[Decision Concerning Calculation of Former Air Force Member's Retirement Pay Following Reduction in Grade]

The Air Force requested a decision regarding the proper computation of retired pay for a member who was reduced in grade pursuant to a court-martial sentence. GAO held that, since the member held a higher grade at the time he became eligible for retirement, the Air Force should compute his retired pay based on that grade. Accordingly, the Air Force should compute the retired member's pay based on his grade before the court-martial sentence.