Retiring from the U.S. military at 15 years of service is possible only through the Temporary Early Retirement Authority, known as TERA, a discretionary Department of Defense program that lets a service secretary offer early retirement to active-duty members with at least 15 but fewer than 20 years of service. TERA is currently authorized through December 31, 2030 under Section 603 of the FY 2026 National Defense Authorization Act, but whether any given branch actually offers it in a given year is a separate question.1Under Secretary of Defense (Comptroller). Further Extension of Accounting Policy Guidance for Implementing TERA Procedures Outside of TERA and disability retirement, the 20-year cliff still applies: a member who walks away at 15 years on their own gets no pension.
Who Can Actually Retire at 15 Years
TERA is a force-shaping tool, not an entitlement you can request. Each service secretary decides whether to open TERA windows and sets the criteria for eligibility, which may include grade, military occupational specialty, years of service, and promotion prospects.2Department of Defense. DoDI 1332.46 – Temporary Early Retirement Authority The authority covers the Army, Navy, Marine Corps, and Air Force. It does not cover National Guard or Reserve members serving in a reserve capacity.
Members approved for TERA are generally those who were on track to complete a full 20-year career and are being released because the service no longer needs them, not those already being separated for poor performance.
Having the authority on the books is not the same as an open program. The Army terminated its TERA program on February 28, 2018 and has not reactivated it; the Army’s own benefits page states that the conditions for using TERA “are not applicable at the present time.”3MyArmyBenefits. Temporary Early Retirement Authority If you are hoping to retire at 15 years, the first question is whether your branch has an active TERA window that fits your grade and specialty.
How the 15-Year Pension Is Calculated
TERA retired pay uses the same formula as a standard 20-year pension, then applies a reduction for finishing short. Two steps:
- Start with the base formula. Under the legacy High-3 system, multiply 2.5% by years of service and apply that percentage to the average of your highest 36 months of basic pay. Under the Blended Retirement System, the multiplier is 2.0% instead of 2.5%.3MyArmyBenefits. Temporary Early Retirement Authority
- Apply the TERA reduction factor. The result is docked by 1/12 of 1% for every month short of 20 years. A member retiring at exactly 15 years is 60 months short, producing a reduction factor of 0.95.3MyArmyBenefits. Temporary Early Retirement Authority
A High-3 member retiring at 15 years starts at 37.5% of the high-3 average (15 × 2.5%), then the 0.95 factor brings that to roughly 35.6%. Compare that with the 50% a 20-year High-3 retiree receives. It is less, but it is still a pension for life, which is more than the vast majority of members who leave before 20 years walk away with.
A Blended Retirement System member has less to start with. Fifteen years at the 2.0% multiplier is 30%, and the 0.95 factor reduces that further. BRS retirees who take TERA are also barred from electing the BRS lump-sum option for retired pay.1Under Secretary of Defense (Comptroller). Further Extension of Accounting Policy Guidance for Implementing TERA Procedures
What Happens If You Leave at 15 Years Without TERA
No pension. The 20-year vesting requirement is absolute outside of TERA and disability retirement. A member separated involuntarily at 15 years may qualify for Involuntary Separation Pay, calculated as 10% of years of service, times 12, times monthly basic pay, provided the discharge is honorable and the member agrees to serve three years in the Ready Reserve. ISP is not free money if things change later: members who later qualify for retired pay, retainer pay, or VA disability compensation must repay the full ISP amount through reductions to those future payments.4Military Pay (Defense.gov). Involuntary Separation Pay
BRS members leaving before 20 keep their Thrift Savings Plan balance. TSP accounts are fully vested after two years of service and stay with the member regardless of when they separate.5Military OneSource. Blended Retirement System
VA Disability and the 15-Year Retiree
A TERA pension interacts with VA disability compensation the same way any military pension does. Federal law generally requires retired pay to be offset dollar-for-dollar by VA disability compensation.6DFAS. Concurrent Retirement and Disability Pay
Concurrent Retirement and Disability Pay (CRDP) restores that offset for retirees with a combined VA disability rating of 50% or higher, and TERA retirees are explicitly eligible if they meet the threshold. Enrollment is automatic; DFAS audits accounts for any retroactive amount owed.7MyArmyBenefits. Concurrent Receipt Full concurrent receipt was completed as of January 2014.
Guard and Reserve: A Separate Path
TERA does not extend to Guard or Reserve members. Reserve-component retirement requires 20 qualifying years, with each year requiring at least 50 retirement points, and benefits generally begin at age 60.8Military Pay (Defense.gov). Reserve Retirement There is no 15-year retirement equivalent.
Reservists can lower the age at which retired pay begins through qualifying active-duty service. Under a provision in the 2008 NDAA, eligibility age drops by three months for every cumulative 90 days of qualifying active-duty service performed in a fiscal year after January 28, 2008, with a floor of age 50. TRICARE eligibility for reserve retirees still starts at age 60 regardless of any reduced pay-start date.9National Guard Bureau. Guard, Reserve Soldiers Can Opt for Reduced Age Retirement10Navy Personnel Command. NDAA Early Retirement