How Criminal Charges Affect Your Military Retirement

• The Uniform Code of Military Justice (UCMJ) defines a crime, but it does not specify which crimes are punishable with forfeiture of retirement benefits.
• The military branches have established their own guidelines to determine which crimes result in forfeiture of benefits.
• A soldier may be barred from retiring with benefits if found guilty of a serious crime such as murder, rape, or treason.

Being convicted of a crime can adversely affect a soldier's ability to retire from the military with benefits. Some crimes, such as murder or rape, can bar a soldier from retiring with benefits. Other crimes, such as theft or fraud, do not automatically disqualify someone from retiring with benefits.

Voluntary Retirement

If you are in the military and voluntarily retire, your service will be considered honorable and your military retirement benefits will not be affected.
Administrative Separation
If you are in the military and are administratively separated, your service will be considered honorable, but your retirement pay will be suspended until further action is taken.

Other Grounds
If you are in the military and are discharged for any of the following reasons, your service will be considered dishonorable, and your retirement pay will be suspended:

Desertion

Mutiny

Unauthorized Absence

Unauthorized Absence Withholding

Unauthorized Absence Withholding With Prior Disciplinary Action

Administrative or Court-Martial Proceedings

The military may take action administratively against anyone whose criminal conduct reflects negatively on the military. This action may include reprimand or demotion. In some cases, administrative action may not reflect the actual offense, but the military may take action at its discretion.
The administrative action against an individual is not usually considered a conviction. However, if these actions are followed by a court-martial, the charges in the administrative action may be included in the proceedings.
Convictions
A court-martial is a proceeding in which a military judge or general court-martial panel hears charges against a service member and determines their guilt or innocence.
If a court finds a service member guilty, they may be subject to punishment. Punishment includes confinement, forfeiture of pay and allowances, demotion, or other punitive measures.
If a court finds a service member not guilty, they may be considered rehabilitated, and returned to duty.

Administrative Separation

Administrative separation is an administrative action taken by the commanding officer (CO). This action results in forfeiture of retirement benefits for personnel who commit specific offenses. Such offenses include killing or wounding of fellow soldiers or civilian personnel, or causing substantial property damage, or embezzlement.
Court-Martial
Court martial is a military trial in which a military judge or general court-martial adjudicates charges against military personnel.
Other Charges
If the military judge or general court-martial finds the accused guilty, the judge may declare the accused ineligible for military retirement, reduce the retirement pay, or order forfeiture of retirement pay and allowances. If the case results in acquittal, the accused is reinstated to active duty.

Court-Martial Proceedings

Court martial proceedings mean your case is in military court. If found guilty, your sentence may include:
Revocation of commission

Prison time

Loss of rank

Restitution

If you are convicted of a crime, your retirement pay may be reduced by up to 50%. You may become ineligible for retirement.

Post-Trial

If you are found guilty, you will face the following consequences:
You will be dishonorably discharged.

You will be dismissed from the military.

You will be sentenced.

Under normal circumstances, offenders who commit criminal acts before or during active duty face a 1-year period of bad conduct discharge, a reduction of 1⁄2 grade, and confinement to civilian jail or work duty. A dishonorable discharge and dismissal from the military only occurs if the offense is serious enough to merit the more severe punishments.
Another consequence of a criminal offense is the loss of eligibility for special retirement benefits. These benefits include:

Reserve retirement pay

Retired pay

Disability pay

Extra-duty pay

Incentive pay

Survivor benefits