Public Law 119-73 (01/23/2026)

14 U.S.C. § 2504

Computation of retired pay

(a)
(1)
section 101 of title 10 The retired pay of a member who first became a member of a uniformed service (as defined in ) before , is determined by multiplying—
(A)
the sum of—
(i)
the basic pay of the member’s retired grade or rate, and
(ii)
all permanent additions thereto including longevity credit to which the member was entitled at the time of retirement; by
(B)
section 1409 of title 10 the retired pay multiplier determined under for the number of years of service that may be credited to the member under section 1405 of such title.
(2)
In the case of an officer who served as Commandant, retired pay under paragraph (1) shall be computed at the highest rate of basic pay applicable to the officer while so serving.
(3)
In the case of an enlisted member who served as the master chief petty officer of the Coast Guard, retired pay under paragraph (1) shall be computed at the highest rate of basic pay to which the member was entitled while so serving, if that basic pay is greater than the basic pay of the grade or rate to which the member is otherwise entitled at the time of retirement.
(4)
In the case of an officer whose retired pay is computed on the pay of a grade for which basic pay is not based upon years of service, retired pay under paragraph (1) shall be computed on the basis of the number of years of service for which the officer would be entitled to credit in the computation of pay on the active list had the officer been serving in the grade of captain at the time of retirement.
(b)
section 101 of title 10 The retired pay of a member who first became a member of a uniformed service (as defined in ) on or after , is determined by multiplying—
(1)
section 1407 of title 10 the retired pay base determined under ; by
(2)
section 1409 of title 10 the retired pay multiplier determined under for the number of years of service that may be credited to the member under section 1405 of such title.
(c)
(1)
section 1405 of title 10 In computing for the purpose of subsection (a) or (b) the number of years of service that may be credited to a member under —
(A)
112 each full month of service that is in addition to the number of full years of service creditable to the member shall be counted as ⁄ of a year; and
(B)
any remaining fractional part of a month shall be disregarded.
(2)
Retired pay computed under this section, if not a multiple of $1, shall be rounded to the next lower multiple of $1.
(d)
section 8440e(a) of title 5section 356 of title 37 In addition to amounts computed pursuant to subsections (a) through (c) of this section, a full TSP member (as defined in ) of the Coast Guard is entitled to continuation pay pursuant to .

Aug. 4, 1949, ch. 39363 Stat. 525Aug. 3, 1950, ch. 536, § 2364 Stat. 407Pub. L. 85–422, § 11(b)72 Stat. 132Pub. L. 88–132, § 5(i)77 Stat. 214Pub. L. 92–455, § 286 Stat. 761Pub. L. 96–342, title VIII, § 813(f)(2)94 Stat. 1109Pub. L. 97–295, § 2(12)96 Stat. 1302Pub. L. 98–94, title IX97 Stat. 642Pub. L. 98–557, § 15(a)(3)(A)98 Stat. 2865Pub. L. 99–348, title II, § 205(a)100 Stat. 699Pub. L. 115–141, div. F, title II, § 225132 Stat. 616Pub. L. 115–232, div. C, title XXXV, § 3531(c)(13)132 Stat. 2320Pub. L. 115–282, title I, § 114(b)132 Stat. 4223(, , § 423; , ; , , ; , , ; , , ; , , ; , , ; , §§ 922(b), 923(d), , , 643; , , ; , , ; , , ; , , ; renumbered § 2504, , , .)

Historical and Revision Notes

Apr. 12, 1902, ch. 501, § 932 Stat. 101Jan. 12, 1938, ch. 3, § 352 Stat. 5May 24, 1939, ch. 146, § 553 Stat. 756Feb. 21, 1946, ch. 34, § 1060 Stat. 29Based on title 14, U.S.C., 1946 ed., §§ 162a, 167, 175c, 185d (, ; , ; , ; , ).

Section was enlarged to include computation of retired pay in all situations. It is in accord with the provisions of Navy statutes. 81st Congress, House Report No. 557.

Editorial Notes

Amendments

Pub. L. 115–282section 423 of this title2018— renumbered as this section.

Pub. L. 115–232Subsec. (a)(2). substituted “Commandant” for “Commandant of the Coast Guard”.

Pub. L. 115–141Subsec. (d). added subsec. (d).

Pub. L. 99–348section 1407(a)(2) of title 10section 1407(f) of title 101986— amended section generally. Prior to amendment, section provided that retired pay of a grade or rating would be computed at the rate of 2½ percent of the sum of the basic pay of that grade or rating and all permanent additions thereto including longevity credit, multiplied by the number of years of service credited, with certain exceptions, and that retired pay of an officer or member of the Coast Guard who first became a member of a uniformed service, as defined in , after , would be computed at the rate of 2½ percent of the monthly retired pay base computed under , multiplied by the number of years of service credited, but that retired pay was not to be more than 75 percent of such monthly retired pay base.

Pub. L. 98–5571984—Subsec. (a). substituted reference to enlisted member concerned for reference to enlisted man concerned.

Pub. L. 98–94, § 923(d)1983—Subsec. (a). , substituted “In computing the number of years of service by which the rate of 2½ percent is multiplied, 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 “A fractional year of six months or more shall be considered a full year in computing the number of years of service by which the rate of 2½ percent is multiplied”.

Pub. L. 98–94, § 922(b), inserted “Retired pay, if not a multiple of $1, shall be rounded to the next lower multiple of $1.”

Pub. L. 97–2951982—Subsec. (b). substituted “after ” for “on or after the date of the enactment of the Department of Defense Authorization Act, 1981”.

Pub. L. 96–3421980— designated existing provisions as subsec. (a), substituted “Except as provided in subsection (b), the” for “The”, and added subsec. (b).

Pub. L. 92–4551972— provided for computation of retired pay of an enlisted member serving as the master chief petty officer of the Coast Guard at the highest basic pay applicable to him while he so served, if that basic pay is greater than the basic pay of the grade or rating to which he was otherwise entitled at the time of retirement.

Pub. L. 88–1321963— substituted “basic” for “active-duty” wherever appearing.

Pub. L. 85–422section 1405 of title 101958— substituted “that may be credited to him under ” for “for which he was entitled to credit in the computation of his pay when last on active duty”.

1950—Act , struck out reference to computation of pay of retired personnel retired by reason of physical disability.

Statutory Notes and Related Subsidiaries

Effective Date of 1983 Amendment

section 922 of Pub. L. 98–94section 922(e) of Pub. L. 98–94section 1401 of Title 10Amendment by effective , see , set out as a note under , Armed Forces.

section 923 of Pub. L. 98–94section 923(g) of Pub. L. 98–94section 1174 of Title 10Amendment by applicable with respect to the computation of retired or retainer pay of any individual who becomes entitled to that pay after , see , set out as a note under .

Effective Date of 1963 Amendment

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

Effective Date of 1958 Amendment

Pub. L. 85–422Pub. L. 85–422, § 972 Stat. 130Amendment by effective , see , , .