[Query Concerning Appropriate Rate for Computation of Retired Pay]

The Air Force requested a decision as to the proper basis for computing a former member's retired pay. The member held the position of chief master sergeant, but entered terminal leave status prior to his retirement and received a demotion for that period. The member noted that regulations allowed him to receive retired pay at the current rate for the chief master sergeant which had increased during his terminal leave. The Air Force argued that his retired pay may only be computed using the pay rate applicable during his tour. GAO concurred with the Air Force view and stated that, once he commenced terminal leave, the member was no longer a chief master sergeant and he was not affected by any subsequent pay rate increases. Accordingly, the member was not entitled to compute his retired pay using the higher rate.