Concrete Experience http://youtu.be/F4nyJWzQAV0 What can the Army do better to ensure our Soldiers are properly trained in basic personal financial management? When is the best time to provide this education? How often should Soldiers (and their Families?) receive financial management training?

Learning Objective Action: Interpret Military Pay and Allowances Condition: Senior HR Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercises, case studies, personal experience, handouts, and discussion with an awareness of the Operational Environment (OE) variables and actors. Standard: 1. Examine S-1 MILPAY functions, authorities, and responsibilities. 2. Interpret proper entitlement to basic, special, and incentive pays. 3. Analyze military pay policies. SHOW SLIDE: TERMINAL LEARNING OBJECTIVE NOTE: Review TLO with students and inform them that in addition to an Introduction to MILPAY there are two Enabling Learning Objectives for this lesson. ELO A – Research Finance Actions ELO B – Determine Entitlement to Pay and Allowances

Military Pay and Allowances S-1 MILPAY Fundamentals Unit Transmittal Memorandum Daily Register of Transactions Unit Commander’s Finance Report Research Finance Actions DoDFMR 7000.14-R, Volume 7A Determine Pay and Allowance Entitlements Basic Pay Special, Bonus, and Incentive Pay Allowances SHOW SLIDE: LESSON OUTLINE MILPAY is broken down into three sections. Starting with a brief overview of S-1 MILPAY functions followed by Research Finance Actions and Determine Entitlements This lesson also has five (5) Practical Exercises available that will be used as needed. S-1 MILPAY Fundamentals Unit Transmittal Letter Daily Register of Transactions Unit Commander’s Finance Report Research Finance Actions DoDFMR 7000-14-R, Volume 7A Determine Pay and Allowance Entitlements Basic Pay Special, Bonus, and Incentive Pay Allowances

S-1 MILPAY Fundamentals Ensure your S-1 Section has an SOP and all personnel are trained on MILPAY basics Unit Transmittal Memorandum (UTM) Daily Report of Transactions (DROT) Unit Commander's Finance Reports (UCFR) Leave Transaction Report Interpret a Leave and Earnings Statement Preparing a Pay Inquiry – DA Form 2142 Knowledge to respond to basic pay and allowances inquiries and/or where to research and gather information Available online resources REFERENCES DoDFMR 7000.14-R AR 37-104-4 DFAS myPay DOD Allowance Calculators How to Read an LES SHOW SLIDE: S-1 RESPONSIBILITIES MILPAY is yet another S-1 area where there is little room for error. As we mentioned earlier, receiving correct pay and entitlements can make or break the morale of a Soldier. To start with, ensure your S-1 Section has a solid SOP and all personnel are trained on MILPAY basics. Today, we are going to review many of the essential components of MILPAY administration including: Unit Transmittal Memorandum (UTM) Daily Report of Transactions (DROT) Unit Commander's Finance Reports (UCFR) Leave Transaction Report Interpret a Leave and Earnings Statement Preparing a Pay Inquiry – DA Form 2142 Ensure your Soldiers have the basic MILPAY knowledge to respond to basic pay and allowances inquiries and/or where to research and gather information Where to find available online resources (dfas.mil; myPay, DoDFMR 7000.14-R, etc.)

Unit Transmittal Memorandum (UTM) Example UTM Last Name Last 4 SSN DA 3685 DA 5960 DA 4187 DD 2558 DD 1561 DA 31 DD 362 W4 OTHER REMARKS 1 2 3 4 JUMPS – JSS Pay Elections Stop/Start/Change BAQ/VHA (BAH) Personnel Action Stop/Start/Change Allotment Family Separation Allowance Request and Authority for Leave Charges/Cash Collection Voucher Employee’s Withholding Certificate Other documents as required (e.g. PCS/ETS orders, etc.) Provide any additional info finance needs to know to process document(s) Purpose Maintain accountability of documents turned in to servicing finance office for processing Tool to reconcile with the DROT Key review points Name and SSN Supporting documents are attached, filled out correctly, and legible Correct signatures on documents Should be prepared daily as documents are ready for submission to finance Only pay related documents should be included on the UTM SHOW SLIDE: UNIT TRANSMITTAL Memorandum (UTM) Purpose. The Unit Transmittal Memorandum provides an audit trail and is essential to maintain accountability of documents turned in to finance office for processing. Ensure your section has an organized and consistent UTM process in place to track what has been sent to finance and when it was sent. When you receive the Daily Register of Transactions (DROT), which we will discuss momentarily, reconcile the documents you have submitted and transactions that have processed. Key review points. While it is likely you will have a NCO or Soldier as your primary finance clerk, occasionally you should spot-check UTMs being sent to finance and ensure no short-cuts are being taken. Pay particular attention to: Name and SSN Supporting documents are attached, filled out correctly, and legible Correct signatures on documents The UTM should be prepared daily or as soon as documents are ready for submission to finance Only pay related documents should be included on the UTM. Don’t confuse finance personnel by including documentation that has nothing to do with an individual’s pay.

Daily Register of Transactions (DROT) DATE: 140123 PAGE: 001 Daily Register of Transactions (DROT) 6387: Update No. 01-14 Status SSAN Name Tran UIC Update Proc Date ErrorCode SvcSta Cycle Sequence Variable Data REJ 123456789 GLOVE 6801 IP 01-14 20140119 EOO 6460 E1 00027 06801123456789GLOVE010410 39301 10001001R 6460IPE1@0027 * TRANS RECYCLED MAX NUMBER OF TIMES, AS OF 101201,VHA/OHA PROC 123456789 OVERT SB03 IP 01-14 20140119 6460 F5 00061 0SB03123456789OVERT011221020119T0301IP76820000 DM6460IPF5@0061 PROC 123456789 HEATH SH06 IP 01-14 20140119 6460 E4 00082 0SH06572494285HEATH010530 6460IPE4@0082 RECY 123456789 PETER E503 IP 01-14 20140119 RAJ YUU 6460 F1 00118 0E503123456789PETER010930RBD000000000000000001 0000M 0 6460IPF1@0118 1E503123456789PETER4 BDE 6460IPF1@0118 2E503123456789PETER09165 30966172 6460IPF1@0118 * TRANS RECYCLED BECAUSE OF TEMPORARY PROGRAM PROBLEMS 1. STATUS a. REJ: INPUT DID NOT TAKE ON FINANCE SYSTEM b. RECY: FINANCE SYSTEM WILL NOT EXCEPT INPUT UNDER CURRENT STATUS OF SOLDIER’S ACCOUNT c. PROC: FINANCE SYSTEM HAS ACCEPTED THE DOCUMENT SHOW SLIDE: DAILY REGISTER OF TRANSACTIONS (DROT) The DROT provides record of finance transactions which have been processed, rejected, recycled and/or advanced. Units normally receive a DROT report after every finance system update. Reconcile the DROT with your UTM to ensure all transactions were made. If after 5 workdays the submitted transaction does not appear on the DROT as processed, the S-1 should contact Finance to determine the status. The DROT can be difficult to read and interpret. We have a separate handout that provides detailed information. Report of transactions processed against Soldiers in your unit. Key points to look at: Status – REJ (Reject)/PROC (Processed)/RECY (Recycled) Tran – Type of transaction (Format ID and action indicator) Proc Date – date transaction was processed The S-1 and servicing finance office should work together to ensure 100% of submitted transactions are accounted for and processed in a timely manner

Unit Commander's Finance Report (UCFR) – Automated Version The UCFR is a web-based certification and correction application. Access is via CAC authentication and self-registration process. Allows Unit Commanders to easily and quickly assess the status and correctness of a Soldier’s pay and to digitally certify. Also allows for the attachment of supporting documentation and submission of certified UCFRs to the Finance Office electronically. Benefits Eliminates Printing Increased Security Increased PII Security Time Savings Audit Readiness Increased Accountability Ease of Access Improved Support SHOW SLIDE: UNIT COMMANDER’S FINANCE REPORT (UCFR)   Automated UCFR. The UCFR application takes the current manual UCFR process and moves it into an automated environment. The UCFR application is a web-based certification and correction submission application. It is designed to allow the unit commanders to easily and quickly assess the status and correctness of a Soldier’s pay and to digitally certify this assessment. The UCFR application also allows for the attachment of supporting documentation and submission of certified UCFRs and documentation to the Defense Military Pay Office (DMPO)/Finance Office (FO). Benefits. The automated UCFR also provides the following benefits: Elimination of printing: Reduction in paper and toner cost. Increased security: CAC authentication for access. Increased PII security: Partial / full redaction of Social Security Number. Time savings: No longer printing and emailing (DMPO/FO); no longer printing/scanning/ emailing (Army); physical delivery time is decreased. Audit Readiness: Tracking of UCFR and supporting documentation; automated reporting. Increased accountability: Report and supporting documentation is electronically passed through automated workflow. Ease of access: Report is available to the Army as soon as data is uploaded; Army is not dependent on DMPO/FO. Improved support: Accurate UCFR information provided; support for Soldiers and their families through accurate pay. NOTE: The automated UCFR only contains active component Soldier data as they are paid on the Defense Joint Military Pay System-Active Component (DJMS-AC) system. Fielding to the Reserve Components is planned – date TBD. A proper review of the UCFR is essential to improve combat readiness, reduce fraud, waste and abuse, and ensure Soldiers receive the pay to which they are entitled. Examples of new automated UCFR

Normally an S-1 responsibility. UCFR Roles: Reviewer The Reviewer role is held by the Soldier(s) that reviews and identifies corrections on the UCFR. The Reviewer can perform the processes/tasks listed below. Self-register for the Army Reviewer role. Create a UCFR. Review the UCFR. Forward UCFR to another Army Reviewer. Add corrections and supporting documents to the UCFR. Submit UCFR to Army Unit Commander. Receive UCFR that was rejected by the Army Unit Commander (only for UCFR they submit). Review, and export to Excel, the PACIDN Structure report. Normally an S-1 responsibility. The Reviewer role is held by the Soldier(s) that reviews and identifies corrections on the UCFR. This is normally the S-1 section. The Reviewer performs the processes / tasks listed below:   Self-register for the Army Reviewer role. Create a UCFR. Review the UCFR. Forward UCFR to another Army Reviewer. Add corrections and supporting documents to the UCFR. Submit UCFR to Army Unit Commander. Receive UCFR that was rejected by the Army Unit Commander (only for UCFR they submit). Review, and export to Excel, the PACIDN Structure report.

UCFR Training Training for the Web-based UCFR is available via the S1 Net: https://www.milsuite.mil/book/docs/DOC-165340 Training Material is available for the following subjects: Self-Registration Modify Personal Information Accesses Creating the UCFR Review, Correct, & Certify Reports Reset Feature Recommended Training for Army Reviewer (S-1) Role Document Quick Reference Available? UCFR Overview No UCFR Self-Registration Yes Create UCFR Army Reviewer UCFR PACIDN Table Training for the UCFR is available to the Army via the S1 Net:   https://www.milsuite.mil/book/docs/DOC-165248 Training for the Reviewer (S-1) role includes quick references and videos. Access to the actual UCFR application is via CAC authentication and through a two-part self-registration process. The Self-registration process will be completed at your first unit of assignment if you are involved in military pay administration.

Military Pay Policy and Procedures – Active Duty and Reserve Pay DoDFMR 7000.14-R, Volume 7A Military Pay Policy and Procedures – Active Duty and Reserve Pay One Regulation for the entire DoD Statutory (U.S. Law) Provides Policy and Procedures States who, what, and when for ALL entitlements and deductions SHOW SLIDE: DoDFMR 7000.14R, Volume 7A In previous lessons, we have used Army Regulations, Pamphlets, and Field Manuals, now we will introduce a new publication called a Department of Defense (DoD) Manual. You must become familiar with DoD Financial Management Regulation 7000.14-R, Vol. 7A (hereafter referred to as the DoDFMR). It is the basis for determining the conditions and procedural guidance for military pay items. This task provides you with the research techniques needed to correctly perform all the other tasks during this lesson and on the exam. The DoDFMR stipulates to all Department of Defense (DoD) components the policies, regulations, and procedures in the area of responsibility of the Under Secretary of Defense (Comptroller). It consists of 15 volumes. We will discuss volume 7A, Military Pay Policy and Procedures – Active Duty and Reserve Pay, during this lesson. NOTE: Direct students to the URL at the bottom of the slide. Orient the students the DODFMR 7000, Volume 7A, website and how the publication is arranged. Allow students to remain on the website and turn to next slide (DOD FMR Chapters). Review chapter layout. http://comptroller.defense.gov/FMR/vol7a_chapters.aspx

DODFMR Chapters 01 – Basic Pay 02-21 – Special Pays 22-24 – Incentive Pay 25-31 – Allowances 32-37 – Miscellaneous Payments 38-39 – Cadets, Students, and Academy Officials 40-43 – Allotments of Pay 44-54 – Deductions and Collections 55-64 – Reserve and National Guard Pay 65 – High Deployment Per Diem 66 – Career Status Bonus/Redux Election Option APPENDICES A – Reimbursement of Adoption Expenses B – Disposition of Forfeitures and Fines as a Result of Courts Martial, Nonjudicial Punishment, and Desertion C – Implementing Procedures for Mandatory Electronic Funds Transfer (EFT) of Military Pay SHOW SLIDE: DODFMR Chapters (NOTE: Review chapter layout and appendices). DoDFMR, Volume 7A is divided into 66 chapters. The chapters are grouped together to cover 11 subject areas. (a) Chapter 1 covers Basic Pay. This chapter covers conditions and computations of pay, as well as effects that different circumstances have on entitlements to pay and allowances. (b) Chapters 2 to 21 cover Special Pays. These chapters cover the conditions of entitlement and computation of various types of special pay. (c) Chapters 22 to 24 cover Incentive Pays. These chapters cover the conditions of entitlement and computation of aerial flights, parachute duty and several others. (d) Chapters 25 to 31 cover Allowances. These chapters cover the conditions of entitlement and computation of BAS, BAH, and FSA. (e) Chapters 32 to 37 cover Miscellaneous Payments. (f) Chapters 38 to 40 cover the conditions of entitlement and computation of service academy cadets, midshipmen and service academy prep school students. (g) Chapters 41 to 43 cover Allotments of Pay to include discretionary and non-discretionary allotments. (h) Chapters 44 to 54 cover Deductions and Collections (i) Chapters 55 to 64 cover Reserve and National Guard pay (j) Chapter 65 covers High Deployment Per Diem. (k) Chapter 66 covers Career Status Bonus/Redux Election Option (CSB/REDUX)

Paragraph Numbering System The Manual is divided into: 010101.A.1.a.(1)(a) CHAPTER 01 SECTION 0101 PARAGRAPH SHOW SLIDE: PARAGRAPH NUMBERING SYSTEM The paragraph numbering system used in the DoDFMR is simple to follow. The regulation is first divided into chapters. Each chapter is further divided into sections; each section into paragraphs; then, if required, each paragraph is divided into subparagraphs. On the slide, 010101.A.1.a.(1)(a) refers to Chapter 1, Section 1, Paragraph 1, Subparagraph A.1.a.(1)(a).   It is important when answering a research question to furnish the exact information requested. If asked for the chapter number where something is found, only 2 digits are required. In the example this is 01. If asked for the section where something is found, 4 digits are required. In the example this is 0101. If asked for the paragraph where something is found, 6 digits are required. In the example this is 010101. If asked for the subparagraph where something is found, 6 digits plus the subparagraph are required. In the example this is 010101.A.1.a.(1)(a). NOTE: Have students tell you the chapter number where information about basic pay can be found (answer is 01). Next have them tell you the section where computation of pay is (answer is 0102). Now have them tell you where information about basic pay entitlements is (answer is 010201). Lastly, have students determine the subparagraph which states when entitled to basic pay (the answer is 010201.A.). NOTE: Provide students a few additional minutes (as required) to familiarize themselves with the DoDFMR numbering system. 010101 SUBPARAGRAPH 010101.A.1.a.(1)(a)

Decision Logic Table (DLT) Table Heading R U L E A B C D Column Heading 1 2 3 4 SHOW SLIDE: DECISION LOGIC TABLE Decision Logic Tables (DLT’s) are used throughout the DoDFMR to simplify technical instructions. They are located in the back of each chapter. The first set of digits in the table number refers to the chapter, and the last set of numbers refers to the table number within the chapter.   NOTE: Have the students locate Table 24-1 in the DoDFMR and identify the table heading, column headings, and rules. Have students determine which rule is used to remove a service member who is on temporary duty and what happens to their incentive pay entitlement.

Apply DoDFMR Research Skills Check on Learning 1. Where can you find the by country listing of Hardship Duty Pay for designated areas? 2. How much money does a Soldier authorized Parachute Duty Pay at the High Altitude Low Opening (HALO) rate receive each month? 3. What Decision Logic Table (DLT) do you use to determine jump requirements for a Soldier authorized Parachute Duty Pay? 4. What paragraph in the DoDFMR explains the entitlement to Parachute Duty Pay? 5. What paragraph and subparagraph explains the effect on a Soldier’s pay and allowances during unauthorized absence? Figure 17-1, DoDFMR $225.00, DoDFMR 240204 Table 24-4, DoDFMR DoDFMR para 240301 DoDFMR, para 010402.A and Table 1-12

Entitlements What is an Entitlement? An Entitlement is the legal right to receive items for pay and/or allowances Entitlements are broken down as: Basic Pay Special Pay, Bonuses and Incentive Pay Allowances DoDFMR Chapter 1 SHOW SLIDE: ENTITLEMENTS Every Soldier is entitled to basic military pay as compensation for the work done. This basic pay accounts for approximately 70 percent of the Soldiers’ annual cash compensation and varies with the military pay scale and the Soldier’s time in service. Basic military pay also increases with promotion to compensate for rise in leadership and responsibility. What is an Entitlement? An Entitlement is the legal right to receive items for pay and/or allowances Entitlements are broken down into three categories that we will discuss in detail. Basic Pay Special Pay, Bonuses and Incentive Pay Allowances

Basic Pay What is Basic Pay? Basic Pay is the pay for an officer or enlisted member according to their rank and longevity before additional amounts are added for quarters, subsistence, flying status, overseas duty, etc. Four components interact with Basic Pay and affect the amount paid: Creditable Service (longevity and grade) The Basic Pay Rate Absence From Duty and the effect on pay and allowances Change in grade SHOW SLIDE: BASIC PAY NOTE: There are hyperlinks to the appropriate reference located on the slides throughout this presentation. General: The DoDFMR defines Basic Pay as, "the pay of an officer or enlisted Soldier according to the rank and longevity before additional amounts are added for quarters, subsistence, flying status, overseas duty, etc." In other words, every Soldier in a duty status receives this entitlement even if he/she is not entitled to any other types of pay or allowances. (1) Military pay tables are found in the DoDFMR, Chapter 1. There are two types of basic pay: active duty and inactive duty or drill pay. In reading the pay table, you see each portion of the table corresponds with a particular pay grade. (2) Drill pay is what Reserve Component Soldiers receive for performing Inactive Duty or weekend drill. They are paid 2 drills for a Saturday and 2 drills for a Sunday. That is equal to 4 days of active duty base pay. However, they are not entitled to any allowances for that duty. They are entitled to incentive pay which we will cover later. (3) Computation of Basic Pay: In referring to the Pay Tables, we compute active duty basic pay using a thirty day month, regardless of the actual number of calendar days in the month. If a Soldier is in a duty status and is eligible for basic pay for the entire month, he/she receives one month (i.e., thirty days) basic pay even if the month contains twenty-eight, twenty- nine, thirty, or thirty-one actual calendar days. DoDFMR Chapter 1

Special Pay What are the types of Special Pay? Types of Special Pay Include: Hardship Duty Pay (HDP) Hostile Fire/Imminent Danger Pay (HFP/IDP) Diving Duty Pay Special Duty Assignment Pay Overseas Extension Pay Foreign Language Proficiency Pay (FLPP) Special Pay for Officers Serving in Positions of Unusual Responsibility and of a Critical Nature (Navy) Sea Duty, Career Sea Pay (CSP) Special Pay for Medical Officer Special Pay for Dental Officers Special Pay for Pharmacy Officers, Optometrists, and Veterinarians Special Pay for Nurse Corps Officers SHOW SLIDE: SPECIAL PAY As you can see, there are many different types of “special” pay. The DODFMR cover special pays in Chapter 02 all the way through Chapter 21. The DoDFMR contains specific examples of special pay, but we will concentrate on Special Duty Assignment Pay (SDAP) and Hardship Duty Pay (HDP). The rates of various special pays may be found in the DoDFMR. As in the case of basic pay, compute special pay on a thirty-day month. DoDFMR Chapters 2 - 21

Special Duty Assignment Pay Enlisted Members For performing duties designated as extremely difficult or involving an unusual degree of responsibility Payment stops on the annual anniversary date unless recertified as eligible Paid on a 30-day month Documentation required Other Special Pays are covered in DoDFMR Chapter 2 through Chapter 21 SDAP Level Monthly Amount SD-1 $75 SD-2 $150 SD-3 $225 SD-4 $300 SD-5 $375 SD-6 $450 SHOW SLIDE: SPECIAL DUTY ASSIGNMENT PAY – ENLISTED MEMBERS An enlisted member entitled to basic pay may qualify for Special Duty Assignment Pay (SDAP) when the member performs duties designated by the Secretary concerned as extremely difficult or involving an unusual degree of responsibility. A member entitled to SDAP may receive such pay in addition to any other pay or allowances to which entitled. As the S-1, it is extremely important that all pay actions be checked and rechecked. Orders must be issued to award, change, terminate and reinstate SDAP. Before ANY pay actions are processed (UTM), ensure the required documentation is present and reviewed. NOTE: Allow students to identify the most common duty positions eligible to receive SDAP (e.g., Recruiters, Career Counselors , Special Forces, Rangers, Drill Sergeants, and others) Army Regulation 614-200, Chapter 3, Enlisted Assignments and Utilizations, covers SDAP in detail for Army enlisted personnel.   *AR 614-200, Chapter 3 also covers SDAP DoDFMR Table 8-1

Hardship Duty Pay (HDP) Payable for performing duty designated by the Secretary of Defense as hardship duty Two types HDP– Mission (HDP-M) $150.00 per month regardless of grade Payable at the full monthly rate, without prorating or reduction, for each month or portion of each month a member serves HDP- Location (HDP-L) (Designated Areas (DA) and Certain Places (CP)) – payment rates vary SHOW SLIDE: HARDSHIP DUTY PAY (HDP) NOTE: Refer Soldiers to the “DoDFMR” paragraph 170102. HDP is the entitlement formerly known as Foreign Duty Pay (FDP). HDP is payable only to members entitled to basic pay while such members are performing duty designated by the Secretary of Defense as hardship duty. There are two types of hardship duty pay. (1) Hardship Duty Pay for Mission (HDP-M): is payable to members, both officer (to include Warrant Officers) and enlisted, for performing designated hardship mission. HDP-M is payable at the full monthly rate, without prorating or reduction, for each month, during any part of which, the member performs a specified mission. Rate Payable: $150 per month regardless of pay grade. Hardship Duty Pay for Mission Assignment is payable at the full monthly rate, without prorating or reduction, for each month, during any part of which, the member performs a specified mission. (2) Hardship Duty Pay for Location (HDP-L): is payable to members for either permanent change of station duty or temporary/deployed/attached duty of over 30 days duration in specified locations. HDP-L for designated areas is payable to both officer and enlisted members when assigned to duty in the locations designated in Figure 17-1, under the conditions set forth in Table 17-1. DoDFMR Chapter 17

Incentive Pay What is Incentive Pay? Three types of Incentive Pay: A Military Service Member entitled to basic pay is, in addition, entitled to incentive pay for performing hazardous duties under competent orders and otherwise meets the requirements included below (full requirements listed in the DoDFMR Volume 7) Duty involving parachute jumping as an essential part of military duty Duty involving frequent and regular participation in flight operation on the flight deck of an aircraft carrier from which aircraft are launched Duty involving the demolition of explosives as a primary duty, including training for such duty Duty involving handling of chemical munitions. Three types of Incentive Pay: Aerial Flights Parachute Duty Hazardous Duty SHOW SLIDE: INCENTIVE PAY What is Incentive Pay? A Military Service Member entitled to basic pay is, in addition, entitled to incentive pay for performing hazardous duties under competent orders and otherwise meets the requirements included below (full requirements listed in the DoDFMR Volume 7 Ch 24): Duty involving parachute jumping as an essential part of military duty Duty involving frequent and regular participation in flight operation on the flight deck of an aircraft carrier from which aircraft are launched Duty involving the demolition of explosives as a primary duty, including training for such duty Duty involving handling of chemical munitions. The three types of common Incentive Pay we are going to cover include: Aerial Flights Parachute Duty Hazardous Duty DoDFMR Index

Allowances What is an Allowance? An Allowance is a monetary amount paid to an individual in lieu of furnished quarters, subsistence, or the like. Some examples of Allowances are: Basic Allowance for Subsistence (BAS) Basic Allowance for Housing (BAH) Family Separation Allowance (FSA) Cost of Living Allowance (COLA) Overseas Housing Allowance (OHA) Clothing Allowance Temporary Lodging Allowance (TLA) Family Subsistence Supplemental Allowance (FSSA) SHOW SLIDE: ALLOWANCES As you can see, there are an number of different allowances that Soldiers may be entitled to depending on their individual/family circumstances and geographic location (e.g. overseas vs. CONUS). We will focus on those you will see often as an S-1 – BAS, BAH, and FSA. Basic Allowance for Subsistence (BAS) Basic Allowance for Housing (BAH) Family Separation Allowance (FSA) Cost of Living Allowance (COLA) Overseas Housing Allowance (OHA) Moving In Housing Allowance (MIHA) Temporary Lodging Allowance (TLA) Family Subsistence Supplemental Allowance (FSSA)

Basic Allowance for Subsistence BAS rates are as of 1 January 2018 Enlisted BAS – Two types Standard Rate - $369.39 per month BAS II – for members assigned to single (unaccompanied) quarters without adequate food storage or preparation facilities and government mess is not available Officer BAS Automatic Single monthly rate - $254.39 Applies to all officers and never terminates; however, is subject to meal collections (e.g. field duty) DoDFMR Chapter 25 SHOW SLIDE: BASIC ALLOWANCE FOR SUBSISTENCE (BAS) BAS is meant to offset costs for a member's meals. This allowance is based in the historic origins of the military in which the military provided room and board (or rations) as part of a member's pay. This allowance is not intended to offset the costs of meals for family members. Because BAS is intended to provide meals for the service member, its level is linked to the price of food. Therefore, each year it is adjusted based upon the increase of the price of food as measured by the USDA food cost index. This is why the increase to BAS will not necessarily be the same percentage as that applied to the increase in the pay table, as annual pay raises are linked to the increase of private sector wages. Enlisted BAS: Enlisted members are entitled to one of two BAS rates. NOTE: Refer students to the DoDFMR, 250201.B (1) Standard Rate. This is the standard rate of BAS to be paid to enlisted members unless they qualify for and have proper authorization (Commander) for a higher rate of BAS. (2) Enlisted BAS II. Enlisted members on duty at a permanent station and assigned to single (unaccompanied) government quarters (barracks), which do not have adequate food storage or preparation facilities, and where a government mess is not available and the government cannot otherwise make meals available, may be entitled to BAS II. The rate for BAS II is fixed at twice the rate for standard enlisted BAS. Currently BAS II has not been authorized by any of the Military Services. (3) There are two rates–Standard and Discount-for enlisted BAS found DoDFMR, Table 25-1.  (a) Standard Rate: The amount that a Soldier authorized to mess separately (does not have to eat in the DFAC) will receive. (b) Discount Meal Rate: The rate for meal collections when a Soldier is on Essential Station Messing (Must eat in the DFAC). Officer BAS: A single rate of BAS applies to all officers. The BAS entitlement is paid at a monthly rate.  (1) Automatically commences upon completion of initial officer training, Basic Officer Leader Course (BOLC); Officer BAS never terminates, however, can be recouped (e.g., FTXs) Military Members are not entitled to BAS under the following conditions: (1) When undergoing Basic Military Training (2) When in excess leave status (3) When in AWOL status in excess of 24 hours (4) When serving a court-martial sentence that includes confinement BAS rates are as of 1 January 2018

Meal Collection Rates Meal Collections Military member receiving BAS must pay for all meals received from, or provided by, the government (except when hospitalized) Paid for with cash, collection/reduction of subsistence allowance or through pay account collection (e.g., BAS collection for FTX) Collection is made at the “discount meal rate” Pay account collections will be at 25-percent of the discount meal rate for the first and last day of assignment in situations requiring mandatory collection SHOW SLIDE: MEAL COLLECTION RATES Meal Collections. A military member being paid BAS must pay for all meals or rations received from a Government mess or provided on behalf of the government (except when a patient is in a hospital). This is a personal obligation of the individual. Meals or rations may be paid for with cash tendered to the government mess, by collection/reduction of otherwise entitled subsistence travel per diem (a member under orders for essential unit mission has no entitlement to subsistence travel per diem), or through pay account collection. Refer students to 250204.A.1. and explain Essential Station Messing (ESM) and Essential Unit Messing (EUM). Members receiving BAS while in certain situations may have the payment for government-provided meals made by mandatory pay account collection. These are circumstances where it is not feasible to control dining access or collect cash due to operational constraints or where efficiency of operation requires collection for all meals. When a commander/commanding officer requires mandatory collection, the pay account collection will be made for all meals available, whether the meals are actually eaten or not. Mandatory collections are made day-for-actual-day, not a 30-day month basis. Unless the member is receiving a per diem for subsistence, the collection will be at the discount meal rate. Refer students to table 25-1 notes 3 and 4 and explain discount rate and standard rate collection. Pay account collections will be at 25-percent of the discount meal rate for the first and last day of assignment in situations requiring mandatory collection. 2500204.A.3 Confused? We will work through an example if meal collection on the next slide. DoDFMR, Table 25-1

Missed Meals Soldiers required to eat in the DFAC may be reimbursed at the discount rate for meals missed as a result of duty requirements Missed meal are certified by the commander or designee on DD Form 1475 (Basic Allowance for Subsistence Certification) Example SHOW SLIDE: MISSED MEALS Missed Meals. A Soldier who is required to eat the DFAC (meal card holder) may be reimbursed at the discount rate (DoDFMR, Table 25-1) for “missed meals” resulting from duty requirements. The rate Meal Card holders are reimbursed is the discounted meal rate per meal/type missed (e.g., a Soldier was unable to eat breakfast in the dining facility he/she would be reimbursed $1.95 for that missed meal.) Missed meals are certified on DD Form 1475. In this example, the period covered includes 1 through 31 March. The Soldier on Essential Station Messing (ESM) was unable to eat in a government dining facility for 3 breakfasts, 5 dinners, and 3 suppers We will work through an example on the next slide.

Family Subsistence Supplemental Allowance (FSSA) FSSA is a non-taxable supplemental subsistence allowance - not to exceed $1,100.00 per month Soldiers on active duty (officer or enlisted) receiving full or partial BAS are eligible; however, FSSA is voluntary Recertification is necessary every year; however, other factors may require this to be done sooner (i.e., PCS, promotion, household changes) ACS will pre-screen and counsel potential applicants FSSA must be certified by the chain of command upon receipt of documents The application is web-based: http://www.dmdc.osd.mil/fssa SHOW SLIDE: FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE (FSSA) Purpose. FSSA is designed to supplement an individual’s BAS to a level sufficient to remove that member’s household from or eliminate the need for benefits under the food stamp program. Officer and enlisted members entitled to BAS may also qualify for FSSA. FSSA is payable at a monthly rate not to exceed $1,100.00 as determined by the Military Service concerned under the guidance provided by the Secretary of Defense. FSSA is a non-taxable allowance payable in addition to all other pays and allowances. Eligibility. FSSA is payable to any officer or enlisted member of the Armed Forces who meets all of the following criteria: (a) Is serving on active duty and receiving BAS. (b) Has a gross household income that would make the member eligible for assistance under the United States Department of Agriculture (USDA) food stamp program for a given household size. (c) Has made application for and been certified, at a specific payment level, by the appropriate office. Application and Certification. Individual members make application online at the website shown. DoDFMR, Chapter 25

Housing Allowances Housing Allowances are divided into seven categories: Basic Allowance for Housing (BAH) Basic Allowance for Housing Differential (BAH-Diff) Partial Housing Allowance (BAH-Partial) Transit Housing Allowance (BAH-T) Reserve Component Rate (BAH-RC) Overseas Housing Allowance (OHA) Family Separation Housing (FSH) SHOW SLIDE: HOUSING ALLOWANCES There are seven different types of housing allowances covered in the Joint Travel Regulation, Volume 1, Chapter 10. We are going to cover the most common, which is straight BAH. BAH is an allowance to offset the cost of housing when not receiving government-provided housing. BAH depends upon location, pay grade, and number of dependents. BAH rates are established such that members in each pay grade, independent of location, pay approximately the same out-of-pocket costs. Therefore, BAH rates in high-cost areas will be much greater than those in low-cost areas. NOTE: Allow students a few minutes to become familiar the layout of the JTR Chapter 10 and the various housing allowances. All Housing Allowances are covered in the Joint Travel Regulation (JTR), Volume 1, Chapter 10

Family Separation Allowance (FSA) FSA-R (Restricted). For members whose transportation of dependents is not authorized at government expense and dependents do not live in vicinity of member’s PDS For members who elects an unaccompanied tour because dependent cannot accompany due to certified medical reasons FSA-S (Ship). Assigned to a ship continuously away from homeport more than 30 days FSA-T (Temporary). For members with dependents who are TDY continuously for MORE than 30 days and dependents are not residing at or near the TDY station SHOW SLIDE: FAMILY SEPARATION ALLOWANCE (FSA)   FSA is payable to Soldiers with Family Members who are deployed for 30 consecutive days or more and is designed to defray minor costs incurred due to the enforced separation. FSA entitlement will continue through day prior to arrival at home station. FSA is payable only to members with dependents and is in addition to any other allowance or per diem to which a member may be entitled. A member, however, may not receive more than one payment of FSA for the same period, even though qualified for family separation allowance - restricted (FSA-R), family separation allowance - ship (FSA-S), and family separation allowance - temporary (FSA-T). To draw FSA, the Soldier MUST be separated from his/her dependents by competent orders. Soldiers WITHOUT dependents are NOT AUTHORIZED FSA. Family Separation Allowance - R (FSA-R). Transportation of dependents, including dependents acquired after effective date of orders, is not authorized at government expense (see paragraph 270301); and the dependents do not live in the vicinity of the member’s homeport/permanent duty station. Family Separation Allowance - S (FSA-S). Assigned to a ship away from homeport more than 30 days Family Separation Allowance - T (FSA-T). The member is on TDY (or temporary additional duty) away from the permanent station continuously for more than 30 days, and the member’s dependents are not residing at or near the TDY station. This includes members who are required to perform a period of the TDY before reporting to their initial station of assignment. NOTE: For conditions of entitlement see DoDFMR, Tables 27-1 thru 27-4. DoDFMR Chapter 27 DD Form 1561 (Statement to Substantiate Payment of Family Separation Allowance) is used to request FSA.

Learning Objective Action: Interpret Military Pay and Allowances Condition: Senior HR Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercises, case studies, personal experience, handouts, and discussion with an awareness of the Operational Environment (OE) variables and actors. Standard: 1. Communicate S-1 MILPAY functions, authorities, and responsibilities. 2. Determine proper entitlement to basic, special, and incentive pays. 3. Apply military pay policies. SHOW SLIDE: TERMINAL LEARNING OBJECTIVE NOTE: Review TLO with students and inform them that in addition to an Introduction to MILPAY there are two Enabling Learning Objectives for this lesson. ELO A – Research Finance Actions ELO B – Determine Entitlement to Pay and Allowances