Army medical retirement calculation question

I heard a barracks lawyer in my WTU say something that got me worried.

If I am rated at (for example as I have not received my rating yet) 60% by the Army (not the VA rating) is the calculation not 60% of the high 3 years base pay average? This BL states that the calculation is 60% of 75% of the high 3 years base pay average (if you follow me).

???

If for example my high 3 base pay average was $5000 and my rating was 60% (by the army) would the medical retirement calculation be

(.6 X 5000) = $3000

or (.75 x 5000) x (.6) = $2250

Where is he getting this 75% of your base pay piece from? Is this true or not?

Thanks

 

[TBObie]

Here is the computation...the way I read it, it will be 60% of your High 36.


Retirement pay computation. For permanent retirement or placement on the TDRL, compensation is based on the higher of two computations: Disability rating times retired pay base; or 2.5 x years of service x retired pay base. Soldiers on the TDRL receive no less than 50% of their retired pay base.

• 
  The computation of retired pay base depends upon when the member entered the service, and for Reserve members, the law under which they were retired. For those members who entered prior to 8 September 1980, retired pay base is the highest basic pay received. For those who entered after 7 September 1980, it is the average of the high 36 months of basic pay. For reserve members retired under 10 USC 1201 or 10 USC 1202 (on ordered duty of plus 30 days), the last 36 months of active duty days and the associated basic pay is used to determine the average. If retired under 10 USC 1204 or 1205, the average is calculated as if the member had been on active duty the last 36 months.
  
  Hope this helps.
  Obie

 

[carnelli53]

To clarify, TBOobie is correct.

Your retirement calculation is the high-36 of your base pay.

In other words:

If for example my high 3 base pay average was $5000 and my rating was 60% (by the army) would the medical retirement calculation be

(.6 X 5000) = $3000

The above calculation is correct.

or (.75 x 5000) x (.6) = $2250

The above calculation is incorrect.

Where is he getting this 75% of your base pay piece from?

Currently, you can only receive up to 75% of your base pay for retirement pay. If you are rated, 80%, 90%, or 100% by the PEB, you will still only receive the maximum 75% of your base pay (under the high-3).

Seems he may have misconstrued the "75% rule".

 

[looking4help]

Thank you all. That is the way I understood it: if rated 75% or more it is .75 x high 3 base pay.

Thanks for the great website, Jason and assistance from forum members.