Understanding the Military High-3 Retirement System
The High-3 retirement system is a popular retirement plan for members of the U.S. military who entered service on or after September 8, 1980, and have completed at least 20 years of active duty service. It is designed to provide a predictable and stable retirement income based on a member's years of service and their highest average basic pay.
How the High-3 System Works
The calculation for High-3 retirement pay is straightforward:
Years of Service Multiplier: The percentage of your retirement pay is determined by the number of years you have served on active duty. The basic formula uses 2.5% for each year of service.
Highest 36 Months Average Basic Pay: This is the average of your basic pay over the highest-earning 36 consecutive months of your career. Basic pay is determined by your rank and years of service. Note that this does not include allowances or special pays.
The Calculation Formula
The monthly retirement pay is calculated as follows:
Monthly Retirement Pay = (Years of Service x 2.5%) x Average of Highest 36 Months Basic Pay
For example, if a service member has 25 years of service and their highest 36-month average basic pay was $5,500 per month:
Multiplier: 25 years x 2.5% = 62.5%
Monthly Retirement Pay: 62.5% of $5,500 = 0.625 x $5,500 = $3,437.50
This calculated amount is the base for your monthly retired pay. Keep in mind that Cost of Living Adjustments (COLAs) may be applied annually to this amount in future years.
Important Considerations
Minimum Service: You must complete at least 20 years of qualifying service to be eligible for retirement pay under the High-3 system.
Basic Pay Only: The calculation is based strictly on basic pay. Allowances (like BAS, BAH) and special pays (like flight pay, hazardous duty pay) are not included in the calculation of your retirement annuity, though they do affect your take-home pay while on active duty.
Retirement Date: The system is named "High-3" because it considers the average of the highest 36 months of basic pay.
This calculator provides an estimate based on the standard High-3 formula. For precise figures, consult official military pay charts and your service branch's retirement specialists.
function calculateRetirementPay() {
var yearsOfServiceInput = document.getElementById("yearsOfService");
var high3AverageInput = document.getElementById("high3Average");
var resultValueSpan = document.getElementById("result-value");
var yearsOfService = parseFloat(yearsOfServiceInput.value);
var high3Average = parseFloat(high3AverageInput.value);
if (isNaN(yearsOfService) || isNaN(high3Average)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (yearsOfService < 20) {
alert("You must have at least 20 years of service to be eligible for retirement pay under the High-3 system.");
resultValueSpan.textContent = "$0.00";
return;
}
if (high3Average <= 0) {
alert("The average of the highest 36 months of basic pay must be a positive number.");
resultValueSpan.textContent = "$0.00";
return;
}
var multiplier = yearsOfService * 0.025;
var retirementPay = multiplier * high3Average;
resultValueSpan.textContent = "$" + retirementPay.toFixed(2);
}