Medical Retirement calculation for Reserve component Service members

R

RangerVic

PEB Forum Regular Member
Registered Member
I was medically retired almost two years ago. Since then I have been fighting with the Army on how to calculate my pension. I was hoping someone could steer me in the right direction if i am off base on this. I was medically retired from the USAR with 12,420 points. When the transition center calculated my service time they took all my DD214s and added up the total time. then they took my reserve time (1405). They added the two together and came up with time in service. I said that was incorrect and that they needed to take my total points and divide by 360 to correctly calculate my time.
They said that i was wrong and gave three points. 1. You do not qualify for non-regular retirement (not reached age 60), 2. Once you retire with a disability retirement or if a reserve component Soldier has over 20 years of AFS, non-regular retirement under 12731 no longer applies. 3. You have to retire under the first retirement you qualify for.
I argued with them that no where in the law or regulation does it state any of those last two thing. They told me to go pound sand.
My argument is that they are stealing time from reserve component service menders.
1. Correct if you are not clamming reduced age retirement one does not qualify for non-regular retirement.
2. Nothing says that when a reserve component service member medically retires or reaches 20 AFS they no longer qualify for non-regular retirement.
3. You have to retire under the first retirement you qualify for is completely incorrect. The law and regulation states the first retirement you are "entitled." Meaning, if you apply and are approved and paid a retirement. It's not just because you have 20 yrs AFS does it mean you are entitled.

Am i wrong? Do i not know how to read. I found the supporting information in the following documents:
1. DoD FMR 7000.14-R, Volume 7B, Chapter 1, paragraph 3.7.4
2. 10 U.S.C. §12733
3. 10 U.S.C. §12731(a)(4)
 
RangerVic said:
I was medically retired almost two years ago. Since then I have been fighting with the Army on how to calculate my pension. I was hoping someone could steer me in the right direction if i am off base on this. I was medically retired from the USAR with 12,420 points. When the transition center calculated my service time they took all my DD214s and added up the total time. then they took my reserve time (1405). They added the two together and came up with time in service. I said that was incorrect and that they needed to take my total points and divide by 360 to correctly calculate my time.
They said that i was wrong and gave three points. 1. You do not qualify for non-regular retirement (not reached age 60), 2. Once you retire with a disability retirement or if a reserve component Soldier has over 20 years of AFS, non-regular retirement under 12731 no longer applies. 3. You have to retire under the first retirement you qualify for.
I argued with them that no where in the law or regulation does it state any of those last two thing. They told me to go pound sand.
My argument is that they are stealing time from reserve component service menders.
1. Correct if you are not clamming reduced age retirement one does not qualify for non-regular retirement.
2. Nothing says that when a reserve component service member medically retires or reaches 20 AFS they no longer qualify for non-regular retirement.
3. You have to retire under the first retirement you qualify for is completely incorrect. The law and regulation states the first retirement you are "entitled." Meaning, if you apply and are approved and paid a retirement. It's not just because you have 20 yrs AFS does it mean you are entitled.

Am i wrong? Do i not know how to read. I found the supporting information in the following documents:
1. DoD FMR 7000.14-R, Volume 7B, Chapter 1, paragraph 3.7.4
2. 10 U.S.C. §12733
3. 10 U.S.C. §12731(a)(4)
Click to expand...
When I read the regs the one thing that stood out was calculations based on non regular retirement are no longer based on HIGH 3 at non regular retirement age if you are medically retired. My wife had 6k+ points and based on military pay raises exceeding COLA's that she could apply for her Reserve retirement at age 60 she could get the higher amount but it states in the regs that if you have another retirement earned then they will not recalculate HIGH 3 at the age eligible for a non regular retirement if already receiving earlier retirement via chapter 61 retirement.

See AI computations below: Note: I did look this up manually a couple years ago before AI got really good at it but AI came to the same conclusion. My hope originally was my wife using CRSC now to be made whole and then at age 60 which is almost 20 years from now utilizing her Reserve retirement for CRDP but not only that but getting the future pay tables to base her HIGH 3 off of especially if over the last 20 years of gray area retirement DOD active duty military raises far exceeded COLA increases.

The key policy is in the Department of Defense Financial Management Regulation (DoD FMR) Volume 7B, Chapter 1 (and related chapters), which implements Title 10 U.S. Code rules on military retired pay.


Specifically, non-regular (Reserve/Guard) members retired for disability under Chapter 61 become entitled to immediate retired pay under 10 U.S.C. Chapter 61. Once that pay commences, it may not be recomputed at eligibility age (usually 60) under 10 U.S.C. Chapter 1223 (non-regular retirement).


Core Statutory and Regulatory Basis​


  • 10 U.S.C. § 12731 (Chapter 1223, Non-Regular Service Retirement) requires that a member "is not entitled under any other provision of law to retired pay from an armed force" to qualify for non-regular retired pay at age 60 (or reduced age). A prior Chapter 61 disability retirement satisfies this "other provision," blocking the switch.
  • DoD FMR Vol. 7B, Ch. 1, para. 2.2.2 (or similar) explicitly states: "Non-regular members who are retired for disability become entitled to immediate retired pay for disability. Once the retired pay for disability commences under 10 U.S.C., Chapter 61, the member’s pay may not be recomputed at eligibility age (usually age 60) under 10 U.S.C., Chapter 1223."

This prevents "double-dipping" or switching systems and locks in the Chapter 61 calculation with ongoing COLAs (adjusted under 10 U.S.C. § 1401a).

How Chapter 61 Retirement Pay Is Calculated (vs. Reserve High-3 at 60)​

For Chapter 61 (disability retirement under 10 U.S.C. §§ 1201–1206, applicable to Reserves via §§ 1204/1205 for shorter active duty/inactive duty periods):

  • Retired pay = the higher of:
    • Longevity formula: Years of service (or equivalent via points/360 for Reserves) × 2.5% (or 2.0% under BRS) × High-3 (or final pay) base.
    • Disability formula: DoD disability percentage × High-3 (or final pay) base.
  • Minimum 30% DoD rating for permanent retirement (PDRL); TDRL has a 50% floor initially.
  • Pay starts immediately upon retirement (not deferred to age 60).
  • Subject to annual COLAs; no recomputation using later pay tables or additional Reserve points at age 60.
Reserve/non-regular retirement (if no prior Chapter 61) at age 60 would use:

  • Points / 360 = equivalent years.
  • Multiplier (2.5% or 2.0%) × High-3 base (typically active-duty equivalent rates near the start of retired pay).
Chapter 61 locks in the earlier calculation (often more favorable due to the disability % option and immediate start + COLAs) and prevents using updated pay tables or further points accumulation for a "new" High-3 at age 60.

Army-Specific Implementation​

  • AR 135-180 (Retirement for Regular and Non-Regular Service) governs Army Reserve/ARNG processes and defers computation details to DFAS per DoD FMR. It does not override the no-recomputation rule.
  • DFAS handles final pay calculations using the above rules. Medical retirement orders trigger Chapter 61 processing.

Practical Notes​

  • If you have enough qualifying years/points for a 20-year letter, the Chapter 61 retirement still takes precedence and blocks the deferred Reserve annuity recomputation.
  • Chapter 61 retirees with <20 years may have additional limits (e.g., on CRDP concurrent receipt with VA disability).
  • For official confirmation or your specific case (points, DIEMS date, disability rating, etc.), contact DFAS, your servicing personnel office (e.g., HRC for USAR), or use the DoD Medical High-3 Calculator.
This is based on current statutes and DoD FMR as of 2026; policies can have nuances based on DIEMS date, BRS election, or specific circumstances. Consult DFAS or a benefits counselor for personalized application.
 
Ok, i am not asking for new computations. I am asking for the computation be conducted in accordance with statue and DOD policy. I had a discussion with the Army G1 retirement services chief and proponent a few weeks ago. They agreed to give me 15 minutes. What these two people said was that based on 10 U.S.C. §12731 (a)(4) states "is not entitled, under any other provision of law" means that the first retirement you are eligible for means no reserve component service member who is under the age of 60, with more than 20yr AFS, can retire with a non-regular retirement. They completely ignore 10 U.S.C. §12731 (a) that states "a person is entitled, upon application, to retired pay computed under section 12739 of this title." Their view is that whether you apply to retirement or not if you have more than 20 yr of active federal service you are automatically entitled to retirement- no need to request retirement from service secretary. I have never heard of anyone retiring without submitting an application for retirement. Clearly the law states "upon application" for a reason. Just because someone has 20 yrs of active federal service does not entitle them to retirement until it is approved. I cannot simply self retire myself. This has not only affected me but all others who have been medically retired or reached 20 yr AFS.
Just because you have 20 yrs of AFS doesn't mean you are entitled to a regular retirement.
 
You must log in or register to reply here.
Top