10 U.S.C. § 1402a — Recomputation of retired or retainer pay to reflect later active duty of members who first became members after September 7, 1980

(a) General rule. A member of an armed force may recompute retired or retainer pay^* upon release from later active duty^*, other than active duty for training, if the member (1) first became a uniformed-service member after September 7, 1980, (2) became entitled to retired or retainer pay, and (3) later served on that active duty. The computation uses the retired-pay base or retainer-pay base under section 1407 that the member could use if, upon release, the member (1) were retiring, or (2) were transferring to the Fleet Reserve or Fleet Marine Corps Reserve. That base is multiplied by the retired-pay or retainer-pay multiplier in section 1409 for the total of (1) the years of service creditable in computing retired or retainer pay and (2) the years of active service^* after the member became entitled to retired or retainer pay.

(b) New disability during later active duty. A member who first became a uniformed-service member after September 7, 1980, who was retired for a reason other than physical disability, and who incurs on active duty a physical disability of at least 30 percent for which the member would otherwise qualify for disability retirement pay under chapter 61 of this title is entitled, upon release from active duty, to retired pay under subsection (d).

(c) Additional or aggravated disability during later active duty. A member who first became a uniformed-service member after September 7, 1980, is entitled upon release from active duty to retired pay under subsection (d) if all of these conditions apply: (1) the member was retired for physical disability under section 1201 or 1204 of this title or another law, or the member’s name is on the temporary disability retired list; (2) while on active duty after retirement or after being placed on that list, the member incurs a physical disability that is additional to, or aggravates, the earlier disability; and (3) the member qualifies under section 1201, 1202, 1204, or 1205 of this title.

(d) Computation for later disability. A member covered by subsection (b) or (c) may choose either (1) the retired pay to which the member became entitled at retirement, increased by applicable adjustments under section 1401a after the member first became entitled to that pay, or (2) pay computed as follows. First, use the retired-pay base computed under section 1407(b). Before applying the percentage factor, count each full month beyond the member’s full years of creditable service as one-twelfth of a year, and disregard any remaining part of a month. The member may choose as the percentage factor either (i) 2.5 percent of the years of service credited under section 1208, or (ii) the highest disability percentage, not above 75 percent, attained while on active duty after retirement or after the member was placed on the temporary disability retired list, as applicable. If the member is on that list, add the amount needed to raise the product of the pay base and percentage factor to 50 percent of the pay on which the computation is based.

(e) Alternative recomputation under subsection (a). Despite subsection (a), a covered member may choose, on release from the active duty, to have retired or retainer pay (1) computed under subsection (a)’s formula using the monthly retired-pay base under which the member’s pay was computed when the member entered that active duty, and (2) increased by applicable adjustments under section 1401a after the member first became entitled to that pay.

(f) Extra 10 percent for certain enlisted members credited with extraordinary heroism. (1) If a member is entitled to recompute retired pay under this section after active duty served following retirement under section 7314 or 9314, the member’s pay as recomputed under another provision of this section must be increased by 10 percent of that recomputed amount if the Secretary concerned^* has credited the member with extraordinary heroism in the line of duty during any period of active-duty service in the armed forces^*. (2) The recomputed and increased pay may not exceed 75 percent of the retired-pay base used for the recomputation. (3) The Secretary concerned’s determination about extraordinary heroism is conclusive for every purpose.