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Retired Pay


Retired Pay Computations

The following USA HRC website may be used as a tool to perform an unofficial estimate of Reserve retired pay: Retirement Calculator.  You are not required to enter your name to perform calculations. 

Depending on the date you initially entered military service, also called the DIEMS date, your monthly Navy Reserve retired pay will be calculated under the Final Basic Pay or High-3 formula as follows:

DIEMS Date before 8 September 1980 - Final Pay

1. Multiply your years of equivalent service (see equivalent service formula below) by 2.5%, up to a maximum of 75%.

2. Multiply the result by the basic pay in effect on the date your retired pay begins (normally age 60).

DIEMS Date on or after 8 September 1980 - High 36

1. Multiply your years of equivalent service (see equivalent service formula below) by 2.5%, up to a maximum of 75%.

2. Multiply the result by the average of your highest 36 months of basic pay.
Note: The highest 36 months of basic pay for a service member who transfers to the Retired Reserve until age 60 will normally be the 36 months before age 60. Longevity service will continue and pay raises will continue to accrue. Service members, who elect discharge before age 60, will have their highest 36 months of basic pay based on the date of discharge. Longevity service stops and future pay raises will be considered.

As can be seen from these two examples, if you initially entered military service on or after 8 September 1980, you should think carefully before requesting a discharge. Taking a discharge will impact your retired pay.

*Equivalent Service = Total Creditable Retirement Points /360