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Military Pay--Active Duty and Retired
Active Duty Pay Rates
A complete list of DFAS
yearly pay tables from 1949 to present.
Web site:
myPay Web Site
Military Retired Pay is administered by the
applicable government agency listed below.
Army, Navy, Marine Corps, and Air Force:
Defense Finance and Accounting
Service-Cleveland Center/ROCAD
P.O. Box 99191
Cleveland, OH 44199-2058
Toll free:
1-800-321-1080 (General Information)
1-800-269-5170 (Casualty reporting only)
1-800-469-6559(FAX)
Coast Guard/NOAA:
Commanding Officer
United States Coast Guard
Human Resources Service &
Information Center (RAS)
444 S.E. Quincy St.
Topeka, KS 66683-3591
Toll Free: 1-800-772-8724
Telephone: (785) 357-3415 Web sit:
<http://www.uscg.mil/hq/hrsic>
Public Health Service:
U.S. Public Health Service
Division of Commissioned
Personnel, ODB
5600 Fishers Lane
Rockville, MD 20857
Toll Free: 1-800-638-8744
Telephone: (301) 594-3389
Officers may experience difficulty in contacting
DFAS on the toll free line (long waiting at times).
Frequently Asked Questions
Q. I'm retired military and
receiving monthly retired pay. When I die, will by beneficiary be allowed to
keep my retired pay for that month?
A.
NO. The military retired pay for the month in which you die must be returned.
Your designated beneficiary (on file at Defense Finance and Accounting
Service-Cleveland; Pay & Personnel Center, Topeka, Kan., for Coast Guard and
National Oceanic and Atmospheric Administration personnel; and with the U.S.
Public Health Services (USPHS), Rockville, MD, for USPHS personnel) will receive
the residual retired pay through the date of your death. It is critical that
your beneficiary be on file with one of the organizations noted above.
Q. I am currently receiving
military retired pay. Will my retired pay be reduced when I begin to receive
Social Security cash benefits?
A.
No. Entitlement to Social Security payments has no effect on, nor is it affected
by, military retired pay. Both benefits are independently payable.
Q. How is military retired pay
computed for active duty personnel?
A.There
are currently three methods to compute non-disability military retire pay. The
method used depends on when the individual first entered military service.
Final pay method:
This method applies to those individuals who
initially entered military service was prior to September 8, 1980. The formula
for calculating non-disability retired pay under the final pay method is as
follows: the monthly base pay (at retirement) X 2.5% X number of years of active
military service. Using this formula a service member with 20 years active
service receives 50% monthly base pay at retirement. The annual Cost of Living
Adjustments (COLA) equal the percentage increase in the Consumer Price Index
(CPI).
High-36 method (also know as
High-3):
This method applicable to those individuals who
first entered service on or after September 8, 1980, but before August l, 1986.
The formula used to calculate non-disability retired pay under the high-36 is a
follows: the average of the highest three years (36 months) of basic pay X 2.5%
X number of years of active military service. COLA's are applied in the same
manner as the final pay method.
Military Retirement Reform Act
of 1986 method (also known as REDUX):
Individuals who initially entered military service
was on or after August 1, 1986 will have their non-disability military retired
computed using the REDUX method. The formula used to calculate non-disability
retired pay under the high-36 is a follows: the average of the highest three
years (36 months) of basic pay X 2% X for the first 20 years of active military
service and 3.5% for the next 10 years of active military service. When the
retiree reaches age 62 there will be a non-time recomputation of their retired
pay. The multiplier will be 2.5% for each year of active service. Consequently,
at age 62, the 20 year retiree will begin receiving 50% (rather than 40%) of
their original computation base. COLA's under the REDUX method are no as
generous as the previous two. The annual COLA will be one percentage point below
the CPI. When the retiree reaches age 62, there will be a one-time recomputation
of their retired pay. This recomputation is intended to restore the lost
purchasing power caused by holding the COLA's at the inflation rate minus one
percentage point. However, thereafter, the annual COLA will again be CPI minus
one percentage point.
REDUX
Repealed.
The fiscal year 2000 National Defense Authorization
Act repealed REDUX. This means that servicemembers who entered the military
after July 31, 1986, will receive 50 percent of high three years' average basic
pay for 20 years of service, rather than 40 percent under REDUX, and full
cost-of-living adjustments (COLAs) rather than Consumer Price Index (CPI) minus
one percentage point under REDUX.
As an alternative, when they attain 15 years of
service, servicemembers will have the option of receiving a $30,000 retention
bonus provided they agree to remain under REDUX and serve for a minimum of 20
years.
Important Notice - New Law Concerning
Eligibility for Headstones and Markers
On December 27, 2001, President Bush signed Public Law 107-103, the Veterans
Education and Benefits Expansion Act of 2001.This law includes a provision that
allows the Department of Veterans Affairs (VA) to furnish an appropriate
headstone or marker for the graves of eligible veterans buried in private
cemeteries, whose deaths occur on or after December 27, 2001, regardless of
whether the grave is already marked with a non-government marker. This new
provision will be codified at 38 U.S.C. § 2306(d).For more details concerning
this new benefit, select the following link:
http://www.cem.va.gov/newlawinst.htm
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Veteran News
WWII Veteran High School Diplomas
Many
World War II veterans are now eligible to get a high school diploma if they
don't already have one. This due to a national trend of states enacting
legislation to authorize this. According to Robert McKean, Massachusetts
Department of Veterans' Services, the following states either have enacted
or are working on administrative rules or legislation that award high school
diplomas to World War II veterans: Alaska, Alabama, Arkansas, California,
Colorado, Connecticut, Florida, Idaho, Iowa, Louisiana, Maine,
Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New
Jersey, New York, Pennsylvania, Rhode Island, Texas, West Virginia. [Source:
Armed Forces News Issue 15 JUN 2001]
State Income Tax
Moving to the states or changing your
home of record could impose additional expense for you through the payment
of state income taxes on your military retirement pay. State income tax is
not automatically withheld from retired pay by DFAS-CL. If your state taxes
your retired pay as income, you must notify DFAS-CL of the amount of money
you want withheld from your retired pay and to which state it should go.
Amounts must be in even dollar amounts with $10 the minimum. A simple letter
with your signature and Social Security number will be sufficient. Some
states have special exemptions for military retirees, so you need to check
out these special exemptions. Some states do not have a state income tax law
and some that do, do not tax military retired pay. States with no personal
income tax are: Alaska; Florida; Nevada; New Hampshire; South Dakota;
Tennessee; Texas; Washington; and Wyoming (They may have a dividend or
personal property tax, but your retired pay is not taxed). States that
exempt all military retired pay are: Alabama; Hawaii; Illinois; Kansas;
Kentucky; Louisiana; Massachusetts; Michigan; Mississippi; New York; North
Carolina; Oregon; Pennsylvania; and Wisconsin (Kentucky; Massachusetts;
Michigan; North Carolina; Oregon; and Wisconsin has special qualifications,
so be sure to check them out). Information on state income tax can be found
at http://www.1040.com/state.htm [Source: Max's Facts 32-01 dtd 15 JUN 01]
Federal Jobs for Veterans
The Veterans
Readjustment Appointment (VRA) authority provides vets with jobs in the
federal government. This authority allows federal agencies to appoint
Vietnam-Era and post-Vietnam-Era vets to jobs without competition. Such
appointments may lead to conversion to career or career conditional
employment upon satisfactory performance for two years. Vets seeking VRA
appointment should apply directly to the agency where they wish to work. The
Office of personnel Management (OPM) administers the Disabled Veterans
Affirmative Action Program (DVAAP). All federal departments and agencies are
required to establish plans to facilitate the recruitment and advancement of
disabled vets. Vets who are disabled or who served during certain periods
have preference in federal jobs. This reference includes additional points
to passing scores in examinations, first consideration for certain jobs, and
preference in job retention. Preference is also provided for:
- Unremarried widows/ers of
deceased vets and Mothers of military personnel who died in service.
- Spouses of service-connected
disabled vets who are no longer able to work in their usual occupations.
- Mothers of vets who have
permanent and total service-connected
disabilities.
Individuals interested in federal
employment should contact the personnel offices of the federal agencies in
which they wish to be employed. Info can also be obtained by contacting any
OPM service center. The centers are listed in the phone book under U.S.
government Offices. Info regarding job opportunities is provided by Career
America Connection at [912]757-3000 or at www.usajobs.opm.gov. [Source:
Federal Benefits for Vets/Dependents VA Pamphlet 80-00-1]
VA Occupational Test
Reimbursement
The Veterans Benefits and Health Care Improvement Act of
2000 provides new benefits for veterans which went into effect 1 MAR 01. The
VA will now pay veterans reimbursement for the costs of licensing and
certification tests taken on or after March 1. One of the most important
improvements of the new law allows veterans the use of basic
education assistance for payment of vocational or professional licensing or
certification tests. Veterans can be reimbursed for examination costs up to
$2,000 per test. They must be eligible for the Montgomery GI Bill or the
Veterans' Educational Assistance Program. The benefit is also available to
veterans' survivors who qualify for dependents' educational assistance.
According to the VA, a veteran does not have to pass a state bar examination
or a plumber's qualification test, for example, to qualify for the benefit
and may retake the test if necessary.
The benefit also can be used to renew an existing license or certificate,
and tests can be taken in foreign countries if approved. There is no limit
on the number of tests a veteran can take. VA pays only the cost of the
tests and not any other fees connected with obtaining a license or
certification. The benefit payments are sent directly to the individual
veteran. Approval of tests for reimbursement depends on the department's
partnerships with state agencies that certify education programs for GI Bill
benefits. In general, if the testing organization is non-governmental, the
test must be accepted within the industry and meet
other requirements, such as having been used for at least two years. Because
it is a new program, few tests were immediately authorized, but the VA is
encouraging organizations that administer occupational licensure and
certification tests to ask state approving agencies to review their
examinations. Additional info on the new benefits and how to apply for
reimbursement online can be found at
www.gibill.va.gov or by calling the VA at 888-442-4551. Organizations
offering tests for occupational licenses and certifications can learn how to
gain VA approval by calling 888-442-4551. [Source: May 8, 2001, Dave
Eberhart Stars and Stripes News Editor] |
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