This document summarizes involuntary separation pay policies for the Navy. It defines involuntary separation and eligibility criteria, such as completing 6-20 years of service with an honorable discharge. Sailors who agree in writing to serve in the Ready Reserve for at least 3 years after separation are eligible for full separation pay. Those who do not affiliate or are not accepted receive half pay. The document outlines full pay calculation and exceptions qualifying for half pay. It also notes required SPD codes on DD-214s and that no pay is given to those retired, with less than 6 years, or voluntarily separating.

1. Involuntary Separation Pay PSCS(AW) John Gigliotti OPNAV N132

2. Involuntary Separation Pay Discussion: Definition of Involuntary Separation Eligibility Criteria Full separation pay vs. Half separation pay Reserve Obligation in the Ready Reserve Reference: 10 U.S.C. 1174, OPNAVINST 1900.4, DoD Directive 1332.14, MPM 1920-040

3. IS Definitions Involuntarily separated : Discharged, or released from active duty and includes all forms of separation under conditions wherein the individual is released from active duty at any time prior to the completion of a stipulated period of active service or tour of active duty and not at his/her own request, or denied reenlistment or extension on active duty.

4. Eligibility Criteria Officer and Enlisted Must be involuntary Separation is characterized as honorable or general under honorable conditions. Must have completed at least 6 years of active duty service but less than 20 prior to separation. Qualified for Retention Has entered into a written agreement to serve in the Ready Reserve for a period of not less than three years

5. Full Sep - vs - Half Sep Pay Full separation pay: is 10 percent of the product of the member's years of active military service and 12 times the monthly basic pay to which the member was entitled at the time of discharge or release from active duty. ( Monthly Base Pay X 12 X YOS X 10% = ISP) PTS ERB Others not limited by Half Sep Pay Half separation pay is: One-half the amount computed for full separation pay. Example: Base Pay ($2000) X 12 = 24,000 YOS (7) X 7 = 168,000 10% X .10 = 16,800

6. Full Sep –vs- Half Sep Pay Separations limited to half-sep pay (not all inclusive): PFA Failure (Only if due to BCA failure) HYT Expiration of service obligation and not allowed to continue. Alcohol abuse rehabilitation failure. National security. Convenience of the Government. (Ex: Parenthood, physical or mental conditions, motion sickness)

7. Full Sep –vs- Half Sep Pay Separation Program Designator (SPD) Codes on the DD Form 214 (Block 26) PTS separations: JGH/LGH for half sep pay JBK for full sep pay ERB separations: Sailors who are discharged and do not have Reserve obligation remaining shall be assigned “JCC”. (Full) Sailors who are released from active duty and have Reserve obligation remaining shall be assigned “LCC” (Full) Know these codes!!!

8. No Separation Pay No Separation Pay Entitlement: Reservist discharged on inactive duty Reservist released from active duty for training Eligible for retired or retainer pay (EX: SECB) Less than 6 years total active service Administrative Separation under OTH Not retention “eligible” except when half sep pay is authorized (EX: HYT) Voluntary Request Declines new skill or rating as a precondition for reenlistment or continuation on active duty

9. ISP PTS Flow Diagram

10. Reserve Obligation The service member has entered into a written agreement to serve in the Ready Reserve for a period of not less than three years following separation from active duty. If the member has a service obligation remaining at the time the member is separated from active duty, the three-year obligation will begin on the day after the date on which the member completes this obligation. A member who enters into this written agreement and who is not qualified for appointment or enlistment in the Ready Reserve need not be enlisted or appointed to be considered to have met this condition of eligibility for separation pay.

11. Quick Quiz True or false, only enlisted personnel are entitled to ISP? False, both officer and enlisted are eligible. True or false, by joining the Reserves, a Sailor becomes entitled to ISP? Trick question….False, a written agreement entitles the Sailor to ISP. Joining the Reserves via executed reenlistment pays ISP Full or Half. (Non-affiliation due to not being accepted by the RC pays Half. (No reserve reenlistment required) How long is the term of Reserve obligation. Not less than 3 years. To receive an ISP Payment, a Sailor must enlist in the _______________. Ready Reserve = (Drill (SELRES) or Non-Drill (IRR)) Name two ISP eligibility criteria: 1. Must be involuntary. 2. Must have completed 6 years of service, but less than 20. 3. Must be retention eligible except for half sep pay. 4. Entered into a written agreement to serve in the Ready Reserve for a period of not less than three years. 5. Characterization = Honorable or General Under Honorable Conditions

12. Take - Aways Must sign an agreement to join the Ready Reserve to become eligible for ISP. Must execute a Reserve Reenlistment to receive ISP unless not accepted by the Reserves. The 3 year reserve obligation for ISP is in addition to any service obligation remaining. Ready Reserve consists of SELRES (Drill) IRR (Non-Drill) (Know the difference…know your options) Make sure the appropriate SDP Code is in block 26 of the DD Form 214 . If eligible for ISP but not qualified to join the Ready Reserve, the ISP payment will be half of full sep pay.