How do retirement points work in the Army Reserve (US)?

I have been looking over my retirement points, but i am not to sure what they mean? I know you have to have 20 good years to collect retirement, but what are these points for? Do they say how much money you will receive?

Public Comments

1. That's exactly what they're used for... the more points you earn now, the more money you'll receive in retirement.
2. 60/75 POINT RULE Guard/Reserve members may accumulate a total of 365 points per year (366 in a leap year) from inactive and active duty service (one point for each day of duty). However, for retired pay calculation purposes, members can’t use more than 60 inactive points per year (for Reserve years ending before 23 September 1996) or 75 inactive points per year (for reserve years ending on or after 23 September 1996). This is commonly referred to as the “60-or 75-point rule.” COMPUTATION OF RETIRED PAY To determine how much retired pay you may be eligible to receive, the first step is to calulate the number of equivalent years of service. The formula for computing equivalent years of service for Reserve retired pay at age 60 is fairly simple: Total number of Creditable Retirement Points, divided by 360. The formula computes the number of equivalent years of service the soldier has completed (comparable to full time service). For example, 3,600 points equals 10 years.