Air Force Denies Retirement Benefits to Transgender Service Members with 15-18 Years of Service

The U.S. Air Force is denying early retirement to all transgender service members who have served between 15 and 18 years, opting instead to separate them without full retirement benefits. This decision, outlined in an August 4 memo seen by Reuters, forces these long-serving individuals to either resign or be discharged, receiving only lump-sum payments. The move marks a significant escalation in the Trump administration's policy regarding transgender military personnel.

The Air Force's action follows a May 23 memo that allowed airmen with 15-18 years of service to request early retirement. However, the August 4 memo specifically disapproves all Temporary Early Retirement Authority (TERA) exception requests for transgender service members within this service bracket. "After careful consideration of the individual applications, I am disapproving all Temporary Early Retirement Authority (TERA) exception to policy requests in Tabs 1 and 2 for members with 15-18 years of service," the memo stated, signed by Brian Scarlett, who is performing the duties of assistant secretary of the Air Force for manpower and reserve affairs.

Civil rights activists contend that the Pentagon's justification of transgender individuals being "medically unfit" is untrue and constitutes illegal discrimination. The financial implications for affected service members are severe, potentially costing them hundreds of thousands of dollars in denied lifetime benefits. An internal Air Force Q&A document, also seen by Reuters, reportedly included guidance on how service members might explain to their families that they would not receive retirement benefits.

While the Air Force approved early retirement for more senior transgender members with 18-20 years of service, those with 15-18 years are now facing involuntary separation without the accrued benefits typically associated with their years of service. Approximately a dozen service members had reportedly been "prematurely notified" that their TERA applications under the gender dysphoria provision had been approved, only to have those approvals rescinded after higher-level review. This policy shift underscores the ongoing debate and legal challenges surrounding transgender individuals' role in the U.S. military.