Air Force Junior Reserve Officer Training Corps, Maxwell AFB, AL
/ Published June 28, 2021
Pay Information Sheet
Military retirement pay is not impacted or changed in any way by being an AFJROTC instructor.
This page explains how the monthly minimum pay for AFJROTC Instructors is calculated. This pay is known as the Minimum Instructor Pay or “MIP.” MIP is the difference between retired pay and the active duty pay and allowances (excluding hazardous duty and special pays) that an Air Force Junior ROTC instructor would receive if ordered to active duty.
MIP is not the final take-home pay. MIP is is the total minimum compensation package a school must provide. As with any compensation package, common deductions such as federal and state taxes, healthcare premiums, retirement plans, or union dues are deducted from the total compensation amount. The total compensation amount cannot be less than the MIP. There are times when an individual can choose to opt-in/opt-out of a certain benefit or retirement package. Other times, participation is mandatory. Those individual situations will impact the final take home pay.
For all Air Force Junior ROTC instructors, regardless if they are retired from the Active Duty, Guard or Reserve, the MIP calculations are accomplished in the same manner. Per Department of Defense policy (ref: OSD memo 22 Oct 2007), MIP for Gray Area and Guard/Reserve retirees (in receipt of retired pay or not) will be accomplished using a “computed” retired pay method. The “computed” retired pay amount is derived from the member’s grade and total creditable years of service, then applied to an active duty-based retirement pay calculation. The resulting retired pay amount would be identical to that of an active duty retiree possessing the same grade and years of service. The resulting retired pay amount is used in the instructor’s MIP calculation. The “computed” retirement pay method ensures that no individual (with the same grade and years of service) presents a disproportionate cost to a host school. Meaning, the MIP for retired Guard or Reserve members is calculated in the same manner as Active Duty, as if the person was receiving retired Active Duty member retired payments. To be clear: Retired Guard and Reserve members may not receive their monthly retired pay until they reach a certain age, but the MIP calculation is handled as if they are receiving Active Duty retiree payments now. This is a Secretary of Defense policy and is applicable to all branches. Therefore, the MIP for a retiree of the same rank, years of service and location would be the same regardless if they are a retired Active Duty, retired Guard, or retired Reserve member.
The Air Force reimburses the school one half of the monthly MIP amount, each month, for an annual period of 10 months. The total amount paid by the school is taxable income. All changes in active duty and retired pay (i.e. COLA increases) affect the minimum pay calculation.
Many schools elect to pay more than the MIP to attract and retain the most qualified instructors. Schools are also encouraged to adjust instructor pay based upon the individual’s qualifications and experience.
The Air Force will not reimburse the school for any amount paid to an instructor if they are employed while on Terminal Leave. Reimbursement will start on the effective date of retirement as stated on the official retirement orders. Any contract length above 10 months and any pay above the MIP are a matter of negotiation between the applicant and the school.
You can compute the approximate amount of your MIP by using the pay guide below.
For current rates:
Pay Computation Worksheet:
SUBTRACT GROSS RETIREMENT PAY
Active Duty Retirees: Use your actual gross retired pay or projection of actual.
Guard/Reserve Retirees: Calculate retired pay as if you are receiving the ACTIVE DUTY gross retirement pay amount each month. Do not use "0" (zero) and do not use any projections of your post-age 60 retirement pay)
60 West Maxwell Blvd., Bldg. 835
Maxwell AFB, AL 36112