
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: 10USC3991]

 
                         TITLE 10--ARMED FORCES
 
                            Subtitle B--Army
 
                           PART II--PERSONNEL
 
                 CHAPTER 371--COMPUTATION OF RETIRED PAY
 
Sec. 3991. Computation of retired pay

    (a) Computation.--
        (1) Formula.--The monthly retired pay of a member entitled to 
    such pay under this subtitle is computed by multiplying--
            (A) the member's retired pay base (as computed under section 
        1406(c) or 1407 of this title), by
            (B) the retired pay multiplier prescribed in section 1409 of 
        this title for the number of years credited to the member under 
        section 1405 of this title.

        (2) Additional 10 percent for certain enlisted members credited 
    with extraordinary heroism.--If a member who is retired under 
    section 3914 of this title has been credited by the Secretary of the 
    Army with extraordinary heroism in the line of duty, the member's 
    retired pay shall be increased by 10 percent of the amount 
    determined under paragraph (1) (but to not more than 75 percent of 
    the retired pay base upon which the computation of such retired pay 
    is based). The Secretary's determination as to extraordinary heroism 
    is conclusive for all purposes.

    (b) General Rules.--
        (1) Use of most favorable formula.--If a person would otherwise 
    be entitled to retired pay computed under more than one formula in 
    subsection (a) or the table in section 1401 of this title, he is 
    entitled to be paid under the applicable formula that is most 
    favorable to him.
        (2) Rounding to next lower dollar.--The amount computed under 
    subsection (a), if not a multiple of $1, shall be rounded to the 
    next lower multiple of $1.

    (c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 3963.--In the case of a Reserve enlisted member retired under 
section 3914 of this title whose retired grade is determined under 
section 3963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(c) of this title.

(Aug. 10, 1956, ch. 1041, 70A Stat. 232; Pub. L. 85-155, title I, 
Sec. 101(23), Aug. 21, 1957, 71 Stat. 380; Pub. L. 85-422, Secs. 6(1), 
(8), 11(a)(5), May 20, 1958, 72 Stat. 129, 131; Pub. L. 85-861, 
Sec. 1(101A), Sept. 2, 1958, 72 Stat. 1489; Pub. L. 88-132, 
Sec. 5(h)(2), Oct. 2, 1963, 77 Stat. 214; Pub. L. 90-207, Sec. 3(2), 
Dec. 16, 1967, 81 Stat. 653; Pub. L. 96-342, title VIII, Sec. 813(c), 
Sept. 8, 1980, 94 Stat. 1104; Pub. L. 96-513, title V, Secs. 502(21), 
(22), 512(10), Dec. 12, 1980, 94 Stat. 2910, 2929; Pub. L. 98-94, title 
IX, Secs. 922(a)(7), 923(a)(1), (2)(F), Sept. 24, 1983, 97 Stat. 641, 
642; Pub. L. 99-348, title II, Sec. 202(a), July 1, 1986, 100 Stat. 694; 
Pub. L. 103-337, div. A, title VI, Sec. 635(a)(2), Oct. 5, 1994, 108 
Stat. 2788; Pub. L. 104-201, div. A, title V, Sec. 532(d)(1), Sept. 23, 
1996, 110 Stat. 2520.)

                                          Historical and Revision Notes
                                                    1956 Act
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3991 Introductory paragraph...........  10:156c (7th and 8th words).         R.
S. 1274.
                                        10:166g(b) (7th word).               Ma
r. 2, 1907, ch. 2515, Sec.  1
                                        10:316b(b) (7th and 8th words).       (
less 1st 35 words, and less
                                                                              p
roviso), 34 Stat. 1217.
                                        10:941a(a)(3) (proviso, less         Ju
ne 3, 1916, ch. 134, Sec.  4c (24
                                         applicability to retired grade).     w
ords before proviso); added June
                                        10:941a(e) (1st proviso of clause     4
, 1920, ch. 227, Sec.  4 (last 18
                                         (1), less applicability to retired   w
ords of 4th sentence of 7th
                                         grade).                              p
ar.); May 12, 1939, ch. 127 (75th
                                        10:166g(a) (less 1st 49 words; less   t
hrough 91st words); Oct. 14,
                                         1st proviso; and less 1st 84 words   1
940, ch. 858, Sec.  1 (last 26
3991(A)...............................   of last proviso).                    w
ords); restated June 29, 1945,
                                        10:941a(a)(3) (less 31st through      c
h. 197 (21 words before proviso);
                                         42d words, and less proviso).        r
estated Aug. 7, 1947, ch. 512,
                                        10:941a(e) (clause (1), less 1st      S
ec.  513(c) (24 words before
3991(B)...............................   25, and 59th through 113th, words;   p
roviso), 61 Stat. 902.
                                         and less 1st proviso).





3991(C)...............................  10:971.                              Ju
ly 31, 1935, ch. 422, Sec.  5
                                        10:971b (less 1st 100 words, and      (
less 1st 101 words, and less 3d
                                         less 1st and 3d provisos).           p
roviso); restated June 13, 1940,
                                        10:948 (less 1st sentence, and less   c
h. 344, Sec.  3 (less 1st 45
3991(D)...............................   1st and last provisos of last        w
ords, and less 2d proviso), 54
                                         sentence).                           S
tat. 380; Aug. 7, 1947, ch. 512,
                                        10:980.                               S
ecs.  514(g), 521(a), 61 Stat.
                                        10:506b(d) (1st proviso).             9
06, 912; June 29, 1948, ch. 708,
3991(E)...............................  10:1079a(b) (proviso).                S
ec.  202 (less 1st 105 words), 62
3991 Footnote 1.......................                                        S
tat. 1084.
3991 Footnote 2.......................  10:156c (less 1st 43, and last 13,   Oc
t. 6, 1945, ch. 393, Sec.  4
                                         words).                              (
less 1st sentence); restated Aug.
                                        10:166g(b) (less 1st 76 words, less   1
0, 1946, ch. 952, Sec.  6(a)
                                         20 words before proviso, and less    (
less 1st sentence), 60 Stat. 996.
                                         proviso).                           Au
g. 10, 1946, ch. 952, Sec.  6(c),
                                        10:316b(b) (less 1st 54, and last     6
0 Stat. 996.
                                         13, words).                         Ap
r. 16, 1947, ch. 38, Sec.  108(a)
                                        10:1002 (34 words before proviso,     (
less 1st 49 words, and less 1st
                                         and proviso).                        8
4 words of last proviso), 61
                                        10:1003 (last 40 words).              S
tat. 44.
                                        10:1026 (24 words before proviso).
3991 Footnote 3.......................  [No source].                         Ap
r. 16, 1947, ch. 38, Sec.  108(b)
3991 Footnote 4.......................                                        (
less 1st 5, and 8th through 76th,
                                        10:166g(a) (1st proviso).             w
ords; less 20 words before
                                        10:941a(e) (94th through 113th        p
roviso; and less proviso);
                                         words of clause (1).                 r
estated May 16, 1950, ch. 186,
                                        10:948 (last proviso of last          S
ec.  3(d)(b) (less 1st 5, and 8th
                                         sentence).                           t
hrough 76th, words; less 20 words
                                        10:971b (1st proviso).                b
efore proviso; and less proviso),
3991 Footnote 5.......................  37:272(d) (1st proviso).              6
4 Stat. 161.
                                        10:948 (1st proviso of last
                                         sentence).
                                        ...................................  Au
g. 4, 1947, ch. 459, Sec.  102(c)
                                                                              (
less 1st 6, 9th through 43d, and
                                                                              l
ast 13, words), 61 Stat. 735.
                                        ...................................  Au
g. 7, 1947, ch. 512, Secs.
                                                                              5
04(d) (1st proviso), 514(a)(3)
                                                                              (
less 31st through 42d words; and
                                                                              l
ess proviso, less applicability
                                                                              t
o retired grade), 514(e) (clause
                                                                              (
1), less 1st 25, and 59th through
                                                                              9
3d, words; and less 1st proviso,
                                                                              a
s applicable to retired grade),
                                                                              5
20(b) (proviso), 61 Stat. 888,
                                                                              9
02, 905, 912.
                                        ...................................  Ju
ne 12, 1948, ch. 449, Sec.
                                                                              1
03(b) (less 1st 6, 9th through
                                                                              5
4th, and last 13, words), 62
                                                                              S
tat. 357.
                                        ...................................  Ju
ne 29, 1948, ch. 708, Secs.
                                                                              2
03(a) (34 words before proviso,
                                                                              a
nd proviso), 203(d) (last 40
                                                                              w
ords), 62 Stat. 1085.
-------------------------------------------------------------------------------
---------------------------------

    In the introductory paragraph, the applicability of the rule stated 
in the third sentence to situations not expressly covered by the laws 
named in the source statutes above is a practical construction that the 
rule must be reciprocally applied in all cases.
    In formula B, the words ``basic pay'' are substituted for the words 
``base and longevity pay'' to conform to the terminology of the Career 
Compensation Act of 1949, 63 Stat. 802 (37 U.S.C. 231 et seq.). The 
words ``his retired grade'' are substituted for the words ``permanent 
grade held at time of retirement'' to reflect the right to higher 
retired grade when qualified under other provisions of law. 10:941a(e) 
(last proviso of clause (1)) is omitted, since, under section 202 of the 
Career Compensation Act of 1949, 63 Stat. 807 (37 U.S.C. 233), the 
active duty pay of all members of the Army is based upon years of 
service.
    In formula C, the computation is based on monthly pay instead of 
annual pay to conform to the other formulas of the revised section. The 
words ``basic pay'' are substituted for the words ``active duty base and 
longevity pay'', and the words ``in determining his basic pay'' are 
substituted for the words ``for longevity pay purposes'', to conform to 
the terminology of the Career Compensation Act of 1949, 63 Stat. 802 (37 
U.S.C. 231 et seq.). The words ``Monthly basic pay of member's retired 
grade'' are substituted for the words ``the rank upon which they are 
retired'', in 10:971, and ``rank with which retired'', in 10:971b, to 
reflect their right to advancement on the retired list. 10:971 now 
applies only when the retiring officer has 30 or more years of service 
which may be credited in computing his retired pay. 10:971b (2d proviso) 
is omitted, since, under section 202 of the Career Compensation Act of 
1949, 63 Stat. 807 (37 U.S.C. 233), the pay of all members is based upon 
cumulative years of service. 10:971b (4th proviso) is omitted as 
executed. 10:971b (last proviso) is omitted, since the distinction 
between limited and unlimited retired lists was abolished by section 201 
of the act of June 29, 1948, ch. 708, 62 Stat. 1084. Sections 3918, 
3920, and 3924 are included under this formula, since it achieves the 
same result as is reached on a basis of 30 years multiplied by 2\1/2\ 
percent, and simplifies the table.
    In formulas D and E, the words ``credited under section 3925'' are 
substituted for the words ``active Federal service'', since that revised 
section makes explicit the service covered. The act of August 10, 1946, 
ch. 952, Sec. 6(c), 60 Stat. 996, is not contained in 10:948. It is also 
omitted from the revised section as executed. 10:980 now applies only 
when the retiring enlisted member has at least 30 years of service which 
may be credited in computing his retired pay. However, as noted above, 
10:980 is the only provision of law applicable to cases in which the 
retiring member has at least 30 years of service. The act of June 16, 
1942, ch. 413, Sec. 19 (63d through 75th words of 2d par.), 56 Stat. 
369, repealed so much of the act of March 2, 1907, ch. 2513, 34 Stat. 
1217, as provided allowances for enlisted men on the retired list. The 
repeal of section 19 of the act of June 16, 1942, by section 531(b)(34) 
of the Career Compensation Act of 1949, 63 Stat. 839, did not revive 
that portion of the act of March 2, 1907, which had been repealed by the 
act of June 16, 1942. Accordingly, the act of March 2, 1907, as thus 
modified by the act of June 16, 1942, is used as the basis for formula 
E.
    Footnote 2 reflects the long-standing construction of those 
provisions dealing with computation of retired pay which do not 
specifically provide that the member is entitled to compute his retired 
pay on the basis of the monthly basic pay to which he would be entitled 
if he were on active duty in his retired grade. Except in cases covered 
by formula C the pertinent basic computation provisions for such 
retirement either provide for computation of retired pay on the same 
basis as the provisions dealing with higher retired grade, or the basic 
retirement provisions were themselves enacted after the provisions 
authorizing higher retired grade. The provisos of 10:1002 and 1005 are 
omitted as surplusage, since no formula for the computation of retired 
pay includes inactive service on the retired list as a credit.
    The words ``at rates applicable on date of retirement and adjust to 
reflect later changes in permanent rates'', in footnote 2; and all of 
footnote 4; are based on the source statutes incorporated in the 
formulas to which footnotes 2 and 4 apply.
    In footnote 4, the words ``and disregard a part of a year that is 
less than six months'' are made applicable to formulas A--E although 
this part of the rule is expressed only as to formula B, in 
10:941a(e)(1). The legislative history of the Career Compensation Act of 
1949 (Hearings before the Committee on Armed Services of the Senate on 
H.R. 5007, 81st Congress, first session, p. 313, July 6, 1949) indicates 
that the provisions, upon which formulas A and C--E are based, should be 
construed to require that a part of a year that is less than six months 
be disregarded.

                                                    1958 Act
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3991..................................  [No source].                         [N
o source].
-------------------------------------------------------------------------------
---------------------------------

    The amendment reflects section 1(99) of the bill [amending section 
3962 of Title 10].


                               Amendments

    1996--Subsec. (c). Pub. L. 104-201 added subsec. (c).
    1994--Subsec. (a)(1). Pub. L. 103-337, Sec. 635(a)(2)(A), amended 
par. (1) generally. Prior to amendment, par. (1) contained table which 
provided two formulas for computing retired pay for cases covered under 
sections 3911, 3914, 3917, 3918, 3920, and 3924 of this title.
    Subsec. (b)(1). Pub. L. 103-337, Sec. 635(a)(2)(B)(i), struck out 
``of the table'' after ``than one formula''.
    Subsec. (b)(3). Pub. L. 103-337, Sec. 635(a)(2)(B)(ii), struck out 
heading and text of par. (3). Text read as follows: ``Section references 
in the table in subsection (a) are to sections of this title.''
    1986--Pub. L. 99-348 amended section generally by completely 
revising the formula for computation of retired pay to provide that the 
retired pay base as computed under section 1406(c) or 1407 be multiplied 
by the retired pay multiplier prescribed in section 1409 for years of 
service credited under section 1405 for sections 3911, 3918, 3920, and 
3924 and for the years of service credited under section 3925 for 
sections 3914 and 3917, eliminated monthly basic pay of a member's 
retired grade or to which a member was entitled on the day before he 
retired multiplied by 2\1/2\ percent of the years of service credited, 
subject to footnotes 1 to 4, as the basis for computing retired pay, 
incorporated provisions of column 3 and footnote 5 into subsec. (a)(2), 
struck out column 4, which provided that the excess over 75% of pay upon 
which the computation is based be subtracted, struck out footnotes 1 to 
4, and added subsec. (b).
    1983--Pub. L. 98-94, Sec. 922(a)(7), inserted ``The amount computed, 
if not a multiple of $1, shall be rounded to the next lower multiple of 
$1.''
    Pub. L. 98-94, Sec. 923(a)(1), (2)(F), in footnote 4 to 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--Pub. L. 96-513, Sec. 512(10), in heading for column 1 of the 
table substituted ``after September 7, 1980'' for ``on or after the date 
of the enactment of the Department of Defense Authorization Act, 1981''.
    Pub. L. 96-342 in heading for column 1 of the table inserted 
provisions respecting applicability to persons becoming members after 
the date of the enactment of the Department of Defense Authorization 
Act, 1981.
    Pub. L. 96-513, Sec. 502(21), in table struck out Formula A and 
redesignated Formulas B, C, and D as A, B, and C, respectively.
    Pub. L. 96-513, Sec. 502(22), in footnote numbered 1 to the table 
substituted ``3962(b)'' for ``3962(c)''.
    1967--Pub. L. 90-207 inserted ``, or if the member has served as 
sergeant major of the Army, compute at the highest basic pay applicable 
to him while he so served, if such basic pay is greater'' after 
``retirement'' in footnote 3 of the table.
    1963--Pub. L. 88-132 substituted in column 1 of Formula A in table 
``Monthly basic pay of member's retired grade'' for ``Monthly basic pay 
to which member would be entitled if he were on active duty in his 
retired grade'' and eliminated from footnote 2 to such table ``and 
adjust to reflect later changes in applicable permanent rates. However, 
if member's retired grade is determined under section 3963(a) or 
3963(b), or if member has served 4 years as Chief of the Medical Service 
Corps, use pay to which member would be entitled if he were on active 
duty in his retired grade'' after ``date of retirement.''
    1958--Pub. L. 85-861 substituted ``section 3962(c)'' for ``section 
3962(d)'' in footnote 1, and ``3963(a)'' for ``3962(c), 3963(a)'' in 
footnote 2.
    Formula B. Pub. L. 85-422, Sec. 11(a)(5), substituted ``credited to 
him under section 1405 of this title'' for ``credited to him in 
determining basic pay'' in Column 2.
    Formula C. Pub. L. 85-422, Sec. 6(8), substituted ``Monthly basic 
pay to which member was entitled on day before he retired'' for 
``Monthly basic pay to which member was entitled on date when he applied 
for retirement'' in Column 1.
    Formula D. Pub. L. 85-422, Sec. 6(8), substituted ``monthly basic 
pay to which member was entitled on day before he retired'' for 
``Monthly basic pay of member's retired grade'' in Column 1.
    Footnote 1. Pub. L. 85-422, Sec. 6(1), struck out provisions which 
related to inapplicability of section 3962(a), and inserted provisions 
permitting computation at the highest rates of basic pay applicable to 
an officer who has served as Chief of Staff while he served in that 
office.
    1957--Pub. L. 85-155 redesignated formulas ``B'' to ``E'' of the 
table as formulas ``A'' to ``D''. Former formula ``A'', which related to 
computation of retirement pay for persons retired under former sections 
3881, 3882, and 3912 of this title, was repealed by Pub. L. 85-155.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-337 applicable to computation of retired 
pay of any enlisted member who retires on or after Oct. 5, 1994, to 
computation of retainer pay of any enlisted member who is transferred to 
Fleet Reserve or Fleet Marine Corps Reserve on or after Oct. 5, 1994, 
and to recomputation of retired pay of any enlisted member who is 
advanced on retired list on or after Oct. 5, 1994, see section 635(e) of 
Pub. L. 103-337, set out as a note under section 1405 of this title.


                    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 
the computation of retired or retainer pay of any individual who becomes 
entitled to that pay after Sept. 30, 1983, 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 section 502(21), (22) of Pub. L. 96-513 effective Sept. 
15, 1981, and amendment by section 512(10) of Pub. L. 96-513 effective 
Dec. 12, 1980, see section 701 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.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-422 effective June 1, 1958, see section 9 of 
Pub. L. 85-422.
    Section 6, last paragraph, of Pub. L. 85-422, provided that: ``The 
amendments made by clauses (1)-(3), (6), (7), (8), and (9) of this 
section [to Formulas 1 and 2 and footnote 4 of section 1401, Formulas C 
and D and footnote 1 of this section, sections 5083, 5201, and 6326, and 
Formulas C and D and footnote 1 of section 8991 of this title] do not 
apply to any person who is retired, or to whom retired pay (including 
temporary disability retired pay) is granted, before the effective date 
of this Act [June 1, 1958].''


Computation of Retired Pay for Certain Enlisted Members Retired Prior to 
                              June 1, 1958

    Pub. L. 87-537, July 18, 1962, 76 Stat. 168, provided that members 
retired prior to June 1, 1958, pursuant to section 4 of Armed Forces 
Voluntary Recruitment Act of 1945, as amended by section 6(a) of the Act 
of Aug. 10, 1946 (60 Stat. 995), may include active service performed to 
date of retirement as creditable service in computation of basic pay 
upon which retired pay is based.


    Recomputation of Retired Pay of Generals and Lieutenant Generals

    Officers entitled to retired pay on May 31, 1958, who served on 
active duty before that day in the grade of general or lieutenant 
general for a period of at least 180 days, authorized to recompute 
retired pay, see section 7(b), (c) of Pub. L. 85-422, May 20, 1958, 72 
Stat. 130.

                  Section Referred to in Other Sections

    This section is referred to in section 1406 of this title.
