1. Separation Pay
Element 43

2. Definition of Involuntary Separation Eligibility Criteria
Separation Pay
Discussion:
Definition of Involuntary Separation
Eligibility Criteria
Full separation pay vs. Half separation pay
No Separation Pay
Reserve Obligation in the Ready Reserve

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

4. Eligibility Criteria Officer and Enlisted Involuntary
Honorable or general under honorable conditions
Completed at least 6 years of active duty service but less than 20 prior to separation
Qualified for Retention
Entered a written agreement to serve in the Ready Reserve for a period of not less than three years

5. Eligibility Criteria Cont.
Block 26
Separation Program Designator Code
Block 28
Narrative

6. Full Sep - vs - Half Sep Pay
Full separation pay:
10% of your annual base pay, multiplied by the number of years you served
 Half separation pay is:
One-half the amount computed for full separation pay

7. Full Sep -vs- Half Sep Pay
Separations limited to half-sep pay:
PFA Failure (Only if due to BCA failure)
HYT
Alcohol abuse rehabilitation failure
Parenthood, physical or mental conditions

8. Example E-5 receiving involuntary separation pay at 6 years:
$2, base pay x 12 = $32,814.00
$32, x 6 (number of years served) = $196,884.00
$196, x 10% = $19, = Full Separation Pay

9. No Separation Pay No Separation Pay Entitlement:
Reservist discharged on inactive duty
Reservist released from active duty for training
Less than 6 years total active service
Administrative Separation under OTH
Not retention “eligible” except when half sep pay is authorized (EX: HYT)
Voluntary Request

10. Reserve Obligation
Written agreement
Service obligation
Qualifications

11. Flash Quiz/Review
True or false, only enlisted personnel are entitled to ISP?
False, both officer and enlisted are eligible.
How long is the term of Reserve obligation.
Not less than 3 years.
To receive an ISP Payment, a Sailor must enlist in the _______________.
Ready Reserve = (Drill (SELRES) or Non-Drill (IRR))
Name two ISP eligibility criteria:
1. Must be involuntary.
2. Must have completed 6 years of service, but less than 20.

12. Resources Command Pay and Personnel Administrator (CPPA)
10 U.S.C. 1174
DTM Implementing Disability-Related Provisions of the National Defense Authorization Act of 2008
DoDI Directive
MPM

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