How to Calculate a Navy Reservist Retirement
Many people don't know that Naval reservists make up one third of the total Naval military force. Virtually every job in the Navy can be done by a reservist. Naval reservists receive similar pay and benefits of men and women on active duty. Their retirement pay is calculated differently from active-duty retirement pay, however. This is because Naval reservists don't serve full time.
Other People Are Reading
Instructions
-
Calculate Naval Reserve Retirement
-
1
Determine general eligibility. Naval reservists are eligible for retirement if they have served 20 years and reach at least age 60. If a member is mobilized for wartime service after January 28, 2008, the age requirement is reduced by three months for each 90 days of wartime mobility. The Navy notifies each Naval reservist one year prior to becoming eligible for retirement.
-
2
Contact a Navy military personnel office to determine the exact number of credited retirement points. Each Navy reservist can calculate these points to informally estimate retirement pay. Naval reservists earn one point per day of active service, 15 points per year of service, one point for each training assembly, one point for funeral honors service and one point for completion of a correspondence course.
-
-
3
Calculate the total number of years of service and the retirement multiplier. Find the total years of service by dividing the total number of creditable points by 360. Determine the retirement multiplier by multiplying the total number of years of service by 2.5 percent up to a total maximum of 75 percent.
-
4
Calculate retirement pay using the "final basic pay" method. If the first day of duty in the Navy was before September 8, 1980, use the basic pay rate received on the last day of duty prior to retirement. Multiply that basic pay times the multiplier calculated in step three for the retired pay. For instance, if the monthly basic pay rate on the last day of service prior to retirement was $3,000 per month and the multiplier was 50 percent, then the retired pay would be $1,500 per month.
-
5
Calculate retirement pay using the "High three formula." If the first day of duty was September 8, 1980, or later, use an average of basic pay over the highest paid 36 months. Multiply this average by the multiplier calculated in step three for the retired pay. For instance, if the average monthly basic pay rate over the highest paid 36 months was $2,800 per month and the multiplier was 50 percent then the retired pay rate would be $1,400 per month.
-
1
