Sep pay opnav 1900.4

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Sep pay opnav 1900.4

  1. 1. DEPARTMENT OF THE NAVY OFFICE OF THE CHIEF OF NAVAL OPERATIONS 2000 NAVY PENTAGON WASHINGTON, DC 20350-2000 OPNAVINST 1900.4 N13 20 Dec 2005OPNAV INSTRUCTION 1900.4From: Chief of Naval OperationsSubj: SEPARATION PAY FOR INVOLUNTARY SEPARATION FROM ACTIVE DUTYRef: (a) 10 U.S.C. 1174 (b) DOD Instruction 1332.29 of 20 Jun 91 (c) DOD Directive 1332.14 of 21 Dec 93 (d) SECNAVINST 1920.6 series1. Purpose. To prescribe policy and procedures for award ofseparation pay upon involuntary separation, discharge, orrelease from active duty, as authorized by references (a) and(b).2. Cancellation. This OPNAV Instruction supersedes SECNAVINST1900.7G. The SECNAV Instruction was cancelled under a separatecancellation memo.3. Applicability. This instruction applies to Navy membersinvoluntarily separated from active duty on or after November1990. No reserve members who are separated while on inactiveduty are eligible for separation pay under reference (a).4. Definitions. The phrase "involuntarily separated,discharged, or released from active duty" includes all forms ofseparation under conditions wherein the individual is releasedfrom active duty at any time prior to the completion of astipulated period of active service or tour of active duty andnot at his/her own request, or denied reenlistment or extensionon active duty. Examples include release due to Reduction InForce (RIF) or a failure of selection for promotion, and releaseof reserve members not accepted for an additional tour of activeduty for which they volunteered.
  2. 2. OPNAVINST 1900.4 20 Dec 2005 a. The phrase “not accepted for an additional tour ofactive duty for which they volunteered” refers to members who,prior to completing a tour of active duty or a stipulated periodof active service, or upon notification of the intent toseparate them from active duty, volunteer to remain on activeduty for an additional tour but are not accepted. b. Reserve officers who twice fail to be selected forpromotion under chapter 36 of reference (a) and who areineligible to apply for an additional tour of active duty undera service retention program need not request retention to be“not accepted for an additional tour of active duty for whichthey volunteered.”5. Policy. Separation pay is intended to assist members whoare involuntarily separated in returning to civilian life. Itis intended to encourage the pursuit of a military careerthrough the assurance that those unable to remain on active dutyuntil eligible for retired or retainer pay can count oncompensation to ease their re-entry into civilian life.Separation pay will be paid to members involuntarily separatedfrom active service and to those not accepted for an additionaltour of active duty for which they volunteered, as provided inthis instruction.6. Rates of Separation Pay. The amount of separation pay foran individual shall be calculated as follows: a. Full separation pay is 10 percent of the product of themembers years of active military service and 12 times themonthly basic pay to which the member was entitled at the timeof discharge or release from active duty. b. Half separation pay is one-half the amount computedunder paragraph 6a. c. To determine years of active military service for use incomputing separation pay, count each full month of service thatis in addition to the number of full years of creditable serviceas 1/12 of a year. Disregard any remaining fractional part of amonth. 2
  3. 3. OPNAVINST 1900.4 20 Dec 2005 d. Periods for which a service member previously hasreceived separation pay, severance pay, or readjustment pay maybe counted for eligibility purposes (to ensure the member meetsthe minimum required years of active duty), but may not be usedin the multiplier to determine the amount of separation pay forsubsequent separation. e. Do not count periods of unauthorized absence,confinement awaiting trial, which resulted in conviction, timelost through disease or injury due to misconduct, or service asa midshipman or cadet at a service academy.7. Personnel Eligible for Full Separation Pay (Non-disability).Members involuntarily separated from active duty whoseseparation is characterized as honorable and who meet thecriteria in a and b below, except those excluded in paragraphs 8and 9, are entitled to the full rate of separation pay. a. Minimum service (1) Officers on the active duty list must have completedat least six years of active duty service prior to separation,or have been on active duty with at least five years of activeduty service as of 5 November 1990. Regular officers separatedbecause of twice failing to select for promotion must havecompleted at least five years of active duty service. Thequalifying years do not have to be continuous; however, the lastphase of the qualifying term must end immediately before theseparation, discharge or release. (2) Regular enlisted members must have completed atleast six years of active duty service prior to separation. Thequalifying years do not have to be continuous; however, the lastphase of the qualifying term must end immediately before theseparation, discharge or release. (3) Officers not on the active duty list and reserveenlisted members must have completed at least 6 years ofcontinuous active duty service immediately prior to separation,or if on active duty as of 5 November 1990, must have completedat least 5 years of active service as of that date and at least5 years of continuous active duty service immediately prior toseparation. A period of active duty service is continuous ifany break in service does not exceed 30 days. b. Reserve obligation. The service member has entered intoa written agreement to serve in the Ready Reserve for a period 3
  4. 4. OPNAVINST 1900.4 20 Dec 2005of not less than three years following separation from activeduty. A member who enters into this written agreement and whois not qualified for appointment or enlistment in the ReadyReserve need not be enlisted or appointed to be considered tohave met this condition of eligibility for separation pay. Ifthe member has a service obligation remaining at the time themember is separated from active duty, the three-year obligationwill begin on the day after the date on which the membercompletes this obligation. c. Enlisted members separated due to high year tenure willbe eligible for full separation pay, provided they meet theother requirements of this instruction, and are eligible foradvancement at the time of separation under policies establishedby the Chief of Naval Personnel (CHNAVPERS).8. Personnel Limited to Half Separation Pay (Non-disability) a. Members not fully qualified for retention who areeligible for separation pay under paragraph 7a and 7b abovewhose separation is characterized as honorable or general andwho are involuntarily separated from active duty under thefollowing criteria as prescribed by references (c) and (d) shallbe limited to one-half the rate of separation pay, as prescribedin paragraph 6b. This includes members separated for high yeartenure who are not qualified for advancement under policiesestablished by the CHNAVPERS. (1) Expiration of service obligation. (2) Selected changes in service obligation. (3) Homosexuality. (4) Drug abuse rehabilitation failure (5) Alcohol abuse rehabilitation failure. (6) Retention not consistent with the interest ofnational security. (7) Convenience of the Government. (8) Physical Test and/Weight control failure, or forofficers, substandard performance of duty by reason of failureto conform to prescribed standards of weight. This applies tomembers separated from active duty on or after 10 March 1992. 4
  5. 5. OPNAVINST 1900.4 20 Dec 2005 b. The Secretary of the Navy (SECNAV) may award fullseparation pay to individual members discharged under theconditions in paragraph 8a. Such payments will be granted inextraordinary instances when the specific circumstances of theseparation and overall quality of the members service have beensuch that denial of such pay would be clearly unjust. As anexample, a member with a congenital or hereditary disease who isinvoluntarily separated for convenience of the government, andwho is not considered for full separation pay. Requests forfull separation pay shall be submitted to the Secretary of theNavy, via the members chain of command.9. Personnel Not Eligible for Separation Pay. Membersseparated under the following circumstances per references (c)and (d) are not eligible for separation pay. a. Members separated from active duty at their own request.A member who declines training to qualify for a new skill orrating as a precondition to reenlistment or continuation toreenlistment or continuation on active duty will not beconsidered involuntarily separated. This limitation does notapply to officers discharged or released from active dutybecause of failure to be selected for promotion. b. Members released from active duty for training. c. Members who, upon discharge or release from active duty,are immediately eligible for retired or retainer pay. d. Chief Warrant Officers (CWOs) whose appointments areterminated during the three-year probationary period and whoelect to enlist. e. CWOs who twice fail to be selected for promotion to thenext higher permanent regular warrant officer grade and areserving on active duty in a grade above W4, and elect, with theconsent of the SECNAV, to be retained on active duty in thatstatus. f. CWOs who twice fail to be selected for promotion to thenext higher permanent Regular warrant officer grade and elect toenlist. g. Temporary or permanent Limited Duty Officers (LDOs) in apay grade below O4 who twice fail to be selected for promotion 5
  6. 6. OPNAVINST 1900.4 20 Dec 2005to the next higher grade and elect to revert to warrant officeror enlisted status. h. Reserve officers who decline a regular appointmentoffered at the O4 level or above in compliance with the all-regular career force objective. i. Regular officers in pay grade O3 or O4 who twice fail tobe selected for promotion to the next higher grade and whosedischarge date is within two years of qualifying for retirement,under section 632 of reference (a) and reference (d). j. Members who are released as part of the execution of acourt-martial sentence, which includes discharge or dismissal. k. Members dropped from the rolls of the Navy by thePresident or the SECNAV, under sections 1161, 1163 and 6408 ofreference (a), and reference (c) or (d). l. Members separated under Other than Honorable conditionsunder reference (c) or (d). m. Enlisted members separated because of misconduct orunsatisfactory performance under reference (c). n. Regular, reserve, and warrant officers who areinvoluntarily separated for cause under reference (d) by reasonof substandard performance of duty, misconduct, or moral orprofessional dereliction; or who have been notified in writingto show cause for retention and subsequently request separation,for such reasons, except when half pay is allowed underparagraph 8 above. o. Members separated during an initial enlistment or periodof obligated service. The initial enlistment or period ofobligated service is defined as the active service obligationincurred upon initial enlistment or enrollment in acommissioning program. This limitation also applies to memberswho request reenlistment or continuation at the end of suchinitial enlistment or period of obligated service who are deniedreenlistment or continuation. p. In extraordinary cases, when the Chief of NavalOperations (CNO), as delegated by SECNAV, determines theconditions under which the member is separated do not warrantseparation pay. This discretionary authority to deny paymentshall be used sparingly. 6
  7. 7. OPNAVINST 1900.4 20 Dec 200510. Additional Eligibility Requirements for Reserve Personnel a. To be eligible for separation pay a Reservist must havebeen involuntarily separated from active duty by the SECNAV ormust have been denied a voluntary request for additional activeduty. The request to remain on active duty must be unqualifiedand must specify that the member will accept any assignmentcommensurate with member’s pay grade, designator/MilitaryOccupation Specialty (Rating/Navy Enlisted Classification(NEC)). The request must be submitted no later than six monthsprior to release from active duty. The CHNAVPERS may specify alesser period of time in advance when needed to enhance serviceretention programs. b. Submission of preference for duty; e.g., an Officer DutyPreference and Personal Information Card, NAVPERS 1301/1, anEnlisted Duty Preference Form, NAVPERS 1306/63, or a servicerecord administrative remark entry, does not constitute anunqualified request to remain on active duty.11. Savings Provision for Readjustment Pay and Severance Pay a. Members who were on active duty (other than fortraining) on 14 September 1981 and "who, after that date, wereinvoluntarily discharged or released from active duty under anyprovision of reference (a) in effect after that date, areentitled to receive any readjustment pay or severance pay towhich they would have been entitled under the laws in effectbefore 15 September 1981. If a member, eligible forreadjustment pay or severance pay as stated in the precedingsentence, is also eligible to receive separation pay under thisinstruction, the member may elect to receive either readjustmentpay/severance pay or separation pay, but not both. Members whodo not make an election in a timely manner shall be paid theamount which is more favorable to the member. b. Service members (including Regular enlisted members) onactive duty (other than for training) on 5 November 1990, whowere involuntarily separated from active duty before 20 June1991, shall be entitled to receive any separation pay to whichthey are entitled under reference (a), as amended by public law101-510, section 501, under the policies and procedures of thisinstruction as follows: (1) Subject to the conditions and limitations otherwisestated in this instruction, regular enlisted members who were 7
  8. 8. OPNAVINST 1900.4 20 Dec 2005separated involuntarily, or as a result of denial ofreenlistment, after having completed 6 or more but fewer than 20years of active duty shall receive separation pay. (2) The limitations concerning the maximum amount ofseparation pay that members may receive shall not apply. (3) In addition to the other disqualifying circumstancesin this instruction, a member is not eligible for separation payif: (a) The member does not meet one of the criteria foractive service in paragraph 7a of this instruction. (b) The member has not entered into an agreement toserve in the Ready Reserve in accordance with paragraph 7b ofthis instruction. (c) The member is separated during an initial termof enlistment or initial period of obligated service as definedin paragraph 9p of this instruction.12. Repayment of Separation Pay, Severance Pay or ReadjustmentPay a. Members who have received separation pay, severance pay,or readjustment pay based on service in the Armed Forces, whichincludes service on or after 15 September 1981, and whosubsequently qualify for retired or retainer pay shall havededucted an amount equal to the total amount of separation pay,severance pay, or readjustment pay. This amount will berecouped from each payment of this retired or retainer pay untilthe total amount deducted is equated to the total amount ofseparation pay, severance pay or readjustment pay received.Example:A member separated with 15 years active service receives thefollowing in separation pay: $57,845.If member subsequently retires with 20 years service, therecoupment of separation pay is calculated as follows: 15 $1,723 (Monthly Gross Retired Pay) __ 20 = .75 x.75 _______ 8
  9. 9. OPNAVINST 1900.4 20 Dec 2005Monthly Recoupment Rate: $1,292NOTE: The monthly recoupment rate will be recomputed when grossretired pay is increased for cost of living adjustments. Onlythe difference between the recoupment and gross retired pay($431 in above example) is taxable. b. Members who have received separation pay, severance pay,or readjustment pay based on service in the Armed Forces whobecome eligible for disability compensation administered byVeterans Affairs, will have deducted from such disabilitycompensation an amount equal to the total amount of separationpay, severance pay, or readjustment pay received. However, suchreduction shall not apply to disability compensation where theentitlement to disability compensation is based on a laterperiod of active duty than the period of active duty for whichthe severance pay, separation pay, or readjustment pay wasreceived. c. Members who received readjustment or severance paybefore 15 September 1981 and who, on or after 15 September 1981,became entitled to retired or retainer pay under any provisionof reference (a) or title 14, United States Code, will berequired to repay that readjustment or severance pay inaccordance with the laws in effect on 14 September 1981.13. Responsibilities a. CHNAVPERS shall: (1) Act upon proposed changes to separation pay policyand seek necessary modifications to eligibility criteria withinthe guidance provided by reference (b) and this instruction. (2) Provide an annual report to the Principal DeputyUnder Secretary of Defense (Personnel and Readiness) via theAssistant Secretary of the Navy (M&RA) as required by paragraphD3 of reference (b). b. CHNAVPERS is responsible for implementing this policy.14. The reporting requirement contained in paragraph 12a(2) isexempt from reports control by SECNAVINST 5214.2B. /s/ 9
  10. 10. OPNAVINST 1900.4 20 Dec 2005 J. C. HARVEY, JR. Vice Admiral, U.S. Navy Deputy Chief Of Naval Operations (Manpower, Personnel, Training, and Education)Distribution:Electronic only, via Navy Directive Web sitehttp://neds.daps.dla.mil/ 10

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