Military Forcing Some Officers to Retire with Enlisted Pay

Reduced Pension for Enlisted Vs. Officer:
Here is a sample based on an E-7 pay grade and O-3E at 20 years service (7 as an officer)*.

– Enlisted Base Pay (E-7, 18-20 years service): $4,323.90
– Enlisted Retirement: $2,161.95
– Officer Base Pay (O3-E, 18-20 years service): $6,726.00
– Officer Retirement: $3,363.00
– Difference: $1,201.05 per month

As you can see, there is a large difference – an approximate cut of 35%.

*These numbers are actually rough estimates. High-3 rules average the pay for the last 3 years of service at the highest grade held. So it would be an average of these salaries and the preceding two years.

The primary benefit these servicemembers received for being officers was increased pay while they were officers (increased base pay and BAH, however they had reduced BAS and were required to pay for all uniforms out of pocket).

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