1. Separation Pay
Element 43 Pg

2. Purpose
To inform certain involuntary separated TSMs that they may be entitled to separation pay.

3. Why do we pay Sailors separation pay?
Public law and Assistant Secretary of Defense policy established separation pay to monetarily assist certain involuntarily separated or released members from active duty.
Separation pay eligibility and amounts are determined by the type of separation (involuntary or voluntary). Separation Program Designators (SPD) codes identify members eligible for separation pay. While many SPD codes dually confer separation pay and transition benefits, there are many SPD codes that confer only separation pay.

4. GENERAL ELIGIBILITY FOR INVOLUNTARY SEPARATION PAY:
Finished 1st term of enlistment or period of obligated service
At least 6 years of service
Separating involuntarily
Not yet eligible for retirement
Not separating under adverse conditions
*Personnel medically separated for a disability incurred in a combat zone or from combat-related operations may be entitle to an enhanced disability separation pay. Contact admin/personnel office for more info.

5. DISQUALIFIERS FOR SEPARATION PAY
Choosing not to reenlist
Returning CWAY quota
Leaving active duty during your initial term of enlistment
Eligibility for retirement pay, including Temporary Early Retirement Authority (TERA)
Separation as the result of court martial
Separation under other than honorable conditions
Separation for unsatisfactory performance
Separation for misconduct

6. LEVELS OF INVOLUNTARY SEPARATION PAY
FULL SEPARATION PAY
HALF SEPARATION PAY
- ½ of the full amount

7. QUALIFICATIONS FOR FULL ISP
Honorable discharge
Fully qualified for retention at the time of retention
Complete 6 years of service, but no more than 20
Agree to serve in the Ready Reserve or comparable reserve component for 3 years
*If the member has an existing reserve obligation, they must serve an additional 3 years after their existing obligation.
Common reasons for full separation pay:
- Reduction in Forces actions - Legal restriction on # of
- High Year Tenure (HYT) officers in particular paygrade

8. QUALIFICATIONS FOR HALF ISP
Honorable or general discharge
Common reasons for half separation pay:
- PRT failure
- Security clearance issues
- Inability to create/maintain family care plan

9. INVOLUNTARY SEPARATION PAY CALCULATIONS
Full Separation Pay:
- Calculated by multiplying:
.10 ((12 x monthly base pay)(years of service)
Example: .10 ((12 x )(15) =
53, x 15 = 806,868 x .10 = 80,686.80
Half Separation Pay:
- ½ of full separation pay
80, x .5 = 40,343.40

10. OH BY THE WAY…
If your situation changes for any reasons and you become ineligible for ISP after you’ve already received it…

11. Resources MILPERSMAN 1920-030 MILPERSMAN 1920-040 MILPERSMAN 1920-050
NAVADMIN 420/10
BUPERSINST D
OPNAVINST
DODFMR Vol 7a
CPPA (Admin Dept.)

12. QUESTIONS?