
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 14USC423]

 
                          TITLE 14--COAST GUARD
 
                       PART I--REGULAR COAST GUARD
 
                          CHAPTER 11--PERSONNEL
 
                           GENERAL PROVISIONS
 
Sec. 423. Computation of retired pay

    (a)(1) The retired pay of a member who first became a member of a 
uniformed service (as defined 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 including 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 Commandant of the Coast 
Guard, retired pay under paragraph (1) shall be computed at the highest 
rate of basic pay applicable 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 member is otherwise entitled at 
the time of retirement.
    (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, 
retired 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 became a member of a 
uniformed service (as defined in section 101 of title 10) on or after 
September 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 subsection (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 addition 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.

(Aug. 4, 1949, ch. 393, 63 Stat. 525; Aug. 3, 1950, ch. 536, Sec. 23, 64 
Stat. 407; Pub. L. 85-422, Sec. 11(b), May 20, 1958, 72 Stat. 132; Pub. 
L. 88-132, Sec. 5(i), Oct. 2, 1963, 77 Stat. 214; Pub. L. 92-455, 
Sec. 2, Oct. 2, 1972, 86 Stat. 761; Pub. L. 96-342, title VIII, 
Sec. 813(f)(2), Sept. 8, 1980, 94 Stat. 1109; Pub. L. 97-295, 
Sec. 2(12), Oct. 12, 1982, 96 Stat. 1302; Pub. L. 98-94, title IX, 
Secs. 922(b), 923(d), Sept. 24, 1983, 97 Stat. 642, 643; Pub. L. 98-557, 
Sec. 15(a)(3)(A), Oct. 30, 1984, 98 Stat. 2865; Pub. L. 99-348, title 
II, Sec. 205(a), July 1, 1986, 100 Stat. 699.)


                      Historical and Revision Notes

    Based on title 14, U.S.C., 1946 ed., Secs. 162a, 167, 175c, 185d 
(Apr. 12, 1902, ch. 501, Sec. 9, 32 Stat. 101; Jan. 12, 1938, ch. 3, 
Sec. 3, 52 Stat. 5; May 24, 1939, ch. 146, Sec. 5, 53 Stat. 756; Feb. 
21, 1946, ch. 34, Sec. 10, 60 Stat. 29).
    Section was enlarged to include computation of retired pay in all 
situations. It is in accord with the provisions of Navy statutes. 81st 
Congress, House Report No. 557.


                               Amendments

    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 2\1/2\ percent of the sum of the basic pay of that grade 
or rating and all permanent additions thereto including longevity 
credit, multiplied by the number of years of service credited, with 
certain exceptions, and that retired 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 2\1/2\ 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, Sec. 923(d), substituted ``In 
computing the number of years of service by which the rate of 2\1/2\ 
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 computing the number of years of service by 
which the rate of 2\1/2\ percent is multiplied''.
    Pub. L. 98-94, Sec. 922(b), inserted ``Retired pay, if not a 
multiple of $1, shall be rounded to the next lower multiple of $1.''
    1982--Subsec. (b). Pub. L. 97-295 substituted ``after September 7, 
1980'' for ``on or after the date of the enactment of the Department of 
Defense Authorization Act, 1981''.
    1980--Pub. L. 96-342 designated existing provisions as subsec. (a), 
substituted ``Except as provided in subsection (b), the'' for ``The'', 
and added subsec. (b).
    1972--Pub. L. 92-455 provided for computation of retired 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 computation of pay 
of retired personnel retired by reason of physical disability.


                    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 Uniformed Services.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-422 effective June 1, 1958, see section 9 of 
Pub. L. 85-422.

                  Section Referred to in Other Sections

    This section is referred to in sections 288, 357 of this title; 
title 10 section 1406.
