Military Retirement Pay
Retirement Pay & Compensation
Service members who remain on active duty or serve in the Reserves or National Guard for
twenty years or longer may retire and receive retired pay.
There are currently three retirement systems to choose from. Your Pay and Compensation
Administrative Officer within your command can provide more information on these system
options. Also, visit DoD's online Retirement Pay Calculators to see how each retirement system
Non-Disability Retirement Pay Options
- Final Pay -- The Final Pay retirement system only applies to members who first entered Service
before September 8, 1980.
- High-3 -- The High-3 Year Average retirement system applies to members who first
entered Service on or after September 8, 1980, and before August 1, 1986. High-3 also applies
to members who first entered the Service on or after August 1, 1986, and chose to revert to the
High-3 retirement plan by not accepting the Career Status Bonus (CSB).
- CSB/REDUX -- This system applies only to members who first entered Service after July
31, 1986, and chose to receive the Career Status Bonus (CSB) and the REDUX retirement plan.
Service members who become wounded, ill or injured may be medically retired. They may receive
either a permanent or temporary Disability retirement. A Physical Examination Board (PEB --Medical
Board) determines the percent disability and recommends whether the disability is permanent or
needs re-examination every 18 months up to 5 years at which time a final retirement system
determination is made. See your Pay and Compensation Administrative Officer in your command or
at your military treatment facility (MTF) for additional information and referrals.
Date Last Reviewed: November 6, 2009