
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: 10USC8991]

 
                         TITLE 10--ARMED FORCES
 
                          Subtitle D--Air Force
 
                           PART II--PERSONNEL
 
                 CHAPTER 871--COMPUTATION OF RETIRED PAY
 
Sec. 8991. 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(e) 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 8914 of this title has been credited by the Secretary of the 
    Air Force 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 8963.--In the case of a Reserve enlisted member retired under 
section 8914 of this title whose retired grade is determined under 
section 8963 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(e) of this title.

(Aug. 10, 1956, ch. 1041, 70A Stat. 556; Pub. L. 85-155, title III, 
Sec. 301(22), Aug. 21, 1957, 71 Stat. 389; Pub. L. 85-422, Secs. 6(6), 
(8), 11(a)(9), May 20, 1958, 72 Stat. 129, 131; Pub. L. 85-861, 
Sec. 1(199A), Sept. 2, 1958, 72 Stat. 1541; Pub. L. 87-651, title I, 
Sec. 127, Sept. 7, 1962, 76 Stat. 514; Pub. L. 88-132, Sec. 5(h)(2), 
Oct. 2, 1963, 77 Stat. 214; Pub. L. 90-207, Sec. 3(5), Dec. 16, 1967, 81 
Stat. 654; Pub. L. 96-342, title VIII, Sec. 813(e), Sept. 8, 1980, 94 
Stat. 1109; Pub. L. 96-513, title V, Secs. 504(22), 514(8), Dec. 12, 
1980, 94 Stat. 2917, 2935; Pub. L. 98-94, title IX, Secs. 922(a)(12), 
923(a)(1), (2)(H), Sept. 24, 1983, 97 Stat. 642, 643; Pub. L. 99-348, 
title II, Sec. 204(a), July 1, 1986, 100 Stat. 697; Pub. L. 103-337, 
div. A, title VI, Sec. 635(c)(2), Oct. 5, 1994, 108 Stat. 2789; Pub. L. 
104-201, div. A, title V, Sec. 532(d)(3), Sept. 23, 1996, 110 Stat. 
2520.)

                                          Historical and Revision Notes
                                                    1956 Act
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
8991 Introductory paragraph...........  10:941a(a)(3) (proviso, less         R.
S. 1274.
                                         applicability to retired grade).    Ma
r. 2, 1907, ch. 2515, Sec.  1
                                        10:941a(e) (1st proviso of clause     (
less 1st 35 words, and less
                                         (1), less applicability to retired   p
roviso), 34 Stat. 1217.
8991(A)...............................   grade).                             Ju
ly 31, 1935, ch. 422, Sec.  5
                                        10:166g(a) (less 1st 49 words; less   (
less 1st 101 words, and less 3d
                                         1st proviso; and less 1st 84 words   p
roviso); restated June 13, 1940,
                                         of last proviso).                    c
h. 344, Sec.  3 (less 1st 45
8991(B)...............................  10:941a(a)(3) (less 31st through      w
ords, and less 2d proviso), 54
                                         42d words, and less proviso).        S
tat. 380; Aug. 7, 1947, ch. 512,
                                        10:941a(e) (clause (1), less 1st      S
ecs.  514(g), 521(a), 61 Stat.
                                         25, and 59th through 113th, words;   9
06, 912; June 29, 1948, ch. 708,
                                         and less 1st proviso).               S
ec.  202 (less 1st 105 words), 62
                                                                              S
tat. 1084.

8991(C)...............................  10:971.                              Oc
t. 6, 1945, ch. 393, Sec.  4
                                        10:971b (less 1st 100 words, and      (
less 1st sentence); restated Aug.
                                         less 1st and 3d proviso).            1
0, 1946, ch. 952, Sec.  6(a)
                                        10:948 less (1st sentence, and less   (
less 1st sentence), 60 Stat. 996.
8991(D)...............................   1st and last provisos of last       Au
g. 10, 1946, ch. 952, Sec.  6(c),
                                         sentence).                           6
0 Stat. 996.
8991(E)...............................  10:980.                              Ap
r. 16, 1947, ch. 38, Sec.  108(a)
8991 Footnote 1.......................  10:506b(d) (1st proviso).             (
less 1st 49 words, and less 1st
8991 Footnote 2.......................  10:1079a(b) (proviso).                8
4 words of last proviso), 61
                                        5:627b(h) (3d proviso, less 1st 42,   S
tat. 44.
                                         and last 13, words).                Au
g. 7, 1947, ch. 512, Secs.
                                        10:1002 (34 words before proviso      5
04(d) (1st proviso), 514(a)(3)
                                         and proviso).                        (
less 31st through 42d words; and
8991 Footnote 3.......................  10:1003 (last 40 words).              l
ess proviso, less applicability
8991 Footnote 4.......................  [No source].                          t
o retired grade), 514(e) (clause
                                        10:166g(a) (1st proviso).             (
1), less 1st 25, and 59th through
                                        10:941a(e) (94th through 113th        9
3d, words; and less 1st proviso,
                                         words of clause (1)).                a
s applicable to retired grade),
                                        10:948 (last proviso of last          5
20(b) (proviso), 61 Stat. 888,
                                         sentence).                           9
02, 905, 912.
8991 Footnote 5.......................  10:971b (1st proviso).               Ju
ne 12, 1948, ch. 449, Sec.
                                        37:272(d) (1st proviso).              3
03(h) (3d proviso, less 1st 42,
                                        10:948 (1st proviso of last           a
nd last 13, words), 62 Stat. 372.
                                         sentence).
                                        ...................................  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.
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---------------------------------

    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 Air Force 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 8918, 
8920, and 8924 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 8925'' 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(4)(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
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---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
8991..................................  [No source].                         [N
o source].
-------------------------------------------------------------------------------
---------------------------------

    The amendment reflects section 1(197) of the bill [amendment of 
section 8962 of title 10].

                            1962 Act

    The change corrects a cross-reference error.


                               Amendments

    1996--Subsec. (c). Pub. L. 104-201 added subsec. (c).
    1994--Subsec. (a)(1). Pub. L. 103-337, Sec. 635(c)(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 8911, 8914, 8917, 8918, 8920, and 8924 of this title.
    Subsec. (b)(1). Pub. L. 103-337, Sec. 635(c)(2)(B)(i), struck out 
``of the table'' after ``than one formula''.
    Subsec. (b)(3). Pub. L. 103-337, Sec. 635(c)(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(e) or section 1407 be 
multiplied by the retired pay multiplier prescribed in section 1409 for 
years of service credited under section 1405 for sections 8911, 8918, 
8920, and 8924 and for the years of service credited under section 8925 
for sections 8914 and 8917, 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, eliminated footnotes 1 to 
4, and added subsec. (b).
    1983--Pub. L. 98-94, Sec. 923(a)(1), (2)(H), 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''.
    Pub. L. 98-94, Sec. 922(a)(12), inserted ``The amount computed, if 
not a multiple of $1, shall be rounded to the next lower multiple of 
$1.''
    1980--Pub. L. 96-513, Sec. 514(8), in heading for column 1 of 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 table inserted provisions 
respecting applicability to persons after date of enactment of 
Department of Defense Authorization Act, 1981.
    Pub. L. 96-513, Sec. 504(22), in table struck out Formula A and 
redesignated Formulas B, C, and D as A, B, and C, respectively.
    1967--Pub. L. 90-207 inserted ``, or if the member has served as 
chief master sergeant of the Air Force, 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 \2\ of member's retired grade \1\'' for ``Monthly 
basic pay to which member would be entitled if he were on active duty in 
his retired grade \1\'' 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), use pay to which member would be entitled if he were on 
active duty in his retired grade'' after ``date of retirement''.
    1962--Pub. L. 87-651 substituted ``section 8962(b)'' for ``section 
8962(c)'' in footnote 1.
    1958--Formula B. Pub. L. 85-422, Sec. 11(a)(9), 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(6), permitted in case of an 
officer who has served as Chief of Staff, computation at highest rates 
of basic pay applicable to him while he served in that office.
    Footnote 2. Pub. L. 85-861 struck out reference to section 8962(b).
    1957--Pub. L. 85-155 redesignated formulas ``B'' to ``E'' of table 
as formulas ``A'' to ``D''. Former formula ``A'', which related to 
computation of retirement pay for persons retired under former sections 
8881, 8882, and 8912 of this title, was repealed by such 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 504(22) of Pub. L. 96-513 effective Sept. 15, 
1981, and amendment by section 514(8) 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 on June 1, 1958, see section 9 
of Pub. L. 85-422.
    Amendment by Pub. L. 85-422 as inapplicable to retired persons or to 
persons to whom retired pay is granted before May 31, 1958, see note set 
out under section 3991 of this title.


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

    Members retired prior to June 1, 1958, authorized to include active 
service performed to the date of retirement as creditable service in 
computation of basic pay upon which retired pay is based, see Pub. L. 
87-537, set out as a note under section 3991 of this title.

                  Section Referred to in Other Sections

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