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Separation Pay

Separation Pay. Element 43 Pg. 207-209. Purpose. To inform certain involuntary separated TSMs that they may be entitled to separation pay. Why do we pay Sailors separation pay?.

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Separation Pay

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  1. Separation Pay Element 43 Pg. 207-209

  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. INVOLUNTARYSEPARATION PAY CALCULATIONS • Full Separation Pay: - Calculated by multiplying: .10 ((12 x monthly base pay)(years of service) Example: .10 ((12 x 4482.60)(15) = 53,791.20 x 15 = 806,868 x .10 = 80,686.80 • Half Separation Pay: - ½ of full separation pay 80,686.80 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 • MILPERSMAN 1920-060 • NAVADMIN 420/10 • BUPERSINST 1900.8D • OPNAVINST 1900.4 http://dopma-ropma.rand.org/pdf/OPNAVINST-1900-4.pdf • DODFMR Vol 7a • CPPA (Admin Dept.) • ISP@NAVY.MIL

  12. QUESTIONS?

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