Retired Pay

Typically, a service member who has served honorably for 20 years or more and retires is eligible for military retirement pay. This amount can range from 50 percent of base pay at the 20 year point up to 75 percent at the 30 year point, with corresponding increments in the years between. Base pay does not include special pays (such as imminent danger pay, or flight pay) or the basic allowance for housing or subsistence. Payment is made by the Defense Finance and Accounting Service (DFAS). Different calculations are used if the service member has been medically retired with less than 20 years of service. Payment is also affected if the retired service member receives disability compensation from the VA. The DFAS website is a tremendous source of information regarding retirement pay.

Retirement pay is received monthly. Allotments can be made from retired pay just as they can be from active duty pay.  

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