Q:

How do Air Force retirement plans determine monthly pay?

A:

Quick Answer

Retirement plans for the Air Force determine monthly pay by multiplying the person's retired pay base by his service percentage multiplier, as of 2015. The retired pay base is based on the person's basic pay.

Continue Reading

Full Answer

The Department of Defense offers four retirement plans: Final Pay, High-36 Month Average, REDUX and Disability. Each use the same formula for determining monthly pay, but the retired pay base and service percentage multipliers vary based on the plan.

Final Pay applies to those who joined the military on or before Sept. 8, 1980. In this case, the retired pay base is based on a person's final basic pay. High-36 Month Average applies to those who joined the military after Sept. 8, 1980, and the retired pay base is an average of a person's highest 36 months of basic pay.

The service percent multiplier is 2.5 percent for each year of active duty service. For example, 10 years of active duty service provides a 25 percent multiplier of a person's retired base pay. The REDUX retirement plan applies to those who retire before 30 years of service. For each year of difference between 30 years of service and a person's actual length of service, the multiplier is reduced by 1 percent.

Disability applies to those who become disabled during service. Depending on which amount is higher, the service percent multiplier is 2.5 percent for each year of active duty service, or the disability percentage assigned by the service. Either is capped at 75 percent.

Learn more about Military

Related Questions

Explore