---
kind: "section"
citation: "10 U.S.C. § 1415"
title: "10"
title_heading: "Armed Forces"
number: "1415"
heading: "Lump sum payment of certain retired pay"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/1415"
units:
  - "Subtitle A — General Military Law"
  - "Part II — Personnel"
  - "Chapter 71 — Computation of Retired Pay"
---

# §1415. Lump sum payment of certain retired pay

- (a) **Definitions.—** In this section:
  - (1) **Covered retired pay.—** The term “covered retired [pay](/usc/10/101.md?p=a-15)” means retired [pay](/usc/10/101.md?p=a-15) under—
    - (A) this title;
    - (B) [title 14](/usc/14.md);
    - (C) the National Oceanic and Atmospheric Administration [Commissioned Officer](/usc/10/101.md?p=b-2) Corps Act of 2002 ([33 U.S.C. 3001](/usc/33/3001.md) et seq.); or
    - (D) the Public Health Service Act ([42 U.S.C. 201](/usc/42/201.md) et seq.).
  - (2) **Eligible person.—** The term “eligible [person](/usc/10/2700.md?p=2)” means a [person](/usc/10/2700.md?p=2) who—
    - (A)
      - (i) first becomes a member of a uniformed service on or after January 1, 2018; or
      - (ii) makes the election described in section [1409(b)(4)(B)](/usc/10/1409.md?p=b-4-B) or [12739(f)(2)](/usc/10/12739.md?p=f-2) of this title; and
    - (B) does not retire or separate under [chapter 61](/usc/10/chstA/ptII/ch61.md) of this title.
  - (3) **Retirement age.—** The term “retirement age” has the meaning given the term in section 216(l) of the Social Security Act ([42 U.S.C. 416(l)](/usc/42/416.md?p=l)).
- (b) **Election of Lump Sum Payment of Certain Retired Pay.—**
  - (1) **In general.—** An eligible [person](/usc/10/2700.md?p=2) entitled to covered retired [pay](/usc/10/101.md?p=a-15) (including an eligible [person](/usc/10/2700.md?p=2) who is entitled to such [pay](/usc/10/101.md?p=a-15) by reason of an election described in [subsection (a)(2)(A)(ii)](#a-2-A-ii)) may elect to receive—
    - (A) a lump sum payment of the discounted present value at the time of the election of an amount of the covered retired [pay](/usc/10/101.md?p=a-15) that the eligible [person](/usc/10/2700.md?p=2) is otherwise entitled to receive for the period beginning on the date of retirement and ending on the date the eligible [person](/usc/10/2700.md?p=2) attains the eligible [person](/usc/10/2700.md?p=2)’s retirement age equal to—
      - (i) 50 percent of the amount of such covered retired [pay](/usc/10/101.md?p=a-15) during such period; or
      - (ii) 25 percent of the amount of such covered retired [pay](/usc/10/101.md?p=a-15) during such period; and
    - (B) a monthly amount during the period described in [subparagraph (A)](#b-1-A) equal to—
      - (i) in the case of an eligible [person](/usc/10/2700.md?p=2) electing to receive an amount described in [subparagraph (A)(i)](#b-1-A-i), 50 percent of the amount of monthly covered retired [pay](/usc/10/101.md?p=a-15) the eligible [person](/usc/10/2700.md?p=2) is otherwise entitled to receive during such period; and
      - (ii) in the case of an eligible [person](/usc/10/2700.md?p=2) electing to receive an amount described in [subparagraph (A)(ii)](#b-1-A-ii), 75 percent of the amount of monthly covered retired [pay](/usc/10/101.md?p=a-15) the eligible [person](/usc/10/2700.md?p=2) is otherwise entitled to receive during such period.
  - (2) **Discounted present value.—** The [Secretary](/usc/10/4951.md?p=3) of Defense shall compute the discounted present value of amounts of covered retired [pay](/usc/10/101.md?p=a-15) that an eligible [person](/usc/10/2700.md?p=2) is otherwise entitled to receive for a period for purposes of [paragraph (1)(A)](#b-1-A) by—
    - (A) estimating the aggregate amount of retired [pay](/usc/10/101.md?p=a-15) the [person](/usc/10/2700.md?p=2) would receive for the period, taking into account cost-of-living adjustments under [section 1401a of this title](/usc/10/1401a.md) projected by the [Secretary](/usc/10/4951.md?p=3) at the time the [person](/usc/10/2700.md?p=2) separates from service and would otherwise begin receiving covered retired [pay](/usc/10/101.md?p=a-15); and
    - (B) reducing the aggregate amount estimated pursuant to [subparagraph (A)](#b-2-A) by an appropriate percentage determined by the [Secretary](/usc/10/4951.md?p=3)—
      - (i) using average personal discount [rates](/usc/10/101.md?p=b-9) (as defined and calculated by the [Secretary](/usc/10/4951.md?p=3) taking into consideration applicable and reputable studies of personal discount [rates](/usc/10/101.md?p=b-9) for [military](/usc/10/801.md?p=8) personnel and past actuarial experience in the calculation of personal discount [rates](/usc/10/101.md?p=b-9) under this paragraph); and
      - (ii) in accordance with generally accepted actuarial principles and practices.
  - (3) **Timing of election.—** An eligible [person](/usc/10/2700.md?p=2) shall make the election under this subsection not later than 90 days before the date of the retirement of the eligible [person](/usc/10/2700.md?p=2) from the [uniformed services](/usc/10/1072.md?p=1).
  - (4) **Single payment or combination of payments.—** An eligible [person](/usc/10/2700.md?p=2) may elect to receive a lump sum payment under this subsection in a single payment or in a combination of payments.
  - (5) **Commencement of payment.—** An eligible [person](/usc/10/2700.md?p=2) who makes an election under this subsection shall receive the lump sum payment, or the first installment of a combination of payments of the lump sum payment if elected under [paragraph (4)](#b-4), as follows:
    - (A) Not later than 60 days after the date of the retirement of the eligible [person](/usc/10/2700.md?p=2) from the [uniformed services](/usc/10/1072.md?p=1).
    - (B) In the case of an eligible [person](/usc/10/2700.md?p=2) who is a member of a [reserve](/usc/10/101.md?p=c-6) [component](/usc/10/3011.md?p=13), not later than 60 days after the earlier of—
      - (i) the date on which the eligible [person](/usc/10/2700.md?p=2) attains 60 years of age; or
      - (ii) the date on which the eligible [person](/usc/10/2700.md?p=2) first becomes entitled to covered retired [pay](/usc/10/101.md?p=a-15).
  - (6) **No subsequent adjustment.—** An eligible [person](/usc/10/2700.md?p=2) who accepts payment of a lump sum under this subsection may not seek the review of or otherwise challenge the amount of the lump sum in light of any variation in cost-of-living adjustments under [section 1401a of this title](/usc/10/1401a.md), actuarial assumptions, or other factors used by the [Secretary](/usc/10/4951.md?p=3) in calculating the amount of the lump sum that occur after the [Secretary](/usc/10/4951.md?p=3) [pays](/usc/10/101.md?p=a-15) the lump sum.
- (c) **Resumption of Monthly Annuity.—**
  - (1) **General rule.—** Subject to [paragraph (2)](#c-2), an eligible [person](/usc/10/2700.md?p=2) who makes an election described in [subsection (b)(1)](#b-1) shall be entitled to receive the eligible [person](/usc/10/2700.md?p=2)’s monthly covered retired [pay](/usc/10/101.md?p=a-15) calculated in accordance with [paragraph (2)](#c-2) after the eligible [person](/usc/10/2700.md?p=2) attains the eligible [person](/usc/10/2700.md?p=2)’s retirement age.
  - (2) **Restoration of full retirement amount at retirement age.—** The retired [pay](/usc/10/101.md?p=a-15) of an eligible [person](/usc/10/2700.md?p=2) who makes an election described in [subsection (a)](#a) shall be recomputed, effective on the first day of the first month beginning after the [person](/usc/10/2700.md?p=2) attains the eligible [person](/usc/10/2700.md?p=2)’s retirement age, so as to be an amount equal to the amount of covered retired [pay](/usc/10/101.md?p=a-15) to which the eligible [person](/usc/10/2700.md?p=2) would otherwise be entitled on that date if the annual increases, in the retired [pay](/usc/10/101.md?p=a-15) of the eligible [person](/usc/10/2700.md?p=2) made to reflect changes in the Consumer Price Index, had been made in accordance with [section 1401a of this title](/usc/10/1401a.md).
- (d) **Payment of Retired Pay to Persons Not Making Election.—** An eligible [person](/usc/10/2700.md?p=2) who does not make the election described in [subsection (b)(1)](#b-1) shall be paid the retired [pay](/usc/10/101.md?p=a-15) to which the eligible [person](/usc/10/2700.md?p=2) is otherwise entitled under the applicable provisions of law referred to in [subsection (a)(1)](#a-1).
- (e) **Regulations.—** The [Secretary](/usc/10/4951.md?p=3) of Defense shall prescribe regulations to carry out the provisions of this section.

## Source credit

(Added Pub. L. 114–92, div. A, title VI, § 633(a)(1), Nov. 25, 2015, 129 Stat. 847; amended Pub. L. 114–328, div. A, title X, § 1081(a)(4), Dec. 23, 2016, 130 Stat. 2417; Pub. L. 115–232, div. A, title X, § 1081(a)(14), Aug. 13, 2018, 132 Stat. 1984.)

## Notes

### Editorial Notes

### References in Text

The National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002, referred to in subsec. (a)(1)(C), is title II of Pub. L. 107–372, Dec. 19, 2002, 116 Stat. 3082, which is classified principally to chapter 43 (§ 3001 et seq.) of Title 33, Navigation and Navigable Waters. For complete classification of this Act to the Code, see Short Title note set out under section 3001 of Title 33 and Tables.

The Public Health Service Act, referred to in subsec. (a)(1)(D), is act July 1, 1944, ch. 373, 58 Stat. 682, which is classified generally to chapter 6A (§ 201 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 201 of Title 42 and Tables.

### Amendments

2018—Subsec. (e). Pub. L. 115–232 struck out “concerned” after “The Secretary of Defense”.

2016—Subsec. (b)(1)(B)(ii). Pub. L. 114–328 inserted period at end.

### Statutory Notes and Related Subsidiaries

### Effective Date; Implementation

Section effective Jan. 1, 2018, with certain implementation requirements, see section 635 of Pub. L. 114–92, set out as an Effective Date of 2015 Amendment; Implementation note under section 8432 of Title 5, Government Organization and Employees.