
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: 10USC6330]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle C--Navy and Marine Corps
 
                           PART II--PERSONNEL
 
                    CHAPTER 571--VOLUNTARY RETIREMENT
 
Sec. 6330. Enlisted members: transfer to Fleet Reserve and Fleet 
        Marine Corps Reserve; retainer pay
        
    (a) The Fleet Reserve and the Fleet Marine Corps Reserve are 
composed of members of the naval service transferred thereto under this 
section.
    (b) An enlisted member of the Regular Navy or the Naval Reserve who 
has completed 20 or more years of active service in the armed forces 
may, at his request, be transferred to the Fleet Reserve. An enlisted 
member of the Regular Marine Corps or the Marine Corps Reserve who has 
completed 20 or more years of active service in the armed forces may, at 
his request, be transferred to the Fleet Marine Corps Reserve.
    (c)(1) Each member who is transferred to the Fleet Reserve or the 
Fleet Marine Corps Reserve under this section is entitled, when not on 
active duty, to retainer pay computed under section 6333 of this title.
    (2) A member may recompute his retainer pay under section 1402 or 
1402a of this title, as appropriate, to reflect active duty after 
transfer.
    (3) If the member has been credited by the Secretary of the Navy 
with extraordinary heroism in the line of duty, which determination by 
the Secretary is final and conclusive for all purposes, his retainer pay 
shall be increased by 10 percent.
    (d)(1) For the purposes of subsection (c), each full month of 
service that is in addition to the number of full years of service 
creditable to a member is counted as one-twelfth of a year and any 
remaining fractional part of a month is disregarded.
    (2) In determining a member's eligibility for transfer to the Fleet 
Reserve or the Fleet Marine Corps Reserve under subsection (b)--
        (A) a completed minority enlistment of the member is counted as 
    four years of active service, if creditable to the member for such 
    purpose before December 31, 1977; and
        (B) an enlistment of the member terminated within three months 
    before the end of the term of enlistment is counted as active 
    service for the full term, if creditable to the member for such 
    purpose before December 31, 1977.

    (3)(A) Subject to subparagraph (B), in determining a member's years 
of active service for the computation of retainer pay under subsection 
(c)--
        (i) a completed minority enlistment of the member is counted as 
    four years of active service; and
        (ii) an enlistment of the member terminated within three months 
    before the end of the term of enlistment is counted as active 
    service for the full term.

    (B) In the case of a member who is transferred to the Fleet Reserve 
or the Fleet Marine Corps Reserve under this section after December 30, 
1977, service attributable under subparagraph (A) to time which, after 
December 31, 1977, is not actually served by the member may not be 
counted.

(Aug. 10, 1956, ch. 1041, 70A Stat. 396; Pub. L. 85-583, Sec. 1(2), (3), 
Aug. 1, 1958, 72 Stat. 480; Pub. L. 90-207, Sec. 3(4), Dec. 16, 1967, 81 
Stat. 653; Pub. L. 96-342, title VIII, Sec. 813(d)(5), Sept. 8, 1980, 94 
Stat. 1105; Pub. L. 96-513, title V, Sec. 513(17), (19), Dec. 12, 1980, 
94 Stat. 2932; Pub. L. 98-94, title IX, Sec. 923(c)(3), Sept. 24, 1983, 
97 Stat. 643; Pub. L. 99-348, title II, Sec. 203(b)(6), title III, 
Sec. 305(a)(1), July 1, 1986, 100 Stat. 696, 704; Pub. L. 101-189, div. 
A, title VI, Sec. 652(a)(5), Nov. 29, 1989, 103 Stat. 1461.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
6330..................................  34 U.S.C. 854 (less proviso).        Ju
ne 25, 1938, ch. 690, Sec.  201
                                                                              (
less proviso), 52 Stat. 1178.
                                        34 U.S.C. 854 (note).                Ju
ly 9, 1952, ch. 608, Sec.  803
                                                                              (
2d sentence of 1st par.), 66
                                                                              S
tat. 505.
                                        34 U.S.C. 854c (less 4th, 5th, 6th   Ju
ne 25, 1938, ch. 690, Sec.  204
                                         (as applicable to 34 U.S.C. 854b)    (
less 4th, 5th, 6th (as applicable
                                         and 7th provisos).                   t
o Sec.  203 of the Naval Reserve
                                                                              A
ct of 1938), and 7th provisos),
                                                                              5
2 Stat. 1170; Aug. 10, 1946, ch.
                                                                              9
52, Sec.  2, 60 Stat. 993.
                                        34 U.S.C. 854a (less provisos).      Ju
ne 25, 1938, ch. 690, Sec.  202
                                                                              (
less provisos), 52 Stat. 1178.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a) the words ``officers'' and ``assigned'' are 
omitted, since they are applicable only to the proviso in 34 U.S.C. 854, 
which is recommended for repeal as obsolete. (See Table 2A.) The words 
``including (a) those former members of the Fleet Reserve who were 
transferred * * * but before the expiration of three months following 
discharge'', appearing in Sec. 803 of the Armed Forces Reserve Act of 
1952, 66 Stat. 505 (34 U.S.C. 854 (note)) are omitted as surplusage. 
These words merely illustrate the class of persons transferred to the 
Fleet Reserve under the Naval Reserve Act of 1938, 52 Stat. 1178, as 
referred to in the section from which these words were taken, and in no 
way limit that class or impose a citizenship requirement for membership 
in it. (See the opinion of the Judge Advocate General of the Navy, 
JAG:II:1:JFG:imz of February 17, 1953.)
    In subsection (b) reference to the date July 1, 1925, is omitted, 
since members who were in the naval service on or before that date may, 
if they are qualified and so elect, be transferred to the Fleet Reserve 
or to the Fleet Marine Corps Reserve under 34 U.S.C. 854c instead of 
under 34 U.S.C. 854b, as provided in the fifth proviso of 34 U.S.C. 
854c. That proviso and the provisions of 34 U.S.C. 854b, which are 
applicable only to persons who were in the naval service in 1925, are 
not codified because they relate to a small closed class and are 
therefore of limited interest. They are not repealed, however. (See 
Table 2D.)
    In subsections (b) and (c) the term ``active service in the armed 
forces'' is substituted for the term ``active Federal service'' to 
execute the definition in the last sentence of 34 U.S.C. 854c.
    In subsection (c) the words ``is entitled, when not on active duty, 
to retainer pay at the rate of 2\1/2\ percent of the basic pay that he 
received at the time of transfer'' are substituted for the words 
``except when on active duty, shall be paid at the annual rate of 2\1/2\ 
per centum of the annual base and longevity pay they are receiving at 
the time of transfer'' to conform to the terminology of the Career 
Compensation Act of 1949 (37 U.S.C. 231 et seq.).
    Subsection (d) states the rule as to the method of counting minority 
and short-term enlistments, in connection with determining active 
service, in accordance with White v. United States, 97 F. Supp. 698.


                               Amendments

    1989--Subsec. (a). Pub. L. 101-189 substituted ``under this 
section.'' for ``under--
        ``(1) Title II of the Naval Reserve Act of 1938 (52 Stat. 1178), 
    as amended; or
        ``(2) this section.''
    1986--Subsec. (c)(1). Pub. L. 99-348, Sec. 203(b)(6)(A), substituted 
provision that retainer pay be computed under section 6333 for provision 
that retainer pay, in the case of a member who first became a member of 
a uniformed service, as defined in section 1407(a)(2), before Sept. 8, 
1980, be at the rate of 2\1/2\ percent of the basic pay that he received 
at the time of transfer or, in the case of a member who served as master 
chief petty officer of the Navy or sergeant major of the Marine Corps, 
of the highest basic pay to which he was entitled while so serving, if 
that basic pay is higher than the basic pay received at the time of 
transfer, or in the case of a member who first became a member of a 
uniformed service, as defined in section 1407(a)(2), on or after Sept. 
8, 1980, be at the rate of 2\1/2\ percent of the monthly retainer pay 
base computed under section 1407(d), which rates were to be multiplied 
by the number of years of active service in the armed forces.
    Subsec. (c)(4). Pub. L. 99-348, Sec. 203(b)(6)(B), struck out par. 
(4) which provided that in no case could a member's retainer pay be more 
than 75 percent of the basic pay or monthly retainer pay base upon which 
computation of retainer pay was based.
    Subsec. (d). Pub. L. 99-348, Sec. 305(a)(1), designated existing 
provisions as par. (1), struck out provision that a completed minority 
enlistment be counted as four years of active service and an enlistment 
terminated within three months before the end of the term be counted as 
active service for the full term, and added pars. (2) and (3).
    1983--Subsec. (d). Pub. L. 98-94 substituted ``For the purposes of 
subsection (c), each full month of service that is in addition to the 
number of full years of service creditable to a member is counted as 
one-twelfth of a year and any remaining fractional part of a month is 
disregarded'' for ``For the purposes of subsections (b) and (c), a part 
of a year that is six months or more is counted as a whole year and a 
part of a year that is less than six months is disregarded''.
    1980--Subsec. (c). Pub. L. 96-513 substituted ``September 8, 1980'' 
for ``the date of the enactment of the Department of Defense 
Authorization Act, 1981'' wherever appearing, and ``master chief petty 
officer'' for ``senior enlisted advisor''.
    Pub. L. 96-342 amended subsec. (c) generally, designating existing 
provisions as pars. (1) to (4) and, as so amended, in par. (1) 
designated existing provisions as subpar. (A), as so designated, 
inserted provision limiting applicability to persons who became members 
of the uniformed services before the date of the enactment of the 
Department of Defense Authorization Act, 1981, and added subpar. (B), in 
par. (2) inserted reference to section 1402a of this title, and in par. 
(4) added applicability to monthly retainer pay base.
    1967--Subsec. (c). Pub. L. 90-207 inserted ``, except that in the 
case of a member who has served as senior enlisted advisor of the Navy 
or sergeant major of the Marine Corps, retainer pay shall be computed on 
the basis of the highest basic pay to which he was entitled while so 
serving, if that basic pay is higher than the basic pay received at the 
time of transfer'' after ``armed forces''.
    1958--Subsec. (a). Pub. L. 85-583, Sec. 1(2), substituted ``naval 
service'' for ``Regular Navy and the Regular Marine Corps, 
respectively,''.
    Subsec. (b). Pub. L. 85-583, Sec. 1(3), inserted ``or the Naval 
Reserve'' after ``Regular Navy'' and ``or the Marine Corps Reserve'' 
after ``Regular Marine Corps''.


                    Effective Date of 1983 Amendment

    Amendment by 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 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.


                  Temporary Early Retirement Authority

    For provisions authorizing the Secretary of the Navy, during the 
period beginning Oct. 23, 1992, and ending Oct. 1, 1995, to apply this 
section to an enlisted member of the Navy or Marine Corps with at least 
15 but less than 20 years of service by substituting ``15 or more 
years'' for ``20 or more years'' in the first sentence of subsection (a) 
[probably should be (b)] of this section and in the second sentence of 
subsec. (b) of this section, see section 4403 of Pub. L. 102-484, set 
out as a note under section 1293 of this title.


Retainer Pay of Enlisted Members of Regular Navy, Naval Reserve, Regular 
 Marine Corps, or Marine Corps Reserve Transferred to Fleet Reserve or 
                       Fleet Marine Corps Reserve

    Pub. L. 98-473, title I, Sec. 101(h) [title VIII, Sec. 8039], Oct. 
12, 1984, 98 Stat. 1904, 1930, limited the use of assets of the 
Department of Defense Military Retirement Fund to pay the retainer pay 
of enlisted members of the Regular Navy, the Naval Reserve, the Regular 
Marine Corps, or the Marine Corps Reserve who were transferred to the 
Fleet Reserve or the Fleet Marine Corps Reserve under this section on or 
after Dec. 31, 1977, prior to repeal by Pub. L. 99-348, title III, 
Sec. 305(a)(2), July 1, 1986, 100 Stat. 704. See section 6330(d)(2) and 
(3) of this title.


 Transfer of Former Members of Navy or Marine Corps to Fleet Reserve or 
          Fleet Marine Corps Reserve; Transfer to Retired List

    Act July 24, 1956, ch. 683, 70 Stat. 626, provided: ``Upon 
application by any former member of the Navy or Marine Corps--
        ``(1) who was discharged prior to August 10, 1946, under 
    honorable conditions, and
        ``(2) who, at the time of his discharge, had at least twenty 
    years' active Federal service,
the Secretary of the Navy shall appoint such former member in the Fleet 
Reserve or Fleet Marine Corps Reserve, as may be appropriate, in the 
rank held by him at the time of such discharge.
    ``Sec. 2. Each person appointed to the Fleet Reserve or Fleet Marine 
Corps Reserve under the first section of this Act shall be transferred 
to the appropriate retired list (1) on the first day of the first 
calendar month beginning after such appointment, if his last discharge 
occurred ten or more years prior to the date of such appointment, and 
(2) in the case of individuals appointed under such section before the 
expiration of ten years from their last discharge, on the first day of 
the first calendar month, beginning after the expiration of ten years 
from the date of such discharge.
    ``Sec. 3. Each former member transferred to a retired list under 
clauses (1) and (2) of section 2 shall receive retired pay at the annual 
rate of 2\1/2\ per centum of the annual base and longevity pay he was 
receiving at the time of his last discharge, multiplied by the number of 
his years of active Federal service at such time (not to exceed thirty), 
and adjusted to reflect the percentage increases made since such 
discharge in the retired pay of persons retired from the Armed Forces 
prior to October 12, 1949.
    ``Sec. 4. For the purposes of this Act, all active service in the 
Army of the United States, the Navy, the Marine Corps, the Coast Guard, 
or any component thereof, shall be deemed to be active Federal service.
    ``Sec. 5. No pay shall accrue to the benefit of any person appointed 
under the provisions of this Act prior to the date such person is 
actually appointed under the provisions of this Act and in no event 
prior to the first day of the first month following enactment of this 
Act [July 24, 1956].''

                  Section Referred to in Other Sections

    This section is referred to in sections 1176, 1177, 1406, 1407, 
1409, 1447, 6327, 6333, 6336 of this title.
