14 U.S.C. § 2504 — Computation of retired pay

Page 164 TITLE 14—COAST GUARD § 2504 HISTORICAL AND REVISION NOTES This provision is desirable because many enlisted men and low-ranking officers may now retire with higher grade which they previously held on a tem- porary basis. If recalled in the higher grades, they might not be capable of holding same at the time of re- call. 81st Congress, House Report No. 557. Editorial Notes AMENDMENTS 2018—Pub. L. 115–282 renumbered section 422 of this title as this section. 1986—Pub. L. 99–348 substituted ‘‘rate’’ for ‘‘rating’’. § 2504. Computation of retired pay (a)(1) The retired pay of a member who first became a member of a uniformed service (as de- fined in section 101 of title 10) before September 8, 1980, is determined by multiplying— (A) the sum of— (i) the basic pay of the member’s retired grade or rate, and (ii) all permanent additions thereto includ- ing longevity credit to which the member was entitled at the time of retirement; by (B) the retired pay multiplier determined under section 1409 of title 10 for the number of years of service that may be credited to the member under section 1405 of such title. (2) In the case of an officer who served as Com- mandant, retired pay under paragraph (1) shall be computed at the highest rate of basic pay ap- plicable to the officer while so serving. (3) In the case of an enlisted member who served as the master chief petty officer of the Coast Guard, retired pay under paragraph (1) shall be computed at the highest rate of basic pay to which the member was entitled while so serving, if that basic pay is greater than the basic pay of the grade or rate to which the mem- ber is otherwise entitled at the time of retire- ment. (4) In the case of an officer whose retired pay is computed on the pay of a grade for which basic pay is not based upon years of service, re- tired pay under paragraph (1) shall be computed on the basis of the number of years of service for which the officer would be entitled to credit in the computation of pay on the active list had the officer been serving in the grade of captain at the time of retirement. (b) The retired pay of a member who first be- came a member of a uniformed service (as de- fined in section 101 of title 10) on or after Sep- tember 8, 1980, is determined by multiplying— (1) the retired pay base determined under section 1407 of title 10; by (2) the retired pay multiplier determined under section 1409 of title 10 for the number of years of service that may be credited to the member under section 1405 of such title. (c)(1) In computing for the purpose of sub- section (a) or (b) the number of years of service that may be credited to a member under section 1405 of title 10— (A) each full month of service that is in ad- dition to the number of full years of service creditable to the member shall be counted as 1⁄12 of a year; and (B) any remaining fractional part of a month shall be disregarded. (2) Retired pay computed under this section, if not a multiple of $1, shall be rounded to the next lower multiple of $1. (d) In addition to amounts computed pursuant to subsections (a) through (c) of this section, a full TSP member (as defined in section 8440e(a) of title 5) of the Coast Guard is entitled to con- tinuation pay pursuant to section 356 of title 37. (Aug. 4, 1949, ch. 393, 63 Stat. 525, § 423; Aug. 3, 1950, ch. 536, § 23, 64 Stat. 407; Pub. L. 85–422, § 11(b), May 20, 1958, 72 Stat. 132; Pub. L. 88–132, § 5(i), Oct. 2, 1963, 77 Stat. 214; Pub. L. 92–455, § 2, Oct. 2, 1972, 86 Stat. 761; Pub. L. 96–342, title VIII, § 813(f)(2), Sept. 8, 1980, 94 Stat. 1109; Pub. L. 97–295, § 2(12), Oct. 12, 1982, 96 Stat. 1302; Pub. L. 98–94, title IX, §§ 922(b), 923(d), Sept. 24, 1983, 97 Stat. 642, 643; Pub. L. 98–557, § 15(a)(3)(A), Oct. 30, 1984, 98 Stat. 2865; Pub. L. 99–348, title II, § 205(a), July 1, 1986, 100 Stat. 699; Pub. L. 115–141, div. F, title II, § 225, Mar. 23, 2018, 132 Stat. 616; Pub. L. 115–232, div. C, title XXXV, § 3531(c)(13), Aug. 13, 2018, 132 Stat. 2320; renumbered § 2504, Pub. L. 115–282, title I, § 114(b), Dec. 4, 2018, 132 Stat. 4223.) HISTORICAL AND REVISION NOTES Based on title 14, U.S.C., 1946 ed., §§ 162a, 167, 175c, 185d (Apr. 12, 1902, ch. 501, § 9, 32 Stat. 101; Jan. 12, 1938, ch. 3, § 3, 52 Stat. 5; May 24, 1939, ch. 146, § 5, 53 Stat. 756; Feb. 21, 1946, ch. 34, § 10, 60 Stat. 29). Section was enlarged to include computation of re- tired pay in all situations. It is in accord with the pro- visions of Navy statutes. 81st Congress, House Report No. 557. Editorial Notes AMENDMENTS 2018—Pub. L. 115–282 renumbered section 423 of this title as this section. Subsec. (a)(2). Pub. L. 115–232 substituted ‘‘Com- mandant’’ for ‘‘Commandant of the Coast Guard’’. Subsec. (d). Pub. L. 115–141 added subsec. (d). 1986—Pub. L. 99–348 amended section generally. Prior to amendment, section provided that retired pay of a grade or rating would be computed at the rate of 21⁄2 percent of the sum of the basic pay of that grade or rat- ing and all permanent additions thereto including lon- gevity credit, multiplied by the number of years of service credited, with certain exceptions, and that re- tired pay of an officer or member of the Coast Guard who first became a member of a uniformed service, as defined in section 1407(a)(2) of title 10, after Sept. 7, 1980, would be computed at the rate of 21⁄2 percent of the monthly retired pay base computed under section 1407(f) of title 10, multiplied by the number of years of service credited, but that retired pay was not to be more than 75 percent of such monthly retired pay base. 1984—Subsec. (a). Pub. L. 98–557 substituted reference to enlisted member concerned for reference to enlisted man concerned. 1983—Subsec. (a). Pub. L. 98–94, § 923(d), substituted ‘‘In computing the number of years of service by which the rate of 21⁄2 percent is multiplied, each full month of service that is in addition to the number of full years of service creditable to a member is counted as one- twelfth of a year and any remaining fractional part of a month is disregarded’’ for ‘‘A fractional year of six months or more shall be considered a full year in com- puting the number of years of service by which the rate of 21⁄2 percent is multiplied’’. Pub. L. 98–94, § 922(b), inserted ‘‘Retired pay, if not a multiple of $1, shall be rounded to the next lower mul- tiple of $1.’’ 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 note under section 201 of Title 37, Pay and Allowances of the Uni- formed Services. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–422 effective June 1, 1958, see Pub. L. 85–422, § 9, May 20, 1958, 72 Stat. 130. § 2505. Limitations on retirement and retired pay (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 enti- tled 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, as appropriate. (Aug. 4, 1949, ch. 393, 63 Stat. 525, § 424; Pub. L. 98–557, § 15(a)(3)(A), Oct. 30, 1984, 98 Stat. 2865; Pub. L. 99–348, title II, § 205(b)(11), July 1, 1986, 100 Stat. 700; renumbered § 2505, Pub. L. 115–282, title I, § 114(b), Dec. 4, 2018, 132 Stat. 4223.) HISTORICAL AND REVISION NOTES The two provisions of this section are considered de- sirable as safeguards to eliminate any possible mis- construction of situations relating to retirement and retired pay in respect to the two points covered. 81st Congress, House Report No. 557. Editorial Notes AMENDMENTS 2018—Pub. L. 115–282 renumbered section 424 of this title as this section. 1986—Pub. L. 99–348 amended section generally. Prior to amendment, section read as follows: ‘‘The provisions of any section of this title shall not be construed so as to prevent any officer or enlisted member from being placed on the retired list with the highest grade or rat- ing and the highest retired pay to which such officer or enlisted member may be entitled under the provisions of any other section of this title or under the provi- sions of any other law. In no case shall the retired pay of an officer or enlisted member exceed 75 percent of the sum of the active-duty pay and all permanent addi- tions thereto, including longevity credit to which the officer or enlisted member concerned is entitled, of the grade or rating on which his pay is computed.’’ 1984—Pub. L. 98–557 substituted reference to enlisted member for reference to enlisted man in four places. § 2506. Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution Under procedures prescribed by the Secretary, the Secretary may suspend the payment of the retired pay of a member or former member dur- ing periods in which the member willfully re- mains outside the United States to avoid crimi- nal prosecution or civil liability. The procedures shall address the types of criminal offenses and civil proceedings for which the procedures may be used, including the offenses specified in sec- tion 8312 of title 5, and the manner by which a member, upon the return of the member to the United States, may obtain retired pay withheld during the member’s absence. (Added Pub. L. 107–295, title IV, § 444(a), Nov. 25, 2002, 116 Stat. 2132, § 424a; renumbered § 2506, Pub. L. 115–282, title I, § 114(b), Dec. 4, 2018, 132 Stat. 4223.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–282 renumbered section 424a of this title as this section. § 2507. Board for Correction of Military Records deadline (a) DEADLINE FOR COMPLETION OF ACTION.—The Secretary shall complete processing of an appli- cation for correction of military records under section 1552 of title 10 by not later than 10 months after the date the Secretary receives the completed application. (b) REMEDIES DEEMED EXHAUSTED.—Ten months after a complete application for correc- tion of military records is received by the Board for Correction of Military Records of the Coast Guard, administrative remedies are deemed to have been exhausted, and— (1) if the Board has rendered a recommended decision, its recommendation shall be final agency action and not subject to further re- view or approval within the department in which the Coast Guard is operating; or (2) if the Board has not rendered a rec- ommended decision, agency action is deemed to have been unreasonably delayed or withheld and the applicant is entitled to—