Separation Pay Element 43 Page #: 198

Objectives Eligibility Disqualifying Factors Levels Calculation

References MILPERSMAN 1920-030 MILPERSMAN 1920-040 MILPERSMAN 1920-050 NAVADMIN 420/10 Public Law: Title 10, Chapter 59, Section 1174 Directive Type Memo BUPERSINST 1900.8D DODFMR Vol 7a

Public Law Separation Pay was established to monetarily assist certain involuntarily separated or released members from Active Duty. Amounts are determined by the type of separation.

Eligibility Finished first term of enlistment or period of obligated service At least six years of service Separating involuntarily Not yet eligible for retirement Not separating under adverse conditions OBLISERV - (ISP) This should really be called ‘Involuntary Separation Pay’ Some members may be entitled for final pay at separation that consists of some earned entitlements and pay for accumulated leave Don’t forget the Taxes or if you have a debt. If there is a debt, the member will still have to pay that back, and may be able to work out a payment plan with the Disbursing Officer. If a member is separated for a combat-related disability, they may be entitled to additional disability but must go through the VA. If you want to get ISP, you must OBLISERVE for 3 years in the ready reserve

Disqualifiers Choosing not to reenlist Leaving Active Duty during first enlistment Eligibility for retirement pay Separation due to court-martial Separation due to OTH, unsat performance or misconduct

Levels Full – must be honorable Reduction in Forces, HYT. Required to agree to serve 3 years in the Reserves Half – honorable or general Failing the PRT, Security Clearance issues, failure to complete the Family Care Plan For Full Sep Pay: If a member already has a reserve obligation, they must agree to serve an additional 3 years past after their existing obligation.

Calculation Full: .10 ((12 x monthly base pay)(yrs of svc) Half: NOTE: Try not to guarantee members this amount! Involuntary separation pay is based on the members base pay at the time of separation and their years in months of service. This calculation is done by the Finance Office. 12x 2596.46 = 31157.52 31157.52 x 75 months = 2336814.00 2336814 x 10% = 2336814 2336814 /

Calculation For Example: An E6 with 11 years 5 months entitled to full separation pay. .10 x(11.42 x 12 x 3563.58) = 48,835.53 .05 x (11.42 x 12 x 3563.58) = 24,417.65 Involuntary separation pay is based on the members base pay at the time of separation and their years in months of service. This calculation is done by the Finance Office. 12x 2596.46 = 31157.52 31157.52 x 75 months = 2336814.00 2336814 x 10% = 2336814 2336814 /

Recoupment Military service members who receive separation pay under any provisions of law based on service in the Armed Forces, and, subsequently, either qualify for retired or retainer pay under 10 U.S.C. or 14 U.S.C., or become eligible for disability compensation administered by the VA, are subject to the recoupment of the gross taxable separation pay they received.

Review Eligibility Disqualifying Factors Levels Calculation

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