10 USC 12739 - Computation of retired pay

(a) The monthly retired pay of a person entitled to that pay under this chapter is the product of
(1) the retired pay base for that person as computed under section 1406 (b)(2) or 1407 of this title; and
(2) 21/2 percent of the years of service credited to that person under section 12733 of this title.
(b) If a person entitled to retired pay under this chapter has been credited by the Secretary concerned with extraordinary heroism in the line of duty and if the highest grade held satisfactorily by that person at any time in the armed forces is an enlisted grade, the persons retired pay shall be increased by 10 percent of the amount determined under subsection (a). The Secretarys determination as to extraordinary heroism is conclusive for all purposes.

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(c) 
(1) Except as provided in paragraph (2), the total amount of the monthly retired pay computed under subsections (a) and (b) may not exceed 75 percent of the retired pay base upon which the computation is based.
(2) In the case of a person who retires after December 31, 2006, with more than 30 years of service credited to that person under section 12733 of this title, the total amount of the monthly retired pay computed under subsections (a) and (b) may not exceed the sum of
(A) 75 percent of the retired pay base upon which the computation is based; and
(B) the product of
(i) the retired pay base upon which the computation is based; and
(ii) 21/2 percent of the years of service credited to that person under section 12733 of this title, for service under conditions authorized for purposes of this paragraph during a period designated by the Secretary of Defense for purposes of this paragraph.
(d) Amounts computed under this section, if not a multiple of $1, shall be rounded down to the next lower multiple of $1.