1. Separation Pay
Element 43
Page #: 198

2. Objectives
Eligibility
Disqualifying Factors
Levels
Calculation

3. 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 D
DODFMR Vol 7a

4. 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.

5. 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

6. 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

7. 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.

8. 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 =
x 75 months =
x 10% = /

9. Calculation
For Example: An E6 with 11 years 5 months entitled to full separation pay.
.10 x(11.42 x 12 x ) = 48,835.53
.05 x (11.42 x 12 x ) = 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 =
x 75 months =
x 10% = /

10. 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.

11. Review
Eligibility
Disqualifying Factors
Levels
Calculation

12. QUESTIONS