1. Separation Pay
Element 43
Page 207

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

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

5. 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.

6. 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

7. 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.

8. 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

9. 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

10. 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.

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

12. 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, = Full ISP
$12, = Half ISP
*Pay Scale 2019