2007 National Defense Authorization Act (NDAA) Military Retired Pay Changes

1. PURPOSE. TO ANNOUNCE THE RECENT CHANGES TO THE 
UNIFORMED RETIRED PAY CHANGES RESULTING FROM NDAA 2007. 
2. REF A AMENDS SECTIONS 1409 AND 12739 OF TITLE 10, UNITED STATES 
CODE. REF B PUBLISHES DEPARTMENT OF DEFENSE POLICY REQUIRED FOR 
IMPLEMENTATION OF SECTION 642.
3. EFFECTIVE 1 OCT 06, THE STATUTORY CAP FOR GENERAL AND FLAG 
OFFICERS IS REMOVED FOR THE PURPOSES OF CALCULATING RETIREMENT PAY.
THE RETIRED PAY BASE FOR DETERMINING RETIRED PAY OF GENERAL AND 
FLAG OFFICERS SHALL BE CALCULATED USING THE RATE OF BASIC PAY 
STATED ON THE MILITARY PAY TABLE FOR THE MONTH AND YEAR OF 
RETIREMENT. FOR EXAMPLE, AN O10 RETIRES ON 1 JAN 07. WHILE ON 
ACTIVE DUTY BASE PAY IS CAPPED AT $12,945.33 PER MONTH. BECAUSE 
THE CAP HAS BEEN REMOVED, THE BASE PAY USED FOR RETIREMENT WILL BE 
WHAT IS ACTUALLY STATED ON THE PAY TABLE, $14,508.60.
4. EFFECTIVE 1 JAN 07 THE 75% LIMITATION ON THE MULTIPLIER USED TO 
COMPUTE THE RETIRED PAY OF CERTAIN MEMBERS OF THE UNIFORMED 
SERVICES IS REMOVED. THIS CHANGE IS APPLICABLE TO ALL 
NON-DISABILITY REGULAR SERVICE AND RESERVE COMPONENT OFFICERS AND 
ENLISTED MEMBERS WHO INITIALLY RETIRE WITH MORE THAN 30 YEARS OF 
CREDITABLE SERVICE ON OR AFTER 1 JAN 07. THE MULTIPLIER INCREASES 
AT THE RATE OF 2.5% FOR EACH ADDITIONAL YEAR OF SERVICE.
5. EFFECTIVE 1 APR 07 THE 40 YEAR PAY TABLE REPLACES THE 26 YEAR 
PAY TABLE. MEMBERS RETIRING WITH MORE THAN 26 YEARS OF SERVICE ARE 
ENTITLED TO ANY LONGEVITY PAY INCREASE THAT MAY BE INCURRED BASED 
ON THE 40 YEAR PAY TABLE.
6. THESE CHANGES DO NOT AMEND THAT STATUTORY AUTHORITIES RELATED 
TO CREDIT FOR EXTRAORDINARY HEROISM OR RETIREMENT FOR PHYSICAL 
DISABILITY. MEMBERS ELIGIBLE FOR THE ABOVE RETIREMENTS ARE CAPPED 
AT 75%. THESE CHANGES DO NOT CHANGE MEMBER SERVICE LIMITATIONS AS 
ESTABLISHED IN REF C.
7. RESERVE MEMBERS ELIGIBLE FOR A NON-REGULAR SERVICE RETIREMENT 
ARE ENTITLED TO 2.5% PER YEAR FOR THE TOTAL YEARS OF SERVICE 
(PRORATED FOR FULL MONTHS) AS PER SECTION 12739 OF TITLE 10, UNITED 
STATES CODE. 
8. MEMBERS RETIRED AND RECALLED TO ACTIVE DUTY WHO SERVE ON ACTIVE 
DUTY FOR 2 CONTINUOUS YEARS AND SERVING ON ACTIVE DUTY ON OR AFTER
1 JAN 07 MAY RECOMPUTE RETIRED PAY USING THE CURRENT PAY TABLE 
AMOUNTS. 
9. MEMBERS WITH A RETIREMENT DATE SCHEDULED PRIOR TO 1 APR 07 MAY 
REQUEST A CHANGE IN RETIREMENT VIA MMSR. REQUESTS WILL BE REVIEWED 
A DETERMINATION WILL BE MADE BASED ON THE NEEDS OF THE MARINE CORPS.
10. THIS MARADMIN IS APPLICABLE TO THE TOTAL FORCE.