Involuntary Separation Pay Element 43 Page 207

Objectives Help you: Understand when you might be eligible for Separation Pay Understand factors that will make you ineligible for Sep Pay Estimate how much Sep Pay you may receive

You may be eligible if: You have completed your 1st term of enlistment or period of obligated service, and at least six years of service You are separating involuntarily You are NOT eligible for retirement You are NOT separating under adverse condition?

Obligated Service Requirement … and you agree to serve 3 years in the Ready Reserve in addition to any other remaining service obligations

You’re not eligible if you: Choose not to reenlist Return your C-WAY quota Leave Active Duty during your initial enlistment Are eligible for retirement

You’re not eligible if you: Separate: As a result of court martial Under other than honorable conditions Due to unsatisfactory performance or misconduct

Levels of Sep Pay Full – must be honorable E.G: Reduction in forces, High Yield Tenure issues Half – honorable or general E.G. Failing the PRT, security clearance issues, failure to complete a family care plan

Calculation Full: Half: .10 x ((12 x monthly base pay) x years of svc) 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 /

An E4 with 8 years of service with base pay of $2,664 For example An E4 with 8 years of service with base pay of $2,664 ,10 X ((12 X monthly base pay) X YOS)

For example An E4 with 8 years of service with base pay of $2,664 10% X (12 X $2,664) X 8 10% X ($31,968 X 8) 10% X $255,744 Full Invol Sep Pay $25,574.40 Half Invol Sep Pay $12, 787.20

Minus Taxes Other government debts If later you begin receiving disability compensation from VA, all or part of your taxable separation pay my be recouped

Resources MILPERSMAN 1920-030, 040, 050, 060 NAVADMIN 420/10 BUPERSINST 1900.8D DODFMR Vol 7a Command Pay & Personnel Administrator (CPPA)

Questions?