US Air Force Denies Retirement Pay, Separates Transgender Service Members

The U.S. Air Force has rescinded its offer of early retirement and associated lifetime benefits to transgender service members who served between 15 and 18 years, requiring them instead to accept a one-time lump-sum separation payment or face involuntary separation without any pay. This policy reversal eliminates access to prorated benefits such as health insurance, disability benefits, and housing access, destabilizing many transgender veterans' financial and healthcare security. The decision stems from a presidential executive order labeling transgender identity as incompatible with military service and mandates the removal of all transgender members unless granted a case-by-case waiver. Air Force officials stated that although exceptions to policy could be requested, none have been approved, affecting about a dozen service members who were initially notified they could retire early. Transgender service members and advocates have condemned the change as arbitrary and dehumanizing, and legal challenges are anticipated. The policy reflects the Trump administration's broader stance on transgender military personnel.