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14 U.S.C. § 2505 — Limitations on retirement and retired pay
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The provisions of any section of this title shall not be construed so as to prevent any member from being placed on the retired list with the highest grade or rate and the highest retired pay to which the member may be entitled under the provisions of any other section of this title or under any other law.
**(b)** In no case may the retired pay of a member exceed 75 percent of (1) the sum of the active-duty pay and all permanent additions thereto (including longevity credit to which the member is entitled) of the grade or rate on which the member’s pay is computed, or (2) the retired pay base determined under [section 1407 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section1407&num=0&edition=prelim), as appropriate.
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Source file: Laws/federal/codes/united-states-code/title-14/section-2505-limitations-on-retirement-and-retired-pay--d253452799.md
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Source location: Title 14, Chapter 25, § 2505; chapter-025-personnel-general-provisions.md
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**(a)** The provisions of any section of this title shall not be construed so as to prevent any member from being placed on the retired list with the highest grade or rate and the highest retired pay to which the member may be entitled under the provisions of any other section of this title or under any other law.
**(b)** In no case may the retired pay of a member exceed 75 percent of (1) the sum of the active-duty pay and all permanent additions thereto (including longevity credit to which the member is entitled) of the grade or rate on which the member’s pay is computed, or (2) the retired pay base determined under [section 1407 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section1407&num=0&edition=prelim), as appropriate.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Use of Retired Pay Base in Computing Retired Pay.—** The retired pay or retainer pay of any person entitled to that pay who first became a member of a uniformed service after September 7, 1980, is computed using the retired pay base or retainer pay base determined under this section.
**(b) High-Three Average.—** Except as provided in subsection (f), the retired pay base or retainer pay base of a person under this section is the person’s high-three average determined under subsection (c) or (d).
**(c) Computation of High-Three Average for Members Entitled to Retired or Retainer Pay for Regular Service.—**
(1) **General rule.—** — The high-three average of a member entitled to retired or retainer pay under any provision of law other than section 1204 or 1205 or [section 12731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section12731&num=0&edition=prelim) is the amount equal to—
(A) the total amount of monthly basic pay to which the member was entitled for the 36 months (whether or not consecutive) out of all the months of active service of the member for which the monthly basic pay to which the member was entitled was the highest, divided by
(B) 36.
(2) **Special rule for short-term disability retirees.—** — In the case of a member who is entitled to retired pay under section 1201 or 1202 of this title and who has completed less than 36 months of active service, the member’s high-three average (notwithstanding paragraph (1)) is the amount equal to—
(A) the total amount of basic pay to which the member was entitled during the period of the member’s active service, divided by
(B) the number of months (including any fraction thereof) of the member’s active service.
(3) **Special Rule for Reserve Component Members.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 1407
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Federal law — U.S. Code and appendices · legal_authorities
Page 165
TITLE 14—COAST GUARD
§ 2507
1982—Subsec. (b). Pub. L. 97–295 substituted ‘‘after
September 7, 1980’’ for ‘‘on or after the date of the en-
actment of the Department of Defense Authorization
Act, 1981’’.
1980—Pub. L. 96–342 designated existing provisions as
subsec. (a), substituted ‘‘Except as provided in sub-
section (b), the’’ for ‘‘The’’, and added subsec. (b).
1972—Pub. L. 92–455 provided for computation of re-
tired pay of an enlisted member serving as the master
chief petty officer of the Coast Guard at the highest
basic pay applicable to him while he so served, if that
basic pay is greater than the basic pay of the grade or
rating to which he was otherwise entitled at the time
of retirement.
1963—Pub. L. 88–132 substituted ‘‘basic’’ for ‘‘active-
duty’’ wherever appearing.
1958—Pub. L. 85–422 substituted ‘‘that may be credited
to him under section 1405 of title 10’’ for ‘‘for which he
was entitled to credit in the computation of his pay
when last on active duty’’.
1950—Act Aug. 3, 1950, struck out reference to com-
putation of pay of retired personnel retired by reason of
physical disability.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by section 922 of Pub. L. 98–94 effective
Oct. 1, 1983, see section 922(e) of Pub. L. 98–94, set out
as a note under section 1401 of Title 10, Armed Forces.
Amendment by section 923 of Pub. L. 98–94 applicable
with respect to the computation of retired or retainer
pay of any individual who becomes entitled to that pay
after Sept. 30, 1983, see section 923(g) of Pub. L. 98–94,
set out as a note under section 1174 of Title 10.
EFFECTIVE DATE OF 1963 AMENDMENT
Amendment by Pub. L. 88–132 effective Oct. 1, 1963,
see section 14 of Pub. L. 88–132, set out as a n
Source: Supplied 2024 U.S. Code historical extraction · 14 U.S.C. § 2505
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