![]() Gross retired pay is rounded down to the nearest dollar. Retired Pay Base x Service Percent Multiplier = Gross Retired Pay In all cases, the Retired Pay Formula is determined by multiplying your retired pay base by a service percentage: The other big difference is that active duty retirement is based on years of service while reservist retirement is based on an accumulation of points which are then converted to years of service. By contrast, a reservist can only file for retirement when they turn 60, with a few exceptions, such as qualifying for early Guard/reserve retirement. Technically, this means is someone enlists at age 18, they could start drawing retirement as early as age 38. Active duty service members can file when their military career ends and they have accumulated 20 years of service. The biggest difference between active duty retirement and reserve retirement is when you can file. The REDUX Plan is available only to active duty members who entered service on or after August 1, 1986.The High 36 Plan is used for service members who first entered the military between Septemand July 31, 1986.Final Pay is used for service members who first entered the military before September 8, 1980.Active duty retirement can also be calculated using the REDUX Plan. In both instances, a retiree can use the Final Pay Plan or the High-36 Month Average Plan. However, there are some notable differences. ![]() ![]() Some of the processes are the same for calculating active duty and reserve retirement amounts. » MORE: Unleash the Full Potential of Your VA Home Loan BenefitsĪ Quick Overview of How Active Duty and Reserve Retirement is Calculated
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