Reserve
officers, warrant officers and enlisted members who complete a minimum of
20 years of satisfactory federal service (creditable retirement years) become
eligible for retired pay at age 60. Although eligible, the member must submit
an application, in accordance with service regulations, prior to receiving
pay.
A retirement year is defined as the 365 or 366
day period starting when the member first joins the military. For example-the
member first joins the military on July 17. The retirement year is from
July 17 to July 16 the following year. The retirement year does not change
unless the member has a break in service.
A creditable retirement year, under this system, is a year in which the
Reservist earns at least 50 retirement points during their retirement year.
Inactive point credit is earned for inactive duty training, Reserve membership,
equivalent instruction, and correspondence courses. By law, members may
receive credit for up to 60 inactive points for retirement years that ended
before September 23, 1996, up to 75 inactive points for retirement years
ending on or after September 23, 1996 and before October 30, 2000, and up
to 90 points in the retirement year that includes October 30, 2000 and in
any subsequent year of service. Points from these sources may be added to
points earned from active duty and active duty for training for a maximum
total of 365 or 366 points per retirement year. Points are credited on the
following basis:
One point for each day of active service (active duty or active duty
for training).
15 points for each year of membership in a Reserve Component.
One point for each unit training assembly.
One point for each day in which a member is in a funeral honors duty
status.
Satisfactory completion of accredited correspondence courses at one
point for each three credit hours earned.
The Secretary of the military department concerned
(Secretary of Transportation for the Coast Guard) notifies, in writing,
members of the Reserve Forces who have completed the eligibility requirements
for retirement and receipt of retired pay at age 60. Notice is sent to the
member within one year of reaching eligibility. Reserve Component members
generally have three options upon receiving notice of eligibility:
1. Remain in the Ready Reserve and continue to perform inactive duty training,
annual training and active duty for training depending on their training
and pay category, or remain on the active status list of the Standby Reserve
and continue to perform unpaid training for the purpose of accumulating
retirement points.
2. Transfer to the Retired Reserve. A member in this category may participate
in inactive duty training provided:
a) Such training is at no expense to the Government.
b) Members are not entitled to pay or retirement points.
c) No official record of such participation is maintained.
3. Request discharge from the Reserve Components.
Regardless of the option chosen, the member is entitled to receive retired
pay at age 60, but must apply for it.
Upon reaching age 60, a Reserve retiree may begin receiving retired pay.
There are currently two Reserve retirement systems that parallel the systems
for active duty: the Final Basic Pay System and the High-Three System. To
determine which retirement system a Reserve Component member is under, we
must look at the same criteria that determines the retirement system for
the active force — the Date of Initial Entry to Military Service (DIEMS).
That is the date an individual first became a member of a uniformed service.
There is one Reserve retirement system for members with a DIEMS date before
September 8, 1980 and one Reserve retirement system for those individuals
with a DIEMS date of September 8, 1980 and later. When looking at which
retirement system applies to a specific individual it is important to note
that a DIEMS date will never change. Even a break in service will not affect
a DIEMS date. The date an individual first became a member of a uniformed
service is the sole determining factor in determining which retirement system
is used when computing retired pay.
A member who retires under either system receives longevity credit for those
years while a member of the Retired Reserve awaiting pay at age 60. However,
this does not apply to a former member who is entitled to retired pay under
either the Final Basic Pay System or the High-three System. A former member
is defined as an individual who elected discharge rather than transfer to
the Retired Reserve anytime after receiving notification of eligibility
to receive Reserve retired pay at age 60. In the case of a former member,
regardless of the system under which the individual will receive Reserve
retired pay, longevity credit ceases on the date the former member was discharged.
