Navy Retirement
Navy retirement pay = multiplier × High-3 (or final) basic pay only — BAH, BAS, sea pay, and other special/incentive pays are excluded. A 20-year High-36 retirement pays 50% of High-3; a 20-year BRS retirement pays 40% of High-3 plus a 5% TSP government match.
Reviewed by Jonathan Teplitsky · Updated August 2026
Which system applies to you
Your system is locked by your Date of Initial Entry to military service, not by rate, rank, or designator:
- DOR before Sep 8, 1980 — Final Pay. 50% of final basic pay at 20 years, +2.5%/yr add'l, max 75%.
- DOR Sep 8, 1980 - Jul 31, 1986 — High-36. 50% of High-3 at 20 years, +2.5%/yr.
- DOR Aug 1, 1986 - Dec 31, 2017 — High-36 with REDUX/CSB option. Most Sailors declined the REDUX/bonus trade.
- DOR Jan 1, 2018+ — BRS only. 40% at 20 yr + TSP match up to 5%.
- Opt-in: Sailors with <12 years on Dec 31, 2017 had a 2018 BRS opt-in window.
The Fleet Reserve — a Navy-specific status, not a pay difference
Enlisted Sailors who complete 20 but fewer than 30 years of service do not go straight to the retired list the way officers and 30-year enlisted retirees do. Under 10 U.S.C. Chapter 573, they transfer to the Fleet Reserve and draw retainer pay instead of retired pay, computed with the same multiplier and High-3 formula above. At 30 total years of combined active and Fleet Reserve service, they transfer automatically to the retired list and the payment is reclassified as retired pay. The distinction is legal and administrative — the monthly amount, COLA treatment, and taxation are the same either way — but it affects reemployment rules, recall eligibility, and how the payment appears on some benefit determinations. This status is unique to the Navy and Marine Corps; other branches send 20-year enlisted retirees straight to the retired list.
Worked examples
Navy E-7 retiring at 20 years, High-3 $60,000:
- High-36 (or Fleet Reserve retainer pay): 50% × $60,000 = $30,000/yr ($2,500/mo)
- BRS: 40% × $60,000 = $24,000/yr ($2,000/mo) + TSP from 5% match
Navy O-4 retiring at 22 years, High-3 $110,000:
- High-36: 55% × $110,000 = $60,500/yr
- BRS: 44% × $110,000 = $48,400/yr + TSP
Run your own scenario with the military retirement calculator against the current Navy pay chart.
Nuclear and critical-skill retention pay
Nuclear-trained officers and enlisted Sailors (submarine and carrier nuclear programs) are eligible for retention bonuses and, under BRS, a Continuation Pay multiple set annually by the Navy that is typically higher for nuclear-designated ratings and designators than the DoD-wide baseline, reflecting the Navy's retention priorities in those communities. The multiple changes yearly — confirm the current-year figure with your detailer or BUPERS before counting on a specific number.
COLA, SBP, VA Disability
Retired and Fleet Reserve retainer pay both receive the annual CPI-W COLA. SBP at retirement: 6.5% premium, 55% to spouse — see the SBP guide.
VA disability transition: CRDP restores the offset automatically at VA rating ≥50% (taxable); CRSC restores the offset for combat-related disabilities at any rating (tax-free, application required). Use the CRSC/CRDP calculator and read concurrent receipt for the full rules.
Buy-back and Reserve retirement
Sailors can credit prior active duty, prior reserve time, and certain federal civilian service toward retirement. Reserve points convert at a defined rate; federal civilian service requires a deposit.
Federal income tax applies to retired and Fleet Reserve retainer pay, and state treatment varies widely — see how retirement pay is taxed by state.
Navy Reserve: points-based, retired pay starts at age 60. Qualifying active service after Jan 28, 2008 reduces the age-60 start by 90 days per 90 days served. Going through a divorce? USFSPA governs how a state court can divide retired or retainer pay.
Sources
DFAS Retired Military, Navy Personnel Command.