, title II, 
Sec. 201(b)(3), title III, Sec. 304(a)(3), (b)(3), July 1, 1986, 100 
Stat. 694, 703; Pub. L. 102-484, div. A, title VI, Sec. 642(a), Oct. 23, 
1992, 106 Stat. 2424.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
1402(a)...............................  37:316.                              Oc
t. 12, 1949, ch. 681, Secs.
1402(b), (c)..........................  37:272(d) (1st 128 words of last      4
02(d) (last proviso, less
                                         proviso, less applicability to       a
pplicability to retired grade),
                                         retired grade).                      5
16, 63 Stat. 819, 832.
1402(d)...............................  37:272(d) (last proviso, less 1st
                                         128 words, and less applicability
                                         to retired grade).
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---------------------------------

    In subsection (a), columns 1 and 2 of the table are based on 37:316 
(1st proviso). Column 4 is based on 37:316 (last proviso). Footnote 1 is 
based on 37:316 (2d proviso). 37:316 (3d proviso) is omitted as 
operationally obsolete.
    In subsections (a) and (d), the words ``and disregard a part of a 
year that is less than six months'' are added to footnote 1 to conform 
to footnote 3 of section 1401 of this title.
    In subsection (b), the words ``for which he would otherwise be 
eligible for retired pay under chapter 61 of this title'' are 
substituted for the words ``in accordance with the standard schedule of 
rating disabilities in current use by the Veterans' Administration'' and 
``if qualified''.
    In subsection (c), the requirement that the physical disability 
incurred be 30 percent or more is omitted as surplusage, since it is 
also required that the member be qualified for physical disability 
retirement under section 1201 or 1204 of this title.
    In subsection (d), the rules stated in 37:316 (2d and last provisos) 
are repeated in column 4 of the table and the footnote to the table, 
since they apply to all cases of increased pay for active duty performed 
after retirement.

                          Codification

    Another section 304(b)(3) of Pub. L. 99-348 amended the table of 
sections at the beginning of chapter 571 of this title.


                               Amendments

    1992--Subsec. (f). Pub. L. 102-484 added subsec. (f).
    1986--Pub. L. 99-348, Sec. 304(b)(3), inserted ``of members who 
first became members before September 8, 1980'' in section catchline.
    Subsec. (a). Pub. L. 99-348, Secs. 201(b)(3), 304(a)(3), struck out 
``(as defined in section 1407(a)(2) of this title)'' after ``uniformed 
service'' and struck out provision that if the amount recomputed is not 
a multiple of $1, it be rounded to the next lower multiple of $1. See 
section 1412 of this title.
    Subsecs. (b), (c). Pub. L. 99-348, Sec. 304(a)(3), struck out ``(as 
defined in section 1407(a)(2) of this title)'' after ``uniformed 
service''.
    Subsec. (d). Pub. L. 99-348, Sec. 201(b)(3), struck out provision 
that if the amount recomputed is not a multiple of $1, it be rounded to 
the next lower multiple of $1. See section 1412 of this title.
    1983--Subsec. (a). Pub. L. 98-94, Sec. 922(a)(3), substituted 
``according to the following table. The amount recomputed, if not a 
multiple of $1, shall be rounded to the next lower multiple of $1.'' for 
``as follows:''.
    Pub. L. 98-94, Sec. 923(a)(1), (2)(B), in footnote 2 of table, 
substituted ``Before applying percentage factor, credit each full month 
of service that is in addition to the number of full years of service 
creditable to the member as one-twelfth of a year and disregard any 
remaining fractional part of a month'' for ``Before applying percentage 
factor, credit a part of a year that is six months or more as a whole 
year, and disregard a part of a year that is less than six months''.
    Subsec. (d). Pub. L. 98-94, Sec. 922(a)(4), substituted ``according 
to the following table. The amount computed, if not a multiple of $1, 
shall be rounded to the next lower multiple of $1.'' for ``as 
follows:''.
    Pub. L. 98-94, Sec. 923(a)(1), (2)(C), in footnote 1 of table, 
substituted ``Before applying percentage factor, credit each full month 
of service that is in addition to the number of full years of service 
creditable to the member as one-twelfth of a year and disregard any 
remaining fractional part of a month'' for ``Before applying percentage 
factor, credit a part of a year that is six months or more as a whole 
year, and disregard a part of a year that is less than six months''.
    1980--Subsecs. (a) to (c). Pub. L. 96-513 substituted ``a uniformed 
service (as defined in section 1407(a)(2) of this title) before 
September 8, 1980'' for ``the armed forces before the date of the 
enactment of the Department of Defense Appropriation Act, 1981'' 
wherever appearing.
    Pub. L. 96-342 inserted ``who first became a member of the armed 
forces before the date of the enactment of the Department of Defense 
Authorization Act, 1981, and'' after ``of an armed force'' wherever 
appearing.
    1967--Subsec. (d). Pub. L. 90-207, Sec. 2(a)(2)(A), inserted 
``increased by any applicable adjustments in that pay under section 
1401a of this title after he initially became entitled to that pay'' 
after ``retired,''.
    Subsec. (e). Pub. L. 90-207, Sec. 2(a)(2)(B), added subsec. (e).
    1963--Subsec. (a). Pub. L. 88-132 substituted in introductory clause 
``who has become entitled to retired pay or retainer pay'' for ``who has 
been retired or has become entitled to retainer pay'' and ``to recompute 
his retired pay or retainer pay upon his release from that duty'' for 
``, upon release from that duty, to recompute his retired or retainer 
pay'' and inserted in such clause ``(other than for training)'' after 
``active duty''; substituted in column 1 of table ``Monthly basic pay'' 
for ``Monthly basic pay or base and longevity pay, as the case may 
be,'', designated existing provisions as (1) and added (2); substituted 
in (1) of column 2 of the table ``retired pay or retainer pay'' for 
``retired or retainer pay'' and in (2) of such column 2 ``after becoming 
entitled to retired pay or retainer pay'' for ``after retirement or 
becoming entitled to retainer pay'', struck out column 3 relating to 
addition and redesignated column 4 as 3; added footnote 1 to the table 
and redesignated former footnote 1 as 2; and inserted provisions for 
recomputation of retired pay upon release from active duty of officers 
ordered to active duty in a higher grade based upon special commendation 
for performance of duty in actual combat.
    1960--Subsec. (a). Pub. L. 86-559 prohibited recomputation of 
retired pay under subsec. (a) on the basis of any period of active duty 
that was of less than six consecutive months' duration or on the basis 
of any active duty for training for a reserve officer who is or has been 
retired under section 3911, 6323, or 8911 of this title or under section 
232 of title 14.


                    Effective Date of 1983 Amendment

    Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983, 
see section 922(e) of Pub. L. 98-94, set out as a note under section 
1401 of this title.
    Amendment by section 923 of Pub. L. 98-94 applicable with respect to 
(1) the computation of retired or retainer pay of any individual who 
becomes entitled to that pay after Sept. 30, 1983, and (2) the 
recomputation of retired pay under this section, of any individual who 
after Sept. 30, 1983, becomes entitled to recompute retired pay under 
this section, see section 923(g) of Pub. L. 98-94, set out as a note 
under section 1174 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section 
701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of this 
title.


                    Effective Date of 1967 Amendment

    Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of 
Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and 
Allowances of the Uniformed Services.


                    Effective Date of 1963 Amendment

    Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section 14 
of Pub. L. 88-132, set out as a note under section 201 of Title 37, Pay 
and Allowances of the Uniformed Services.


             Accrual of Benefits; Prospective Applicability

    Section 642(c) of Pub. L. 102-484 provided that: ``No benefits shall 
accrue for months beginning before the date of the enactment of this Act 
[Oct. 23, 1992] by reason of the amendments made by this section 
[amending this section and section 1402a of this title].''


        Recomputation of Retired Pay of Certain Recalled Retirees

    Pub. L. 98-525, title VI, Sec. 655, Oct. 19, 1984, 98 Stat. 2552, 
provided that:
    ``(a) Notwithstanding the second sentence of footnote 1 of the table 
contained in section 1402(a) of title 10, United States Code (relating 
to recomputation of retired pay to reflect later active duty), in the 
case of a member of the Armed Forces who--
        ``(1) was voluntarily called or ordered to active duty during 
    the period beginning on October 1, 1963, and ending on September 30, 
    1971;
        ``(2) was at the time of such call or order entitled to retired 
    pay or retainer pay;
        ``(3) served on such active duty under such call or order for a 
    continuous period of at least two years; and
        ``(4) was released from such active duty before October 1, 1973,
the retired or retainer pay of such member shall be recomputed, as 
provided in subsection (b), under the rates of basic pay in effect at 
the time of that release from active duty.
    ``(b) The retired or retainer pay of a member of the Armed Forces 
described in subsection (a) shall be the amount determined under section 
1402(a) of title 10, United States Code (as modified with respect to 
such member by subsection (a)), and increased by the amount by which the 
member's retired or retainer pay would have been increased during the 
period beginning on the date of the member's release from active duty 
referred to in subsection (a)(4) and ending on the day before the day on 
which this section becomes effective had subsection (a) applied in the 
case of the member at the time of that release from active duty.
    ``(c) This section shall apply only with respect to retired pay and 
retainer pay payable for months beginning after September 30, 1984, or 
on or after the date of the enactment of this Act [Oct. 19, 1984], 
whichever is later.''


 Retired Pay and Retainer Pay; Prohibition Against Recomputation Under 
   1963 Pay Rates; Exceptions; Increments Based on the Greater of a 5 
   Percent Increase or Recomputation Under 1958 Pay Rates for Members 
     Retired Prior to October 1949 for Reasons Other Than Physical 
Disability, Members Receiving Retired Pay Under Career Compensation Act 
 of 1949 and Former Chiefs of Staff; Additional 5 Percent Increase for 
Other Retired Members; Exclusion From Increase of Officers Retired Under 
                           Certain Provisions

    Section 5(a)-(f) of Pub. L. 88-132 provided that:
    ``(a) Except as provided in section 1402 of title 10, United States 
Code, the changes made by this Act [see Short Title note under section 
201 of Title 37] in the rates of basic pay of members of the uniformed 
services do not increase the retired pay or retainer pay to which a 
member or former member of the uniformed services was entitled on the 
day before the effective date of this Act [Oct. 1, 1963]. However, 
except for a member covered by section 6331 of title 10, United States 
Code who became entitled to retainer pay before April 1, 1963, and 
subject to subsection (j) of this section [set out as a note below], a 
member or former member of a uniformed service who became entitled to 
retired pay or retainer pay after March 31, 1963, but before the 
effective date of this Act [Oct. 1, 1963], is entitled--
        ``(1) to have the retired pay or retainer pay to which he was 
    entitled on the day before the effective date of this Act [Oct. 1, 
    1963] recomputed under the rates of basic pay prescribed by section 
    2 of this Act [amending section 203 of Title 37]; or
        ``(2) to continue to have that pay computed under the rates of 
    basic pay that were in effect under section 203 of title 37, United 
    States Code, on the day before the effective date of this Act [Oct. 
    1, 1963], plus the percentage increase provided by subsection (e) of 
    this section;
whichever pay is the greater. For the purposes of the preceding 
sentence, a member or former member who became entitled to retired pay 
on April 1, 1963, by virtue of section 1 of the Act of April 23, 1930, 
ch. 209, as amended (5 U.S.C. 47a) [section 8301 of Title 5], shall be 
considered as having become entitled to that pay before April 1, 1963.
    ``(b) A member or former member of a uniformed service who was 
retired other than for physical disability and who, in accordance with 
section 511 of the Career Compensation Act of 1949 (63 Stat. 829) [10 
U.S.C. 580 note], is entitled to retired pay or retainer pay computed by 
`method' (a) of that section using rates of basic pay that were in 
effect before October 1, 1949, is entitled--
        ``(1) to have pay recomputed by `method' (b) of that section 
    using the rates of basic pay that were in effect under that Act on 
    the day before the effective date of this Act [Oct. 1, 1963]; or
        ``(2) to an increase of 5 percent in the retired pay or retainer 
    pay to which he was entitled on the day before the effective date of 
    this Act [Oct. 1, 1963];
whichever pay is the greater.
    ``(c) A member or former member of a uniformed service who is 
entitled to retired pay or retainer pay computed under the rates of 
basic pay that were in effect under the Career Compensation Act of 1949 
before June 1, 1958, including a member or former member who is entitled 
to retired pay under section 7 (b) or (c) of the Act of May 20, 1958, 
Public Law 85-422 (72 Stat. 130), is entitled--
        ``(1) to have that pay recomputed under the rates of basic pay 
    that were in effect under that Act on the day before the effective 
    date of this Act [Oct. 1, 1963]; or
        ``(2) to an increase of 5 percent in the retired pay or retainer 
    pay to which he was entitled on the day before the effective date of 
    this Act [Oct. 1, 1963];
whichever pay is the greater.
    ``(d) A member or former member of a uniformed service who was 
entitled to retired pay on the day before the effective date of this Act 
[Oct. 1, 1963] and who served as Chief of Staff of the Army, Chief of 
Naval Operations, Chief of Staff of the Air Force, or Commandant of the 
Marine Corps is entitled--
        ``(1) to have his retired pay recomputed under the formula for 
    computing retired pay applicable to him--
            ``(A) when he retired; or
            ``(B) if he served on active duty after he retired and his 
        retired pay was recomputed by reason of that service, when his 
        retired pay was so recomputed;
    using as his rate of basic pay the rate of basic pay prescribed for 
    officers serving on active duty in those positions on June 1, 1958, 
    by footnote 1 to table for commissioned officers in section 201(a) 
    of the Career Compensation Act of 1949, as amended (72 Stat. 122) 
    [see section 203 of Title 37]; or
        ``(2) to an increase of 5 percent in the retired pay to which he 
    was entitled on the day before the effective date of this Act [Oct. 
    1, 1963];
whichever pay is the greater.
    ``(e) A member or former member of a uniformed service who was 
entitled to retired pay or retainer pay on the day before the effective 
date of this Act [Oct. 1, 1963], other than a member or former member 
who is covered by subsection (b), (c), or (d) of this section, is 
entitled to an increase of 5 percent in the retired or retainer pay to 
which he was entitled on the day before the effective date of this Act 
[Oct. 1, 1963].
    ``(f) Notwithstanding any other provision of law, a member of an 
armed force who was entitled to pay and allowances under any of the 
following provisions of law on the day before the effective date of this 
Act [Oct. 1, 1963] shall continue to receive the pay and allowances to 
which he was entitled on that day:
        ``(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).
        ``(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).
        ``(3) The Act of September 18, 1950, chapter 952 (64 Stat. 
    A224).''


            Retired Pay and Retainer Pay; Retroactive Effect

    Section 5(j) of Pub. L. 88-132 provided that: ``A member or former 
member of a uniformed service is not entitled to an increase in his 
retired pay or retainer pay because of the enactment of this Act [see 
Short Title note set out under section 201 of Title 37] for any period 
before the effective date of this Act [Oct. 1, 1963].''


                            Savings Provision

    Section 5(l)(2) of Pub. L. 88-132 provided that: ``Notwithstanding 
paragraph (1) of this subsection [amending this section], and unless 
otherwise entitled to higher retired pay or retainer pay, a member of a 
uniformed service who is on active duty (other than for training) on the 
effective date of this Act [Oct. 1, 1963], who was entitled to retired 
pay or retainer pay before he entered on that duty, and who is released 
from that duty on or after the effective date of this Act after having 
served on that duty for a continuous period of at least one year shall, 
upon that release from active duty, be entitled to recompute his retired 
pay or retainer pay under the table in section 1402 of title 10, United 
States Code [this section], subject to section 6483(c) of title 10, as 
that table and that section were in effect on the day before the 
effective date of this Act, using rates of basic pay prescribed by this 
Act [section 203 of Title 37].''

                  Section Referred to in Other Sections

    This section is referred to in sections 1373, 1403, 1406, 6330 of 
this title; title 37 section 205.
