10 U.S.C. § 8334 — Higher grade after 30 years of service: warrant officers and enlisted members

(a) This section applies to certain naval-service members covered by subsection (b). If, after December 4, 1987, such a member retires with less than 30 years of active service^*, or transfers to the Fleet Reserve or Fleet Marine Corps Reserve, they get advanced on the retired list once their active service plus their time on the retired list (or in the Fleet Reserve or Fleet Marine Corps Reserve) adds up to 30 years total. They're advanced to the highest grade^* the Secretary of the Navy determines they served in satisfactorily while on active duty^*.

(b) This rule covers three groups: (1) warrant officers of the naval service; (2) enlisted members of the Regular Navy and Regular Marine Corps; and (3) reserve enlisted members of the Navy and Marine Corps who were on active duty when they retired or transferred to the Fleet Reserve or Fleet Marine Corps Reserve.

(c) When a member is advanced this way, their pay^* gets recomputed. An enlisted member^* recomputes retired or retainer pay using Formula A; a warrant officer^* recomputes retired pay using Formula B. If the recomputed amount isn't a whole dollar, it's rounded down to the next lower dollar.

One counting rule applies to both formulas: when figuring the retired pay multiplier, any full extra month of service beyond the member's full years of credited service counts as 1/12 of a year, and any leftover days less than a month are dropped.

Formula A (for enlisted members): 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 creditable toward the member's retainer or retired pay at the time of retirement, using the month-counting rule above.

Formula B (for warrant officers): Start with the retired pay base computed under section 1406(d). Multiply it by the retired pay multiplier that section 1409 sets for the years credited to the member under section 1405.