10 U.S.C. § 1406

(a) Use of Retired Pay Base in Computing Retired Pay.— (1) General rule .— The retired pay or retainer pay of any person entitled to that pay who first became a member of a uniformed service before September 8, 1980 , is computed using the retired pay base or retainer pay base determined under this section. (2) Exception for recomputation .— Recomputation of retired or retainer pay to reflect later active duty is provided for under section 1402 of this title without reference to a retired pay base or retainer pay base. (b) Retirement Under Subtitle A or E.— (1) Disability, warrant officer, and dopma retirement .— In the case of a person whose retired pay is computed under this subtitle, the retired pay base is determined in accordance with the following table. For a member entitled to retired pay under section: The retired pay base is: 1 Compute at rates applicable on date of retirement or date when member’s name was placed on temporary disability retired list, as the case may be. 2 Compute at rates applicable on date of retirement. 3 For the purposes of this subsection, determine member’s retired grade as if sections 7342 and 9342 did not apply. 1201 1202 1204 1205 Monthly basic pay 1 of grade to which member is entitled under section 1372 or to which he was entitled on day before retirement or placement on temporary disability retired list, whichever is higher. 580 1263 1293 1305 Monthly basic pay to which member would have been entitled if he had served on active duty in his retired grade on day before retirement, or if the pay of that grade is less than the pay of any warrant grade satisfactorily held by him on active duty, the monthly basic pay of that warrant officer grade. 633 634 635 636 1251 1252 1253 Monthly basic pay 2 of member’s retired grade. 3 (2) Non-regular service retirement .— In the case of a person who is entitled to retired pay under section 12731 of this title , the retired pay base is the monthly basic pay, determined at the rates applicable on the date when retired pay is granted (or, in the case of a person entitled to retired pay by reason of an election under section 12741(a) of this title , at rates applicable on the date the person completes the service required under such section 12741(a)), of the highest grade held satisfactorily by the person at any time in the armed forces. For purposes of the preceding sentence, the highest grade in which a person served satisfactorily as an officer shall be determined in accordance with section 1370a of this title . (c) Voluntary Retirement for Members of the Army.— (1) In general .— In the case of a member whose retired pay is computed under section 7361 of this title or who is entitled to retired pay computed under section 7362 of this title , the retired pay base is determined in accordance with the following table. For a member entitled to retired pay under section: The retired pay base is: 1 For the purposes of this subsection, determine member’s retired grade as if section 7342 did not apply. 7311 7318 7320 7324 Monthly basic pay of member’s retired grade. 1 7314 7317 Monthly basic pay to which member was entitled on day before he retired. 7362 Monthly basic pay of grade to which member is advanced on retired list. (2) Rate of basic pay to be used .— The rate of basic pay to be used under paragraph (1) is the rate applicable on the date of the member’s retirement. (d) Retirement for Members of the Navy and Marine Corps .— In the case of a member whose retired pay is computed under section 8333 of this title , who is advanced on the retired list under section 8262 or 8334 of this title, or who is entitled to retainer pay under section 8330 of this title , the retired pay base or retainer pay base is determined in accordance with the following table. For a member entitled to retired or retainer pay under section: The retired pay base or retainer pay base is: 1 If the rate specified is less than the pay of any warrant officer grade satisfactorily held by the member on active duty, use the monthly basic pay of that warrant officer grade. 8323 8325(a) 8372 Basic pay of the grade in which the member retired. 1 8325(b) Basic pay of the grade the officer would hold if he had not received an appointment described in section 8325(b). 8326 Basic pay of the pay grade in which the member was serving on the day before retirement. 8330 Basic pay that the member received at the time of transfer to the Fleet Reserve or Fleet Marine Corps Reserve. 8262 Basic pay of the grade to which the member is advanced under section 8262. 8334 Basic pay of the grade to which the member is advanced under section 8334. (e) Voluntary Retirement for Members of the Air Force and Space Force.— (1) In general .— In the case of a member whose retired pay is computed under section 9361 of this title or who is entitled to retired pay computed under section 9362 of this title , the retired pay base is determined in accordance with the following table. For a member entitled to retired pay under section: The retired pay base is: 1 For the purposes of this subsection, determine member’s retired grade as if section 9342 did not apply. 9311 9318 9320 9324 Monthly basic pay of member’s retired grade. 1 9314 9317 Monthly basic pay to which member was entitled on day before he retired. 9362 Monthly basic pay of grade to which member is advanced on retired list. (2) Rate of basic pay to be used .— The rate of basic pay to be used under paragraph (1) is the rate applicable on the date of the member’s retirement. (f) Coast Guard .— In the case of a member who is retired under any section of title 14, the member’s retired pay is computed under section 423(a) 1 1 See References in Text note below. of title 14 in the manner provided in that section. (g) Commissioned Corps of National Oceanic and Atmospheric Administration .— In the case of an officer whose retired pay is computed under section 245 of the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002 ( 33 U.S.C. 3045 ), the retired pay base is the basic pay of the rank with which the officer retired. (h) Commissioned Corps of Public Health Service .— In the case of an officer who is retired under section 210(g) or 211(a) of the Public Health Service Act ( 42 U.S.C. 211(g) , 212(a)), the retired pay base is determined as follows: (1) Mandatory retirement .— If the officer is retired under section 210(g) of such Act, the retired pay base is the basic pay of the permanent grade held by the officer at the time of retirement. (2) Voluntary retirement .— If the officer is retired under section 211(a) of such Act, the retired pay base is the basic pay of the highest grade held by the officer and in which, in the case of a temporary promotion to such grade, the officer has performed active duty for not less than six months. (i) Special Rule for Former Chairmen and Vice Chairmen of the JCS, Chiefs of Service, Chief of the National Guard Bureau, Commanders of Combatant Commands, and Senior Enlisted Members.— (1) In general .— For the purposes of subsections (b) through (e), in determining the rate of basic pay to apply in the determination of the retired pay base of a member who has served as Chairman or Vice Chairman of the Joint Chiefs of Staff, as a Chief of Service, as Chief of the National Guard Bureau, as a commander of a unified or specified combatant command (as defined in section 161(c) of this title ), or as the senior enlisted member of an armed force or the senior enlisted advisor to the Chairman of the Joint Chiefs of Staff or the Chief of the National Guard Bureau, the highest rate of basic pay applicable to the member while serving in that position shall be used, if that rate is higher than the rate otherwise authorized by this section. (2) Exception for members reduced in grade or who do not serve satisfactorily .— Paragraph (1) does not apply in the case of a member who, while or after serving in a position specified in that paragraph and by reason of conduct occurring after October 16, 1998 — (A) in the case of an enlisted member, is reduced in grade as the result of a court-martial sentence, nonjudicial punishment, or other administrative process; or (B) in the case an officer, is not certified by the Secretary of Defense under section 1370(c) 1 of this title as having served on active duty satisfactorily in the grade of general or admiral, as the case may be, while serving in that position. (3) Definitions .— In this subsection: (A) The term “Chief of Service” means any of the following: (i) Chief of Staff of the Army. (ii) Chief of Naval Operations. (iii) Chief of Staff of the Air Force. (iv) Commandant of the Marine Corps. (v) Chief of Space Operations. (vi) Commandant of the Coast Guard. (B) The term “senior enlisted member” means any of the following: (i) Sergeant Major of the Army. (ii) Master Chief Petty Officer of the Navy. (iii) Chief Master Sergeant of the Air Force. (iv) Sergeant Major of the Marine Corps. (v) Chief Master Sergeant of the Space Force. (vi) Master Chief Petty Officer of the Coast Guard.