10 U.S.C. § 8333 — Computation of retired and retainer pay

(a) This section sets out three formulas — A, B, and C — for figuring a member's monthly retired pay or retainer pay under this chapter or under section 8470 or 8372. Formula A applies to pay computed under sections 8325(a) and 6326. Start with the retired pay base, computed under section 1406(d) or 1407. Multiply it by the retired pay multiplier that section 1409 sets for the years of service credited to the member under section 1405. Formula B applies to pay computed under sections 8323, 8325(b), 8470, and 8372. It works the same way as Formula A: take the retired pay base under section 1406(d) or 1407, and multiply by the section 1409 multiplier for the member's years of service credited under section 1405. Formula C applies to retainer pay computed under section 8330. Start with the retainer pay base, computed under section 1406(d) or 1407. Multiply it by the retainer pay multiplier that section 1409 sets for the member's years of service credited under section 1405. (b) If the resulting retired pay or retainer pay isn't a whole dollar amount, round it down to the next lower whole dollar. The section references in the table in subsection (a) are all to sections of this title. (c) There's a special rule for a Reserve enlisted member whose grade at transfer to the Fleet Reserve or Fleet Marine Corps Reserve is set under section 8336, and who first became a member of a uniformed service before September 8, 1980. For that member, the retainer pay base isn't computed the normal way under section 1406(a)(1). Instead, it's the monthly basic pay for the grade the member transferred into, using the pay rates in effect on the transfer date. That figure is what gets used in the Formula C calculation in subsection (a), in place of the amount that section 1406(d) would otherwise produce.