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Reserve Retired Pay Calculation

SCWO19

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I've been going through the MEB/PEB the last five months and have thought I've seen it all. However, today topped it. So, to explain, I'm a Reservist, found unfit and just received my orders for retirement in mid-July. Long story short, I have 3519 points, which translates to 9 years and 9 months disability retirement. This is what is used as my base pay when calculating my compensation. However, these points were calculated as of last June 2017. My anniversary date is at the end of June (which tells me if I had a good year or not). At the end of this year, the calculations should equal a total of 3600 points, which is equivalent to 10 years, which in turn bumps my monthly compensation rate up $300/mo. However, when I asked my PEBLO about whether or not DFAS will include this in their retirement calculations, she talked to the PDA who told her, the points on the orders is all that matters, I shouldn't be drilling or conducting any Army training period especially after I was found unfit. Which I've never heard. I was always told, I had to drill, do PT, etc., until I was retired or forced out. But I find the point calculation unfair and am hoping someone could provide clarity on this type of situation. Sorry for the long, drawn out explanation (I actually shortened it).

Thanks
 

Sullysull48

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Your pay will be based off of your high 36. Do not focus on the points.
Example: I retired as an E-7 with 26 years for retirement, but 30 for pay.
1. 2015 base pay $4996.00
2. 2016 base pay $5061.00
3. 2017 base pay $5167.00
Add the 3 together and then divide it by 3.
It should put you in the ballpark for your retirement pay. This retirement is based on 50% DOD.
 

RonG

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Your pay will be based off of your high 36. Do not focus on the points.
Example: I retired as an E-7 with 26 years for retirement, but 30 for pay.
1. 2015 base pay $4996.00
2. 2016 base pay $5061.00
3. 2017 base pay $5167.00
Add the 3 together and then divide it by 3.
It should put you in the ballpark for your retirement pay. This retirement is based on 50% DOD.
Excellent example by Sully to obtain a ballpark average high 3 for base pay.

The retired pay base for a qualified reserve retirement under the High-36 retirement plan is the total amount of monthly basic pay to which the member was entitled during the member's high-36 months divided by 36.

The rate determined via the high three computation is used in conjunction with the Years of Service for Retired Pay Percentage Multiple. YOS for retirement percentage multiple determines the years of service for computing the retired pay multiplier. This category of years of service includes all periods of active service (counted as one point for each day) plus all points earned through qualifying reserve duty, not exceeding annual limits, divided by 360.

Generally, a reserve retirement will be the high three as determined above x the multiplier described in the preceding paragraph. For more detailed info, see https://militarypay.defense.gov/Pay/Retirement/Reserve.aspx

Ron
 

SCWO19

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Registered Member
Wow...I'm in total shock that my PEBLO has misinformed me. Man, I was struggling to get those last points to think I needed to reach 10 years...I redid the calculatiions based on SullySull48's recommendation and its a $800-$1,000 difference. Incredible!

On the other hand, did your PEBLO or PDA come down and tell you not to go drill? Sounds off to me. I plan on going to my last one next weekend anyways. Always good to hear from you RonG!
 

Sullysull48

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I was told that even though going to the MEB , i still had to attend drills. Last drill was in February, retired March 1st.

May 11th is when DFAS paid me for back pay. First retirement deposit was June 1st.
 

chaplaincharlie

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I can no speak to the reserves, but on AD you work according to your medical recommended, commander approved restrictions.
 

JamesTPossible

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Excellent example by Sully to obtain a ballpark average high 3 for base pay.

The retired pay base for a qualified reserve retirement under the High-36 retirement plan is the total amount of monthly basic pay to which the member was entitled during the member's high-36 months divided by 36.

The rate determined via the high three computation is used in conjunction with the Years of Service for Retired Pay Percentage Multiple. YOS for retirement percentage multiple determines the years of service for computing the retired pay multiplier. This category of years of service includes all periods of active service (counted as one point for each day) plus all points earned through qualifying reserve duty, not exceeding annual limits, divided by 360.

Generally, a reserve retirement will be the high three as determined above x the multiplier described in the preceding paragraph. For more detailed info, see https://militarypay.defense.gov/Pay/Retirement/Reserve.aspx

Ron

My PEBLO is saying my Base Pay for retirement will be based on Base Pay at (points/360) years of service, instead of Base Pay at 22+ years. Everywhere else I see High-36. I'm baffled that this is the case.
 

Sullysull48

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James T Possibly,
Unless it has changed since I've retired this past March. Your pay will be based on your rank and years of service. Dividing the 360 comes into play with giving you the total amount of years for active duty.

For me : I had 26 years for retirement as a reservist (E-7). My points total were like 4104 divided by 360 came out to be 11.4 year's for active duty time.
 

RonG

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My PEBLO is saying my Base Pay for retirement will be based on Base Pay at (points/360) years of service, instead of Base Pay at 22+ years. Everywhere else I see High-36. I'm baffled that this is the case.

Retired Pay Base
There are two methods for determining the retired pay base. They are the final pay method and the high-36 month average method. The final pay method, as the name implies, establishes the retired pay base equal to final basic pay. The high-36 method is the average of the highest 36 months of basic pay divided by 36. This is generally the last 3 years of service and is sometimes called high-3.

—Final Pay Entry before September 8, 1980
—High-36 Entry on or after September 8, 1980, but before August 1, 1986 OR Entered on or after August 1, 1986, and did not choose the Career Status Bonus and REDUX retirement system
—CSB/REDUX Entered on or after August 1, 1986, AND elected to receive the Career Status Bonus (if you do not elect to receive the Career Status Bonus, you will be under the High-3 retirement system)
—Disability Determined medically unfit for continued service with a DoD disability rating of at least 30%

I just saw the previous post which covers this issue. The points divided by 360 = active duty equivalent (ADE).

ADE x 2.5% = multiplier
Multiplier x High three = Retired Pay for reservist at age 60 (can be reduced).

——>Permanent Disability Retired List
If your disability is found to be permanent and is rated at 30 percent or greater, or you have 20 or more years of service, you will be placed on the Permanent Disability Retired List (PDRL).

Your retired pay will be computed using one of two methods.

Your disability percentage, referred to as Method A.
Your years of active service, referred to as Method B.
Your pay will be computed based on whichever method is more beneficial for you.

Ron
 

JamesTPossible

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Ron,
I'm rated at 60%, and will be placed on the PDRL, so Method A applies.

I have about 2600 points, 16 good years, 24 years for pay (I came out of the IRR after a long time and did another 12 years)

PEBLO is computing my pay as if I had 7 years of service (2600/360), no mention of the High-36. I mean, they're going down the chart to my current rank, then over to the "over 6" column, and taking that number as my Base Pay. Then multiplying that by 60%.
 

gsfowler

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PEBLO just does an estimate while you are undergoing the MEB. By no means is it the final figure. Your PEBLO does not calculate the pay, finance does.

There are two pay routes and DFAS gives you whatever is the greater of the 2.

Route 1) Your retired pay base times your disability percentage.

Route 2) 2.5% x your years in service times your retired pay base.

At a 50% rating or 20 years of service, the outcome would be identical.

$5000 x 50% = $2500
2.5% x 20Y x $5000 = $2500

At a 40% rating the pay based on years would be greater, at a 60% rating the pay based on percentage would be greater.
 
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RonG

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gsfowler is correct; DFAS performs the official computation of retired pay.

The retired pay base for most: The high-36 method is the average of the highest 36 months of basic pay divided by 36. This is generally the last 3 years of service and is sometimes called high-3. The number of years one has for pay and the pay grade are used in locating the appropriate pay rates in the military pay tables to compute the high three.

Since you mentioned points: The points divided by 360 = active duty equivalent

The Multiplier: 2.5% x active duty or active duty equivalent (It not determined by multiplying the number of years for pay purposes x 2.5%)

20 Good Years: Are required for a reserve or NG retirement. The number of "good years," although a qualifying factor for reserve/NG retirement, is not used in determining the multiplier discussed above. See the Multiplier information.

Example of active duty or active duty equivalent for Multiplier purposes: I had 23 years active duty and over 24 years for pay purposes. The pay rate for my rank was higher at over 24 years than for over 22 years (the prior rate). I was under the Final Pay Plan (which is rare now). The 23 years were used for the multiplier (23 x 2.5%) and the over 24 years pay rate in the military pay tables of that era was used for retired pay amount (e.g., 23 x 2.5% = 57.5% multiplier; 57.5% x pay rate for rank and over 24 years = retired pay amount). Again, the high-36 method is the average of the highest 36 months of basic pay divided by 36 is usually the method to determine the retired pay base.

Examples of computation for disability percentage and for service were shown above by gsfowler.

Ron
 
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