I had a few questions concerning the RAS from DFAS. I'm recently retired.
1. Is there a way to see how DFAS calculated the high 36 amount? My retirement day was on the 28th of the month. It appears that DFAS did not add that month into their calculations. When I run the math without that month, I get almost the same as what DFAS is proposing. When I add that month, my calculations are off by +40$ a month. So, that one month is worth 480 a year.
2. MY annual RAS doesn't show taxes, I haven't received a eRAS (monthly payment yet). Is there any way while in MYPAY to know if I'll be taxed on my residual retired pay?
Hello,
The following financial regulation shows the computation of retirement pay:
If you have a disability retirement, in most cases you can divide the gross retired pay by the DoD disability percentage = contemporary average high three base pay.
It is my understanding that only full months are used in computing the high three (36 months). You mentioned you retired the 28th of a month.
Did you enter into a retired status that day OR was it your last day of active duty? If the month was February, which had 29 days this year, retiring on the 28th was an incomplete month.
Ron
Edited to add:
Reference:
https://uscode.house.gov/statutes/pl/99/348.pdf
Each full month in addition to the years, will be counted as 1/12 of a year in the computation of regular retired pay.
Edited to add 2:
10 U.S. Code § 1405 - Years of service
(a)In General.—For the purposes of the computation of the years of service of a member of the armed forces under a provision of this title providing for such computation to be made under this section, the years of service of the member are computed by adding—
(1)
his years of active service;
(2)
the years of service, not included in clause (1), with which he was entitled to be credited on May 31, 1958, in computing his basic pay; and
(3)
the years of service, not included in clause (1) or (2), with which he would be entitled to be credited under
section 12733 of this title if he were entitled to retired pay under
section 12731 of this title.
(b)Fractional Years of Service.—In determining a member’s years of service under subsection (a)—
(1)
each full month of service that is in addition to the number of full years of service creditable to the member shall be credited as 1⁄12 of a year; and
(2)
any remaining fractional part of a month shall be disregarded.
