Basic Pay and Allowances

MCI 3422B

MARINE CORPS INSTITUTE

BASIC PAY AND ALLOWANCES

MARINE BARRACKS WASHINGTON, DC

UNITED STATES MARINE CORPS MARINE CORPS INSTITUTE

912 CHARLES POOR STREET SE WASHINGTON NAVY YARD DC 20391-5680

IN REPLY REFER TO:

1550 Ser 3422 1 Dec 07 From: Director To: Marine Corps Institute Student Subj: BASIC PAY AND ALLOWANCES (3422B) 1. Purpose. The subject course provides instruction to help the Marine audit authorized allowances and deductions for pay purposes and provide the skills to audit the various types of financial situations. 2. Scope. This course is based on DODFMR 7000.14R, Department of Defense Financial Management Regulations; Military Pay, Policy, and Procedures. Upon completion of Basic Pay and Allowances, the Marine will be able to distinguish between basic and special pay; audit various types of allowances; audit incentive pay; and audit deductions. 3. Applicability. This course is intended for instructional purposes only. This course is designed for Marines, private through sergeant, who are assigned duties as disbursing clerks or in an allied fields, such as command, administrative, or career counselors. 4. Recommendations. Comments and recommendations on the contents of the course are invited and will aid in subsequent course revisions. Please complete the course evaluation questionnaire at the end of the final examination. Return the questionnaire and the examination booklet to your proctor. M.SCOTT REICHENBAUGH By direction

“THIS DOCUMENT IS UNCLASSIFIED”

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MCI Course 3422B i

Table of Contents

Page Contents ............................................................................................................................ i Student Information .......................................................................................................... iii Study Guide ...................................................................................................................... v Study Unit 1 Basic, Special, and Incentive Pays................................................ 1-1

Lesson 1 Basic Pay....................................................................................... 1-3 Lesson 2 Special Pay.................................................................................... 1-33 Lesson 3 Incentive Pay................................................................................. 1-57

Study Unit 2 Allowances and Advance Entitlements ........................................ 2-1

Lesson 1 Allowances.................................................................................... 2-3 Lesson 2 Advance Entitlements ................................................................... 2-39

Study Unit 3 Deductions and Collections .......................................................... 3-1

Lesson 1 Deductions .................................................................................... 3-3 Lesson 2 Collections .................................................................................... 3-29

Review Lesson .................................................................................................................. R-1

MCI Course 3422B ii


MCI Course 3422B iii

Student Information

Number and Title

MCI 3422B BASIC PAY AND ALLOWANCES

Study Hours 6

Course Materials

Text

Review Agency Headquarters and Support Battalion

Marine Corps Base Camp Lejeune, NC 28542

Reserve Retirement Credits (RRC)

2

ACE Course submitted for review by the American Council on Education.

Assistance For administrative assistance, have your training officer or NCO log on to the

MCI home page at www.mci.usmc.mil. Marines CONUS may call toll free 1-800-MCI-USMC. Marines worldwide may call commercial (202) 685-7596 or DSN 325-7596.

MCI Course 3422B iv


MCI Course 3422B v

Study Guide

Congratulations Congratulations on your enrollment in a distance education course from the

Distance Learning and Technologies Department (DLTD) of the Marine Corps Institute (MCI). Since 1920, the Marine Corps Institute has been helping tens of thousands of hard-charging Marines, like you, improve their technical job performance skills through distance learning. By enrolling in this course, you have shown a desire to improve the skills you have and master new skills to enhance your job performance. The distance learning course you have chosen, MCI 3422B, Basic Pay and Allowances, provides instruction to all Marines who need the necessary knowledge to efficiently perform duties within the financial occupational fields.

Your Personal Characteristics

• YOU ARE PROPERLY MOTIVATED. You have made a positive decision to get training on your own. Self-motivation is perhaps the most important force in learning or achieving anything. Doing whatever is necessary to learn is motivation. You have it!

• YOU SEEK TO IMPROVE YOURSELF. You are enrolled to improve

those skills you already possess, and to learn new skills. When you improve yourself, you improve the Corps!

• YOU HAVE THE INITIATIVE TO ACT. By acting on your own, you

have shown you are a self-starter, willing to reach out for opportunities to learn and grow.

• YOU ACCEPT CHALLENGES. You have self-confidence and believe

in your ability to acquire knowledge and skills. You have the self-confidence to set goals and the ability to achieve them, enabling you to meet every challenge.

• YOU ARE ABLE TO SET AND ACCOMPLISH PRACTICAL

GOALS. You are willing to commit time, effort, and the resources necessary to set and accomplish your goals. These professional traits will help you successfully complete this distance learning course.

Continued on next page

MCI Course 3422B vi

Study Guide, Continued

Beginning Your Course

Before you actually begin this course of study, read the student information page. If you find any course materials missing, notify your training officer or training NCO. If you have all the required materials, you are ready to begin. To begin your course of study, familiarize yourself with the structure of the course text. One way to do this is to read the table of contents. Notice the table of contents covers specific areas of study and the order in which they are presented. You will find the text divided into several study units. Each study unit is comprised of two or more lessons and lesson exercises.

Leafing Through the Text

Leaf through the text and look at the course. Read a few lesson exercise questions to get an idea of the type of material in the course. If the course has additional study aids, such as a handbook or plotting board, familiarize yourself with them.

The First Study Unit

Turn to the first page of study unit 1. On this page, you will find an introduction to the study unit and generally the first study unit lesson. Study unit lessons contain learning objectives, lesson text, and exercises.

Reading the Learning Objectives

Learning objectives describe in concise terms what the successful learner, you, will be able to do as a result of mastering the content of the lesson text. Read the objectives for each lesson and then read the lesson text. As you read the lesson text, make notes on the points you feel are important.

Completing the Exercises

To determine your mastery of the learning objectives and text, complete the exercises developed for you. Exercises are located at the end of each lesson, and at the end of each study unit. Without referring to the text, complete the exercise questions and then check your responses against those provided.


MCI Course 3422B vii


Continuing to March

Continue on to the next lesson, repeating the above process until you have completed all lessons in the study unit. Follow the same procedures for each study unit in the course.

Preparing for the Final Exam

To prepare for your final exam, you must review what you learned in the course. The following suggestions will help make the review interesting and challenging. • CHALLENGE YOURSELF. Try to recall the entire learning sequence

without referring to the text. Can you do it? Now look back at the text to see if you have left anything out. This review should be interesting. Undoubtedly, you’ll find you were not able to recall everything. But with a little effort, you’ll be able to recall a great deal of the information.

• USE UNUSED MINUTES. Use your spare moments to review. Read

your notes or a part of a study unit, rework exercise items, review again; you can do many of these things during the unused minutes of every day.

• APPLY WHAT YOU HAVE LEARNED. It is always best to use the

skill or knowledge you’ve learned as soon as possible. If it isn’t possible to actually use the skill or knowledge, at least try to imagine a situation in which you would apply this learning. For example make up and solve your own problems. Or, better still, make up and solve problems that use most of the elements of a study unit.

• USE THE “SHAKEDOWN CRUISE” TECHNIQUE. Ask another

Marine to lend a hand by asking you questions about the course. Choose a particular study unit and let your buddy “fire away.” This technique can be interesting and challenging for both of you!

• MAKE REVIEWS FUN AND BENEFICIAL. Reviews are good habits

that enhance learning. They don’t have to be long and tedious. In fact, some learners find short reviews conducted more often prove more beneficial.


MCI Course 3422B viii


Tackling the Final Exam

When you have completed your study of the course material and are confident with the results attained on your study unit exercises, take the sealed envelope marked “FINAL EXAM” to your unit training NCO or training officer. Your training NCO or officer will administer the final examination and return the examination and the answer sheet to MCI for grading. Before taking your final examination, read the directions on the DP-37 answer sheet carefully.

Completing Your Course

The sooner you complete your course, the sooner you can better yourself by applying what you’ve learned! HOWEVER--you do have 2 years from the date of enrollment to complete this course.

Graduating! As a graduate of this distance education course and as a dedicated Marine,

your job performance skills will improve, benefiting you, your unit, and the Marine Corps.

Semper Fidelis!

STUDY UNIT 1

BASIC, SPECIAL, AND INCENTIVE PAYS

Overview

Purpose Finances are very important to everyone. Knowing what you are entitled to,

understanding how to compute those entitlements for accuracy can be a very valuable lesson when dealing with your personal finances, and planning for your financial future.

Scope This study unit includes topics on basic pay and various types of special and

incentive pays. It will provide you with the principles and techniques needed to compute a member’s creditable service and entitlements accurately to basic, special, and incentive pays.

In This Study Unit

This study unit contains the following lessons:

Lesson See Page

Basic Pay 1-3 Special Pay 1-33 Incentive Pay 1-57

MCI Course 3422B 1-1 Study Unit 1

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LESSON 1

BASIC PAY

Introduction

Scope This lesson provides the methods used to determine a member’s entitlement

to the member’s creditable service for basic pay, compute the member’s pay entry base date (PEBD), audit the member’s basic pay entitlements, and verify the member’s leave account.

Learning Objectives

By the end of this lesson, you will be able to • Compute a member’s creditable service for basic pay. • Compute a member’s pay entry base date. • Compute a member’s basic pay entitlements. • Compute a member’s leave account.

In This Lesson This lesson contains the following topics:

Topic See Page Introduction 1-3 Creditable Service for Basic Pay 1-4 Pay Entry Base Date 1-9Basic Pay Entitlements 1-13Leave Account 1-25Lesson 1 Exercise 1-29

MCI Course 3422B 1-3 Study Unit 1, Lesson 1

Creditable Service for Basic Pay

Definition Creditable service is the number of years of service a member is considered to

have completed when determining the member’s base pay. For creditable service types, refer to DODFMR 7000.14R, Vol. 7A.

Computing Creditable Service

Computing creditable service for members who have never had an absence is straightforward. The basic method for computing creditable service for all periods during which no time was lost includes the following steps:

Step Action Example:

Yr Mo Day 1 List all beginning dates. Never change this step of the

process. 1974 10 16 1978 01 01

2 List all ending dates. Change the ending date to 30 if the last day of the month is 31. If service ends on 28 Feb of a leap year, do not change the 28 to 30 since the 29th is the last day of the month.

1977 11 30 1980 10 30

3 Add all beginning dates. 1974 10 16 +1978 01 01 3952 11 17

4 Add all ending dates. 1977 11 30 +1980 10 30 3957 21 60

5 Subtract total beginning dates from total ending dates. (If more months are needed to make the subtraction, deduct 1 year from the total ending dates and add 12 months. If more days are needed, deduct 1 month from the total of ending dates and add 30 days to the “Day” column).

3957 21 60 - 3952 11 17 5 10 43

6 Always add 1 day for each period of continuous service to account for inclusive dates.

5 10 43 + 2 5 10 45

7 Subtract the number of days time lost, if any. 0 00 00 8 Convert the result into full years, months, and day;

this result would be the service creditable for basic pay purposes for PEBD. (Remember, use 30 days for each month.)

5 years, 11 months, and 15 days

9 Subtract total creditable service from first day of current contract. This step is used to compute a constructive PEBD when there are no breaks in service.



Creditable Service for Basic Pay, Continued

Delayed Enlistment Program

Regular component service as an enlisted member in the reserves that began before active duty in a regular component is creditable service if the member enlisted in the reserve component before 1 Jan 1985. Reserve component service as an enlisted member in the reserves that began before service on active duty or active duty for training in a reserve component is creditable if the member enlisted in the reserve component before 18 Nov 1989. For enlistment on or after that date, service is creditable if the reserve member performs inactive duty training before beginning service on active duty for training.

Practice Situation 1

Given the following periods of service, compute the creditable service for basic pay.

USMCR 20011215 to 20010101 Inact 0 (Time lost) USMC 20010102 to 20031110 Act 0 (Time lost) USMC 20031111 to 20070220 Act 0 (Time lost) USMC 20070221 to Present

Computation Area

Use this area to compute the creditable service.




Practice Solution 1

This is the solution to computing the creditable service.

Step Action Example

Yr Mo Day1 List all beginning dates. 2001 01 02

2003 11 11 2 List all ending dates. Change the ending date to 30 if

the last day of the month is 31. If service ends on 28 February of a leap year, do not change the 28 to 30 since the 29th is the last day of the month.

2003 11 10 2007 02 20

3 Add all beginning dates. 2001 01 02

+ 2003 11 11 4004 12 13

4 Add all ending dates. 2003 11 10 + 2007 02 20 4010 13 30

5 Subtract total beginning dates from total ending dates. If more months are needed to make the subtraction, deduct 1 year from the total ending dates and add 12 months. If more days are needed, deduct 1 month from the total of ending dates and add 30 days to the “Day” column.

4010 13 30 - 4004 12 13 6 01 17


6 01 17 + 2 6 01 19

7 Subtract the number of days time lost, if any. 6 01 19 - 0 6 01 19

8 Convert the result into full years, months, and days; this result would be the service creditable for basic pay purposes for PEBD. (Remember, use 30 days for each month).

6 years, 1 month, and

19 days

9 Subtract total creditable service from first day of current contract. This step is used to compute a constructive PEBD when there are breaks in service.

2007 02 21 - 6 01 19

2001 01 02 (PEBD)

Member completed 6 years, 1 month, and 19 days of creditable service on February 20, 2007.




Time Lost Not Made Good

When time lost is not made good, the computation will be based on a 30-day month. Exception: When the first day of the absence begins on the 31st day of a month, count that day as a day of time lost. Use the following steps to compute creditable service involving time lost not made good.

Step Action Example

1 Subtract the date of enlistment from the date of discharge.

1993 08 10 Date of discharge 1992 19 40 Date above converted - 1990 07 18 Date of enlistment 2 12 22

2 Add 1 day for inclusive dates.

2 12 22 + 01 Inclusive days 2 12 23

3 Subtract the number of days of time lost.

2 12 23 - 01 07 Lost time

2 11 16 4 Convert to full years,

months, and days. This is the member’s creditable service involving time lost not made good.

2 11 16 Creditable service 2 years, 11 months, and 16 days




Time Lost Made Good

Time lost is made good on a day-for-day basis. When time lost is made good and the member completes the enlistment contract or period for which inducted, compute the time lost on a day-for-day basis instead of a 30-day month basis. It is to the member’s advantage.

Computation The following steps are used to compute time lost made good:

Step Action Example

1 Subtract the date of enlistment from the date of discharge.

1994 08 21 Date of discharge −1990 07 18 Date of enlistment 04 01 03

2 Add 1 day for inclusive dates. 04 01 03 + 1 Inclusive day

04 01 04 3 Compute total time lost both on a

30-day month basis and on a day-for-day basis. Use the results that produce the least amount of days lost.

Time Lost: Day-for-day 10-28 Feb 19 days 1-16 Mar 16 days 35 days 30-day month 10-29 Feb 20 days 1-16 Mar 16 days 36 days

Subtract total of the third step (time lost) from the second step (service before time lost).

4

If result is greater than contractual agreement, use result for creditable service.

If result is less than contractual agreement, use the period of the enlistment contract.

04 01 04 Service before time lost 03 12 34 Date above converted - 01 05 Total time lost 03 11 29 Creditable service

5 Add above result to any other creditable service the member might have.




Pay Entry Base Date

After Computation of Creditable Service

Basic pay varies with the number of years of service credited to a member. Computation of creditable service provides a basic date that is used to determine when a member is entitled to an increase in pay. This date is called the PEBD. As you can see, creditable service and PEBD go hand in hand. After computation of creditable service, establish the member’s PEBD. To do this, you simply deduct the member’s creditable service from the beginning date of the current enlistment.

Example In practice situation 1, the current enlistment date was 2007 02 21 and the

creditable service was 6 years, 1 month, and 19 days. To compute the new PEBD, subtract the creditable service from the current enlistment date. The member’s new PEBD is 2000 01 02. 2007 02 21 current enlistment date - 06 01 19 creditable service 2001 01 02 new PEBD


Compute the total creditable service and state the correct PEBD for the following statement of service:

Note: Rule for creditable service for the delayed entry program time: If the

member enlisted in the reserve component before 1 Jan 1985, that period is creditable. If the member enlisted after 1 Jan 1985, then that period is not creditable service time.

USMCR 19950302 to 19960115 Inact 0 (Time lost) USMC 19960116 to 20000115 Act 0 (Time lost) USMC 20000116 to 20060115 Act 0 (Time lost) USMC 20060116 to present

Note: USMCR refers to the delayed entry program.



Pay Entry Base Date, Continued

Computation Area

Use this area to compute the creditable service and PEBD.

Practice Solution 2

Creditable service for the following member is computed as follows:

Step Action Example Yr Mo Day

1 List all beginning dates. Never change this step of the process.

1996 01 16 2000 01 16

2 List all ending dates. Change the ending date to 30 if the last day of the month is 31. If service ends on 28 Feb of a leap year, do not change the 28 to 30 since the 29th is the last day of the month.

2000 01 15 2006 01 15

3 Add all beginning dates. 1996 01 16 +2000 01 16 3996 02 32

4 Add all ending dates. 2000 01 15 +2006 01 15 4006 02 30

5 Subtract total beginning dates from total ending dates. If more months are needed to make the subtraction, deduct 1 year from the total ending dates and add 12 months. If more days are needed, deduct 1 month from the total of ending dates and add 30 days to the “Day” column.

4006 02 30 Convert above 4005 13 60 −3996 02 32 9 11 28



Pay Entry Base Date, ContinuedContinued

Practice Solution 2, continued

Step Action Example Yr Mo Day


9 11 28 + 2 9 11 30

7 Subtract the number of days time lost, if any. 0 00 00 8 Convert the result into full years, months, and

days. The result would be the service creditable for basic pay purposes for PEBD. (Remember, use 30 days for each month.)


9 Subtract total creditable service from first day of current contract. This step is used to compute a constructive PEBD when there are breaks in service.

2006 01 16 10 00 00 1996 01 16

The PEBD is 16 Jan 1996. Member had no time lost and continuous service.

Computing PEBD With No Time Lost

If the member has never had a break in service and there has been no time lost involved in the contracts, the PEBD will be the date the member enlisted, was inducted, or accepted an appointment.

Adjust the PEBD for Time Lost

When an enlisted member loses time in a non-duty status, advance the PEBD by the lost time computed on a 30-day month basis. (Refer to DODFMR 7000.14R, Vol. 7A, Absence from Duty in Enlistment Status.) This date is not affected for an officer’s non-duty status. When the PEBD falls on the 29 Feb, use that date. In non-leap years, increased pay begins on 1 Mar, and in leap years, increased pay begins on 29 Feb.



Pay Entry Base Date, ContinuedContinued

PEBD Example An enlisted member with no prior service enlisted on 18 Jul 1993. The

member was UA from 10 Feb 1995 through 16 Mar 1995. On the member’s return to full duty status, PEBD changes from 18 Jul 1993 to 25 Aug 1993. Change is computed as follows:

10-28 Feb 19 days 1-16 Mar 16 days 35 days of lost time Yr Mo Day 1993 07 18 Original PEBD + 01 05 35 days of lost time 1993 08 23 Adjusted PEBD


Basic Pay Entitlements

Computing Basic Pay Entitlement

Basic pay is computed for service of 30 days or more; compute basic pay as if each month had 30 days. When service begins or ends on an intermediate day of the month, compute the pay for the actual number of days served during the month, but only through the 30th day of that month. For instance, July has 31 days, but you can count only 30 days for pay purposes. Any person who enters active service during February (a short month) and serves until the end of the month is entitled to one month’s pay, less the prorated amount for the number of days expired before entry on duty. If the service ends before the last of February, pay the member only for the actual number of days served.

Basic Pay Example

A Marine reports to active duty on 16 Feb 2007 as a Pvt. Basic pay for Pvt with less than four months of service is $1,203.90. The member’s pay would be computed as follows:

Step Action Example

1 Find period of service. 16-28 Feb 15 days 2 Find the basic pay rate: Pvt

with less than 4 months is $1203.90.

Basic pay rate $1203.90

3 Divide the basic pay rate by 30 days in the month.

Basic pay rate $1203.90 Divide by 30 30 Daily pay rate $40.13

4 Multiply the daily pay rate by the period of service.

Daily pay rate $40.13 Period of service × 15 Feb basic pay $601.95

The Marine’s basic pay for 16-28 Feb 2007 is $601.95. Remember, the month of February is counted as a 30-day month.



Basic Pay Entitlements, Continued


Compute the basic pay for the following situation: A Marine reports to active duty on 5 July 2007 (his PEBD) as a Pvt. Basic pay for Pvt with less than four months of service is $1,203.90. What is the member’s basic pay for July 2007?

Computation Area

Use this area to compute the Marine’s basic pay for the month of July.

Practice Solution 3

The Marine’s basic pay for July is computed as follows:

Step Action Example

1 Find period of service. 5-31 Jul 26 days* 2 Find the basic pay rate. Pvt with

less than 4 months is $1203.90. Basic pay rate $1203.90




Daily pay rate $40.13 Period of service × 26 Jul basic pay $1043.38





The Marine’s basic pay for 5-31 Jul 2007 is $1043.38. *Note: Use 26 days vice 27 days because with service of 30 days or more,

the Marine will be paid for the actual number of days served through the 30th day of the month.

Example: Member is Discharged

A Marine LCpl is discharged from active duty on 16 Feb 2007 with more than 3 years of active service. Basic pay for LCpl with more than three years of service is $1,729.20. The member’s pay is computed as follows:

Step Action Example

1 Find period of service. 1-16 Feb 16 days 2 Find the basic pay rate. LCpl

with more than 3 years is $1729.20.





Daily pay rate $57.64 Period of service × 16 Feb basic pay $922.24

The LCpl’s basic pay for 1-16 Feb 2007 is $922.24.





A Marine SSgt is discharged from active duty on 29 Aug 2007 with more than 10 years of service. Basic pay for SSgt with more than 10 years is $2,831.40. Compute the member’s pay for the month of August.

Computation Area

Use this area to compute the Marine’s basic pay for the month of August.

Practice Solution 4

The SSgt’s basic pay for August is computed as follows:

Step Action Example

1 Find period of service. 1-29 Aug 29 days 2 Find the basic pay rate. SSgt

with more than 10 years is $2831.40.





Daily pay rate $94.38 Period of service × 29 Aug basic pay $2737.02

The SSgt’s basic pay for 1-29 Aug 2007 is $2737.02.




Example: Member Reports on 31st Day of Month

A Marine reports to active duty on 31 Jan 2007 as a Pvt. The member’s pay is computed as follows:

Step Action Example

1 Find period of service. 31 Jan 0 days 1-28 Feb 30 days

2 Find the basic pay rate. Pvt with less than 4 months is $1203.90.

Basic pay rate for Feb 2007 $1203.90


A Marine reports to active duty on 14 Feb 2007 (PEBD) as a private (E-1; less than 4 months). Basic pay for Pvt with less than four months of service is $1,203.90. What is the amount of the member’s pay for February?

Computation Area

Use this area to compute the Marine’s basic pay for February.




Practice Solution 5

The Pvt’s basic pay for February is computed as follows:

Step Action Example 1 Find period of service. 14-28 Feb 17 days 2 Find the basic pay rate. Pvt with

less than 4 months is $1203.90. Basic pay rate $1203.90




Daily pay rate $40.13 Period of service × 17 Jul basic pay $682.21

The Pvt’s basic pay for 14-28 Feb 2007 is $682.21.




Example (Member UA)

A LCpl with more than 2 years of service was in an unauthorized absence (UA) status during April. The Marine has a total of 3 days in a non-pay status (3 days UA).

Step Action Example

1 Find the basic pay rate. LCpl with more than 2 years is $1630.80.




3 Multiply the daily pay rate by the number of days in a non-pay status.

Daily pay rate $54.36 Days in non-pay status × 3 Non-pay deduction $163.08

4 Deduct the non-pay deduction from the basic pay rate.

Basic pay rate $1630.80 Non-pay deduction − 163.08 Apr basic pay $1467.72

The LCpl’s basic pay rate for April is $1467.72.




Example: UA Involving 31st Day of Month

A LCpl with more than 2 years of service was UA during May. The inclusive dates of UA were 28-31 May.

Step Action Example





3 Multiply the daily pay rate by the number of days of unauthorized absence.

Daily pay rate $54.36 Days of UA × 3* Non-pay deduction $163.08


Basic pay rate $1630.80 Non-pay deduction − 163.08 Apr basic pay $1467.72

The LCpl’s basic pay rate for April is $1467.72. *Note: Remember, the 31st does not count as a day of UA unless it was the

first day of absence.


PFC Bones had a bad day at work and decided to spend a week soaking up the sun. PFC Bones never went on leave, never called in, and finally showed up at work a week later with an outstanding tan. He was UA from 10 July through 16 July and returned to work on 17 July. Basic pay for PFC is $1,458.90. Compute PFC Bones’ basic pay for the month of July.




Computation Area

Use this area to compute PFC Bones’ basic pay for the month of July.

Practice Solution 6

PFC Bones’ basic pay for July is computed as follows:

Step Action Example

1 Find the basic pay rate. PFC pay is $1458.90.




3 Multiply the daily pay rate by the number of days in a non-pay status.

Daily pay rate $48.63 Days in non-pay status × 7 Non-pay deduction $340.41


Basic pay rate $1458.90 Non-pay deduction − 340.41 Jul basic pay $1118.49

PFC Bones’ basic pay for July is $1118.49.



Basic Pay Promotions

Any service member who is promoted will receive an increase in basic pay. The increase is effective on the date of promotion.

Example A LCpl with over 2 years of service was promoted to Cpl effective 3 May.

Basic pay for LCpl with more than two years is $1,630.80. The basic pay is computed as follows:

Step Action Example


Basic pay rate LCpl $1630.80


Basic pay rate LCpl $1630.80 Divide by 30 30 Daily pay rate LCpl $54.36

3 Multiply the daily pay rate by the number of days the member was a LCpl.

Daily pay rate LCpl $54.36 2 days as LCpl × 2 Basic pay for LCpl $108.72

4 Find the basic pay rate. Cpl with more than 2 years is $1786.50.

Basic pay rate Cpl $1786.50


Basic pay rate Cpl $1786.50Divide by 30 30 Daily pay rate Cpl $59.55

6 Multiply the daily pay rate by the number of days the member is a Cpl.

Daily pay rate Cpl $59.5528 days as Cpl × 28 Basic pay for Cpl $1667.40

7 Add the basic pay for LCpl and the basic pay for Cpl to determine the basic pay for May.

Basic pay for LCpl $ 108.72 Basic pay for Cpl + 1667.40Basic pay for May $1776.12

The Cpl’s basic pay for May is $1776.12.




Period of Service

Period of service is the length of time a member has served. Basic pay is determined by the number of years a member has served. The most current pay chart can be found in the Defense Finance and Accounting Service (DFAS) website www.dfas.mil.

Example: Time in Service

A LCpl with more than 2 years of service and a PEBD of 3 May 2004 is entitled to the increase pay of an E-3 over 3 years (E3/3), effective 3 May 2007. The basic pay is computed as follows:

Step Action Example

1 Find the basic pay rate. LCpl with more than 2 years $1630.80.

Basic pay rate E3/2 $1630.80


Basic pay rate E3/2 $1630.80 Divide by 30 30 Daily pay rate E3/2 $54.36

3 Multiply the daily pay rate by the number of days of service as E3/2; period involved 5/1 and 5/2

Daily pay rate E3/2 $54.36 2 days in May as E3/2 × 2 Basic pay for E3/2 $108.72

4 Find the basic pay rate. LCpl with more than 3 years $1729.20.




6 Multiply the daily pay rate by the number of days of service as E3/3; period involved is 5/3-5/31.

Daily pay rate E3/3 $57.64 28 days in May as E3/3 × 28 Basic pay rate E3/3 $1613.92

7 Add the basic pay rates of an E3/2 and an E3/3 to get the basic pay rate for the month of May.

Basic pay for E3/2 $ 108.72 Basic pay for E3/3 + $1613.92Basic pay for May $1722.64

The LCpl’s basic pay for May 2007 is $1722.64.




Pay Reductions Any member who is reduced in rank will receive basic pay at the lower pay

grade. The decrease is effective on the date of reduction.

Example: Reductions in Pay

LCpl Street, with over 2 years of service, was reduced to PFC with an effective date of 3 May 2007. The basic pay is computed as follows:

Step Action Example





3 Multiply the daily pay rate by the number of days as an E3/2, period 5/1 and 5/2.

Daily pay rate E3/2 $54.36 2 days as E3/2 × 2 Basic pay for E3/2 $108.72

4 Find the basic pay rate; PFC, $1458.90.

Basic pay rate PFC $1458.90


Basic pay rate PFC $1458.90 Divide by 30 30 Daily pay rate PFC $48.63

6 Multiply the daily pay rate by the number of days of service as an E2; period 5/3-5/31.

Daily pay rate PFC $48.63 28 days × 28 May basic pay E2 $1,361.64

7 Add the basic pay rates of an E3/2 and an E2 to get the basic pay rate for the month of May.

Basic pay for E3/2 $108.72 Basic pay for E2 + $1,361.64 Basic pay for May $1,470.36

PFC Street’s basic pay for May 2007 is $1,470.36.


Leave Account

Status The leave account is activated on the first day of active duty, and terminated

on the last day of active duty. The leave account status is reflected in Section E of the member’s Leave and Earning Statement (LES).

LES Section E Example

Section E (Leave Information)

BLK 19

BLK 20

BLK 21

BLK 22

BLK 23

BLK 24

BLK 25

BLK 26

BLK 27

LV BF EARNED USED EXCESS BAL MAX ACCRUAL

LOST

SOLD CBT LV BAL

2.5 2.5 0 0 5.0 90.0 0 0 0

Rate of Leave Accrual

Leave is accrued at a rate of 2.5 days for each full month of active service. When active service begins or ends on an intermediate day of the month, leave accrues as follows. February is considered a 30-day month for accrual purposes. The 31st day of the month is only considered if it is the day the Marine enters active service.

Number of Days Served Leave Accrual

1 through 6 0.5 7 through 12 1 13 through 18 1.5 19 through 24 2 25 through 31 2.5

Termination of Leave Account

The leave account is terminated when a Marine separating from active service is given the choice to accept a cash settlement. For termination of the leave account and cash settlements, refer to the DODFMR 7000.14R, Vol. 7A.



Leave Account, Continued

Cash Settlements

On 10 Feb 1976, Congress passed a law stating that a member may be paid for no more than 60 days of accrued leave in a career. However, any leave sold before that date is “grandfathered,” meaning that it is exempted from this restriction. Members may elect cash settlements for any unused leave on the following occasions: • Discharge for immediate reenlistment. Discharge must not occur more

than 3 months prior to the normal end of current contract. • Temporary officer reverting to enlisted status when the temporary

appointment has expired. • Upon first extension of enlistment. • Upon departure on involuntary appellate leave.

Example: Leave Account

If Sgt Marty wants to take leave from 5 to 10 Nov and his Oct LES leave balance is 40 days, what would his balance be on 1 Dec?

Solution Oct LES leave balance 40.0

Nov member accrues 2.5 leave days + 2.5 42.5 Subtract leave days (5-10 Nov = 6 days) − 6.0 36.5 Sgt Marty’s leave balance on 1 Dec is 36.5 days.





Sgt Ramos has just received an LES for May 2007. Sgt Ramos’ LV BAL is 70.0 days. He is reconciling his leave account to ensure all leave entries have been posted. Today’s date is 1 Oct 2007, and this is what Sgt Ramos has done before 1 Oct: Leave taken: 16-27 May 2007 1-5 Aug 2007 Question 1: What will Sgt Ramos’ leave balance be on 1 Oct 2007? Question 2: Did Sgt Ramos lose leave on 1 Oct, and if so, how many days?

Computation Area

Use this area to compute Sgt Ramos’ leave balance for 1 Oct 2007.

Practice Solution 7

Sgt Ramos leave balance on 30 Sep 2007 is 63.0 days. Sgt Ramos lost 3.0 days of leave. Breakdown of Leave Earned: Sgt Ramos had 70.0 days of leave in the month of May 70.0 Sgt Ramos earned 2.5 days for the month of Jun 2.5 Sgt Ramos earned 2.5 days for the month of Jul 2.5 Sgt Ramos earned 2.5 days for the month of Aug 2.5 Sgt Ramos earned 2.5 days for the month of Sep 2.5 Total days earned 80.0





Leave Taken: Sgt Ramos took leave from 16-27 May for a total of 12 days. Sgt Ramos also took leave on 1-5 Aug for a total of 5 days. Total number of leave days taken 17 days Subtract the number of leave days taken from the number of leave earned. 80.0 (leave earned prior to 1 Oct) −17.0 (leave taken prior to 1 Oct) 63.0 total number of leave days

Note: Leave balances that exceed 60 days on 30 Sep of each year will be

reduced to 60 days. Any leave taken before 1 Oct but not processed until after 1 Oct will be charged against the lost leave to the extent that lost leave is available.


Lesson 1 Exercise

Directions Complete exercise items 1 through 4 by performing the action required.

Check your answers against those listed at the end of this lesson.

Item 1 Using the statement of service below, what is Sgt Hernandez’s total creditable

service?

USMCR 19841012 to 19850112 Inact 0 (Time lost) USMC 19850113 to 19890113 Act 0 (Time lost) USMC 19890114 to Present

Yr Mo Days a. 04 03 02 b. 05 01 01 c. 04 02 02 d. 04 02 01

Item 2 Using the statement of service below, what is Cpl Burton’s PEBD?

a. 20020528 b. 20020713 c. 20020718 d. 20020529

USMCR 20020528 to 20020712 Inact 0 (Time lost) USMC 20020713 to 20060712 Act 0 (Time lost) USMC 20060713 to Present

Item 3 Pvt Ross reported to boot camp on 16 March 2007. Pvt Ross’s monthly basic

pay rate is $1203.90. What is Pvt Ross’s pay for the month of March?

a. $583.00 b. $650.00 c. $601.95 d. $612.90


MCI Course 3422B 1-29 Study Unit 1, Lesson 1 Exercise

Lesson 1 Exercise, Continued

Item 4 PFC Shark’s Nov LES Section E (Leave Information)

BLK 19 BLK 20 BLK 21 BLK 22 BLK 23 BLK 24 BLK 25 BLK 26 BLK 27 LV BF EARNED USED EXCESS BAL MAX

ACCRUAL LOST SOLD CBT

LV BAL

2.5 2.5 0 0 5.0 115.0 0 0 0

Using PFC Shark’s Nov LES provided, answer the following question. PFC Shark requested 5 days leave from the 23rd to the 27th of December 2006 to spend the Christmas holiday with his family. His request came back approved. What will his leave balance be on 1 January 2007? a. 0.0 b. 2.5 c. -2.5 d. 5.0




Answers The table listed below lists the answers to the exercise items. If you have any

questions, refer to the reference page listed for that item.

Item Number Answer Reference 1 a 1-42 b 1-93 c 1-134 b 1-26


LESSON 2

SPECIAL PAY

Introduction

Scope A member may be eligible for different types of special pay entitlements. It

all depends on where the Marine is stationed and what special duties he or she is performing. The member may be a drill instructor, diver, a translator for a specific language overseas, or located in a combat area, aboard a vessel, or reenlisting for another term to continue a career in the Marine Corps. In this lesson, you will not only learn the different types of special pay authorized by the Marine Corps, but also learn how a member’s pay is computed for accuracy.

Learning Objective

By the end of this lesson, you will be able to • Compute a member’s selective reenlistment bonus. • Compute a member’s entitlement to special duty assignment pay. • Compute a member’s entitlement to hostile fire or imminent danger pay. • Compute a member’s entitlement to diving duty pay. • Compute a member’s entitlement to hardship duty pay. • Compute a member’s entitlement to career sea pay. • Compute a member’s entitlement to foreign language proficiency pay.



Introduction, Continued


Topic See Page

Introduction 1-33 Selective Reenlistment Bonus 1-35 Special Duty Assignment Pay 1-38 Hostile Fire and Imminent Danger Pays 1-40Diving Duty Pay 1-42Hardship Duty Pay 1-44Career Sea Pay 1-47Foreign Language Proficiency Pay 1-49Lesson 2 Exercise 1-52


Selective Reenlistment Bonus

Eligibility Requirements

To be eligible for a selective reenlistment bonus (SRB), a Marine must meet the following requirements: • Qualify in a military specialty designated by the Commandant of the Marine

Corps (CMC) • Serve in pay grade E-3 or above • If an officer, reenlist within 3 months after date of discharge and for at least

four years. The Marine occupational specialties (MOS) entitled to SRB are determined by HQMC. Once or twice a year, HQMC evaluates all MOS’ to determine which ones are short of personnel, and publishes a Marine Corps bulletin announcing the MOS multiples. Within each MOS, there are three different zones for payment of selective reenlistment bonus: A, B, and C.

Zone Requirements

The following table shows the requirement for each zone:

Zone Minimum/Maximum

Active Service Years of Service Restrictions

A Complete 17 months of continuous active duty, but no more than 6 years on reenlistment date.

Reenlist or voluntarily extend for a period of at least 4 years: reenlistment or extension couple with existing active service provides a total of at least 6 years active service.

Not previously paid a Zone A SRB.

B Complete at least 6 years, but no more than 10 years of active duty on the date of reenlistment or the beginning of enlistment extension.

Reenlist or voluntarily extend for a period of 4 years: reenlistment or extension when coupled with the existing active service provides a total of at least 10 years active service.

Not previously paid a Zone B SRB.

C Complete at least 10 years, but no more than 14 years of active duty on the date of reenlistment or the beginning of enlistment extension.

Reenlist or voluntarily extend for a period of 4 years: reenlistment or extension when coupled with the existing active service provides a total of at least 14 years active service.

Not previously paid a Zone C SRB.



Selective Reenlistment Bonus, Continued

Rate of Withholding Taxes on an SRB

Selective reenlistment bonuses are taxed as follows: • Effective 1 Jan 2003, the applicable flat percentage-withholding rate used

to determine federal tax is 25% for one-time entitlements. • Effective 1 Jan 1993, the applicable flat percentage withholding rates will

be used to determine state income tax withholding for one-time entitlements.

SRB Payment MARADMIN 436/00 states and provides guidelines to the SRB program.

SRB Formula Example

The following example shows how to compute the SRB payment (SRBP). Use five spaces beyond the decimal point. Do not round off until the last multiplication step is finished.

Step Action Example

1 Multiply basic pay by the MOS multiple.

Basic Pay $1,978.50 MOS multiple × 2 $3,957.00

2 Multiply step 1 amount by years/months eligible for bonus that equals the total SRB entitlement.

Step 1 total $3,957.00 4 year enlistment × 4 $15,828.00

3 Subtract 25% federal tax. 25% fed income tax $15,828.00 withholding (FITW) - 3,957.00 $11,871.00

4 Subtract the flat percentage state tax. (Look up the tax percentage for the state you claim.)

7% state income tax $11,871.00 - 808.81 $11,062.19

Note: The SITW tax percent will be based on the state the member claims

for tax purposes.



Selective Reenlistment Bonus, Continued


Sgt Clark is very happy because after 6 years, not only is he reenlisting today for 4 more years in the Marine Corps, but also because he rates an SRB of 2. Sgt Clark’s monthly salary is $2,323.80 and claims Florida for tax purposes. Use the information provided to compute Sgt Clark’s SRBP.

Computation Area

Use this area to compute Sgt Clark’s SRBP.

Practice Solution 8

Sgt Clark’s SRBP is computed as follows:

Step Action Example

1 Multiply basic pay by the MOS multiple.

Basic Pay $2,323.80 MOS multiple × 2 $4,647.60

2 Multiply step 1 amount by years/months eligible for bonus that equals the total SRB entitlement.

Step 1 total $4,647.60 4 year enlistment × 4 $18,590.40

3 Subtract 25% federal tax. 25% fed income tax 18,590.40 FITW − 4,647.60 $13,942.80

4 Subtract the flat percentage state tax. (Look up the tax percentage for the state you claim.)

0% state income tax $13,942.80SITW − 000.00 for Florida $13,942.80

Sgt Clark will be receiving $13,942.80 for his SRB of 2 upon reenlisting.


Special Duty Assignment Pay

General Provisions

An enlisted member who is entitled to basic pay and is proficient in a designated military skill may be qualified for proficiency pay. This pay is in addition to any other pay and allowances, and special and incentive pays, to which a member is entitled. This pay is taxable for federal and state income taxes.

Special Duty Assignment

Special duty assignment (SDA) has its own MOS and is usually short of qualified personnel. SDA pay is for those enlisted members who perform extremely difficult duties or jobs that involve an unusual degree of responsibility. SDA pay is awarded by CMC (Code MPP), according to the needs of the Marine Corps.

Requirements to Receive SDA Pay

A member must meet the following to receive SDA: • Enlisted career member in receipt of basic pay. • Not receiving any other type of proficiency pay. • Serve in the pay grade of E-3 or higher. • Qualify and serve in a designated special duty assignment. • Have a minimum of 6 months continuous active service immediately

before the award of proficiency pay.

Commencement and Termination

Proficiency pay commences the day that the member joins the unit in which he will hold the SDA billet; he must have also completed the formal school for that billet MOS. Proficiency pay is terminated automatically upon execution of permanent change of station (PCS) orders.

Minimum Rates

The monthly rates for SDA pay is as follows:

SDA Pay

Recruiting duty $450 Drill instructor duty $375 Marine security guard $75 Career retention specialist $150 Marine combat instructor $150



Special Duty Assignment Pay, Continued


Sgt Moses graduated from Drill Instructor (DI) School on 3 Jan 2007. He has just reported to MCRD, Parris Island on 11 Jan 2007, and has picked up his first platoon. What is Sgt Moses’ SDA pay for the month of January?

Computation Area

Use this area to compute Sgt Moses’ SDA Pay for the month of January.

Practice Solution 9

Sgt Moses’ SDA payment is computed as follows: Always use 30 days in a month when computing for SDA pay.

Step Action Example

1 Divide SDA pay for DI Duty by 30 days in a month.

SDA pay $375.00Divide by 30 day month 30 Amount of SDAP per day $12.50

2 Multiply step 1 amount by number of days in month eligible for SDA pay.

Step 1 total $12.50 No. eligible SDA pay days × 20 $250.00

Sgt Moses SDA pay for January is $250.


Hostile Fire and Imminent Danger Pays

General Provisions

A member may be paid hostile fire pay (HFP) or imminent danger pay (IDP) for any month when the member entitled to basic pay for active duty or compensation for inactive duty also meets the qualifying criteria. A member is credited a full month of HFP or IDP, regardless of whether the member served the entire month or one day in the month.

Hostile Fire Pay

HFP is payable when, as certified by the appropriate commander, a member is • Subject to hostile fire or explosion of a hostile mine. • On duty in an area in close proximity to a hostile fire incident, and is in

danger of being exposed to the same dangers actually experienced by other service members subjected to hostile fire or explosion of hostile mines.

• Killed, injured, or wounded by hostile fire, explosion of a hostile mine, or

any other hostile action.

Imminent Danger Pay

IDP is payable when a member is on official duty in a designated IDP area.

Payment Effective 1 Oct 2002, HFP/IDP is payable at a monthly rate of $225. It is

paid in addition to all other pays or allowances. Additionally, it is payable in the full amount, regardless of the actual time served on active or inactive duty during that month.

Designated Changes

Unified or specified commanders continuously appraise conditions in the designated areas to ensure that service there is still hazardous. Whenever appropriate, commanders submit recommendations to the Secretary of Defense to remove particular areas from the HFP or IDP list. For an up to date table that shows areas on the HFP or IDP list, refer to ref DODFMR 7000.14R, Vol. 7A, Ch 10.



Hostile Fire and Imminent Danger Pays, Continued


SSgt Chesty was deployed to Iraq from 28 Feb 2006 to 2 Nov 2006. What was the total amount of HFP/IDP SSgt Chesty received while deployed to Iraq?

Computation Area

Use this area to compute SSgt Chesty’s HFP/IDP total amount received while deployed to Iraq from 28 Feb 2006 to 2 Nov 2006.

Practice Solution 10

SSgt Chesty’s HFP/IDP is computed as follows:

Step Action Example

1 HFP/IDP is $225 per month. HF/IDP $225 2 Multiply step one amount by number of

months deployed. SSgt Chesty was deployed as follows: 28 Feb 1 month Mar 1 month Apr 1 month May 1 month Jun 1 month Jul 1 month Aug 1 month Sep 1 month Oct 1 month 2 Nov 1 month 10 months

Step 1 $225 No. months × 10deployed $2250

SSgt Chesty’s total HFP/IDP while deployed was $2250. Member gets

credited for a full month, regardless of whether he or she served the entire month or one day in the month.


Diving Duty Pay

Qualifications Members must be designated divers, be assigned to diving duty under

competent orders, and maintain their qualifications for diving.

Officer Rates Payable

Officers assigned to diving duty are entitled to special pay for diving duty at a rate of not more than $240 per month. Officers assigned to and performing initial diving duty training under instructions (at an approved Armed Services diving school) will be paid special pay for diving duty at the rate of $150 per month. This period of entitlement will start with the date of the first dive during instruction through the date dropped from the course or date of graduation, whichever is earlier. After initial training, officers assigned to duty involving the use of scuba equipment or designated as combat divers are entitled to special pay for diving duty at the rate of $240 per month.

Enlisted Rates Payable

Enlisted members assigned to diving duty are entitled to special pay for diving duty at a rate of not more than $340 per month. Enlisted members assigned to and performing initial diving duty training under instructions (at an approved Armed Services diving school), or when performing scuba diving duties will be paid special pay for diving duty at the rate of $150 per month. This period of entitlement will start with the date of the first dive during instruction through the date dropped from the course or date of graduation, whichever is earlier. Enlisted members designated as combat divers are entitled to special pay for diving duty at the rate of $215 a month.

Conditions of Entitlement

For conditions of entitlement, refer to DODFMR 7000.14R, Vol. 7A, Ch 11.



Diving Duty Pay, Continued


After 3 years assigned to MCAS as a combat diver, Capt Mast detached his permanent duty station on 23 Jul 2007. How much diving duty pay was Capt Mast entitled to for the month of July 2007?

Computation Area

Use this area to compute Capt Mast’s diving duty pay for July 2007: Officer’s rate is $240 per month.


Capt Mast’s diving duty pay is computed as follows:

Step Action Example

1 Divide $240 by 30 days. $240.00 30 $8.00

2 Multiply answer in step 1 by number of days in month-rated diving duty pay.

$8.00 × 23 $184.00

Capt Mast will receive $184 diving duty pay for July 2007.


Hardship Duty Pay

General Provisions

Hardship duty pay (HDP) superseded foreign duty pay (FDP). HDP was established effective 4 Feb 1999, and FDP was terminated effective 3 Feb 1999. HDP is payable to members entitled to basic pay, at a monthly rate not to exceed $300, while the member is performing duty designated by the Secretary of Defense as hardship duty. The Secretary of Defense has established that HDP will be paid to members for performing a designated hardship mission, when assigned to a designated location or when serving on a designated involuntary extension of duty. The approved HDP missions, locations, and involuntary extensions of duty requirements, and the applicable HDP rates can be found ref DODFMR 7400.14R, Vol. 7A, Ch. 17. Entitlements will start on day of arrival for duty in designated area and will terminate the day after the date of departure from designated area.

Rates Payable The entitlement for mission assignment (HDP-M) is payable to members both

officer and enlisted for performing designated hardship missions. It is payable at the full monthly rate, without prorating or reduction, for each month, during any part of which the member performs a specific mission at the rate of $150 per month, regardless of pay grade. The entitlement for location assignment (HDP-L) is payable to members for either permanent change of station duty/deployed/attached duty of over 30 days duration in a specified location deemed as a hardship duty location by the Secretary of Defense. There are two HDP-L payables: • HDP-L for designated areas is payable to all members, regardless of pay

grade, at the rates shown in ref DODFMR 7400.14R, Vol. 7A, Ch. 17. • HDP-L for certain areas is payable only to enlisted members at the rates

shown on the following page.



Hardship Duty Pay, Continued

Rates Payable, continued

Grade Monthly Rate Grade Monthly Rate E1 $8.00 E6 $20.00 E2 $8.00 E7 $22.50 E3 $9.00 E8 $22.50 E4 $13.00 E9 $22.50 E5 $16.00


Sgt Thomas is among several Marines deploying on a designated hardship duty mission assignment. The whole unit will be receiving HDP-M in the amount of $150 per month. The unit will arrive in the designated area on 2 Jun for duty and will depart from the designated area on 2 Aug. How much total HDP-M will Sgt Thomas receive for the time deployed from 2 Jun to 2 Aug?

Computation Area

Use this area to compute Sgt Thomas’ total HDP-M from 2 Jun to 2 Aug.



Hardship Duty Pay, Continued


Sgt Thomas’ total hardship duty pay is computed as follows: Monthly HDP-M is $150 per month.

Action Example

Multiply $150 by number of months Sgt Thomas was deployed. 2 Jun arrived designated area Gets credit for whole month $150 Month of Jul gets credit for month $150 2 Aug departs designated area $150Gets credit for whole month $450

$150 × 3 $450

Sgt Thomas will receive a total of $450 for hardship duty pay.


Career Sea Pay

Career Sea Pay and Career Sea Pay Premium

For general conditions of entitlement and restrictions, refer to DODFMR 7000.14R, Vol. 7A, Ch. 18. The rate of career sea pay (CSP) is dependent upon the individuals pay grade and total cumulative years of sea duty. All members in pay grades E-1 through O-6 are eligible for CSP. CSP is paid on a monthly basis but can be prorated on a daily basis. CSP is taxable for federal and state income taxes. A member who is entitled to CSP and has served 36 consecutive months of sea duty is entitled to career sea pay premium (CSP-P), beginning with the first day following completion of 36 consecutive months and each month thereafter. The monthly rate of CSP-P is $100 per month for all members and is paid in addition to CSP.

Commencement and Termination

Entitlement to CSP will begin on the date when an eligible member reports for permanent duty defined as sea duty. Entitlement to CSP will terminate on the date of detachment form permanent duty defined as sea duty.

Computing Sea Duty Periods

When computing sea duty periods, follow chart below:

Step Action Example

1 List and add all beginning dates of each sea duty period.

2 List and add all ending dates of each sea duty period.

3 Subtract total beginning dates from total ending dates.

4 Add 1 day for each sea duty period to account for inclusive dates.

5 Total sea service.


Using SSgt Wallaby’s sea duty periods listed below, compute SSgt Wallaby’s total sea service. From To 2000 08 14 2002 03 21 2004 03 10 2004 11 27



Career Sea Pay, Continued

Computation Area

Use this area to compute SSgt Wallaby’s total sea service.


SSgt Wallaby’s total sea service is computed as follows:

Step Action Example

1 List and add all beginning dates of each sea duty period.

2000 08 14 2004 03 10 4004 11 24

2 List and add all ending dates of each sea duty period.

2002 03 21 2004 11 27

4006 14 48 3 Subtract total beginning dates from total

ending dates. 4006 14 48 4004 11 24

02 03 24 4 Add 1 day for each sea duty period to account

for inclusive dates. 02 03 24 + 2 02 03 26

5 Total sea service 2 yrs 3 mo 26 days

SSgt Wallaby’s total sea service is 2 years, 3 months, and 26 days. Now that we know SSgt Wallaby’s total sea service, look at the monthly CSP chart and determine SSgt Wallaby’s monthly CSP.

Monthly Career Sea Pay Chart SSgt Wallaby’s monthly career sea pay is $160.

Pay Grade

1 Yr or Less

Over 1 Yr

Over 2 Yrs

Over 3 Yrs

E-6 $135 $135 $160 $280


Foreign Language Proficiency Pay

Execution Foreign language proficiency pay (FLPP) is intended to provide incentive pay

to Marines with demonstrated foreign language skills that meet the criteria established in MCO 7220.52E. FLPP is designed to identify and retain a cadre of highly qualified personnel, officer and enlisted, who are motivated to maintain and improve proficiency in any eligible foreign language.

Testing The Defense Language Proficiency Test (DLPT) is the DOD recognized test

for determining proficiency in a foreign language. The DLPT is designed to test three skill areas: reading, listening, and speaking. FLPP entitlement is awarded based on a minimum qualifying proficiency level 2 in any two of the three skill areas.

Rates FLPP rates are according to the member’s most recent, valid DLPT scores

and the category of the tested language. FLPP is an annual bonus paid in 12 monthly installments. The annual FLPP entitlement may not exceed $12,000 per Marine. The monthly FLPP entitlement for one foreign language may not exceed $500, or for multiple foreign languages $1000 per Marine.

Entitlement Dates

FLPP entitlement starts on the DLPT test date and continues automatically for a period of one year. Members must re-test annually and maintain a qualifying proficiency level to remain eligible for FLPP. Termination of FLPP occurs when a member fails to re-test or maintain the minimum level of proficiency score required or loses eligibility due to loss of a qualifying MOS or AMOS or through PCS or billet reassignment.

FLPP Schedules

There are three categories of languages authorized for Marines: • Immediate Investment (FLPP A) • Stronghold (FLPP B) • “Other DOD-approved” languages not on the strategic list (FLPP C)



Foreign Language Proficiency Pay, Continued

FLPP Schedules Tables

FLPP is authorized for Marines regardless of rank or billet with a current DLPT score of 2/2 or higher for any FLPP eligible language with the exception of languages identified as being “dominant in the force.” Below are the three FLPP schedule levels of proficiency and monthly rate tables.

FLPP A

FLPP B

FLPP C

Level of Proficiency Monthly Rate 1/1, 1+1, or 1/1+ $100

2/2 $200 2+/2 or 2/2+ $250

2+/2+ $300 3/2+ or 2+/3 $350

3/3 $400 3/3/3/ or 4/4 $500

Level of Proficiency Monthly Rate 1/1, 1+1 or 1/1+ $50

2/2 $150 2+/2 or 2/2+ $175

2+/2+ $200 3/2+ or 2+/3 $250

3/3 $300 3/3/3/ or 4/4 $400

Level of Proficiency Monthly Rate 1/1, 1+1 or 1/1+ $25

2/2 $125 2+/2 or 2/2+ $150

2+/2+ $175 3/2+ or 2+/3 $200

3/3 $275 3/3/3/ or 4/4 $300



Foreign Language Proficiency Pay, Continued


Sgt Betancourt took the Defense Language Proficiency Test on 3 Jan 2006. His proficiency in foreign language was 3/3 and he fell under FLPP B (not “dominant in the force”). Using the table provided on the previous page, answer the following questions. 1. On what date will Sgt Betancourt’s FLPP start? 2. What is Sgt Betancourt’s monthly FLPP? 3. If Sgt Betancourt fails to meet the annual re-certification requirements,

what date will his FLPP entitlement terminate? 4. If Sgt Betancourt meets the annual re-certification requirements, when will

his entitlement restart?

Computation Area

Use this area to compute Sgt Betancourt’s FLPP start date, monthly FLPP amount, termination date, and restart date.


Your answers are: 1. Sgt Betancourt’s FLPP will begin on the date of his DLPT, which is 3 Jan

2006. 2. Sgt Betancourt’s monthly FLPP is $300 per month. 3. If Sgt Betancourt fails to meet the annual re-certification requirement, his

FLPP would terminate one year after his DLPT test date, which would be 2 Jan 2007.

4. If Sgt Betancourt meets the annual re-certification requirements, the entitlement will continue automatically.


Lesson 2 Exercise



Item 1 Sgt Murphy is reenlisting for a period of 4 years. He qualifies for an SRBP

multiple of 2. Sgt Murphy’s monthly salary is $2,323.80. What is Sgt Murphy’s total SRBP amount before taxes?

a. $15,985.00 b. $20,151.00 c. $18,590.40 d. $17,550.00

Item 2 SSgt Rodgers graduated from Recruiting School on 2 Feb 2007. He was on

leave from 3 to 28 Feb 2007. He reported to 1st Marine Corps District, Recruiting Station New York on 15 Mar 2007, and was immediately sent to recruit out of recruiting sub-station Manhattan. Recruiting monthly SDA pay is $450. What is SSgt Rodgers SDA pay amount for the month of Mar 2007?

a. $450 b. $240 c. $255 d. $325

Item 3 Hostile fire or imminent danger is $225 per month. Cpl Huey was assigned

TAD to Afghanistan on official duty from 30 Apr to 10 May. What is the total amount of hostile fire/imminent danger pay he will receive while TAD to Afghanistan? a. $225 b. $000 c. $450 d. $675




Item 4 After 3 years assigned to MCAS as a combatant diver, receiving a monthly

diving duty pay of $240 a month, Capt Mast detached his permanent duty station on 23 July 2007. How much diving duty pay was Capt Mast entitled to for the month of July 2007? a. $150 b. $240 c. $175 d. $184

Item 5 Use the chart provided to answer the following question. Cpl Hernandez has

been stationed in a designated hardship duty location for over a year now receiving hardship duty pay in the amount of $13 a month. Cpl Hernandez was promoted on 1 July 2007 to the rank of Sgt. What is Sgt Hernandez’ hardship duty pay for the month of July?

Foreign Hardship Duty Pay Chart

GRADE MONTHLY RATE GRADE MONTHLY RATE E-9/E-8/E-7 $22.50 E-4 $13.00 E-6 $20.00 E-3 $9.00 E-5 $16.00 E-2/E-1 $8.00

a. $9 b. $13 c. $8 d. $16

Item 6 Using Sgt Wallaby’s sea duty periods listed below, compute Sgt Wallaby’s

total sea service? From To 14 Aug 2000 21 Mar 2002 10 Mar 2004 27 Nov 2004

a. 3 years, 3 months, and 26 days b. 2 years, 3 months, and 25 days c. 2 years, 3 months, and 26 days d. 3 years, 3 months, and 25 days




Item 7 Sgt Jackson reported to Camp LeJeune on 3 Jan 2006. He then went TAD to

the sergeant’s course on 3 Mar 2006. Soon after his return, Sgt Jackson took the Defense Language Proficiency Test on 3 May 2006. On 15 May, he received his scores. His proficiency in foreign language was 3/3 and he fell under FLPP B (not “dominant in the force”). He will be receiving $300 a month of FLPP. On what date will Sgt Jackson’s FLPP entitlement start? a. 3 Jan 2006 b. 3 May 2006 c. 15 May 2006 d. 3 Mar 2006





Item Number Answer Reference 1 c 1-362 b 1-393 c 1-414 d 1-425 d 1-456 c 1-477 b 1-49


(This page left intentionally blank.)


LESSON 3

INCENTIVE PAY

Introduction

Scope Marines are known for their fearlessness and commitment to the U.S. Marine

Corps; in return, the Marine Corps recognizes that commitment and sacrifice by giving back in the way of incentive pay. Whether the Marine Corps needs personnel to extend an additional year on an overseas duty assignment, a pilot to fly over a hostile territory and perform a hazardous mission, or a fire team to parachute out of a helicopter and perform a demolition duty mission, Marines will always be ready for action at a moment’s notice. Knowing that there is an incentive pay for these types of duties certainly keeps morale and spirits up throughout the mission, and the Marine focused on mission accomplishment. In this lesson, you will learn the methods used to compute a member’s entitlement accurately to the various types of incentive pay based on job risk, and the member’s length of time in service (TIS).

Learning Objective

By the end of this lesson, you will be able to • Compute a member’s entitlement to overseas extension incentive. • Compute a member’s entitlement to hazardous duty incentive pay for flight

duty. • Compute a member’s entitlement to hazardous duty incentive pay for

parachute and demolition duty.


Topic See Page Introduction 1-57 Overseas Extension Incentive 1-58Hazardous Duty Incentive Pay: Flight Duty 1-61Hazardous Duty Incentive Pay: Parachute and Demolition 1-64Lesson 3 Exercise 1-68


Overseas Extension Incentive

Conditions of Entitlement

Enlisted members entitled to basic pay are entitled to this special pay, if they • Have a specialty designated by the Secretary concerned. • Completed a tour of duty at a location outside the continental United States

designated by the Secretary concerned. • Execute, at the end of the tour of duty, an agreement to extend that tour for

a period of at least one year.

Types of Entitlement

When a member has agreed (and is approved) to extend the tour of duty, the member is entitled to one of the following incentives: • Special pay in monthly installments not to exceed $80 per month. • An annual bonus not to exceed $2000 per year is paid in lump sum or

monthly installments. • Member may elect to receive a period of special rest and recuperative

absence instead of the special pay or bonus. Member may not receive any special pay or bonus for the same extension period.

− Thirty (30) days leave not chargeable − Fifteen (15) days leave not chargeable, and round trip tickets to the port

of embarkation

Restrictions A member may not receive more than one of the bonuses — the overseas

extension bonus, the rest/recuperative absence, or government transportation. Example: GySgt Mills has completed a one-year tour and has decided to

extend in Okinawa for one more year. GySgt Mills has decided to take 30 days leave as his overseas extension incentive. This leave is not chargeable to the Marine’s leave account.



Overseas Extension Incentive, Continued

Termination of Overseas Incentive

Voluntary early departure from overseas theater: An enlisted member’s entitlement ceases on the day of PCS departure from the overseas area, if the departure is the result of actions taken by or under control of the member. Example: GySgt Gungy decided to leave Okinawa early to accept early

retirement. Involuntary early departure from overseas theater: An enlisted member’s entitlement continues through the scheduled termination date if the PCS departure date from the overseas area is the result of actions taken by the military service concerned. Example: The Marine Corps has decided to issue GySgt Gungy PCS orders

and report to CONUS prior to his one-year extension by 60 days.


Sgt Parker has completed a one-year tour and has decided to extend in Okinawa, Japan, for an additional year. Sgt Parker has decided to take the 15 days leave with the round trip ticket to his homeport. How much of these 15 days of leave will Sgt Parker be charged?

Computation Area

Use this area to compute how many days of leave will be charged.


Since Sgt Parker elected the 15 days leave with the round trip ticket to his homeport as his overseas extension elective, he will not be charged any of the 15 days of leave.



Overseas Extension Incentive, Continued


GySgt Moses has completed a one-year tour and has decided to extend in Iwakuni, Japan, for an additional year. GySgt Moses has decided to take the annual bonus lump sum money not to exceed $2000. In the 10th month of his 12-month extension, he received orders to report immediately to Camp LeJeune for duty. How much money does GySgt Moses have to give back from his lump sum received?

Computation Area

Use this area to compute how much money is given back.


GySgt Moses will not have to pay back any of his lump sum incentive pay since his PCS departure date from the overseas area is the result of actions taken by the military service concerned and no fault of his own.


Hazardous Duty Incentive Pay: Flight Duty

General Provisions and Definitions

Members under competent orders to participate in regular and frequent aerial flights as crew or non-crew members and that meet the requirements are entitled to hazardous duty incentive pay (HDIP). A crewmember is an officer or enlisted service member who is specifically assigned and routinely performs flight duties that relate to actual aircraft operations or contribute directly to in-flight operations or maintenance of associated equipment. A non-crewmember is an officer or enlisted service member assigned to duty involving frequent and regular participation in aerial flight, but who does not perform flight duties that relate to actual operation of the aircraft or contribute directly to the in-flight operation or maintenance of associated equipment.

Rates The monthly HDIP rate for non-crewmembers is $150. Monthly HDIP rates

for crewmembers are based on pay grade. Refer to DODFMR, Vol. 7, Ch. 22.

Aerial Flights Aerial flights are flights in military aircraft or spacecraft and flights in

nonmilitary aircraft when required by orders to fly such aircraft. Aerial flight begins when the aircraft takes off from rest at any point of support and terminates when it next comes to a complete stop at a point of support.

Minimum Flying Time Required Each Month

A member in a flying status must perform the minimum number of hours in aerial flights. The minimum hours required are as stated below. During one calendar month, four hours of aerial flight are required. If a member does not fly four hours in any month, hours flown during the five preceding months not already used to qualify for flight pay may be applied to meet the four-hour requirement. During two consecutive calendar months, when the requirement for one month has not been met, then eight hours of aerial flight are required. During three consecutive calendar months, when the requirement for two consecutive months are not been met, then 12 hours of aerial flight are required.



Hazardous Duty Incentive Pay: Flight Duty, Continued


Marine Capt Airy regularly performs flying duty. Capt Airy is authorized to receive HDIP ($150 per month). Listed below are his flight hours for the year. What is the rate for pay for each month?

Month Hours

Jan 4 Feb 4 Mar 0 Apr 4 May 8 Jun 8 Jul 0

Aug 5 Sep 0 Oct 0 Nov 0 Dec 1



Hazardous Duty Incentive Pay: Flight Duty, Continued


Capt Airy’s HDIP per month is as follows:

Month Hours Rate Reason

Jan 4 175 Meets minimum requirement. Feb 4 175 Meets minimum requirement. Mar 0 175 First month of 3-month period; enough hours

flown in May to cover March. Apr 4 175 Meets minimum requirement. May 8 175 Meets minimum requirement and 4 hours can

be used to cover March. Jun 8 175 Meets minimum requirement with 4 additional

hours. Jul 0 175 First month of 3-month period. Can use

additional 4 hours from June to meet requirement for July.

Aug 5 175 Meets minimum requirement. Sep 0 0 First month of 3-month period; 1 hour

available from August. Oct 0 0 Not enough hours to meet requirement. Nov 0 0 Not enough hours to meet requirement. Dec 1 0 Not enough hours to meet requirement.


Hazardous Duty Incentive Pay: Parachute and Demolition

Purpose The purpose of HDIP for parachute and demolition duty is to provide

additional pay to help the uniformed services attract and retain volunteers for parachute duty and duty involving the demolition or neutralization of explosives. This HDIP pay is designed to compensate the personnel for this abnormally dangerous duty.

Begin and Termination Dates

A service member is entitled to HDIP on the date the member reports for and enters into duty in compliance with orders. Entitlement to HDIP terminates on the date published in the termination orders or on the date the member is detached from the command, and is no longer required to perform the hazardous duty, if the date is different from what appears on the orders.

Rates The rate payable for hazardous duty is $150 per month. A member qualified

as a high-altitude, low-opening (HALO) parachutist will receive hazardous duty pay in the amount of $225 per month. Incentive pay is payable for any full month, or is prorated for any portion of a calendar month during which a member under orders performs demolition duty by use of live explosives.

Requirements for Parachute HDIP

Requirements to receive parachute HDIP, the member must • Undergo training or has already completed training to be designated a

parachutist or a parachute rigger. • Be required by orders to engage in parachute jumping from an aircraft in

aerial flight. • Perform the specified minimum jumps.



Hazardous Duty Incentive Pay: Parachute and Demolition, Continued

Requirements for Parachute HDIP, continued

Requirements to receive HALO pay, the member must • Jump in at an altitude greater than 10,000 feet with a free-fall to low

altitude before opening the parachute. • Jump at high altitude without using a static line. − Graduate from the US Army (or other military) free-fall course. − Perform free-fall jumps

Note: A member may draw only one type of parachute pay at a time. If a

member is qualified for both, the member is entitled to the higher rate.

Jump Frequency Requirements

When a jump is performed in any calendar month, the member qualifies for parachute duty pay for that month and one month before and after, or for that month and the next two following months. When jumps are made two or more consecutive months, a new three-month period starts with each month a jump is made. When a member begins parachute training or reports for duty with a parachute unit during the month, the month the training or duty begins becomes the first month of the three-month period. If that date is other than the first day of a month, the month of pay is prorated.

Requirements for Demolition HDIP

To receive demolition pay, a member is required by orders to perform the following duties involving the use of live explosives: • Demolish underwater objects. • Participate as students or instructors in training for training for demolition

duty. • Participate in proficiency training to maintain skills. • Experiment with or developing tools, equipment, or procedures for

demolition.

Note: Duties must involve the use of live explosives.




Injury or Incapacitation

When a member is injured or incapacitated as a result of performing hazardous duty, the member continues to draw incentive pay for a period of no longer than three months. The three-month period commences on the first of the month in which the member was injured or incapacitated. Example: Sgt McGraw was giving a class on how to blow up a bridge.

During the explosion, Cpl Quick was hit in the arm by a piece of the bridge, causing the arm to break. Cpl Quick is entitled to demolition duty pay for the following three months.

When a member is injured or incapacitated and it is not a result of performing hazardous duty, then the member’s entitlement to incentive pay depends on fulfillment of the hazardous duty requirement. Example: Sgt Harms is suffering a severe whiplash from a car accident. Sgt

Harms was not able to perform his duties for at least 30 days. At the end of 30 days, Sgt Harms was reevaluated and was still unable to meet hazardous duty requirements. Since Sgt Harms is not able to complete the requirements, no incentive pay is authorized.


SSgt Parks began parachute training on 14 June. How much HDIP for parachute will SSgt Parks receive for the month of June?

Computation Area

Use this area to compute HDIP for SSgt Parks for the month of June.





Since incentive pay for parachute duty may be paid from the date the parachute training begins, SSgt Parks is entitled to HDIP from 14 June until the end of the month on a prorated basis, because the start date is other than the first of the month. Sgt Parks will receive $85 of HDIP for the month of June.

Step Action Example

1 HDIP rate + $150 HDIP rate $150.00 2 Divide the HDIP rate by

30 days in the month. Basic pay rate $150.00 Divide by 30 30 Daily pay rate $5.00

3 Parachute training date began to end of month.

14-30 Jun 17 days

4 Multiply the daily pay rate by the number of days entitled to HDIP for the month.

Daily pay rate $5.00 Period of service × 17 $85.00


Lesson 3 Exercise

Directions Complete exercise items 1 through 3 by choosing the correct answer. Check

answers against correct ones listed at the end.

Item 1 GySgt Knox has completed a one-year tour and has decided to extend on

Okinawa for another year. GySgt Knox has decided to take 30 days leave as his incentive entitlement for extending. How much of this leave is chargeable? a. None b. 30 days c. 15 days d. 10 days

Item 2 Capt Kirk receives $175 per month for flight pay if he meets his 4-hour flight

requirement for that month, or a combination of 12 hours within a continuous three-month period. Using Capt Kirk’s flight hour chart provided, what is his total flight pay for Jan, Feb, and Mar combined? a. $175 b. $350 c. $600 d. $525

Month Hours $ Jan 4 Feb 3 Mar 5

Item 3 Incentive pay for parachute duty is $150 a month. SSgt Parks began

parachute training on 14 June. How much parachute HDIP will SSgt Parks receive for the month of June? a. $75 b. $150 c. $65 d. $85






Item Number Answer Reference 1 a 1-582 d 1-613 d 1-67

Study Unit 1 Summary

We have covered many different areas: a member’s creditable service, pay entry base date, basic pay, and leave to computed special pay entitlement such as selective reenlistment bonus, special duty assignment, hostile fire or imminent danger, diving duty, hardship duty, career sea, foreign language proficiency, and incentive pay entitlement. Study Unit 2 will cover allowances and some entitlements that can be requested in advance to help offset the cost of a member’s moving expense.


STUDY UNIT 2

ALLOWANCES AND ADVANCE ENTITLEMENTS

Overview

Purpose As a Marine, it is important to know what allowances you are entitled to, which

entitlements you can draw advances on, how much each type of allowance is worth, and how to compute them for accuracy. This study unit will increase your understanding of allowances and advance entitlements to further assist you in computing the amount of income for that pay period.

Scope This study unit includes topics on allowances and advance entitlements. It will

provide you with the principles and techniques needed to accurately compute a member’s allowances and advance entitlements.

In This Study Unit


Lesson See Page

Allowances 2-3 Advance Entitlements 2-39


LESSON 1

ALLOWANCES

Introduction

Scope There are several types of allowances a member is entitled to in the Marine

Corps. The type of allowance and the monetary value vary from member to member, based on a member’s pay grade, marital status, place of dwelling, or where a member is stationed. This lesson will provide you with the skills and knowledge to determine what allowances a member is entitled to and how to compute those allowances accurately.

Learning Objectives

By the end of this lesson, you will be able to • Compute a member’s basic allowance for housing. • Compute a member’s basic allowance for subsistence. • Compute a member’s clothing replacement allowance. • Compute a member’s family separation allowance. • Compute a member’s cost of living allowance. • Compute a member’s overseas housing allowance. • Compute a member’s temporary lodging allowance.





Topic See Page Introduction 2-3Basic Allowance for Housing 2-5Basic Allowance for Subsistence 2-10Clothing Replacement Allowance 2-13Family Separation Allowance 2-17Cost of Living Allowance 2-21Overseas Housing Allowance 2-25Temporary Lodging Allowance 2-30Lesson 1 Exercise 2-34


Basic Allowance for Housing

General Knowledge

Basic allowance for housing (BAH) provides members, with or without dependents, a monthly allowance for housing. It is intended to pay only a portion of housing costs. BAH is payable to members on active duty and will vary according to grade in which serving or appointed for basic pay purposes, dependency status, and the permanent duty station (PDS) assigned. BAH is not payable to members who are assigned to government quarters.

Rates The Secretary of Defense (SECDEF) determines the cost of adequate housing

in a military housing area (MHA) for all members of the uniformed services entitled to BAH by location. The determination of housing allowance is based upon the cost of adequate rental housing for civilians with comparable income levels in the same area. An adjustment in the rates of BAH because of the SECDEF’s re-determination of housing costs in a MHA, will take effect with the pay raise each year. BAH rates are established by SECDEF and set forth in DODFMR, Vol. 7A, Ch. 26.

Types of BAH There are several different types of BAH:

• BAH with dependents • BAH without dependents • BAH II with dependents • BAH II without dependents • BAH difference • BAH partial

Note: BAH with or without dependents is strictly for members stationed

within the continental United States (CONUS). BAH II with or without dependents is strictly for members stationed outside the continental United States (OCONUS).



Basic Allowance for Housing, Continued

BAH for Members With Dependents

A member with dependents who is entitled to basic pay is entitled to BAH with dependents prescribed for the member’s PDS, whether the dependents reside with the member or at a different location. In addition, adequate single-type government quarters are available for the member and dependents, or for the member’s dependents. When dependents reside separately from the member, and the member is assigned to an unaccompanied tour at the PDS outside the United States, the member is entitled to BAH at the rate prescribed for the area within the United States where the dependents reside. When serving on an accompanied tour outside the United States, the member is not entitled to BAH with dependents.

BAH for Members Without Dependents

Members without dependents who are entitled to basic pay and stationed in CONUS are entitled to receive BAH on their behalf (BAH own right), at the rate prescribed for the member’s PDS, when government quarters are not assigned. The termination to BAH own right continues until the day prior to detaching the PDS or the day prior to assignment to government quarters, whichever comes first. Members without dependents in the pay grade of E-7 and above may elect at any time not to occupy assigned government quarters at their PDS and be entitled to receive BAH own right.

BAH Member Married to Another Member

When a BAH member is married to another member of the armed services and both are stationed in the same geographical area, reside together, and neither have children, both members are entitled to BAH active duty spouse. When a member is married to another member and they have a child or children, one member will receive BAH with dependents and the other will receive BAH active duty spouse.




BAH II With Dependents

When a member is transferred from the continental United States (CONUS) to an overseas location with dependents (accompanied), the member loses entitlement to BAH with dependents, effective the day prior to the day the member reports to the overseas duty station. The member then becomes entitled to BAH II with dependents effective on the date of reporting to the overseas duty station. When a member is serving an accompanied tour overseas and receives PCS orders (PCSO) back to CONUS, the member loses entitlement to BAH II with dependents on the date prior to the day the member reports to the new PDS or temporary duty (TDY) site, whichever occurs first. The member then becomes entitled to BAH with dependents at the new PDS rate, effective the date of reporting.

BAH II Without Dependents

Members without dependents stationed overseas and authorized to reside off base, when government quarters are not assigned, are entitled to BAH II without dependents.

BAH Difference A member who is assigned to single-type government quarters and paying

child support is entitled to BAH difference (BAH DIFF). This amount is equal to the difference between the BAH II with dependents and BAH II without dependents for the member’s pay grade. The member will not be entitled to BAH DIFF if the amount of child support is less than the BAH DIFF for the member’s pay grade.




BAH Partial BAH partial is a set rate of entitlement for members assigned to single-type

government quarters (barracks) and not in receipt of any orders type of BAH. Members without dependents, who are assigned single-type government quarters or who are on field or sea duty, are entitled to BAH partial, except under the following conditions: • When on proceed time, leave en route, and or travel time on PCS, unless

the member is assigned to single-type government quarters and not entitled to BAH. BAH partial stops the day prior to the date of detachment and resumes on the date of reporting.

• When confined in a guardhouse, brig, or correctional facility and forfeiture

of allowances was directed. • When otherwise entitled to BAH DIFF for support of children.


Match the type of BAH entitlement (column 2) to the situation (column 1).

Column 1

Column 2

____ 1. SSgt Price is stationed at Camp Lejeune, NC. His dependents reside at Beaufort, SC, and do not reside in family-type government quarters.

a. BAH without dependents b. BAH partial c. BAH with dependents d. BAH DIFF

____ 2. Sgt Ryan is single and resides in the barracks. He has one child and is court ordered to pay child support for his son.

____ 3. GySgt Lynn is married to SSgt Lynn and are both stationed at Camp Lejeune, NC. They have one child. Since SSgt Lynn is receiving BAH with dependents, what type of BAH is GySgt Lynn entitled to?

____ 4. Cpl Rocker is single with no children and resides in the barracks.




Practice Solution 1

Column 1

Column 2

_c_ 1. SSgt Price is stationed at Camp Lejeune, NC. His dependents reside at Beaufort, SC, and do not reside in family-type government quarters.

a. BAH without dependents b. BAH partial c. BAH with dependents d. BAH DIFF

_d_ 2. Sgt Ryan is single and resides in the barracks. He has one child and is court ordered to pay child support for his son.

_a_ 3. GySgt Lynn is married to SSgt Lynn and are both stationed at Camp Lejeune, NC. They have one child. Since SSgt Lynn is receiving BAH with dependents, what type of BAH is GySgt Lynn entitled to?

_b_ 4. Cpl Rocker is single with no children and resides in the barracks.


Basic Allowance for Subsistence

General Knowledge

Officers entitled to basic pay are entitled to full basic allowance for subsistence (BAS) at all times on a monthly (30 day) basis. The rate is $192.74, effective 1 Jan 2007. Effective 1 Jan 2007, the enlisted monthly BAS rate is $279.88 (prorated monthly). Active duty and reserve Marines are entitled to standard (monthly) BAS rate. Enlisted Marines attending basic military training (boot camp) and Marines going through initial officer training (officer candidate school, officer training school) that have no continuous prior enlisted service (active or reserve) will not be entitled to monthly BAS.

Essential Station Messing

Enlisted Marines in pay grades E-1 through E-6, permanently assigned to single government quarters ashore and who are being subsisted in kind (issued a meal card) are entitled monthly BAS, but will be in an essential station messing (ESM) status. This includes enlisted members attending accession pipeline military training. Enlisted members in pay grades E-7 through E-9 performing duty at a shore installation (not in field duty or group travel) are exempt from ESM. Enlisted members assigned to ESM will be automatically charged for all meals made available (whether eaten or not) at the discounted meal rate (DMR) of $7.70 a day for the entire month. When a Marine is on PCS, hospitalized, or TAD/TDY (not sea duty or field duty), unit diary entries are reported and the member’s DMR is checked, the Marine Corps Total Force System (MCTFS) will automatically “stop” the DMR to the Marine’s pay account for that period reported. For those members in a leave status, upon their return to full duty, MCTFS will automatically resume the DMR checkage. For those members in a PCS, TDY, or hospitalization status, upon joining, personnel officers will be required to report “start” DMR, provided the member returns to an ESM status.



Basic Allowance for Subsistence, Continued

Essential Station Messing, continued

The day the member goes into or out of an ESM status, the Marine is only checked 25% of the daily DMR for that day. This does not apply to leave status. Marines assigned to ESM who are TDY to sea duty, field duty, essential unit messing (EUM), or group travel, “will continue” to have DMR automatically deducted from their pay. Enlisted members not assigned to ESM, performing duty at a shore installation and not assigned ESM (not issued a meal card), are entitled to the new monthly BAS. However, they will be charged the standard meal rate for meals eaten at a government messing facility. When a member is on leave, PCS, hospitalization, or TDY (not sea duty or field duty, EUM, or group travel), unit diary entries are reported and the member will continue to be entitled to monthly BAS with no pay account checkage. When a member is assigned TDY to sea duty, field duty, EUM, or group travel, the DMR checkage applies and members will pay for meals by payroll deductions (field rates checkage) via unit diary entries.


Cpl Stanton is stationed at MCB Camp Lejeune. The member has a meal card and is subsisted at the messing facility. On 5 Mar 2007, the Commanding Officer authorized Cpl Stanton to subsist on his own and turn in his meal card. What is Cpl Stanton’s BAS for the month of March?

Computation Area

Use this area to compute Cpl Stanton’s BAS for the month of March.



Basic Allowance for Subsistence, Continued

Practice Solution 2

Cpl Stanton’s BAS for the month of March is computed as follows:

Step Action Example

1 Monthly BAS (070301-070331) Monthly BAS $279.88 2 Multiply the BAS DMR ($7.70) by

the DMR checkage days (070301-070305; 5 days).

BAS discounted rate $7.70 Days of checkage × 5 $38.50

3 Subtract step 2 total from monthly BAS rate.

Monthly BAS $279.88 Step 2 total − 38.50 241.38

4 Multiply the BAS DMR ($7.70) by 75% for one-day credit (070305).

BAS discounted rate $7.70 × 75% $5.77

5 Add step 3 and step 4 totals to get Cpl Stanton’s BAS for the month of March.

Step 4 total $241.38 + 5.77 $247.15

Cpl Stanton’s BAS for March is $247.15.

Note: In step 2 above, the member is checked for 5 days of BAS at the DMR. Remember: The day the member goes into or out of an ESM status, the

Marine is only checked 25% of the daily DMR ($7.70) for that day; therefore, in step 4, the member is credited back 75% of that DMR for one day.


Clothing Replacement Allowance

General Knowledge

Clothing replacement allowance (CRA) is provided for repair and replacement of clothing. It is an addition to other pay and allowances. This is an annual entitlement paid to enlisted Marines on the anniversary CRA date. Officers are not entitled to this allowance. The CRA date appears in block 49 of the LES. The CRA date is established from the current active duty begin date during the record accession process.

Note: If a member’s CRA date is the first day of the month, then the member

will receive CRA on the previous month’s end of the month payday. Example: If a member’s CRA date is 19960401, the member will receive

CRA on the April 1st payday.

Restrictions CRA does not accrue when a Marine is assigned to a combat area, where

replacement of clothing is made without charge on an in-kind issue basis. CRA is terminated when a member is sentenced to confinement involving a punitive discharge, during unauthorized absence total forfeiture of pay, and when the member is declared in a missing status.

Types of CRA Basic replacement allowance (BRA) provides for maintenance or replacement

of all items of clothing, which would require replacement during the first three years of active duty. Members are entitled to BRA from the first day of the month following completion of six months of active duty, to continue through the end of the first 36 months of service. (The first annual payment at the end of the 12th month of service will be for an amount equal to one-half of the annual BRA rate. The next two annual payments will be at the full rate. Example: A member’s CRA date is 20020705. The member will complete

six months of active duty on 20030104. The member is entitled to CRA from 20030201 (CRA active duty) through 20030730. The member would receive one-half the annual BRA rate on 20030801 pay day. The member will then receive a full annual payment of BRA with the end of the month pay of the anniversary CRA date for the next two years (20040801 and 20050801).



Clothing Replacement Allowance, Continued

Types of CRA, continued

Standard replacement allowance (SRA) provides for maintenance or replacement of individual clothing items required after completion of three years active duty. A member is entitled to SRA from the first day of the month following the completion of three years active duty. Continuing with the previous example, a member’s CRA date is 20020705. The member will complete three years of active duty on 20050704. The member will be entitled to SRA from 20050801 (the first day of the month following the completion of 3 years active duty). In this example, the member would receive the first annual payment of SRA on 20050801 pay day.

Rates Payable The annual CRA payment of BRA or SRA will be paid at the rate in effect for

that fiscal year (fiscal year begins on October 1st). Effective 1 Oct 2006, annual BRA annual rate for male Marines is $255.60, and the annual BRA rate for female Marines is $273.60. Effective 1 Oct 2006, the annual SRA rate for male Marines is $367.20, and the annual SRA for female Marines is $392.40.

Prorating CRA When the member serves less than 12 months since the last anniversary

payment, a prorated amount will be paid for the number of whole and fractions of months actually served. Payment would be made in whole month increments, regardless of whether a fraction of a month was actually served. Members will be entitled to a full month of CRA for the month of separation regardless of day of the month that separation occurs. Example: A member’s CRA date is 20010923 and member was last paid

CRA on 20051001. Member was honorably discharged on 20060722. The member would be paid for 10 months of SRA on the date of separation (20051001 to 20060731).

Thus, $367.20 (annual male Marine CRA) divided by 12 is $30.60; 30.60 × 10 (number of months from 20051001 to 20060731) is $306.




Prorating CRA, continued

The member is entitled to $306 for CRA from his last CRA date to his discharge date. When time lost occurs during the anniversary year, the CRA will be reduced by a daily rate for each day that the member was in a non-pay status. Since CRA is an annual allowance based on a 30-day month, to compute the daily rate, take the annual amount and divide by 360. Time lost does not change the CRA date. The annual payment that is generated by the CRA utility will include a deduction for non-pay periods that occurred during the CRA anniversary year. Example: A member’s CRA date is 20010507. He was last paid CRA on

20050601. Member had time lost from 20060101 to 20060115 (15 days).


PFC Bonds CRA is 20060205. PFC Bonds will complete six months of active duty on 20060804. He is entitled to CRA from 20060901 through 20070228. If the annual BRA rate for male Marines is $255.60, how much CRA will PFC Bond receive on 20070301 pay day?

Computation Area

Use this area to compute PFC Bond’s CRA entitlement.




Practice Solution 3

Under the CRA entitlement, members are entitled to BRA from the first day of the month following completion of six months active duty and continuing through the end of 36 months of service. The first annual payment at the end of the 12th month of service will be for an amount equal to one-half of the annual BRA rate. The next two annual payments will be made at the full rate. Then after three years of active service, PFC Bonds would rate the SRA for CRA. PFC Bond CRA is 20060205. PFC Bond completes six month active service on 20060804. CRA entitlement period is 20060901–20070228. PFC Bond is entitled to one half of the annual BRA rate for male Marines ($255.60); therefore, PFC Bond will receive $127.80 of CRA entitlement on 20070301 pay day.


Family Separation Allowance

General Knowledge

Family separation allowance (FSA) is payable to members with dependents. It is an amount of money an officer or enlisted member receives to offset the added expenses caused by enforced separation by official orders. There are two types of FSA: FSA-I and FSA-II. Both are payable in addition to any other allowance or per diem to which the member may be entitled. A member may qualify for FSA-I and FSA-II for the same period. In such cases, concurrent payments of both types are authorized. In the case of a member married to a member with a child that either parent can claim for BAH, one parent may claim the child for BAH purposes and the other parent, when otherwise entitled, may claim the child for FSA. FSA may alternate between parents based on the same dependent; however, FSA may not be paid simultaneously to both members on behalf of the same dependent.

Types of FSA FSA-I is payable to a member with dependents, who is on permanent duty

outside the United States or in Alaska and who meets all of the following conditions: • Transportation of dependents to the PDS or a place near the PDS is not

authorized at government expense. • Dependents do not live at or near the PDS. • Adequate government quarters or housing facilities are not available for

assignment to the member and inadequate government housing facilities are not assigned.

• Be in receipt of FSA-II to qualify for FSA-I. FSA-I is payable to all members regardless of whether dependents reside in government quarters.



Family Separation Allowance, Continued

Types of FSA, continued

Example: SSgt Dixon’s family resides in Quantico, VA, while the member is on an unaccompanied tour overseas. Government quarters or housing facilities are not available for assignment to SSgt Dixon. SSgt Dixon must maintain a home for his dependents and a home for himself due to enforced separation. SSgt Dixon is entitled to FSA-I.

FSA-II is payable to a member with dependents for added expenses incurred because of enforced separation from the members family due to PCS, TAD/TDY, or duty on board ship. FSA-II is paid to qualified members serving inside or outside the United States, except in time of war or national emergency declared by Congress. A military member married to another military member with no other dependents may become entitled to FSA-II under the following conditions: • The couple must have been residing together immediately before being

separated due to the receipt of orders. • Payment is limited to only one member at a time. If both members become

entitled, only the senior member will receive FSA-II. A member is not considered “a member with dependents” for FSA-II entitlement when • The sole dependent is placed in an institution for a known period of over

one year or for an indefinite period that may be expected to exceed one year.

• The sole dependent is a spouse legally separated or child(ren) in the legal

custody of another person. • The member’s dependent parent does not reside in a home, which the

member controls, supervises, and maintains for mutual use when circumstances permit.




FSA-II Categories

There are three types of FSA-II categories: • FSA restricted (FSA-R) • FSA ship (FSA-S) • FSA temporary duty (FSA-T) A member may qualify for more than one category of FSA-II for the same period; however, payment is limited to only one.

Rates FSA-I is payable in a monthly amount based on a 30-day month equal to the

amount paid a member for BAH II without dependents in the same pay grade. FSA-II (all categories) is $250 per month, based on a 30-day month.

Beginning and Termination of FSA

FSA-I starts on the date of arrival to the PDS and continues through the date of departure from the PDS. Credit for FSA-T may not be made until the member has been on TDY continuously for more than 30 days. See DODFMR, Vol. 7A, Ch. 27 for computation of days. FSA-S credit for this may not be made until the member has been on duty on board ship away from the home port for a continuous period of more than 30 days. FSA-S starts on the day of departure on board a ship away from its home port and stops on the day prior to the date the ship returns to its home port. FSA-R accounts for the day of detachment or first day of authorized travel time (following day), whichever is later, plus subsequent days of authorized delay or proceed time used. FSA-R stops when member reports arrival of dependents. Upon PCS, FSA-R stops the day before the date the member arrives at the new PDS minus any days of proceed and delay.




Exceptions Credit for FSA-T may not be made until the member has been on TAD/TDY

for more than 30 consecutive days. In computing to 30-day period, count the actual number of days in the month, including the day the member departs the PDS. Include the 31st day if the month in the computation, even though payment is made on a 30-day period. Do not pay FSA for the 31st day in a month even if the day is used in computing periods of more than 30 days. Credit $250 for the month of February even though 28 or 29 days are used in computing the 30-day period.


SSgt Rollins went TAD to Korea, no leave authorized or used en route. SSgt Rollins departed Okinawa on 20070420, and returns to Okinawa on 20070715. Member is entitled to FSA-T for the period of 20070420 through 20070714. What is the total amount of FSA-T SSgt Rollins received for this period?

Computation Area

Use this area to compute the amount of FSA-T SSgt Rollins received for the period of 20070420 through 20070715.

Practice Solution 4

SSgt Rollins rates FSA-T as follows: For month of April, 20070420 − 20070430; $250 divided by 30 = $8.33 a day × 11 days = $91.67. For month of May, 20070501 − 20070531 = $250 For month of June, 20070601 − 20070731 = $250 For month of July, 20070701 − 20070714; $250 divided by 30 = $8.33 a day × 14 days = $116.66 SSgt Rollins total amount for FSA-T entitlement is $708.33.


Cost of Living Allowance

Required Information

COLA is computed on a daily basis and is based on the member’s pay grade, years of service, and the number of dependents and COLA index which can be located in the Joint Federal Travel Regulation (JFTR), Appendix J. To determine how much COLA a member is entitled to, the following information is required: • Member’s pay grade • Years of service • Member’s annual compensation (basic military compensation) • Number of dependents • Member’s average annual spendable income • Member’s duty station and COLA index

Member With Dependents

A member with dependents is entitled to cost of living allowance (COLA) except: • For any days in excess of 30 consecutive days that a member and his

dependents are on leave in CONUS. This rule applies to all types of COLA.

• When one or more dependent(s) return(s) to CONUS for a period of more

than 30 consecutive days, then COLA is reduced to the daily rate for the remaining dependents.

• When all dependents return to CONUS on leave for more than 30 days, the

member is then paid as a member without dependents. • When government messing facilities are available for both the member and

dependents for all meals.



Cost of Living Allowance, Continued

Member Without Dependents

A member without dependents is entitled to COLA at the without-dependent rate for any day that a government mess is not available for three meals per day at his PDS. A member who takes leave within CONUS would be entitled to COLA for the first 30 consecutive days. For leave taken outside the CONUS, COLA would be payable for the entire period of leave. Such payments will be made only if the member was in COLA status immediately before beginning the leave. A member without dependents, who has been authorized to mess separately or when use of government mess, is impractical is entitled to COLA at the without dependent rate. This would also apply to a member married to a member. For example, consider a member married to a member with command sponsored dependents. One member would be entitled to COLA with dependents and the other would be entitled to COLA without dependents. A member with non-command sponsored dependents in the vicinity of the member’s PDS is entitled to COLA at the own right rate if a government mess is not available for three meals a day or if the member has been authorized to mess separately.

Barracks COLA

Barracks COLA is payable to a member without dependents residing in or assigned to government quarters and when a government mess is available for all three meals. These members are entitled to COLA at 47% of the without dependent rate. This also applies to members who do not use an available government mess because of the presence of individually sponsored dependents in the vicinity of the member’s duty station.

Commencement Entitlement to COLA usually begins on the day a member reports to a new

PDS or when dependents arrive before their sponsor. Unless the member is entitled to a mileage allowance in lieu of transportation on the date of reporting and if temporary lodging allowance (TLA) is paid for a period of time, then COLA commences on the day following the termination of TLA status.




Termination Entitlement to COLA terminates on the day before the member departs in

compliance with the PCSO on the day the last dependent departs, if the dependent departs within the 60-day period after the effective date of the PCSO. If departure TLA is paid, then COLA terminates the day before the first day of TLA.

Determine COLA Payable

To determine the COLA payable in any case, follow these steps: Note: Members Annual Compensation, Table I and Average Annual

Spendable Income, Table II, can be found in Appendix B of the JFTR.

Step Action 1 Ascertain the member’s annual compensation in Table I, based on

the member’s pay grade and years of service. 2 Locate in Table II the column headed “Annual Compensation.”

Find the line that includes the annual compensation ascertained under step 1. Read the member’s “Average Annual Spendable Income” in the column corresponding to the member’s dependency status.

3 Ascertain the COLA index prescribed for the member’s PDS COLA indexes are listed in Appendix J of the JFTR.

4 Subtract 100 from the COLA index prescribed for the member’s PDS and convert the difference to a percentage. Change the percentage to a decimal.

5 Multiply the member’s “Average Annual Spendable Income” ascertained in step 2 above by the percentage (decimal) derived in step 4. The result is the member’s annual COLA. Divide this amount by 360 and carry out to 5 digits to the right of the decimal. Multiply the result by the number of days for which the allowance is payable and round off to the nearest cent. The result is the member’s COLA.




Example SSgt Gypsy reported aboard MCAS Kaneobe Bay, HI. The TLA has

terminated, and the member has three dependents. SSgt Gypsy is over 14 years for pay purposes. The COLA entitlement is computed as follows:

Step Action Result

1 Annual Compensation from Table I, Appendix B.

SSgt over 14 yrs with dependents is $35,026

2 Average Annual Spendable Income from Table II, Appendix B.

Income 35,026 with 3 dependents is $20,500

3 Hawaii COLA index (Appendix J of JFTR); COLA index for Hawaii is 126.

Hawaii COLA index is 126

4 Subtract 100 from the Hawaii COLA index (126) and turn total number into a percent. Change the percentage into a decimal.

Hawaii COLA index 126 Subtract 100 − 100 26 Turn the 26 into percentage 26% Change % into decimal 26% .26

5 Multiply step 2 number by decimal in step 4.

Step 2 number 20,500 Decimal number in step 4 × .26 Annual COLA 5,330

6 Divide the annual COLA by 360 to get the daily COLA.

Annual COLA 5,330 360 Daily COLA $14.8055

7 Multiply daily COLA by number of days entitled. Example: For month of June, use 30 days.

Daily COLA $14.8055 Number of days entitled × 30 $444.16


Overseas Housing Allowance

General Overseas housing allowance (OHA) is authorized to assist a member in

defraying the housing costs incurred incident to assignment to a PDS OCONUS. Every member authorized to live in private sector (leased or owned) housing is authorized OHA, provided that an individual OHA report (DD Form 2367) is completed by the member and approved by the senior officer of the uniformed services in the country concerned.

Types of Housing Allowance

The two types of OHA are listed below: 1. An up-front, lump-sum, move-in housing allowance (MIHA) for those who

qualify 2. A monthly OHA, including a utility/recurring maintenance allowance

Note: The location MIHA is based on the average “move-in” costs for

members. The monthly OHA is the rent, up to the rent allowances at the PDS, plus the utility/recurring maintenance allowance.

Utility/recurring maintenance allowance is an allowance based on average expenses reported by members with dependents when rent includes no utilities or the member is a homeowner.



Overseas Housing Allowance, Continued

Entitlement and Commencement

A member is entitled to OHA at the with- or without-dependents rate when the member or member’s dependents do(es) not occupy government housing. OHA will generally commence on the day the member reports to the overseas station, unless • On the day of reporting, a member without dependents is entitled to

mileage in lieu of transportation (MALT), plus flat per diem or TLA. • On the day of reporting, a member with dependents is entitled to MALT

plus flat per diem for himself and TLA for dependents or TLA for both the member and his dependents.

In either case, OHA commences on the day after reporting or on the day after TLA is terminated. OHA commences on the date of arrival, provided the member has a lease and TLA is not paid. OHA is not payable on the arrival day when MALT plus per diem is paid. A member may be in receipt of MALT plus the per diem or TLA prior to going overseas.

Rules When possible, the utility/recurring maintenance allowance is based on

average expenses reported by members with dependents. 1. For utility/recurring maintenance allowance purposes, members are

classified into one of the following categories:

• Members married to member and maintaining a joint household. Each member is entitled to half of the utility/recurring maintenance allowance subject to rules 2, 3, and 4 below.

• Member defined as a sharer is entitled to a prorated share of the

utility/recurring maintenance allowance subject to rules 2, 3, and 4 below.

• Member without dependents and not defined as a sharer is entitled to

75% of the utility/recurring maintenance allowance (unless a specific rate has been prescribed for such members in Appendix K, Table I, of the JFTR) subject to rules 2, 3, and 4 below.




Rules, continued

2. When rent includes all utilities, the member is not entitled to the utility/recurring maintenance allowance. The appropriate utility/recurring maintenance allowance in JFTR (Chap. 10) is added to the member’s rental allowance ceiling when computing the OHA.

3. When rent includes no utilities or the member is a homeowner, the

member is entitled to the utility/recurring maintenance allowance. 4. When rent includes some utilities, the member is not entitled to the entire

portion of the utility/recurring maintenance allowance. The amount the member is not entitled to will be added to the appropriate rental allowance ceiling when computing the OHA.

Climate Codes Based on the climate code of the duty location and the number of

utilities/services paid by the tenant(s), a utility point score is computed for the member. The score will determine the amount of utility/recurring maintenance allowance entitlement. Using the appropriate climate code column in the table shown below, the member is credited with utility points when the particular utility/service is not provided by the landlord. (There is no credit for any utility/service provided by the landlord.) • Code 1 (cold): Long-term mean temperature of 45° F or colder • Code 2 (moderate): All other climate • Code 3 (hot): Long-term average of 69° F or warmer, except when long-

term average for one or more months of the year drops to 45° F or colder. If so, a climate code of 2 is assigned.

CLIMATE CODE

1 2 3 Electricity 3 3 3 Heating 1 2 3

Air conditioning 1 2 3 Water/sewage 1 1 1 Trash disposal 1 1 1

Note: The utility point score is the sum of the numbers in each category.




Climate Codes, continued

If Utility Point Score is Then the Utility Multiplier is 0 0

1 or 2 0.25 3 or 4 0.65 5–9 1

OHA Calculation

OHA is calculated by comparing the member’s monthly rent to the prescribed locality rental allowances, selecting the lesser of the two and then adding the appropriate utility/recurring maintenance allowance.


MSgt Wheeler, who pays $1,050 in rent and has none of his utilities included in his rent, has two dependents and 24 years of service. He lives in a climate code 2, his rental ceiling is $1,800, and the utility maintenance allowance is $500. Compute the OHA.

Computation Area

Compare MSgt Wheeler’s monthly rent to his OHA max rental ceiling to determine his OHA allowance.




Practice Solution 5

MSgt Wheeler’s OHA is computed as follows:

MSgt Wheeler’s Monthly Rate

Step Action Computation

1 Monthly rent $1,050.00 2 Average utilities (rent

includes no utilities) $500.00

3 MSgt Wheeler’s total rent allowance

Rent: $1,050.00 Utility: $500.00 $1,550.00

Compared to

MSgt Wheeler’s OHA Max Rental Ceiling


1 Rental allowance ceiling $1,800.00 2 Utilities $500.00 3 Total $2,300.00

MSgt Wheeler’s OHA is $1,550.

Note: If member’s rent is greater than the max rental ceiling, then the

member is entitled to the OHA max rental ceiling amount.


Temporary Lodging Allowance

General Conditions

TLA is provided to partially reimburse a member for the more than normal expenses incurred while occupying temporary lodgings. TLA is applicable when: • The member arrives at a PDS outside CONUS, pending assignment of

government quarters or other lodging arrangements. • The member is forced to vacate quarters (whether temporarily or

permanently) and use temporary lodgings during the search for permanent quarters.

• A member without dependents vacates permanent housing because of a

TDY of 90 days or more, the member is entitled to TLA while seeking permanent housing following the TAD/TDY period.

• Immediately proceeding departure on PCS from a PDS outside CONUS

and after government quarters are in fact vacated in connection with PCSO or after surrender of the other permanent living accommodations.

• During a period of hospitalization while en route between PDS during

which dependents are required to use temporary lodging.

Entitlement You are entitled to TLA for your last 10 days before leaving the PDS, except

when • One or more of the dependents remain after the member departs. They

will then have 10 days as long as the departure is less than 60 days after the effective date of the PCSO.

• A longer period of entitlement is authorized due to a delayed departure or

due to early termination of permanent housing. • The member or dependent(s) is/are hospitalized or the nature of the

member’s assigned duties requires the member to be away from the PDS.



Temporary Lodging Allowance, Continued

Dependents Depart Before Member

When dependents depart an overseas PDS before the member, TLA is authorized for the member and dependents. The period of entitlement will not exceed the last 10 days before the last dependent departs and will not begin earlier than the issue date of the PCSO. Upon departure of the member at a later date, TLA may again be authorized or approved for the member.

Delayed Departure

When the period of entitlement begins and actual departure is delayed through no fault of the member or dependents, they may rate an extension in increments of 10 days or less for the entire period that temporary lodging must be used.

Early Termination

When, for reasons beyond the control of the member or dependents, permanent housing must be relinquished more than 10 days before the estimated date of departure, the approving authority may authorize or approve the extended TLA.

Payable TLA is payable during the period of entitlement when a member and his/her

dependents occupy temporary lodging at personal expense.

Responsibilities of the Overseas Commander for Quarters Assignments

The overseas commander will determine if it is necessary for the member and/or dependents to occupy temporary lodging when they first arrive at an overseas duty station or immediately before they leave the overseas duty station. When the overseas commander determines the occupancy of temporary lodging is necessary, a statement of non-availability of government quarters will be issued as directed by the commander, and TLA will be paid.





SSgt Hayes and spouse were forced to evacuate government quarters on 20070504. SSgt Hayes PCS’s on 20070515. SSgt Hayes was in TLA status from 20070505 to 20070514. The daily cost of lodging at KUWAE Lodge is $94. The lodging has no facilities for preparing and consuming meals. The local meals and incidental expenses (M&IE) rate is $65. The max lodging is $112. What is the amount of TLA for the 10-day period?

Computation Area

Use this area to compute SSgt Hayes TLA amount for the 10-day period.




Practice Solution 6

SSgt Hayes TLA entitlement for the 10-day period is computed as follows:


1 Determine percentage based on the number of individuals.

100%

2 Determine the M&IE equivalency. Multiply local M&IE rate ($65.00) by step 1 total.

M&IE rate $65.00 step 1 total × 100% $65.00

3 Determine actual daily lodging with the M&IE. Take step 2 total and add it to the actual daily lodging cost.

M&IE rate $65.00 lodging + $94.00 $159.00

4 Determine the max lodging payable for area.

Step 3 total $112.00 Max lodging M&IE + $65.00 $177.00

5 Compare the results from steps 3 and 4. Use the lesser of the two to obtain the applicable daily rate (APR).

Lesser of 3/4 $159.00

6 Multiply the APR by the number of days member entitled to TLA (in this exercise 10).

APR or step 6 total $159.00 No. of days × 10 $1,590.00

SSgt Hayes is entitled to $1,590 of TLA for the 10-day period.


Lesson 1 Exercise



Item 1 SSgt Perez and his family reported to Okinawa, Japan, on an accompanied

tour and are living in government quarters. What type of BAH are they entitled to? a. BAH active duty spouse b. BAH difference c. BAH with dependents d. Not entitled to BAH

Item 2 Cpl Demarco is stationed at Camp Lejeune. The member has a meal card and

is subsisted at the messing facility. On 2 Jan 2007, the commanding officer authorized Cpl Demarco to subsist on his own and turn in his meal card. Monthly BAS is $279.88. BAS discounted meal rate is $7.70. What is Cpl Demarco’s BAS entitlement for the month of March? a. $279.88 b. $270.25 c. $264.48 d. $170.25

Item 3 Who is entitled to Clothing Replacement Allowance (CRA)?

a. Colonel Thrifty b. Chief Warrant Officer Torres c. Master Sergeant Roberts d. Captain Connors




Item 4 SSgt Nunez has received unaccompanied orders to Okinawa, Japan. His

dependents live in Norfolk, VA. What type of FSA is SSgt Nunez authorized?

a. FSA-I b. FSA-II c. FSA-S d. FSA-T

Item 5 SSgt Nunez and his dependents are stationed at Norfolk, VA. SSgt Nunez

will be going TAD to Camp Lejeune, NC from 1 Jun 2007 through 2 Aug 2007. FSA-T is $250 a month. How much FSA-T will SSgt Nunez receive for his entire TAD period?

a. $250.00 b. $500.00 c. $516.66 d. $750.00

Item 6 Sgt Pickles is single with no dependents and lives in the barracks.

Government mess is available for all three meals. Sgt Pickles is entitled to barracks COLA at what percentage of the without dependent rate? a. 47 b. 50 c. 75 d. 100




Item 7 A member is entitled to OHA at the with- or without-dependents rate when

the member a. PCS’s to a PDS within the continental United States. b. and dependents are stationed overseas and occupy government housing. c. is stationed overseas and the member or member’s dependents do not

occupy government housing. d. is stationed overseas, is single, no dependents, lives in the barracks, and

has not been authorized to subside out in town.

Item 8 A member is entitled to how many days of TLA before leaving the PDS?

a. 2.5 b. 5 c. 10 d. 15






Item Number Answer Reference 1 d 2-52 b 2-113 c 2-134 b 2-175 c 2-206 a 2-22 7 c 2-268 c 2-30


LESSON 2

ADVANCE ENTITLEMENTS

Introduction

Scope Almost every Marine will receive PCSO, TAD orders, or both in their first

enlistment in the Marine Corps. For some it can be an easy transition, but for others, it can be a financial nightmare if not planned accordingly. There are certain entitlements that members can draw in advance with PCSO. In this lesson, you will learn how to compute the different entitlements and allowances associated with either PCS or TDY move.

Learning Objectives

By the end of this lesson, you will be able to • Compute a member’s advance pay. • Compute a member’s advance basic allowance for housing. • Compute a member’s advance per diem.


Topic See Page Introduction 2-39 Advance Pay 2-40 Advance BAH 2-43 Advance Per Diem 2-45 Lesson 2 Exercise 2-48


Advance Pay

General Knowledge

A member may be entitled to advance pay upon receipt of PCSO. This includes: • Transfer from the old duty station to a new duty station. • Reenlistment after a break in service. • Commencement of active duty by newly commissioned officers. Advance pay may be paid for one, two, or three months. A specific monetary amount may be requested provided the amount specified does not exceed the amount authorized by regulation or the commanding officer. Do not pay advance pay in an amount that would require the stoppage of allotments for insurance or support of dependents.

Normal Parameters for Advance Pay

For Corporals (E-4) and above, no approval is required when requesting one month’s advance pay to be repaid in 12 months or less, if receiving the advance 30 days prior to detaching or 60 days after arrival at new duty station, and if the advance is not paid by check or cash. Corporals and above requesting advance pay within the “normal parameters” must submit the following substantiation: • A copy of PCSO • A signed statement of understanding stating the purpose of the advance

pay program and confirming that the intended use of the funds is in accordance with the stated purpose.

Outside Normal Parameters

Written approval is required from the Marine’s commanding officer for any advance pay request outside the normal parameters. For Lance Corporals (E-3s) and below, written approval is required from the Marine’s commanding officer for all requests, regardless of the amount requested.



Advance Pay, Continued

Outside Normal Parameters, continued

Requesting advance pay outside the “normal parameters” requires • A NAVMC 11116 Miscellaneous Military Pay Order/Special Payment

Authorization, signed by the commanding or executive officer.

• A statement of understanding signed by the Marine will be included in the “Remarks” section of the NAVMC 11116.

Computation of Advance Pay

The five steps for computing the amount of advance pay for the month are as follows:

Step Action

1 Compute the amount of advance pay for one month. Take the Marine’s monthly basic pay and subtract federal income tax withholding (FITW), state income tax withholding (SITW), Social Security/Medicare, Servicemember’s Group Life Insurance (SGLI), Montgomery GI Bill (MGB), garnishments, forfeitures, dependent dental plan, Thrift Savings Plan (TSP), and USN/MC Retirement Home.

2 Multiply the amount computed in step 1 by the number of months being requested.

3 Divide the total from step 2 by the number of months of repayment. Drop the cents.

4 Multiply the amount computed in step 3 by the number of months of repayment. This is the amount of advance pay that the member will receive.

5 The final step is to determine whether the member can afford to repay the advance pay. Do this by computing the Marine’s monthly net pay. Take all continuing entitlements minus all continuing deductions (allotments, taxes, SGLI, MGIB, dental plan, indebtedness, etc.). The amount computed in step 3 cannot exceed the amount computed in step 5.



Advance Pay, Continued

Repayment Repayment procedures are as follows:

• Collection of advance pay will commence on the first day of the month

following the month of payment. • If the member desires to repay the advance pay before the liquidation

schedule, the balance must be paid in full. No partial payments are accepted.

• For first term Marines, the repayment schedule must be completed three

months before the month of the Marine’s ECC date.

Payment Types Normal payment. Marines enrolled in Direct Deposit /Electronic Fund

Transfer (DD/EFT), a payment will be made to the Marines financial institution within approximately 48 hours. Marines not enrolled in DD/EFT will receive their advance in the next scheduled payday. Special payment. A special payment is made by using a Military Payroll Money List (MPML) also known as a daily special payroll.


Advance BAH

General Knowledge

When allowed by the regulation of the service concerned, a member’s commanding officer, the commanding officer’s designated representative, or another official so designated may authorize an advance payment of BAH to pay advance rent, security deposits, or initial expenses incident to occupy other than government housing. The advance may be made at any time during a member’s tour at the station concerned. It may also be authorized when a member has located housing incident to PCSO. Normally, the advance will not be disbursed more than three working days before the date payment under the lease or rent must be made. Disbursement more than three working days before the date payment can be made in extenuating circumstances.

Substantiation Advance BAH is substantiated with a completed NAVMC 11116

Miscellaneous Military Pay Order/Special Pay Authorization.

Amount The amount of the advance will be the actual cost to move into the residence

supported by copies of leases, utility company statements, and any other pertinent documents available. This amount will not exceed the total BAH amount that was authorized by the Marine’s commanding officer.

Repayment Repayment of the advance will be for 12 months, but not to exceed the

member’s tour at the station concerned. Collection action will begin on the first day of the month after payment of the advance has been made, unless the commanding officer authorizes to postpone collection.

Lump Sum Lump sum recoupment of any outstanding housing advance will be made

immediately on receipt of information that the member has vacated the housing for which the advance was made.



Advance BAH, Continued

Payment Types Normal payment. For Marines enrolled in DD/EFT, a payment will be made

to the Marines financial institution within approximately 48 hours. Marines not enrolled in DD/EFT will receive their advance in the next scheduled payday. Special payment. A special payment is made by using a MPML also known as a daily special payroll.


Advance Per Diem

General Knowledge

Per diem is a daily allowance payable for all periods of temporary duty, to cover the cost of lodging, meals, and incidental expenses relating to the ordered travel.

Per Diem Allowance

Per diem allowance for each day of TAD is established on the basis of the actual amount the traveler pays for lodging, plus a prescribed amount for M&IE, the total amount not to exceed the applicable locality rate. The amount for the day of departure from PDS and the day of return to PDS in connection with TAD will be 75% of the applicable M&IE rate.

Per Diem Not Payable

At any period, per diem is not payable under the following circumstances: • The traveler is on field duty. • On temporary duty while a traveler is a bed patient in the hospital. (This

does not preclude payment of per diem for the day of arrival at the hospital or for the day of departure from the hospital.

• On temporary duty aboard a government vessel when both quarters and

mess are available. • On a “group travel” status exists, except for meals and/or quarters

necessarily procured. The period in which per diem is not payable will commence at 0001 on the day after the day of arrival and will terminate at 2400 on the day prior to the day of departure.

Incidental Expenses

Incidental expenses are expenses that the member may incur while TAD, which are not included in the meal or lodging cost. Such expenses include:

• Fee and tips to bell hops, maids, porters, and baggage handlers at hotels • Personal laundry, cleaning and pressing of uniforms • Phone calls necessary to reserve lodging • Mailing costs associated with filing travel vouchers and payment of

government charge cards • Local transportation to meals, if meals cannot be obtained at the TAD site • Taxes (except for lodging in CONUS)



Advance Per Diem, Continued

Incidental Expenses, continued

CONUS rate is $3.00; OCONUS rate is $3.50 if the lodging is on a U.S. installation. Otherwise, it is the localities incidental rate to include travel days overseas.

Per Diem Rates Per diem rates can be found in Appendix D, JFTR. Per diem rate within

CONUS is $12.05 a day ($9.05 per day for meals in a government mess plus $3.00 for incidental expenses). OCONUS rates are as follows: • In a government mess, meals are $9.05 per day plus the incidental amount

listed in Appendix B for the locality concerned or $3.50 when the traveler is using quarters on a U.S. installation.

• If lodging is required, the lodging cost, not to exceed the lodging

maximum prescribed for the locality concerned in Appendix B, will be added to the M&IE rate to determine the per rate for the day.

Beginning and Ending of Per Diem

Per diem is based on the location of the traveler at 2400; however, there are occasions when the traveler is en route to a TAD location and does not arrive at the lodging site until after 2400. In that case, the maximum per diem will be determined as if the traveler had been at the lodging location prior to 2400. If authorized travel requires more than one day and a stopover for the night is required, the maximum per diem will be based on the stopover point. The M&IE rate is payable to the traveler without itemization of expenses and without receipts. If a TAD period is for more than 12 hours, but less than 24 hours, per diem will be determined by allowing 75% of the M&IE rate for the location of the TAD. If more than one location is involved and the traveler is not required to obtain lodging, the per diem will be based on the highest M&IE rate for all locations concerned.



Advance Per Diem, Continued

Amount Allowed

Advance per diem, as authorized on the travel orders by the order issuing official, should not exceed 80% of the estimated additional cash expenses permitted.


Lesson 2 Exercise



Item 1 Which would fall under “outside normal parameters” and is required to have

written approval from the commanding officer for an advance pay request regardless of the amount requested? a. Lance Corporal Smith b. Gunnery Sergeant Wickman c. Corporal Matthews d. Captain Hayes

Item 2 Sgt Cash’s request for advance BAH has been approved and processed. Sgt

Cash is enrolled in direct deposit/electronic fund transfer. A payment will be made to his financial institution within approximately how many hours? a. 24 b. 48 c. 72 d. 96

Item 3 Advance per diem is payable to a member when a

a. traveler is on field duty. b. traveler is a bed patient in the hospital. c. member is on official TAD orders. d. traveler is on a “group travel” status.






Item Number Answer Reference 1 a 2-40 2 b 2-44 3 c 2-45


We have covered entitlements you can request in advance to help offset the cost of moving expense, as well as, different types of allowances you may be entitled to, how much each type of allowance is worth, and how to accurately compute them. Study Unit 3 will cover how to compute deductions and collections, which members have withdrawn from their pay each month.


STUDY UNIT 3

DEDUCTIONS AND COLLECTIONS

Overview

Purpose It is important to know about your entitlements and allowances, but it is equally

important to know about deductions and collections, the difference between the two, and how to compute them for accuracy. You will have a solid foundation to plan your personal finances and financial goals. This study unit will increase your understanding of deductions and collections from your pay and enhance your skills to compute deductions accurately.

Scope This study unit includes topics on various deductions a member can have

deducted from his or her pay, and certain collections that the Marine Corps may impose on a member’s pay for deduction. This lesson also provides you with the principles and techniques needed in order to compute those paid deductions for accuracy.

In This Study Unit


Lesson See Page

Deductions 3-3 Collections 3-29


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LESSON 1

DEDUCTIONS

Introduction

Scope There is no way to get around paying taxes; however, ensuring that the right

amount is taken out of your pay is up to you. In this lesson, you will learn how to compute federal income tax withholding (FITW), state income tax withholding (SITW), Federal Insurance Contributions Act (FICA), Serviceman’s Group Life Insurance, miscellaneous deductions, and allotments from your pay.

Learning Objectives

By the end of this lesson, you will be able to • Compute a member’s federal income tax withholding deduction. • Compute a member’s state income tax withholding deduction. • Compute a member’s Federal Insurance Contributions Act deduction. • Compute a member’s Serviceman’s Group Life Insurance deduction. • Compute a member’s Montgomery G.I. Bill deduction. • Compute a member’s armed forces retirement homes deduction. • Compute a member’s dependent dental deduction. • Compute a member’s thrift savings plan deduction. • Compute a member’s allotment of pay.





Topic See Page Introduction 3-3Federal Income Tax Withholding 3-5State Income Tax Withholding 3-9Federal Insurance Contributions Act 3-11Serviceman’s Group Life Insurance 3-13Montgomery G.I. Bill 3-16Armed Forces Retirement Homes 3-18Dependent Dental Plan 3-19Thrift Savings Plan 3-21Allotment of Pay 3-22 Lesson 1 Exercise 3-25


Federal Income Tax Withholding

Authority Federal income tax withholding (FITW) rates are published in accordance

with Treasury Department, Circular E, and other U.S. Department of Treasury regulations. A member may authorize additional amounts to be withheld monthly to meet income tax needs.

Taxable Wages The following categories are subject to federal withholding:

• Basic pay • Special pay • Incentive pay for hazardous duty • *Lump sum payment of accrued leave • *Separation pay, readjustment pay, or severance pay • *Selective or regular reenlistment bonus

*Entitlement is taxed at the applicable percentage rate for federal tax. Entitlement is taxed at the flat percentage rate in accordance with Automated Pay Systems Manual (APSM), Appendix D, for state tax.

Note: When basic pay exceeds $6,642.60 (Sergeant Major of the Marine

Corps), combat zone tax exclusion for 01 and above is based on that amount, plus HFP/IDP of $225. All over that amount is taxed.

Wages Not Subject to Federal Income Tax

The following wages are not subject to FITW: • Wages earned by all active duty members for any month during which

they qualify for combat zone tax exclusion. • Wages earned by all active duty members for any part of any month in

which the member is in a missing status. • Federal income tax is not withheld from military wages of legal residents

of Puerto Rico because United States income tax withholding is precluded from military wages properly subject to Puerto Rico withholding. Puerto Rico withholding is not required on wages earned but unpaid when a military member dies; wages in this case are subject to Federal income tax withholding.



Federal Income Tax Withholding, Continued

Wages Not Subject to Federal Income Tax, continued

• Pay that is forfeited by court-martial sentence or non-judicial punishment (NJP) is a loss of entitlement and is not subject to federal income tax.

• The “Montgomery G.I Bill” reduces the member’s taxable income for each

month in which it is deducted.

Legal Residence

Each member must designate a legal residence and report any changes of legal residence. A member’s legal residence does not change because of change of permanent station. Legal residence at the time of entry into the service remains the same until changed by the member. Notification of a change of legal residence must be accomplished by completion of DD Form 20548, State of Legal Residence Certificate.

Combat Tax Exclusion

All active duty members, for any month during which they qualify for combat zone tax exclusion, are exempt from paying taxes on the monies earned during that month, as prescribed in paragraph 440103, of DODFMR, Vol. 7A. The termination date for tax exclusion cannot extend beyond the effective date specified in an executive order terminating the designation of the combat zone.

Federal Income Tax Table

Use the following table to compute married member’s federal income tax.

Federal Income Tax Table for Married Members

Over

Not Over Amount of Income Tax

Withheld

Excess Over 0.00 8,000 0.00 plus 00 percent -- 8,000 23,350 0.00 plus 10 percent 8,000 23,350 70,700 1,535 plus 15 percent 23,350 70,700 133,800 8,637.50 plus 25 percent 70,700 133,800 203,150 24,412.50 plus 28 percent 133,800 203,150 357,000 43,830.50 plus 33 percent 203,150 357,000 and up 94,601 plus 35 percent 357,000

Note: Updated Federal Income Tax Withholding tables are published as

PAANS and can be obtained under website www.missa.manpower.usmc.mil.




Steps to Compute Federal Taxes

Follow the steps below to compute federal taxes: 1. Monthly taxable wages multiplied by twelve equals yearly wages. 2. Yearly wages minus the value of all exemptions equals annual taxable

wages. Exemptions are located in block 34 of the LES. (Effective 1 January 2006, the standard deduction for each exemption is $3,300.)

3. Apply the result of this step to the appropriate table. If block 34 of the

LES reflects an “S,” then use the single table; if it reflects an “M,” then use the married table to establish the yearly tax.

4. Find where the taxable income falls within the table and subtract the

excess. 5. Multiply the result by giving percentage and add to the pre-determined tax

in the table. 6. Take the yearly taxes and divide by twelve. This gives you the amount of

federal income tax to be withheld.

Practice Situation

Sgt Aimes has been on active duty for 6 years. His basic pay is $2,273.70, and he claims “Married-3” for federal exemptions purposes. What is Sgt Aimes’ monthly federal tax withholding?

Computation Area

Use this area to compute Sgt Aimes’ monthly federal tax withholding.




Practice Solution

Sgt Aimes’ monthly federal tax withholding is computed as follows:

Step Action Example

1 Monthly wages (wages subject to federal income tax) × 12.

$2273.70 × 12 $27,284.40

2 Number of exemptions × 3,300. 3 × 3,300 $9,900.00

3 Subtract block 2 total from block 1 total. $27,284.40 − 9,900.00 17,384.40

4 Subtract standard deduction for M-3 exemption from block 3 total.

$17,384.40 − 8000.00 $9384.40

5 Multiply block 4 total by the set percentage. $9384.40 × 10% 938.44

6 Divide yearly tax by 12. $938.44 12 $78.20

Sgt Aimes’ monthly federal tax withholding is $78.20.


State Income Tax Withholding

Authority State income tax withholding (SITW) rates are published in accordance with

Treasury Department, Circular E, and other Treasury Department regulations. A member may authorize additional amounts to be withheld monthly to meet income tax needs.

Taxable Wages The following are items subject to withholding of state income tax:

• Basic pay • Special pay • Incentive pay for hazardous duty • *Lump sum payment of accrued leave • *Separation pay, readjustment pay, or severance pay • *Selective or regular reenlistment bonus *Entitlement is taxed at the applicable percentage rate for federal tax. Entitlement is taxed at the flat percentage rate in accordance with APSM, Appendix D, for state tax.

Wages Not Subject to State Income Tax

The following wages are not subject to state income tax withholding: • Wages earned by all active duty members for any month during which

they qualify for combat zone tax exclusion. • Wages earned by all active duty members for any part of any month in

which the member is in a missing status. • State income tax is not withheld from military wages of legal residents of

Puerto Rico because United States income tax withholding is precluded from military wages properly subject to Puerto Rico withholding. Puerto Rico withholding is not required on wages earned but unpaid when a military member dies; wages in this case are subject to state income tax withholding.



State Income Tax Withholding, Continued

Wages Not Subject to State Income Tax, continued

• Pay that is forfeited by court-martial sentence or NJP is a loss of entitlement and is not subject to state income tax.

• The “Montgomery G.I Bill” reduces the member’s taxable income for each

month in which it is deducted.

General Knowledge

The state in which a member claims legal residence may tax compensation and other income regardless of the member’s location. Legal residence is designated at the time a member enters into the service. Notification of a change of legal residence must be accomplished by DD Form 2058 (Administrative Form). Withholding for compensation for military service, which is subject to federal taxation, is also subject to the mandatory withholding of income taxes on behalf of those states, which have entered into an agreement for such withholding with the Secretary of the Treasury.

Steps to Compute State Taxes

The tax table is broken down into the seven areas below. Since all areas are not used in every state, please refer to APSM, Appendix D. • Wages: Minimum income • Standard deductions • Standard exemptions • Military exemption • Tax credit • FITW credit • Taxation tables and percentages

State Tax Requirement

The state in which a member claims legal residence may tax compensation and other income regardless of the member’s location. Compensation for military service is not taxable by any state, territory, possession, political subdivision, or district that is not the legal residence of the member.


Federal Insurance Contributions Act

General Knowledge

For active duty Marines, effective 1 Jan 1957, the Servicemen’s and Veteran’s Survivor Benefits Act of 1956 extended social security coverage to members of the U.S. armed forces and subjected them to taxes prescribed by the Federal Insurance Contributions Act (FICA). These taxes are imposed on employers and employees to provide funds for old age, survivors, and disability insurance. Effective 1 Jan 1966, an additional tax was imposed to provide hospital insurance benefits for the aged (Medicare). The term FICA (commonly known as Social Security) applies to the total taxes deducted for both FICA and Medicare. For inactive duty, reserve forces inactive duty training performed after December 1987 is subject to FICA withholding under the same rules and amounts as active duty.

Amount of Withholding for FICA

Calendar year tax amounts are shown in the DODFMR, Vol. 7A. FICA is deducted on a year-to-date basis at the rate of 7.65%. This is broken down as follows: 6.2% for Social Security and 1.45% for Medicare. Effective 1 Jan 2006, the maximum taxable wages for Social Security is $94,200.

Wages Subject to FICA

The following types of compensation are subject to FICA:

• Monthly basic pay or compensation received for the performance of active duty or inactive duty.

• Taxable amounts earned, but unpaid, on the date of death. • Basic pay or compensation earned during a member’s absence from duty

because of injury, sickness, or hospitalization. • Amounts received by a member before the government’s voidance of the

member’s enlistment contract.

Note: The Montgomery G.I. Bill (38 U.S.C. 1411) educational benefit is not subject to FICA tax.



Federal Insurance Contributions Act, Continued

Who Pays FICA?

Any member who is enlisted, appointed, or inducted into any service is subject to FICA tax. Included are members in a combat zone. Below is a sample section G of an LES, showing FICA deductions.

Section G of the Leave and Earning Statement (LES)

G. TAX INFORMATION 33. STATE TAX 34. FEDERAL TAX 35. FICA (SS TAX) STATE CODE VA EXEMPTIONS M-01 WAGES THIS PRD $4161.30 WAGES YTD $29129.10 STATE TAX YTD $1393.91

EXEMPTIONS M-01 WAGES THIS PRD $4161.30 WAGES YTD $29129.10 STATE TAX YTD $2924.18

SSEC WAGES THIS PRD $4161.30 SSEC WAGES YTD $29129.10 SSEC TAX YTD $1806.00 MEDICARE WAGES THIS PRD $4161.30 MEDICARE WAGES YTD $29129.10 MEDICARE TAX YTD $422.37

Computation of Social Security Tax

Follow these steps to compute the Social Security portion of FICA.

Step Action Example

1 Find the taxable amount: block 35 of the LES (Social Security wages this period).

$4161.30

2 Multiply by 6.2% (current rate for Social Security) Monthly deduction for Social Security

$4161.30 × .062 $ 258.00

Computation of Medicare Tax

Follow these steps to compute the Medicare portion of FICA using the same section G of the LES above.

Step Action Example

1 Find the taxable amount: block 35 of the LES (Medicare wages this period).

$4161.30

2 Multiply by 1.45% (current rate for Medicare). Monthly deduction for Medicare

$4161.30 × 1.45% $ 60.34


Serviceman’s Group Life Insurance

SGLI Coverage Effective 1 Sep 2006, the Serviceman’s Group Life Insurance (SGLI)

program automatically insures every member against death for $400,000 while the member is serving full time active duty or training on orders to duty not limited to 30 days or fewer. Members who do not desire full coverage may elect in writing for an amount less than $400,000 in $50,000 increments or may elect to waive coverage. The coverage will terminate the last day of the month that the member elects no coverage or a reduced amount, and the reduced amount will commence on the 1st of the next month. If no elections are made, the member will automatically be covered for $400,000. Members may change their election at any time.

Rates Below are current rates for SGLI. Current rates can be found in the

DODFMR Vol. 7A.

Rate Coverage $28.00 $400,000 $24.50 $350,000 $21.00 $300,000 $17.50 $250,000 $14.00 $200,000 $10.50 $150.000 $7.00 $100,000 $3.50 $50,000



Serviceman’s Group Life Insurance, Continued

Traumatic SGLI

Traumatic SGLI (T-SGLI) is an insurance program bundled with SGLI, and an additional $1 has been added to the member’s SGLI premium to cover T-SGLI.

This program helps severely injured servicemembers through their time of need with a one-time payment. The amount varies depending on the injury.

As of 1 Dec 2005, all members covered by SGLI are eligible for T-SGLI coverage. This coverage applies to active duty members, reservists, funeral honors duty, and one-day muster duty.

Family SGLI Effective 1 Nov 2001, family SGLI (F-SGLI) automatically covers spouse

and dependent children of uniformed servicemembers. For the spouse and children to be eligible for family coverage, the servicemember must be enrolled in the full-time SGLI coverage. Enrollment is based on dependent information on the MCTFS.

Cost The premiums are based on the age and the amount of coverage of spouse.

Dependent Coverage

A spouse of an eligible member automatically is covered in the amount of $100,000. Each child is covered in the amount of $10,000 at no cost to the member.

Effective Date Coverage under F-SGLI is effective with regards to a member and dependents

of the member on the latest of the following dates: • The date the member enrolled in SGLI • In the case of the spouse, the date of marriage • 1 Nov 2001 • In the case of the child, the date of birth. If the child is not a natural child

of the member, the date which the child acquires status as dependent of the member



Serviceman’s Group Life Insurance, Continued

Termination of Coverage

F-SGLI will stop 120 days after the date of an election made in writing by the member to terminate coverage or on the earliest date: • 120 days after the date of the member’s death • 120 days after the date of termination of the insurance on the members life • 120 days after the member separates from the service • 120 days after the termination of the dependent status as an insurable

dependent of the member

Beneficiary The member is the primary beneficiary for family coverage.


Montgomery G.I. Bill

General Knowledge

The G.I. Bill is an education benefit earned by active duty, selected reserve and National Guard servicemembers. The benefit is designed to help servicemembers and eligible veterans cover the costs associated with getting an education or training. The G.I. Bill has several programs and each is administered differently, depending on a person’s eligibility and duty status.

Benefits The G.I. Bill is an education benefit worth over $38,000. This amount is

based on the 2007 monthly full-time student payment rate of $1075 multiplied by the 36-month limit. The “payment rate” automatically increases on the first of October each year. You get the annual increase no matter when you became eligible or begin using it. The term “36 months of benefits” refers to academic months. This means you will have up to eight semesters (4 years) of traditional academic education.

Note: Your actual benefits may be higher if you signed up for the Marine

Corps College Fund.

Payment Rate Your G.I. Bill monthly payment rate is determined by two factors: your

student status (full time, half time, or part time) and your duty status. In most cases, you would be considered a full time student if you are taking 12 or more credits per semester. If you are on active duty, the G.I. Bill will only reimburse you for the actual tuition and expenses. Once you leave active duty service, the G.I. Bill will pay the full payment rate ($1075) no matter how much the tuition costs.

Eligibility To qualify for the G.I. Bill, you must have

• Contributed $100 a month for the first 12 months you are on active duty. • Served at least 2 years on active duty. • Completed high school or have an equivalency certificate before you apply

for benefits.



Montgomery G.I. Bill, Continued

When to Use the G.I. Bill

You can begin using your benefit after two years of service; however, before you choose to use the G.I. Bill, you should know that it is usually not a good idea to use it when on active duty. The Dept. of Veterans Affairs administers the G.I. Bill differently for active duty and veterans. For instance, a veteran is charged one month of benefits for each $1075 in education benefits use. The G.I. Bill has an expiration date. Once you have left the service, you have 10 years to use it. Any benefit remaining after the tenth anniversary is lost, and you will lose your $1200 initial contribution.

Note: You should always consult your Education Office before using your

G.I. Bill or taking any college classes. They are trained to give you the counseling that will help you avoid wasting your time and benefits.

Tuition Assistance

The Marine Corps tuition assistance (TA) offers financial assistance to servicemembers who elect to pursue off-duty or voluntary education. Once a Marine is enrolled with TA, he or she must submit a degree plan before exceeding 12 semester hours. TA will fund up to 100 percent of institution charges for tuition, instructional fees, laboratory fees, computer fees, and mandatory enrollment fees combined for postsecondary education, from vocational certification through graduate study. TA is not authorized for books. TA is not authorized for courses leading to a lateral or lower degree than you already possess (i.e., second Associate’s or Bachelor’s degree). Officers using TA agree to remain on active duty for two years following the completion of the TA-funded courses.

Tuition Assistance Payment

The Marine Corps maximum amount paid for TA is 100% of the tuition and fees not to exceed: • $250 per semester credit hour • $166 per quarter credit hour • $4500 per fiscal year


Armed Forces Retirement Home Deductions

General Knowledge

The money helps support the Armed Forces Retirement Home. These homes are there to support retirees, by providing a place to live and medical care. Monthly deductions, up to a maximum of $1, are set by the Secretary of Defense after consulting with the Armed Forces Retirement Home Board. Currently, the legal deduction is 50 cents per month. Pay deductions are deposited in the Armed Forces Retirement Home Trust Fund. Do not prorate deductions for partial months of service.

Members Subject to Deduction

The following are personnel subject to the Armed Forces Retirement Home deduction: • Regular enlisted members • Warrant and limited duty officers of the Armed Forces (includes the Coast

Guard only when operating as a military service in the Navy)

Members Not Subject to Deduction

The following are personnel not subject to the Armed Forces Retirement Home deduction: • Reserve component members • Commissioned officers other than Limited Duty Officers (LDOs) • Selective trainees inducted into federal service • Members in a non-pay status for the entire calendar month

Deduction Precedence

Retirement home deductions apply only against pay. They take precedence over all other deductions and collections, except forfeitures, Montgomery G.I. Bill, and FICA taxes.


Dependent Dental Plan

Dependent/ Tricare Dental Plan

The dependent dental plan (also known as the Tricare Dental Plan (TDP)) is a voluntary dental plan available to family members of all active duty uniform service personnel and to selected reserve and Individual Ready Reserves (IRR) members or their families. This plan is offered through the DOD’s Tricare Management Activity. United Concordia Companies, Inc., administers and underwrites the TDP.

Eligibility To be eligible for the TDP, the sponsor must have at least 12 months

remaining on his or her service commitment with the parent service at the time of enrollment. Individuals eligible to enroll in the TDP include family members of active duty, selected reserves, and IRR servicemembers. This includes spouses and unmarried children (including stepchildren, adopted children, and wards) under the age of 21. Family members may be eligible for TDP until the end of the month in which they turn 23 if they are • Enrolled full time at an accredited college or university • More than 50% dependent on the sponsor for their financial support, or • Disabled by illness or injury that occurred before their 21st birthday or

between the ages of 21 and 23, if they were enrolled as a full-time student at the time of the illness or injury, and they were more than 50% dependent on the sponsor for financial support.

Effective Date of Coverage

In most cases, the coverage is effective the first day of the month after the month in which a sponsor enrolls and one month’s premium payment is received. The TDP enrollment form must be received by United Concordia by the 20th of the month for coverage to begin on the first day of the next month. For applications received after the 20th of the month, coverage may not become effective until the first day of the second month.

Disenrollment New enrollees must remain enrolled in the TDP for a minimum of 12 months.

Anyone who disenrolls prior to completing his or her 12-month “lock-in” is responsible for payment of all remaining premiums, unless disenrolled for a valid reason.



Dependent Dental Plan, Continued

Valid Reasons for Disenrollment

The following are valid reasons for disenrolling from the TDP prior to completion of the mandatory 12-month enrollment: • When a sponsor or family member loses Defense Enrollment Eligibility

Reporting System eligibility due to death, divorce, marriage of a child, end of entitlement, or when a family member reaches age 21 (or 23 if enrolled full-time at an accredited college or university).

• When TDP-enrolled members relocate OCONUS service area, the

servicemembers may elect (within 90 calendar days of the relocation) to disenroll their family members or themselves.

• When an active duty member transfers with enrolled family members to a

duty station where space-available dental care for the enrolled members is readily unavailable at the local uniformed service dental treatment facility, the active duty member may elect (within 90 days of the transfer) to disenroll his or her family members from the TDP.

• When an active duty, selective reserve, or IRR member is transferred to

the standby or retired reserves.

Allotments If the member has a payroll account and if sufficient funds are available at the

time of collection, the government will collect the member’s share of the premium, in advance, through a uniformed service finance office or site. Members should always verify that the dental allotment appears on their LES.


Thrift Savings Plan

General Knowledge

Thrift Savings Plan (TSP) is a government-sponsored retirement savings and investment plan. Congress established the plan as a part of the Federal Employees’ Retirement System Act (5 U.S.C. 8431-8440). Participation in the plan for military members was allowed by the National Defense Authorization Act for Fiscal Year 2000, as amended by the National Defense Authorization Act for Fiscal Year 2001. The plan offers tax deferral advantages similar to those offered by the private corporations to their employees under the 401(k) plan. The Federal Retirement Thrift Investment Board administers the plan solely for the benefit of the participants and their beneficiaries. The record keeper for the plan is the National Finance Center in New Orleans, Louisiana.

When to Begin TSP Deductions

Any eligible member may elect to participate in the TSP. Members can elect to start or change their elections at any time. An election form (TSP-1) must be submitted for enrollment.

Contributions A member contributing to TSP out of basic pay or compensation may also

contribute any part of any special pay, incentive pay, or bonus that the member receives under 37 U.S.C, Ch 5. All TSP contributions must be made through payroll deduction. Lump sum contributions for special pay, incentive and bonus payments are permitted only through payroll deductions. The member may elect a whole percentage between 1 and 100% for special, incentive, and bonus entitlements. The total contributions (to include basic pay) are not to exceed limitations under section 402(g) and 415(c) of the Internal Revenue Code. The choice to stop contributing to TSP is permitted at any time. It is effective at the end of the pay period in which the election is accepted by the member’s servicing activity.


Allotment of Pay

General Knowledge

An allotment is a designated amount of money that is automatically distributed from your pay. There are many reasons to have an allotment, including setting aside funds for family, paying off a loan from the military, or paying your life insurance premiums. It is a convenience and privilege that should not be exploited or abused.

Eligibility All active duty servicemembers, midshipmen, cadets, and reservists are

eligible to make allotments from their pay. In addition, to help the servicemember’s transition from active duty to retired status, retirees are eligible to continue all existing authorized allotments.

Types of Allotments

There are two types of allotments: discretionary and non-discretionary. You can have up to six discretionary allotments per month, and any number of non-discretionary allotments, as long as the total allotments per month are 15 or fewer.

Discretionary Allotments

A discretionary allotment is a voluntary allotment that is setup by a member and may be stopped, started, or adjusted at will. Examples include, but are not restricted to the following: • Payments of premiums for commercial life insurance on the member or

the member’s family. This includes U.S. Government Life Insurance, Army or Navy Mutual Aid Insurance, health and dental insurance to benefit the family, and payment of vehicle insurance.

• Voluntary payment to a dependent or relative. • Deposits to a financial institution, mutual fund company, or investment

firm. • Payment of car loans. • Payment of a mortgage or rent.



Allotment of Pay, Continued

Discretionary Allotments, continued

• Payment of a loan to repay a consumer credit card company, such as Household Finance, Beneficial, etc.

• Payments into a savings deposit program.

Non-Discretionary Allotments

Non-discretionary allotments may be voluntary or involuntary, and they cannot be started or stopped at the member’s will. Non-discretionary allotments of military pay and allowances by members in active military service are limited to the following: • Voluntary allotments: − Purchase of U.S. savings bonds. − Repayment of loans to the Navy and Marine Corps Relief Society. − Allotments to the Department of Veterans Affairs for deposit to the Post-

Vietnam Era Veterans Educational Assistance Program. − Voluntary liquidation of indebtedness to the United States government

that include the following:

Indebtedness incurred due to defaulted notes insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs.

Payment of amounts due under the Retired Serviceman’s Family

Protection Plan, in the case of retired servicemembers serving on active duty.



Allotment of Pay, Continued

Non-Discretionary Allotments, continued

• Involuntary allotments: − Court ordered payments, such as child support.

− Any repayment of debts owed to an organization for funds administered

on behalf of the U.S. Government and any such debts assigned to a collection agency.

− Payment for pledges for charitable contributions such as Combined Federal Campaign (CFC) and Navy and Marine Corps Relief Society.

− Payment of delinquent federal, state, or local income or employment taxes.

− Repayment of indebtedness due to overpayment of pay or allowances.

Allotment Payment Office

The allotment payment office for the Marine Corps is as follows: Marine Corps The Defense Finance and Accounting Service-Kansas City Center Kansas City, MO 64197 Telephone: 1-888-DFAS411 (888-332-7411)


Lesson 1 Exercise

Directions Complete exercise items 1 through 8 by choosing the correct answer. Check

your answer against those listed at the end.

Item 1 Which of the following wages is subject to federal income tax?

a. Basic pay b. Pay to legal residents of Puerto Rico c. Missing in action pay d. Combat zone pay

Item 2 A Marine ___________________ is exempt from paying state income tax on

earnings during that month. a. deployed in a combat zone b. hospitalized for a week c. reenlisting with a cash reenlistment bonus d. recruiter receiving special duty pay

Item 3 Which type of compensation is subject to FICA?

a. Montgomery G.I. Bill b. Special pay c. Monthly basic pay or compensation received for the performance of

active duty.




Item 4 Effective 1 Sep 2006, SGLI automatically insured every member against

death for $_______, while the member is serving full time active duty or training on orders to duty not limited to 30 days or less. a. 150,000 b. 200,000 c. 300,000 d. 400,000

Item 5 One of the requirements to qualify for the Montgomery G.I. Bill is that

a. member must be an officer. b. member must have served six years on active duty. c. one must have completed the fifth grade. d. member must have contributed $100 a month for the first 12 months on

active duty.

Item 6 Who sets the maximum monetary amount for the Armed Forces Retirement

Home monthly deductions? a. President of the United States b. Commandant of the Marine Corps c. Secretary of Defense d. Company commander

Item 7 To be eligible for the Tricare dental plan, the sponsor must have how many

months remaining on his or her service commitment with the parent service at the time of enrollment? a. 6 months b. 8 months c. 12 months d. 36 months




Item 8 When can any eligible member elect to participate in the Thrift Savings Plan?

a. When approved by the Commanding Officer b. At any time c. Upon enlisted senior member approval d. When instructed by the Commander-in-Chief

Item 9 The two types of authorized allotments of military pay and allowances are

a. discretionary and special. b. basic and special. c. voluntary and non-voluntary. d. discretionary and non-discretionary.






Item Number Answer Reference 1 a 3-52 b 3-9 3 c 3-114 d 3-135 d 3-166 c 3-187 c 3-198 b 3-219 d 3-22


LESSON 2

COLLECTIONS

Introduction

Scope It is never a good feeling when someone else has your fate in their hands just

because you lacked judgment for a few seconds and discredited yourself and the Marine Corps by your actions. Now you await verdict as to a possible reduction in grade, forfeiture of pay for a number of months, bad conduct discharge, or even hard time in prison. How will a forfeiture of money affect your pay? In this lesson, you will learn about court-martial sentences and non-judicial punishment deductions.

Learning Objectives

By the end of this lesson, you will be able to • Compute a member’s court-martial monetary collection. • Compute a member’s non-judicial punishment monetary collection.


Topic See Page

Introduction 3-29 Court-Martial 3-30 Non-Judicial Punishment 3-32 Lesson 2 Exercise 3-35


Court-Martial

Effects and Application of Forfeitures

A partial forfeiture of pay deprives a member of the amount of pay stated in the sentence. The sentence applies for the number of months or days expressly stated. When a sentence includes forfeitures in addition to confinement, not suspended, the forfeitures will apply to pay (and allowances, if total forfeitures are adjudged) becoming due on or after the date the sentence is approved by the convening authority, unless the convening authority defers application of the forfeitures pending completion of further appellate review.

Effects of Fines If a fine is in the nature of a judgment, it makes a member monetarily liable to

the United States for the amounts specified in the sentence. Fines are not self-executing. They are debts to the government until • Paid in cash by the member, • Collected by deduction from the member’s current pay, or • Collected by deduction on settlement of a member’s pay account at

discharge.

Forfeiture of Allowances

Allowances are forfeited only when a sentence by a general court-martial includes forfeiture of all pay and allowances.

Pay Subject to Forfeiture

Forfeitures, other than total forfeitures, apply to: • Basic pay, based on the member’s years of service. • Career sea pay or hardship duty pay, provided such pay continues to accrue

after the effective date of the sentence. • An allotment made voluntarily. (This means the allotments can be

terminated in order to collect forfeiture.)

Pay Not Subject to Forfeiture

Forfeitures, other than total forfeitures, do not apply to special (other than sea or hardship duty pay) or incentive pay.



Court-Martial, Continued

Maximum Amount

By law, the maximum amount that can be withheld from a Marine’s pay is an amount equal to two-thirds of the member’s gross pay.

Taxes Forfeiture is a loss of entitlement to the pay involved. Consequently,

forfeitures are not taxed. Compute the amount of pay to be forfeited before withholding for federal and state income and FICA taxes. Compute taxes on the gross pay remaining after deductions of the forfeiture.

Reduction in Grade

If the member’s sentence includes or requires a reduction in grade, apply forfeitures to the pay of the grade to which reduced. (This means that the amount of the forfeiture cannot exceed two-thirds of the pay of the lower rank.)

Concurrent Forfeitures

When two or more sentences require forfeitures for a concurrent period, the amount stated in each sentence is forfeited only for the specific period. If forfeiture results from a court-martial under which the maximum forfeiture that could be imposed is two-thirds of the pay subject to forfeiture, collect only two-thirds of the pay subject to forfeiture for the concurrent period. Following the concurrent period, pay is forfeited under the remaining sentence at the rate specified in the sentence for the time remaining in that sentence.


Non-Judicial Punishment

General Knowledge

Under authority of Article 15, Uniform Code of Military Justice (UCMJ), authorized commanders may impose NJP for minor offenses, without resorting to court-martial. NJP that affects pay includes forfeiture of pay, reduction in grade, or a combination of these. Except as provided in chapter 49 of the DODFMR, provisions of chapter 48, of the DODFMR, relating to forfeiture of pay and reduction in grade by court-martial, also apply when such penalties are imposed as NJP.

Limitations The maximum forfeiture of pay that may be imposed under Article 15,

UCMJ, is outlined in the Manual for Court-Martial and is based on grade and position of the officer imposing the NJP. When punishment includes both reduction in grade, whether or not suspended, and forfeiture of pay, the forfeiture is based on the grade to which reduced.

Effective Dates NJP forfeitures and reductions in grade, if not suspended, are effective on the

date the commander imposes the punishment. If they are suspended, they become effective only if suspension is vacated. Forfeitures of pay must not be applied to pay which accrued before the punishment was imposed.

Collection of Forfeitures

Since forfeitures constitute a loss entitlement for the pay concerned, they take precedence over all debts. Charge forfeitures of pay, as approved and ordered, against a member’s pay at the rate stated by the sentence until the sentence is fully satisfied. Prorate the monthly rate of forfeitures on a daily basis for a portion of a month.



Non-Judicial Punishment, Continued

Collection of Forfeitures, continued

Example: LCpl Joel was awarded a forfeiture of $100 for two months total forfeiture $200 effective 17 Jun 2007. For the month of June, the deduction would be computed as follows:

Forfeiture $100 Divided by 30Daily rate 3.333 Multiply by number of days × 14 6/17 to 6/30 (14) Deduction for June $46.67 Deduction for July would be $100. Deduction for August would be as follows: Daily rate 3.3333 Multiply by number days × 16 8/1 to 8/16 Deduction for August $53.33

Non-Pay Status During periods when a member is in a non-pay status, pay does not accrue;

therefore, forfeitures cannot be applied. Do not count such periods in computing the time during which pay is forfeited for a specific period.

Restoration to Duty

A member restored to duty following a non-pay status is again entitled to pay; therefore, forfeitures may apply.

Concurrent Forfeitures

When two or more court-martial sentences require forfeitures for a concurrent period, the amount stated in each sentence is forfeited only for the specific period, computed on a daily basis, not to exceed the two-thirds rule. When NJP forfeitures run concurrently with partial court-martial forfeitures, which are subject to the two-thirds limitation, the maximum total amount collectible is two-thirds of the pay subject to forfeiture. Multiple NJP forfeitures do not run concurrently. If such forfeiture is imposed while a prior forfeiture is still in effect, it will not commence until the prior forfeiture is complete.



Non-Judicial Punishment, Continued

Suspension and Cancellation of Forfeitures

The death or discharge of a member under a suspended sentence operates as a complete remission of any sentence. Discharge, release from active duty, or death of a member under sentence to forfeiture cancels any portion of the forfeiture which would extend beyond the date of discharge, release, or death. When a suspension of a forfeiture is vacated, the uncollected forfeiture is revived and proper for collection, effective the date of the vacation of the suspension.


Lesson 2 Exercise

Directions Complete exercise items 1 and 2 by choosing the correct answer. Check

answers against those listed at the end of this section.

Item 1 By law, the maximum amount that can be withheld from a Marine’s pay is

equal to

a. one-half of the member’s gross pay. b. two-thirds of the member’s gross pay. c. one-third of the member’s gross pay. d. one-quarter of the member’s gross pay.

Item 2 Forfeitures directed by an NJP are

a. effective on the date the commander imposes the punishment. b. effective even if the forfeiture is suspended. c. applied to pay accrued not more than month before the punishment was

imposed. d. allowed to exceed the two-thirds rule if concurrent.






Item Number Answer Reference 1 b 3-31 2 a 3-32


In this study unit, we learned how to compute for several deductions and collections that may be withdrawn from our pay each month. Some are voluntary deductions and others we have no choice. Now that we have learned how to compute for basic, special and incentive pays in study unit 1, allowances in study unit 2, and finally deductions in study unit 3, we feel confident to accurately compute our pay to assist us when dealing with our personal finances and planning for our financial future.


MCI Course 3422B R-1 Review Lesson Examination

BASIC PAY AND ALLOWANCES

REVIEW LESSON EXAMINATION

Review Lesson

Introduction The purpose of the review lesson examination is to prepare you for your final

examination. We recommend that you try to complete your review lesson examination without referring to the text, but for those items (questions) you are unsure of, restudy the text. When you finish your review lesson examination and are satisfied with your responses, check your responses against the answers provided at the end of this review lesson examination.

Directions Select the ONE answer that BEST completes the statement or that answers

the item. For multiple choice items, circle your response. For matching items, place the letter of your response in the space provided.

Item 1 Using Sgt Hernandez’ statement of service below, compute the total

creditable service for Sgt Hernandez.

Sgt Hernandez’ Statement of Service USMCR 19841012 TO 19850112 INACT 0 (TIME LOST) USMC 19850113 TO 19890113 ACT 0 (TIME LOST) USMC 19890114 TO PRESENT

a. 04 YRS 03 MOS 02 DAYS b. 04 YRS 05 MOS 01 DAYS c. 04 YRS 02 MOS 01 DAYS d. 04 YRS 01 MOS 02 DAYS



Review Lesson, Continued

Item 2 Using Cpl Burton’s statement of service below, compute Cpl Burton’s PEBD.

Cpl Burton’s Statement of Service

USMCR 20020528 TO 20020712 INACT 0 (TIME LOST) USMC 20020713 TO 20060712 ACT 0 (TIME LOST) USMC 20060713 TO PRESENT

a. 20020718 b. 20020713 c. 20020528 d. 20020520

Item 3 Pvt Ross reports to boot camp on 16 Mar 2007. Pvt Ross’ monthly basic pay

is $1203.90. What is Pvt Ross’ pay for the month of March? a. $683.15 b. $650.00 c. $601.95 d. $575.90

Item 4 Leave is accrued at the rate of how many days for each full month of active

service? a. 1 b. 1.5 c. 2 d. 2.5

Item 5 Which from the below is a requirement to be eligible for the selective

reenlistment bonus? a. Qualify in a military specialty designated by the Officer-in-Charge. b. Serve in the pay grade of E-3 or above. c. If an officer, reenlist within 1 year after the date of discharge for at least 6

years. d. Have at least 3 years time in service.




Item 6 Which from the below must a member meet in order to be eligible for SDA

pay? a. Serve in a pay grade of E-2 or higher. b. Qualify and serve in a designated special duty assignment. c. Be an officer in receipt of basic pay. d. Be qualified as an infantryman.

Item 7 Hostile fire or imminent danger pay is $225 per month. Cpl Huey was

assigned TAD to Afghanistan on official duty from 30 Apr to 10 May. What is the total amount of hostile fire/imminent danger pay he will receive while he was TAD to Afghanistan? a. $150 b. $225 c. $450 d. $675

Item 8 After 3 years assigned to MCAS as a combatant diver, receiving a monthly

diving duty pay of $240 a month, Capt Mast detached his permanent duty station on 23 Jul 2007. How much diving duty pay was Capt Mast entitled to for the month of July? a. $150 b. $175 c. $184 d. $240




Item 9 Use the table below, answer the following question. Cpl Hernandez has been

stationed in a designated hardship duty location for over 1 year and receiving hardship duty pay in the amount of $13 a month. Cpl Hernandez was promoted on 1 Jul 2007 to the rank of Sgt. What will Sgt Hernandez’ hardship duty pay be for the month of July?

Hazardous Duty Pay Chart

Grade Monthly Rate Grade Monthly Rate E-9/E-8/E-7 $22.50 E-5 $16.00 E-6 $20.00 E-4 $13.00

a. $9 b. $13 c. $15 d. $16

Item 10 Using Sgt Wallaby’s sea service period below, compute Sgt Wallaby’s total

sea service. Sgt Wallaby’s Sea Service Period From To 14 Aug 2000 21 Mar 2002 10 Mar 2004 27 Nov 2004

a. 2 YRS 3 MOS 25 DAYS b. 2 YRS 3 MOS 26 DAYS c. 3 YRS 3 MOS 25 DAYS d. 3 YRS 3 MOS 26 DAYS

Item 11 When does the Foreign Language Proficiency Pay (FLPP) entitlement start?

a. The date a member reports to their PDS. b. The date of detachment from the old PDS. c. The date the member takes the Defense Language Proficiency Test (DLPT). d. Upon approval from the Commanding Officer.



Item 12 Which from the below is an overseas extension incentive?

a. $10,000 annual bonus for 4 years b. 60 days leave non-chargeable c. Special pay in monthly installments not to exceed $80 per month d. Authorization to bring family members to visit for a period of 60 days on

government expense.

Item 13 Capt Kirk receives $175 per month for flight duty pay if he meets his 4-hour

flight requirement for that month, or a combination of 12 hours within a continuous three-month period. Using Capt Kirk’s monthly flight hour chart below, what is his total flight pay for the months of Jan, Feb, and Mar combined? Capt Kirk’s Monthly Flight Hour Chart Month Hours January 4 February 3 March 5

a. $175 b. $350 c. $525 d. $600

Item 14 Incentive pay for parachute duty is $150 a month. SSgt Parks began

parachute training on 14 June. How much hazardous duty incentive pay for parachute will SSgt Parks receive for the month of June? a. $65 b. $75 c. $85 d. $150




Item 15 Which from the below do not rate the BAH entitlement?

a. A member married to another member. b. Members who are assigned to government quarters. c. A member without dependents who is stationed overseas and authorized

to reside off base when government quarters are not assigned. d. A member assigned to single type government quarters who has been

ordered by the court to pay child support.

Item 16 Using the prorating BAS chart provided, compute Sgt Escobar’s BAS

entitlement. Sgt Escobar was hospitalized at 1600 on 5 June and later released at 0945 on 8 June. How much BAS was Sgt Escobar entitled to while in the hospital? Prorating BAS Chart Meal Amount Time of Day Breakfast $1.60 0700 Lunch $3.05 1200 Dinner $3.05 1800

a. $18.50 b. $20.05 c. $21.15 d. $23.40

Item 17 Who is entitled to Clothing Replacement Allowance (CRA)?

a. All enlisted Marines and officers b. Enlisted Marines c. Company grade officers d. Field grade officers

Item 18 What are the two types of FSA’s?

a. FSA prime and FSA alternate b. FSA-I and FSA-II c. FSA-A and FSA-B d. FSA-Y and FSA-Z




Item 19 What type of COLA is a member without dependents who has been

authorized to mess separately or when use of government mess is impractical entitled to? a. COLA with dependents b. COLA without dependents c. COLA prime d. COLA alternate

Item 20 Who is authorized to receive Overseas Housing Allowance (OHA)?

a. Member and dependents living in government housing. b. Every member stationed overseas authorized to live in private sector-

leased or owned housing. c. LCpl Jones who resides in the barracks. d. Maj Wright who resides in the Bachelor Officers Quarters.

Item 21 Which from the below is one of the requirements to be eligible for TLA?

a. When the member arrives at the PDS outside CONUS, and has

government quarters awaiting, but decides to stay in temporary lodging. b. During a period of hospitalization where dependents are still residing in

government quarters. c. When a member is forced to vacate government quarters (weather

temporary or permanently) and uses temporary lodging during the search of permanent quarters.

d. When a member has permanent quarters, but decides to spend a few days in lodging with his family.

Item 22 Which from the below is not a reason to substantiate advance pay?

a. Transfer from old duty station to new duty station. b. Reenlistment after a break in service. c. A member is in debt and needs some money. d. Commencement of active duty by newly commissioned officers.




Item 23 What is the purpose of advance BAH?

a. To have maintenance done on member’s privately owned vehicle. b. For vacation prior to reporting aboard new PDS. c. To pay advance rent, secure deposits or initial expenses incident to

occupying other than government housing. d. For the member to have extra money in his or her pocket.

Item 24 Advance per diem is a daily allowance payable for all periods of temporary

duty to cover what types of costs? a. Costs of lodging, meals, and incidental expenses relating to the ordered

travel. b. Cost of car rental. c. Cost of entertainment bill. d. Cost of conference bill.

Item 25 Which from the below is subject to federal withholding?

a. Wages earned by all active duty members for any month in which they

qualify for combat zone tax exclusion. b. Basic pay. c. Wages earned by all active duty members for any part of any month in

which the member is in a missing status. d. Pay that is forfeited by court-martial sentence or NJP.

Item 26 Which from the below is subject to state withholding?

a. Wages earned by all active duty members for any month in which they

qualify for combat zone tax exclusion. b. Reenlistment bonus. c. Wages earned by all active duty members for any part of any month in

which the member is in a missing status. d. Pay that is forfeited by court-martial sentence or NJP




Item 27 Which from the below is subject to FICA?

a. Monthly basic pay or compensation received for the performance of

active duty or inactive duty. b. Wages earned by all active duty members for any part of any month in

which the member is in a missing status. c. Pay that is forfeited by court-martial sentence or NJP. d. Montgomery G.I. bill.

Item 28 Effective 1 Sep 2006, how much coverage did SGLI automatically insure

every member against death while the member is serving full time active duty, or in training on orders to duty not limited to 30 days or fewer? a. $100,000 b. $200,000 c. $300,000 d. $400,000

Item 29 Which from the below is an eligibility for the Montgomery G.I. Bill?

a. Member must have at least 60 days of accrued leave. b. Member must contribute $100 a month for the first 12 months on active

duty. c. Member must already have at least 60 college credits. d. Member must have participated in at least one deployment to Iraq or

Afghanistan.

Item 30 What is the purpose of the Armed Forces Retirement Homes deduction?

a. Support the war effort. b. Raise money to develop better technology. c. Pay for recruit initial clothing. d. Support retirees with a place to live, and medical care.




Item 31 To be eligible for dependent dental plan, the sponsor must have at least how

many months remaining on his or her service commitment with the present service at the time of enrollment? a. 6 months b. 8 months c. 12 months d. 24 months

Item 32 What is the purpose of the Thrift Savings Plan?

a. Optional checking account. b. Provide retirement income. c. Support the war effort. d. Provide optional funds for junior Marines.

Item 33 What are the two types of allotments?

a. Discretionary and non-discretionary b. Direct and indirect c. Ordinary and special d. Secure and unsecured

Item 34 By law, what is the maximum amount as directed by a court-martial sentence

that can be withheld from a Marine’s pay? a. An amount equal to two-thirds of the member’s gross pay. b. Half the member’s gross pay. c. An amount not to exceed $100 per month. d. An amount no less than $300 per month for no less than 3 months.

Item 35 Under what authority are Commanders authorized to impose non-judicial

punishment for minor offenses without resorting to court-martial? a. Under Article 999, Uniform Code of Military Justice b. Under Article 15, Uniform Code of Military Justice c. Under Article 666, Uniform Code of Military Justice d. Under Article 19, Uniform Code of Military Justice




Answers The table below lists the answers to the review lesson examination items. If

you have any questions about these items, refer to the reference page.

Item Number Answer Reference Page 1 a 1-5 2 b 1-9 3 c 1-13 4 d 1-25 5 b 1-35 6 b 1-38 7 c 1-41 8 c 1-43 9 d 1-46 10 b 1-48 11 c 1-49 12 c 1-58 13 c 1-63 14 c 1-67 15 b 2-5 16 b 2-12 17 b 2-13 18 b 2-17 19 b 2-21 20 b 2-25 21 c 2-30 22 c 2-40 23 c 2-43 24 a 2-45 25 b 3-5 26 b 3-9 27 a 3-11 28 d 3-13 29 b 3-16 30 d 3-18 31 c 3-19 32 b 3-21 33 a 3-22 34 a 3-30 35 b 3-32

Basic Pay and Allowances

Documents

Transcript of Basic Pay and Allowances