The U.S. Army Reserve gives retirees and veterans a stipend for their retirement. This stipend is based off of many factors, including your age, the number of "points" you accumulated during your service and the date your retired. Being able to calculate this number can help you determine how much money you will be given by the military.
Step 1
Gather all of the records of your military service to review how many points you have. Those in the reserve must earn at least 50 points every year, but no more than 90. Soldiers will earn a point for every day they are on active duty or deployed; two points each day for monthly drills; one point per day for doing two weeks of service in the summer. The military also grants points for attending Army schools, military correspondence courses and for being a member of the National Guard or Reserve.
Step 2
Determine how many points you have earned in the past. For the sake of example, let's look at a 30-year-old soldier, one who has been a member of the Reserve for nine years. Throughout these nine years, the soldier was on duty for 360 days (at one point per day), attended 14 weekend drills (at four points per weekend), took six hours of Army correspondence courses (at one point for every three course hours), is a member of the National Guard for one year (15 points), took two weeks of annual training (one point per day, or 14 points), and was deployed in Iraq for 150 days (one point per day).
Step 3
Add all of your points together. Using our example, the soldier has accumulated 597 points. Reservists are only allowed to receive money from retirement after they turn 60 years old.
Step 4
Calculate the number of points you are projected to receive until you turn 60. For our example, assume the soldier will be deployed another 600 days, in addition to earning 90 points every year for 10 years for various training activities. This will give him a total of 1,500 extra points to add to the 597 he earned previously. This will give him a total of 2,097 points to draw retirement from.
Step 5
Determine the percentage of pay that the solider will expect to earn over 20 years. The formula for this is P/360 x .025 x B. P stands for points, while B stands for retirement pay grade. Using our example, divide 2097 by 360. Multiply the result, or 5.825 by .025. This will equal about 0.14563. Our formula remains as 0.14563 x B.
Step 6
Determine the current pay scale for someone of your military level with your number of experience. Assume that the soldier has 20 years of experience and is an E-7 military level. The active pay would be $3,995.40 every month, according to Militarypay.defense.gov. Take this number and multiply it by the percentage you came up with in the aforementioned equation. For our example, multiply 0.14563 by 3,995.40. This would equal $581.85. This means that once he retires, the soldier would receive $581.85 every month.
Step 7
Understand that if you continue earning points until you turn 60, the amount that you will earn will increase drastically. The more you work and the more points you accumulate, the more money you will make as you retire.
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