The 2007 National Defense Authorization Act (NDAA), authorizes the employment of retired Guard and Reserve members who are not yet receiving retirement benefits (i.e., "gray area" retirees) as JROTC instructors.
Minimum qualifications for retired gray-area members:
Be retired within the past 5 years or less with 20 “good years” of service and possess a DD Form 214/NGB Form 22; ANG/USAFR Point Credit Summary (AF Form 526)
Retire with at least 3600 retirement points
Meet all other instructor prerequisites listed under the Instructor Application link
Instructor Salary:
As a minimum, schools employing AFJROTC instructors must pay a minimum instructor salary and guarantee at least a 10 month of year employment contract. Minimum instructor salary for "gray area" retirees is calculated the same as for active duty retirees of the same rank and years of service. For purposes of determining the relevant level of retired pay and active duty pay and allowance for gray area retirees, each 365 day period that a gray area retiree served as a member of the Reserve of National Guard will be counted as equivalent to a full year of active duty service, without regard to the number of accumulated points or any other considerations that go into calculating the actual retirement pay of these personnel at age 60.
1. Minimum instructor salary is calculated based on the difference between the active duty pay and allowance which the member would receive if called to active duty less the amount of retired pay an active duty officer of noncommissioned officer of the same grade and years of service would receive.
2. Active Duty Pay: Active duty Pay and Allowances are based on the Defense Finance and Accounting Service (DFAS) current year Military Pay Tables as follows:
a. Basic pay.
b. Basic Allowance for Housing (based upon zip code of school)
c. Allowance for CONUS cost of living (if applicable)
d. Allowance for overseas housing (if applicable)
e. Allowance for overseas cost of living (if applicable)
f. Allowance for uniforms (enlisted only)
g. Basic Allowance for subsistence
3. Determine minimum instructor salary by subtracting the applicable calculated retirement pay from active duty pay totals based on creditable service.
NOTE: A school district may not compensate a JROTC instructor less than the difference between active duty pay less calculated retirement for either a gray area or active duty retiree. However, the district may choose to compensate a JROTC instructor more than the difference between active duty pay and retirement pay. Salary above the difference between active duty pay and retirement pay is not guaranteed and is negotiated between the applicant and the school district.
(*Years of service defined as total of active duty and inactive duty military service as reflected on the member’s AF Form 526, Point Credit Summary, DD Form 214 or NGB Form 22.)
EXAMPLE: MIP Calculation (per month) - 0-5 RANK w/25 Years of Service
16 = 40% 17 = 42.5%
18 = 45% 19 = 47.5%
20 = 50% 21 = 52.5%
22 = 55% 23 = 57.5%
24 = 60% 25 = 62.5%
26 = 65% 27 = 67.5%
28 = 70% 29 = 72.5%
30 = 75%
75% is the maximum allowable percentage
Using the current Active Duty Basic Pay Chart for the year 2007, cross reference what an O5 Basic Pay is with 28 years of service.
Active Duty Pay
Base Pay
$ 7,373.00
BAH (school zip code w/dependents)
$ 2,000.00
BAS
$ 192.42
Total
$ 9,565.42
Less Gross Military Retirement @25 years (62.5% of active duty base pay)
-$ 4,608.00
Minimum Instructor Pay (MIP) amount (rounded to nearest dollar)
$ 4,957.00
75% is the maximum allowable percentage
The only change to the computed retirement pay is December when all retired pay received an increase/decrease. Otherwise, the computed retirement pay is permanent and will not be changed.
When the retiree reaches age 60 and start receiving reitrement pay, it will not be used for recomputa- tion for the purpose of establishing a new MIP.
In establishing the MIP for Gray-Area Reservist, the procedures prescribed in Title 10, United States Code, Section 2031 and Department of Defense Instruction #1205.13, is not applicable and will not be used.
