Modern Military Decries DAF’s Cruel Rescinding of Trans Troops’ Retirement Option

Press Releases  •   August 7, 2025

Statement: Modern Military Decries DAF’s Cruel Rescinding of Trans Troops’ Retirement Option

Updated August 8

Modern Military is deeply concerned by a Department of Air Force (DAF) memo that surfaced yesterday rescinding a retirement option for eligible Airmen and Guardians being discharged under the transgender service ban. Signed on Aug. 4, the new memo adds insult to injury for those already being purged from the military against their will and losing their livelihoods.

What happened? First, a quick explainer on the policy that was changed.

TERA for Trans Troops

When the military goes through a period of downsizing, it sometimes offers Temporary Early Retirement Authority (TERA), a program authorized at times to allow troops with 15 to 20 years of service to retire early. It grants full retirement benefits and pay to those who haven’t made it to the typical 20-year minimum. 

However, when most service branches released their trans ban policy earlier this year, it only offered TERA for those with at least 18 years of service. For service members who were nearing retirement and experiencing their careers cut short, this was a godsend. Those with 15 to 18 years were left wondering why they were left behind. 

Later, DAF and the other branches added a TERA option for those with between 15 and 18 years of service. Unlike the policy for those with 18+ years, though, approval wasn’t guaranteed; those eligible had to apply for an exception to policy (ETP). Fortunately, Modern Military is aware of at least several service members in this latter group who were approved for TERA. 

What Happened Yesterday?

In yet another cruel change to already-punishing policies, DAF’s memo that surfaced yesterday immediately rescinds the TERA option for troops between 15 to 18 years, after months of it being an option. Not only does this new policy abruptly stop anyone with those years of service from submitting an ETP and having a chance at TERA; it actually reverses approval for those already given permission for early retirement

Modern Military quickly learned of several service members under DAF who submitted an ETP and were approved for early retirement, including USAF MSgt Logan Ireland. In a statement today to the Associated Press, the Air Force denied anyone had been approved and claimed they were “prematurely notified.”

However, we have heard otherwise from approved service members who were planning their retirement ceremonies and futures based on approval for TERA at under 18 years.

They were grieving the loss of their career and purpose, but trying to move forward as their discharges loom — knowing that the early retirement benefits offered a source of stability and financial security for the uncertainty ahead. Now, the rug has been pulled out from under them, their lives thrown into further disarray. 

This new memo notes that those no longer eligible for TERA are eligible for voluntary separation pay, just like those who were under 15 years. However, the prior voluntary separation window already passed, and impacted service members have told Modern Military that upon learning their retirement was rescinded, they were only given several days to decide if they’ll pursue voluntary separation. They can elect involuntary separation instead, which offers half the payout and comes with far more uncertainty, as the policy defining this process hasn’t been released yet. But it may offer additional means of challenging separation. 

Regardless, both types of separation pay are very different from retirement pay and benefits. Earning full retirement is significantly more beneficial and provides much more long-term financial security and healthcare access. Separation pay is subject to VA disability recoupment. 

Generally, VA recoups any separation pay and essentially treats it as a debt that your VA disability payments go toward first. In other words, trans service members facing involuntary or voluntary separation options, rather than TERA, will not experience the benefit of separation pay in the long run if they will be getting VA disability. We do not know yet if other branches offering TERA to those between 15 to 18 years will also attempt to reverse course. 

Why Did This Change?

There is no apparent rationale or need for this last-minute backtrack. The abrupt shift is a cruel betrayal and yet another insult to the loyal, capable, qualified patriots who are already grappling with the abrupt and unjust end of their military careers.

Being in the military isn’t just a job; it is a 24/7 lifestyle that dictates where someone lives and who they spend time with. For many who serve, it’s a long-term passion and source of purpose and community, and it provides financial and housing security hard to find in the civilian world.  

Like the other decisions made about this trans service ban, this development does not actually consider merit or warfighting capability. Trans service members are being purged simply based on who they are. This doesn’t make America stronger or safer. We’re just hurting veterans who’ve served for most of their adult lives, who are more than willing to continue serving this country until they can retire. 

When the Secretary of Defense took office, his first memo assured military service members and their families that he always had their backs. This is yet another betrayal of that promise and leaves our country’s best and bravest — who are already being purged of their careers — hung out to dry. 

Modern Military fully condemns DAF’s policy reversal and urges it to restore TERA for those who have had this option, and in some cases been approved, for months. 

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