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How is the required 8 to 12 years of service calculated?

Question: 
How is the required 8 to 12 years of service calculated?
Answer: 

Active- duty service members and Reserve service members in a pay status are eligible for continuation pay when they complete no less than 8 and not more than 12 years of service, which is calculated from the service member's Pay Entry Base Date (PEBD). Continuation pay may be paid at any time during this period as determined by the service.