Entitlement to Increase in Retired Pay

An advanced decision was requested as to the propriety of making payment on a voucher in favor of an Air Force member. The record indicated that the member was retired in the grade of senior master sergeant. His retired pay was initially computed based on the pay rates in effect at the time of his retirement, May 1958. Beginning October, 1963, his retired pay was increased by the rate of basic pay that became effective on that date under new legislation. Effective April, 1973, the member became entitled to be advanced on the retired list to the highest temporary grade held on active duty with his retired pay recomputed. The voucher in question represented the difference in the member's retired pay for the period of April through August, 1973, based on the rates of active duty effective June, 1958, and the higher rates effective October, 1963, as recomputed at the grade of second lieutenant to which the member was advanced. The statute authorizing the recomputation of the member's retired pay as a second lieutenant provides generally that a member of the Air Force who is advanced on to the retired list is entitled to recompute his retired pay by multiplying his years of service by 2.5 percent of the monthly basic pay of the grade to which he is advanced. While legislation authorized recomputation of the member's retired pay in his enlisted grade effective October, 1963, based on the new rates of basic pay prescribed, those rates were not in effect on the date of his retirement, nor was the recomputation authorized made retroactive to the date of his retirement. Accordingly, the voucher was not to be authorized for payment.