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member by the institution for any period, up to a
maximum of one-half of the difference between the
member's retired or retainer pay for that period and
the active duty pay and the allowances which the member
would have received for that period if on active duty.
Notwithstanding the limitation in the preceding
sentence, the Secretary concerned may pay to the
institution more than one-half of the additional amount
paid to the retired member by the institution if (as
determined by the Secretary) the institution is in an
educationally and economically deprived area and the
Secretary determines that such action is in the
national interest. Payments by the Secretary concerned
under this paragraph shall be made from funds
appropriated for that purpose.
(2) Notwithstanding any other provision of law, such a
retired member is not, while so employed, considered to
be on active duty or inactive duty training for any
purpose.
In implementing the statute, the Department of Defense (DOD)
has issued directives specifying the manner in which retired
officers who serve as JROTC instructors are to be compensated by
the employing school district. In this regard, paragraph 1.3 of
Enclosure 2 of DOD Instruction Number 1205.13 (Dec. 26, 1995)3
provides that secondary schools participating in the JROTC
program will pay retired officers in accordance with the
following procedures:
The [secondary educational] institution is the
employing agency and shall pay the full amount due the
JROTC instructor. The JROTC instructor shall receive
retired or retainer pay from the U.S. Government.
The amount due from the institution is the amount
equal to the difference between retired or retainer pay
3 The parties stipulated to the applicability of this
directive to the year in issue.
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Last modified: May 25, 2011