---
kind: "section"
citation: "10 U.S.C. § 638b"
title: "10"
title_heading: "Armed Forces"
number: "638b"
heading: "Voluntary retirement incentive"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/638b"
units:
  - "Subtitle A — General Military Law"
  - "Part II — Personnel"
  - "Chapter 36 — Promotion, Separation, and Involuntary Retirement of Officers on the Active-Duty List"
  - "Subchapter IV — Continuation on Active Duty and Selective Early Retirement"
---

# §638b. Voluntary retirement incentive

- (a) **Incentive for Voluntary Retirement for Certain Officers.—** The [Secretary](/usc/10/4951.md?p=3) of Defense may authorize the [Secretary](/usc/10/4951.md?p=3) of a [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) to provide a voluntary retirement incentive payment in accordance with this section to an [officer](/usc/10/101.md?p=b-1) of the [armed forces](/usc/10/101.md?p=a-4) under that [Secretary](/usc/10/4951.md?p=3)’s jurisdiction who is specified in [subsection (c)](#c) as being eligible for such a payment.
- (b) **Limitations.—**
  - (1) Any authority provided the [Secretary](/usc/10/4951.md?p=3) of a [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) under this section shall expire as specified by the [Secretary](/usc/10/4951.md?p=3) of Defense, but not later than December 31, 2018.
  - (2) The total number of [officers](/usc/10/101.md?p=b-1) who may be provided a voluntary retirement incentive payment under this section may not exceed 675 [officers](/usc/10/101.md?p=b-1).
- (c) **Eligible Officers.—**
  - (1) Except as provided in [paragraph (2)](#c-2), an [officer](/usc/10/101.md?p=b-1) of the [armed forces](/usc/10/101.md?p=a-4) is eligible for a voluntary retirement incentive payment under this section if the [officer](/usc/10/101.md?p=b-1)—
    - (A) has served on [active duty](/usc/10/101.md?p=d-1) for more than 20 years, but not more than 29 years, on the approved date of retirement;
    - (B) meets the minimum length of commissioned service requirement for voluntary retirement as a [commissioned officer](/usc/10/101.md?p=b-2) in accordance with section [7311](/usc/10/7311.md), [8323](/usc/10/8323.md), or [9311](/usc/10/9311.md) of this title, as applicable to that [officer](/usc/10/101.md?p=b-1);
    - (C) on the approved date of retirement, has 12 months or more remaining on active-duty service before reaching the maximum retirement years of [active service](/usc/10/101.md?p=d-3) for the member’s [grade](/usc/10/101.md?p=b-7) as specified in section [633](/usc/10/633.md) or [634](/usc/10/634.md) of this title;
    - (D) on the approved date of retirement, has 12 months or more remaining on active-duty service before reaching the maximum retirement age under any other provision of law; and
    - (E) meets any additional requirements for such eligibility as is specified by the [Secretary concerned](/usc/10/2801.md?p=c-5), including any requirement relating to years of service, skill [rating](/usc/10/101.md?p=b-9), [military](/usc/10/801.md?p=8) specialty or competitive category, [grade](/usc/10/101.md?p=b-7), any remaining period of obligated service, or any combination thereof.
  - (2) The following [officers](/usc/10/101.md?p=b-1) are not eligible for a voluntary retirement incentive payment under this section:
    - (A) An [officer](/usc/10/101.md?p=b-1) being evaluated for disability under [chapter 61](/usc/10/chstA/ptII/ch61.md) of this title.
    - (B) An [officer](/usc/10/101.md?p=b-1) projected to be retired under section [1201](/usc/10/1201.md) or [1204](/usc/10/1204.md) of this title.
    - (C) An [officer](/usc/10/101.md?p=b-1) projected to be discharged with disability severance [pay](/usc/10/101.md?p=a-15) under [section 1212 of this title](/usc/10/1212.md).
    - (D) A member transferred to the temporary disability retired list under section [1202](/usc/10/1202.md) or [1205](/usc/10/1205.md) of this title.
    - (E) An [officer](/usc/10/101.md?p=b-1) subject to pending disciplinary action or subject to administrative separation or mandatory discharge under any other provision of law or regulation.
- (d) **Amount of Payment.—** The amount of the voluntary retirement incentive payment paid an [officer](/usc/10/101.md?p=b-1) under this section shall be an amount determined by the [Secretary concerned](/usc/10/2801.md?p=c-5), but not to exceed an amount equal to 12 times the amount of the [officer](/usc/10/101.md?p=b-1)’s monthly basic [pay](/usc/10/101.md?p=a-15) at the time of the [officer](/usc/10/101.md?p=b-1)’s retirement. The amount may be paid in a lump sum at the time of retirement.
- (e) **Repayment for Members Who Return to Active Duty.—**
  - (1) Except as provided in [paragraph (2)](#e-2), a member of the [armed forces](/usc/10/101.md?p=a-4) who, after having received all or part of a voluntary retirement incentive under this section, returns to [active duty](/usc/10/101.md?p=d-1) shall have deducted from each payment of basic [pay](/usc/10/101.md?p=a-15), in such schedule of monthly installments as the [Secretary concerned](/usc/10/2801.md?p=c-5) shall specify, until the total amount deducted from such basic [pay](/usc/10/101.md?p=a-15) equals the total amount of voluntary retirement incentive received.
  - (2) Members who are involuntarily recalled to [active duty](/usc/10/101.md?p=d-1) or [full-time National Guard duty](/usc/10/101.md?p=d-5) under any provision of law shall not be subject to this subsection.
  - (3) The [Secretary](/usc/10/4951.md?p=3) of Defense may waive, in whole or in part, repayment required under [paragraph (1)](#e-1) if the [Secretary](/usc/10/4951.md?p=3) determines that recovery would be against equity and good conscience or would be contrary to the best interest of the [United States](/usc/10/101.md?p=a-1). The authority in this paragraph may be delegated only to the Under [Secretary](/usc/10/4951.md?p=3) of Defense for Personnel and Readiness and the Principal Deputy Under [Secretary](/usc/10/4951.md?p=3) of Defense of Personnel and Readiness.

## Source credit

(Added Pub. L. 112–81, div. A, title V, § 504(a)(1), Dec. 31, 2011, 125 Stat. 1389; amended Pub. L. 115–232, div. A, title VIII, § 809(a), Aug. 13, 2018, 132 Stat. 1840.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (c)(1)(B). Pub. L. 115–232 substituted “section 7311, 8323, or 9311” for “section 3911, 6323, or 8911”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.