Military Retirement Pay
Active duty retired pay under BRS, High-3, and legacy CSB/REDUX — how your multiplier is calculated and what to expect.
The three retirement systems
Which system applies to you depends entirely on when you entered service:
High-3 pay examples
| Years | Multiplier | E-7 (~$4,700/mo) | O-5 (~$8,100/mo) |
|---|---|---|---|
| 20 yrs | 50% | $2,350 | $4,050 |
| 22 yrs | 55% | $2,585 | $4,455 |
| 24 yrs | 60% | $2,820 | $4,860 |
| 26 yrs | 65% | $3,055 | $5,265 |
| 30 yrs | 75% | $3,525 | $6,075 |
Estimates based on approximate 2025 pay tables. Actual High-3 uses the average of your highest 36 consecutive months, not your final month's pay.
When pay starts
Active duty retirees receive their first retired pay on the first business day of the month following retirement. DFAS processes the first payment manually, which can take 30–60 days. You will receive a retroactive payment for the delay.
Retired pay is taxable as ordinary income at the federal level. Most states exempt all or a portion of military retired pay — check your state's rules.
SBP — protecting your survivors
The Survivor Benefit Plan (SBP) allows retirees to elect a percentage of retired pay to continue to a surviving spouse or dependents. The standard election is 55% at a cost of 6.5% of gross retired pay. You must make this election at retirement — your spouse must consent in writing to declining it.
VA disability and retired pay (CRDP / CRSC)
Retirees with a VA disability rating may be eligible for programs that allow you to receive both full retired pay and VA compensation:
- CRDP (Concurrent Retirement & Disability Pay): Phases in for retirees with 20+ years and a combined VA rating of 50%+
- CRSC (Combat-Related Special Compensation): For combat-related disabilities. Available at any rating, but must be separately applied for with your branch