Separation Pay Element 43 Page 207

Purpose To inform TSMs who may be entitled to separation pay.

References MPM 1920-030 MPM 1920-040 MPM 1920-050 MPM 1920-060 NAVADMIN 420/10 BUPERSINST 1900.8D OPNAV 1900.4 DOMFMR Vol 7a CPPA Title 10, Chapter 59, Section 1174

SPD vs. RE Codes SPD (Separation Program Designator) Codes identify members eligible for separation pay. Will be in block 26 of DD-214. RE (Reenlistment Eligibility) Code will be in block 27 of DD-214 and identifies who may reenlist or enlist in a military service at a later time.

Who’s eligible? TSMs must: Have finished first term of enlistment or obligated service >= 6 years of military service INVOLUNTARY SEPARATED <=20 years of service or other wise not be eligible for retirement Not separating under adverse condtions

TSMs may also be entitled to any monetary value of unused accrued leave The amount received for separation pay will be reduced by taxes withheld, any outstanding balances or advance pay received, unearned bonus recoupment and any other debts TSMs must repay any debts owed to the U.S. Gov’t TSMs medically separated for a disability incurred while in a combat zone or combat- related operations may be entitled to an enhanced disability separation pay.

Disqualifying information Choosing to not reenlist Returning CWAY Quota Leaving AD during initial term of enlistment Eligible for retirement pay, including TERA Separation due to court-martial/OTH/UNSAT performance/misconduct

Full pay vs. Half pay To be eligible for full pay a TSM must be discharged under honorable conditions and fully qualified to retention To be eligible for half pay a TSM must be honorable or general

How much am I getting? For full pay use the formula: 10% X (12 X monthly base pay) X (YOS) For half pay = use above formula and divide by 2.

Additional information Incurring obliserv is required to receive involuntary separation pay TSMs must agree to serve for 3 years in the ready reserve

Calculations An E4 with 8 years of service is entitled to full ISP. 10% X (12 X monthly base pay) X (YOS) 10% X (12 X *$2,664) X (8) 10% X ($31,968) X (8) 10% X ($255,744) $25,574.40 = Full ISP $12, 787.20 = Half ISP *Pay Scale 2019