ARMED FORCES BENEFITS
FACT SHEET
Revised: Mar 2006
1.
Basic Pay: This main component of your military pay is
based on your grade and time in service.
It is computed using your “pay date”.
You can find your pay date located in the top line of your Leave and
Earnings Statement (LES). The most
recent approved basic pay increase was approved at 3.1% for FY 2006. You can refer to current and past basic pay
information by logging on to http://www.defenselink.mil/militarypay
.
2.
Basic Allowance for
Housing (BAH): A number of years ago the military dedicated
itself to eliminating the out of pocket expense incurred by members required to
live off base. The most recent in crease
approved for 2005 achieved that goal by bringing the average cost of off base
housing procurement to zero. This
allowance (non-taxable) is intended
to cover rent, utilities, and renter’s insurance for adequate housing. For details on how information is collected
and current rates please visit https://secureapp2.hqda.pentagon.mil/perdiem/bah.html
.
3.
Basic Allowance for
Subsistence (BAS): All Basic Military Training graduates will
begin receiving this monthly allowance (non-taxable)
to offset costs for meals. BAS rates are
evaluated annually and adjusted based on the cast of food. Regular BAS for enlisted members is $272.26
and for officers is $187.49. http://www.defenselink.mil/militarypay/pay/bas/index.html
4.
Combat Zone Tax
Exclusion: Members performing duty in, or in “direct
support” of, areas designated by the President or Congress may receive
tax-exempt pay. http://dod.mil/militarypay/pay/tax/10_combatzone.html
5.
Uniformed Service
Savings Deposit Program: Members may earn a
guaranteed 10% interest (calculated annually) on savings deposited while
deployed to specific areas in support of various operational missions. Specific rules and limitations apply. Contact you local finance office prior to
deployment for details.
6.
Family Subsistence Supplemental Allowance: (FSSA for in addition to BAS):
FSSA is an additional food allowance some large military families may
qualify for and is based on total household income. Contact your Supervisor or
First Sergeant for assistance in determining eligibility. https://www.dmdc.osd.mil/fssa
7.
Federal Tax Advantage:
Military personnel receive additional indirect
compensation since some
allowances are not taxable. These
allowances include BAS, BAH, Overseas Housing Allowance (OHA), Cost-of-Living
Allowance (COLA), and Family Separation Allowance (FSA). Members are eligible for further tax
advantages of basic pay and other special pays through participation in the
Uniformed Services Thrift Savings Plan (TSP).
More information on TSP can be found in item 12. http://dod.mil/militarypay/pay/index.html
8.
Medical and Dental: A comprehensive medical plan is one of the
benefits afforded you and your family as an Active Duty member. TRICARE is the name of the Defense
Department’s regional managed health care program. Under TRICARE, there are three health plan
options: TRICARE Prime (all active duty are automatically in Prime, but family
members have other options); TRICARE Standard, a fee for service plan; TRICARE
Extra, a Preferred Provider Organization plan.
The personal costs experienced are determined by the plan selected. For additional information, please contact
the Beneficiary Counseling and Assistance Coordinator at the nearest military
treatment facility. http://www.tricare.osd.mil
Military medical services provide required
dental care for all active duty personnel at no cost to the member. Family members may receive dental care
through the military system in many OCONUS locations, or through the TRICARE
Dental Program (TDP), available in both CONUS and OCONUS areas. The TDP is a dental insurance program, with
monthly TDP premiums that are cost-shared by the Department of Defense (i.e.,
government pays 60% and the sponsor pays 40%).
The sponsor’s monthly premium payment is about $8 when a single-family
member is enrolled and about $20 for two or more enrolled family members. TDP information is located at http://www.tricare.osd.mil/dental/Pro_High.cfm
or call 1-888-866-8499 (CONUS) or 1-888-418-0466 and 1-717-975-5017 (OCONUS).
9.
Military Leave and
Passes: Active
Duty members accumulate 2.5 days leave per month totaling 30 days of paid leave
each year. While earned leave is
intended for use throughout the year, members may carry forward leave not to
exceed 60 days at the end of the fiscal year.
Some exceptions to this policy may apply in specific circumstances. AFI 36-3003, Military Leave Program
10. Military Pay Raises: Law
sets military pay raises set at .5% below the Employment Cost Index (ECI)
published by the Department of Labor.
However, the FY00 National Defense Authorization Act (NDAA) changed the
law to allow military pay raises to be set at .5% above the ECI through the
year 2006. The 2005 pay raise has been
set at 3.5%. http://dod.mil/militarypay/pay/index.html
11.
Special and Incentive Pays: There are a
variety of special and incentive pays a member may be eligible to receive
including; Selective Reenlistment Bonuses, Initial Enlistment Bonuses (IEB), Continuation
Bonuses, Accession Bonuses, Proficiency Pays, career incentive pays, deployment
pays, hazardous duty pays, and other special pays depending on specific
qualifications. http://www.dfas.mil/money/milpay/pay/
12. Other Entitlements:
a. CONUS COLA: Members
and authorized dependents may be entitled to CONUS COLA when assigned or
residing in a high-cost area. https://secureapp2.hqda.pentagon.mil/perdiem/
b. Family Separation Allowance (FSA): Effective 28 Oct 2004, members may qualify
for FSA at $250 per month when separated from their dependents or military
spouse for more than 30 consecutive days due to military orders. http://www.dod.mil/comptroller/fmr/07a/07a_27.pdf
c. Family Separation Housing (FSH): Members who serve unaccompanied tours and are
not provided single-type government quarters at their OCONUS duty station are
entitled to FSH. FSH is equal to the
single-rate Overseas Housing Amount (OHA).
d. Schooling for dependents overseas and at some CONUS
bases.
e. Station Allowances: Members
may be authorized certain station allowances for themselves and their
command-sponsored dependents when assigned OCONUS. They include Overseas Housing Allowance, Cost
of Living Allowance, and Temporary Living Allowance. https://secureapp2.hqda.pentagon.mil/perdiem/
f. Travel Entitlements: Members
may be eligible for a wide variety of travel entitlements for themselves and
their authorized dependents when ordered to perform official travel for TDY and
g.
Transportation and Per Diem and Reimbursable
Expenses
Temporary Lodging Expense and Household Goods
Shipments Temporary and Non-Temporary Storage of
Household Goods Privately-Owned Vehicle (POV)
shipment and Storage Dislocation Allowance
Evacuation/Safe Haven Entitlements Partial
Reimbursement
of Pet Quarantine Fees Reimbursement for Rental
Car when
POV Arrives Late
|
Plan |
Eligible (as determined by DIEMS)
(Note 1) |
Retired Pay Formula (Notes 2, 3 & 4) |
Cost-of-Living
Adjustment (COLA) (Note 5) |
|
Final
Basic Pay |
Entered
service prior to |
2.5%
times the years of service times final basic pay |
Full
inflation protection; COLA based on Consumer Price Index (CPI) |
|
High-3
(Note 6) |
Entered
service on or after |
2.5%
times the years of service times the average
of the highest 36 months of basic pay |
Full
inflation protection; COLA based on Consumer Price Index (CPI) |
|
High-3
Choice ---------------------- Redux/CSB
Choice: Instead of retiring under High-3,
members may choose to receive a $30,000 (Note 7) “Career Status Bonus” at 15
years of service in exchange for agreeing to serve to at least 20 years of
service and then retiring under the less generous Redux plan. |
Entered
service on or after 1 Aug 86 |
High-3:
2.5% times the years of service times the average
of the highest 36 months of basic pay ---------------------------- *Redux/CSB
option: 2.5% times the years of service, minus one percentage point from the
product for each year less than 30 years, times the average of the highest 36 months of basic pay. At age 62, retired pay is recalculated
without deducting the one percentage point for each year less than 30, which
allows it to catch up to what it would have been without the Redux penalty. |
High-3:
Full inflation protection; COLA based on Consumer Price Index (CPI) -------------------- *Redux/CSB
option: Partial inflation protection; COLA based on Consumer Price Index
(CPI) minus 1 percent. At age 62,
retired pay is adjusted to reflect full COLA since retirement. Partial COLA then resumes after age 62. |
Note 1: Date
initially entered military service (DIEMS) refers to the fixed date the member
was first enlisted, appointed, or inducted.
This includes cadets at the Service Academies, students enrolled in a
reserve component as part of the Services’ senior ROTC programs or ROTC
financial assistance programs, students in the
Note 2: The maximum multiplier is 75 percent
times basic pay.
Note 3: Members
should be aware that the Uniformed Services Former Spouses Protection Act
allows state courts to consider military retired pay as divisible property in
divorce settlements. The law does not
direct state courts to divide retired; it simply permits them to do so.
Note 4: Retired pay
stops upon the death of the retiree unless he or she was enrolled in the
Survivor Benefit Plan. See “Survivor
Benefit Plan (SBP)” on page 3 for additional information on this program.
Note 5: COLA is applied annually to retired pay.
Note 6: High-3 is a reference to the average of the
high three years or, more specifically, the high 36 months of basic pay as used
in the formula.
Note 7. Effective 28 Dec 01, members may elect one of
5 options to receive the $30K CSB: one
lump sum payment of $30k; two annual payments of $15K; three annual payments of
$10K; four annual payments of $7.5K; or five annual payments of $6K.
14. Thrift Savings Plan (TSP):
Military members can now take advantage of the popular TSP, which
federal civilian employees have long enjoyed.
The TSP provides military members a 401(k)-like savings plan, which
allows members to contribute pre-tax dollars, thereby reducing current taxes,
and to accumulate long-term, tax-deferred savings and earnings, which can
supplement future retirement income.
Participation is painless through payroll deduction, and account
management is easy via worldwide web interface.
The TSP in conjunction with Social Security retirement benefits and the
military pension can provide for a great retirement. http://www.tsp.gov/ and TSP
Information and http://dod.mil/militarypay/tsp/index.html
15. Death and Survivor Benefits
a.
Servicemember’s Group
Life Insurance (SGLI): If you elect to
participate in SGLI and subsequently die on active duty, your survivors will be
eligible for life insurance payments. You may buy life insurance coverage in
$10,000 increments up to $400,000 at a very low cost. Additionally, family member coverage of $100,000 for
spouses (except that spouse coverage is limited to no more than the member’s
current coverage) and $10,000 per child became effective 1 Nov 01 and was
automatic for all members participating in SGLI. The spouse coverage premium is an additional
monthly premium of $6-$54 for maximum coverage based on age of spouse; child
coverage is free. You have the option to
reduce or decline spouse coverage and the associated premium. http://www.insurance.va.gov/sgliSite/default.htm
b.
Dependency and Indemnity
Compensation (DIC): Dependents may also receive monthly DIC
payments (nontaxable) in the amount of $993 for the surviving spouse and an
additional $247 for each surviving child.
DIC is adjusted annually for inflation. http://www.vba.va.gov/bln/21/Rates/comp03.htm#BM01
c.
Death Gratuity: A $100,000 payment to your next of kin to
meet immediate cash needs will be made within strict timelines in the event of
your death while on active duty. Death
Gratuity Information
d.
Survivor Benefit Plan (SBP): Your active duty pay stops when you die. However, if you die on active duty with 20 or
more years of service, or in the line of duty with less than 20 years of
service, your surviving spouse and children are automatically protected by the
SBP--at no cost to you. For AD deaths in
the line of duty, the surviving spouse will get a monthly SBP annuity equal to
the difference between the DIC payment and 55% of what your retired pay would
have been if you had been retired for total disability on the date of your
death. (SBP will also guarantee your survivors receive a portion of your
retired pay if you enroll in SBP right before you retire. Retirees are required to pay monthly
premiums. The annuity payable is 55% of
the elected base amount.) (There is no
longer a reduction in the annuity at age 62 to 35% due to the passage of PL 108-375,
28 Oct 04). The SBP annuity is adjusted
each year by the same percentage increase given to military retired pay. http://dod.mil/militarypay/survivor/index.html
and Survivor
Benefit Plan Considerations
e.
Other substantial
benefits: May be
available upon the death of a member:
Reimbursement of some burial costs, housing for 180 days, active duty
transitional health and dental care for 3 years, commissary and exchange
privileges, and various Veteran's Affairs and Social Security benefits. Service
Benefits
16.
Base Exchange: "We Go Where You Go" is the motto
of AAFES. For more than 105 years, the
exchange service has remained true to its commitment to Value, Service, and
Support for the military customer and their families worldwide. Independent price surveys indicate that
AAFES’ customers save an average of 11% over the competition. AAFES helps in two principal ways. First is its guarantee to "meet or
beat" any retailer's price on the same item (under $5, no questions asked,
or over $5, within 30 days of the retailers advertisement). Second, profits are used to support the
Services' morale, welfare, and recreation programs. AAFES now offers 24/7 conveniences through
its new website: http://www.aafes.com/
17.
Base Services: Installation services programs provide
conveniently located, low-cost, professionally managed activities and
entertainment. Programs include the golf
course, child development center, skills development center, auto skills, aero
club, community centers, swimming pool, enlisted club, intramural sports,
bowling center, library, chapel, youth center, outdoor recreation, and
discounts on special events/off-base recreation areas through Information, Ticket and Tours and the base fitness center
in conjunction with the SG-run health and wellness center.
18.
Career Broadening Opportunities: Assignments, Special Duty Assignments,
Retraining, Overseas Duty, etc.
19.
Child Care
20.
Commissary: The Defense Commissary
Agency’s vision statement is: “The Commissary Benefit--Cornerstone of Military
Quality of Life. It is our goal to
provide this premier quality of life benefit to our military efficiently and effectively.” Items are sold at cost plus a 5% surcharge,
which covers the construction of new commissaries and modernization of existing
stores. Customers save an average of
30%, approximately $2,400 per year for a family of four, compared to commercial
prices. Military members and retirees
consistently indicate commissaries are one of the most important benefits. http://www.commissaries.com/
21.
Commissioning
Opportunities: Enlisted members can earn a college degree
and commission by attending
22.
Education:
a.
b.
Tuition Assistance: The military currently pays 100% of tuition
up to $250 per credit hour ($4,500 annually) in off-duty courses with
accredited schools. The military also provides
free CLEP/DANTES testing that could result in receiving college credit versus
having to enroll in certain classes.
c.
Scholarships: Many scholarships are available for both
military members and their families.
Grants range from $250 to $500 and may be used in conjunction with
Tuition Assistance Military spouses’ organizations also offer scholarship
opportunities.
23.
Family
Support Centers (FSC): The military
realizes there is a direct relationship between a member’s ability to
successfully accomplish the mission and the quality of life of their
family. Because of this relationship,
many programs are offered through the base FSC to promote a positive family and
community environment. The FSC offers a
Transition Assistance Program for those separating/retiring from the service,
an extensive Relocation Assistance Program that includes a Smooth Move program
to prepare those who will PCS and a base newcomer’s tour. The family services program offers a loan
locker, which includes pots, pans, cribs, and other household items available
for checkout to relocating members and their families. The volunteer resource office maintains a
list of agencies accepting volunteers and a list of those wishing to
volunteer. The family life program
offers classes in parenting, couples communication, stress management, and a
host of other family-related courses.
The family readiness program prepares families for the stress of
deployments, NEOs, and repatriations.
Emergency financial assistance is available through military aid. Personal Financial Management Program offers
information, education, and personal financial counseling on the full range of
financial issues. FSCs are the first
stop on base for information and referral services for all individual and
family issue.
24.
Legal Assistance: The base Legal Assistance Office assists
members with preparing wills, powers of attorney, and notarial acts, and
provides advice on domestic relations problems, contracts, civil law matters,
and income tax assistance.
25.
Promotion
26.
Space Available Travel: Active duty members are eligible for travel
aboard military aircraft worldwide while family members are eligible for space
available travel outside the CONUS http://public.amc.af.mil/Library/SPACEA/24_203.htm#contact
. There is a trial process in place
allowing dependent travel inside the CONUS until further notice.
27.
VA
28. Programs for
documented personal difficulties: Emergency leave with
priority on military
aircraft,
Humanitarian reassignment, Permissive reassignment, Exceptional Family Member
Program (EFMP),
PART IV: INTANGIBLE
BENEFITS OF AN ARMED FORCES CAREER:
Honor
serving your country
Proud
military heritage and tradition
Job
security
Member of
a profession highly respected by the American public
A
different and unique way of life--opportunities for personal growth and
development
Continuous
improvement in quality of life initiatives
Opportunities
for leadership early in your career with resources and guidance
Interaction
with working professionals around the world and the armed forces family
Fair,
impartial treatment for all--equal opportunities for jobs, promotions, and
recognition