Threat Advisory Defcon alert - Elevated
United States Department of Defense - Defense.gov

 

 

 

Pay Plans Summary

The following chart summarizes the differences between the four retirement plans.

Retirement Plan

Basis

Multiplier

COLA

Readjustment

Bonus

Final Pay

Final basic pay

2.5% per year

CPI

None

None

High-36

Average of highest 36 months of basic pay

2.5% per year

CPI

None

None

CSB/REDUX

Average of highest 36 months of basic pay

same as High-36 with reduction of one percentage point for each year short of 30 years of service

CPI - 1%

At age 62,
1) retired pay made equal to High-36

2) future multiplier made equal to High-36
3) future COLA continues at CPR-1%

$30,000 at 15th year of service with obligation to serve 20 year career

Disability

Either Final Pay or High-36 as appropriate

2.5% per year or

% of disability

member's choice

CPI

None

None

The below chart provides the basic criteria to determine which retirement plan applies to you. More detail is available in the section titled Retirement.

Retirement Plan

Criteria to Receive

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%

 

 



 

<