Military Retiree Pay

Service members who remain on active duty or serve in the Reserves or Guard for a sufficient period of time may retire and receive retired pay.  Members who become disabled while on duty may be medically retired and receive a disability retirement.  See the Disability Compensation Programs section for further details.
Generally, members who remain on active duty for 20 or more years are eligible for retirement.  There are three non-disability retirement systems currently in effect.  These are Final Pay, High-3 Year Average, and Military Retirement Reform Act of 1986 (more commonly referred to as REDUX).  REDUX was revised by the FY2000 National Defense Authorization Act---a $30,000 Career Status Bonus (CSB) was added for those who accept the REDUX retirement system.  Individuals formerly under REDUX may now choose between the High-3 and CSB/REDUX systems.  The date you first entered the military determines which retirement system applies to you and whether you have the option to choose your retirement system.
Visit the DoD’s online Retirement Calculators to learn more about your retirement pay options: http://www.defenselink.mil/militarypay/retirement/calc/index.html

Need–to–know Information