3422B (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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Table of Contents
Page Contents ............................................................................................................................ Student Information .......................................................................................................... Study Guide ...................................................................................................................... Study Unit 1 Lesson 1 Lesson 2 Lesson 3 Study Unit 2 Lesson 1 Lesson 2 Study Unit 3 Lesson 1 Lesson 2 Basic, Special, and Incentive Pays................................................ Basic Pay....................................................................................... Special Pay.................................................................................... Incentive Pay................................................................................. Allowances and Advance Entitlements ........................................ Allowances.................................................................................... Advance Entitlements ................................................................... Deductions and Collections .......................................................... Deductions .................................................................................... Collections .................................................................................... i iii v 1-1 1-3 1-33 1-57 2-1 2-3 2-39 3-1 3-3 3-29 R-1
Review Lesson ..................................................................................................................
MCI Course 3422B
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Student Information
MCI 3422B BASIC PAY AND ALLOWANCES 6 Text
Number and Title
Study Hours
Course Materials
Review Agency
Headquarters and Support Battalion Marine Corps Base Camp Lejeune, NC 28542 2
Reserve Retirement Credits (RRC)
ACE
Course submitted for review by the American Council on Education. 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) 6857596 or DSN 325-7596.
Assistance
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MCI Course 3422B
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Study Guide
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. 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 selfconfidence 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
Congratulations
Your Personal Characteristics
MCI Course 3422B
Study Guide, Continued

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
Beginning Your Course
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. 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. 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. 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.
The First Study Unit
Reading the Learning Objectives
Completing the Exercises
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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. 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, youll find you were not able to recall everything. But with a little effort, youll 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 youve learned as soon as possible. If it isnt 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 dont have to be long and tedious. In fact, some learners find short reviews conducted more often prove more beneficial.
Continuing to March
Preparing for the Final Exam
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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. The sooner you complete your course, the sooner you can better yourself by applying what youve learned! HOWEVER--you do have 2 years from the date of enrollment to complete this course. 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!
Tackling the Final Exam
Completing Your Course
Graduating!
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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. 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 members creditable service and entitlements accurately to basic, special, and incentive pays. This study unit contains the following lessons: Lesson Basic Pay Special Pay Incentive Pay See Page 1-3 1-33 1-57
Scope
In This Study Unit
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Study Unit 1
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Study Unit 1
LESSON 1 BASIC PAY Introduction
Scope
This lesson provides the methods used to determine a members entitlement to the members creditable service for basic pay, compute the members pay entry base date (PEBD), audit the members basic pay entitlements, and verify the members leave account. By the end of this lesson, you will be able to Compute a members creditable service for basic pay. Compute a members pay entry base date. Compute a members basic pay entitlements. Compute a members leave account. This lesson contains the following topics: Topic Introduction Creditable Service for Basic Pay Pay Entry Base Date Basic Pay Entitlements Leave Account Lesson 1 Exercise See Page 1-3 1-4 1-9 1-13 1-25 1-29
Learning Objectives
In This Lesson
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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 members base pay. For creditable service types, refer to DODFMR 7000.14R, Vol. 7A. 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
1 2
Computing Creditable Service
Action
List all beginning dates. Never change this step of the process. 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. Add all beginning dates. Add all ending dates. 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). Always add 1 day for each period of continuous service to account for inclusive dates. Subtract the number of days time lost, if any. 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.) 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.
Example: Yr Mo Day
1974 10 16 1978 01 01 1977 11 30 1980 10 30 1974 +1978 3952 1977 +1980 3957 10 01 11 11 10 21 16 01 17 30 30 60
3 4 5
3957 21 60 - 3952 11 17 5 10 43 + 5 10 43 2 5 10 45 0 00 00
6 7 8
5 years, 11 months, and 15 days
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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. Given the following periods of service, compute the creditable service for basic pay. USMCR USMC USMC USMC 20011215 to 20010101 20010102 to 20031110 20031111 to 20070220 20070221 to Present Inact Act Act 0 (Time lost) 0 (Time lost) 0 (Time lost)
Practice Situation 1
Computation Area
Use this area to compute the creditable service.
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Practice Solution 1
This is the solution to computing the creditable service. Step

1 2
Action
List all beginning dates. 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. Add all beginning dates. Add all ending dates. 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. Always add 1 day for each period of continuous service to account for inclusive dates. Subtract the number of days time lost, if any. 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). 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.
Example Yr Mo Day
2001 01 02 2003 11 11 2003 11 10 2007 02 20 2001 + 2003 4004 2003 + 2007 4010 01 11 12 11 02 13 02 11 13 10 20 30
3 4 5
4010 13 30 - 4004 12 13 6 01 17 6 + 6 6 01 17 2 01 19 01 19 0 01 19
6 7 8
6 6 years, 1 month, and 19 days -
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.
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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 1
Action Subtract the date of enlistment from the date of discharge. Add 1 day for inclusive dates. Subtract the number of days of time lost. Convert to full years, months, and days. This is the members creditable service involving time lost not made good.
2 3 4
1993 1992 - 1990 2 2 + 2 2 2
08 19 07 12 12 12 12 01 11
10 40 18 22 22 01 23 23 07 16
Example Date of discharge Date above converted Date of enlistment Inclusive days Lost time
2 11 16 Creditable service 2 years, 11 months, and 16 days
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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 members advantage. The following steps are used to compute time lost made good: Step
1 2 3
Computation
Action
Subtract the date of enlistment from the date of discharge. Add 1 day for inclusive dates. Compute total time lost both on a 30-day month basis and on a dayfor-day basis. Use the results that produce the least amount of days lost.
Example
1994 08 21 Date of discharge 1990 07 18 Date of enlistment 04 01 03 04 01 03 + 1 Inclusive day 04 01 04 Time Lost: Day-for-day 10-28 Feb 1-16 Mar 30-day month 10-29 Feb 1-16 Mar 19 days 16 days 35 days
Subtract total of the third step (time lost) from the second step (service before time lost).
04 01 04 03 12 34 01 05 03 11 29
20 days 16 days 36 days Service before time lost Date above converted Total time lost Creditable service
If result is less If result is than contractual greater than agreement, use contractual the period of the agreement, use enlistment result for contract. creditable service. Add above result to any other creditable service the member might have.
3 years, 11 months, and 29 days
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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 members PEBD. To do this, you simply deduct the members creditable service from the beginning date of the current enlistment. 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 members new PEBD is 2000 01 02. 2007 02 21 current enlistment date 06 01 19 creditable service 2001 01 02 new PEBD
Example
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 USMC USMC USMC 19950302 to 19960115 19960116 to 20000115 20000116 to 20060115 20060116 to present Inact Act Act 0 (Time lost) 0 (Time lost) 0 (Time lost)
Note: USMCR refers to the delayed entry program.

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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

1 2
Action
List all beginning dates. Never change this step of the process. 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. Add all beginning dates. Add all ending dates. 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.
Example Yr Mo Day
1996 2000 2000 2006 1996 +2000 3996 2000 +2006 4006 01 01 01 01 01 01 02 01 01 02 16 16 15 15 16 16 32 15 15 30
3 4 5
4006 02 30 Convert above 4005 13 60 3996 02 32 9 11 28

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Pay Entry Base Date, ContinuedContinued
Practice Solution 2, continued
Step 6 7 8
Action Always add 1 day for each period of continuous service to account for inclusive dates. Subtract the number of days time lost, if any. 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.) 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.
Example Yr Mo Day 9 11 28 + 2 9 11 30 0 00 00 10 years, 00 months, and 00 days 2006 01 16 10 00 00 1996 01 16
The PEBD is 16 Jan 1996. Member had no time lost and continuous service. 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. 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 officers 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.
Computing PEBD With No Time Lost
Adjust the PEBD for Time Lost
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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 members return to full duty status, PEBD changes from 18 Jul 1993 to 25 Aug 1993. Change is computed as follows: 10-28 Feb 1-16 Mar Yr 1993 + 1993 Mo 07 01 08 19 days 16 days 35 days of lost time
Day 18 Original PEBD 05 35 days of lost time 23 Adjusted PEBD
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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 months 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. 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 members pay would be computed as follows: Step 1 2 3 Action Find period of service. Find the basic pay rate: Pvt with less than 4 months is $1203.90. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the period of service. Example 16-28 Feb 15 days Basic pay rate $1203.90 Basic pay rate Divide by 30 Daily pay rate Daily pay rate Period of service Feb basic pay $1203.90 30 $40.13 $40.13 15 $601.95
Basic Pay Example
The Marines basic pay for 16-28 Feb 2007 is $601.95. Remember, the month of February is counted as a 30-day month.
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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 members basic pay for July 2007? Use this area to compute the Marines basic pay for the month of July.
Computation Area
Practice Solution 3
The Marines basic pay for July is computed as follows: Step 1 2 3 Action Find period of service. Find the basic pay rate. Pvt with less than 4 months is $1203.90. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the period of service. Example 5-31 Jul 26 days* Basic pay rate $1203.90 Basic pay rate Divide by 30 Daily pay rate Daily pay rate Period of service Jul basic pay $1203.90 30 $40.13 $40.13 26 $1043.38
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The Marines 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. 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 members pay is computed as follows: Step 1 2 3 Action Find period of service. Find the basic pay rate. LCpl with more than 3 years is $1729.20. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the period of service. Example 1-16 Feb Basic pay rate Basic pay rate Divide by 30 Daily pay rate Daily pay rate Period of service Feb basic pay 16 days $1729.20 $1729.20 30 $57.64 $57.64 16 $922.24
Example: Member is Discharged
The LCpls basic pay for 1-16 Feb 2007 is $922.24.

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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 members pay for the month of August. Use this area to compute the Marines basic pay for the month of August.
Computation Area
Practice Solution 4
The SSgts basic pay for August is computed as follows: Step 1 2 3 Action Find period of service. Find the basic pay rate. SSgt with more than 10 years is $2831.40. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the period of service. Example 1-29 Aug 29 days Basic pay rate $2831.40 Basic pay rate Divide by 30 Daily pay rate Daily pay rate Period of service Aug basic pay $2831.40 30 $94.38 $94.38 29 $2737.02
The SSgts basic pay for 1-29 Aug 2007 is $2737.02.

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Example: Member Reports on 31st Day of Month
A Marine reports to active duty on 31 Jan 2007 as a Pvt. The members pay is computed as follows:
Step 1 2
Action Find period of service. Find the basic pay rate. Pvt with less than 4 months is $1203.90.
Example 31 Jan 1-28 Feb Basic pay rate for Feb 2007 0 days 30 days $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 members pay for February? Use this area to compute the Marines basic pay for February.
Computation Area
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Practice Solution 5
The Pvts basic pay for February is computed as follows: Step 1 2 3 Action Find period of service. Find the basic pay rate. Pvt with less than 4 months is $1203.90. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the period of service. Example 14-28 Feb Basic pay rate Basic pay rate Divide by 30 Daily pay rate Daily pay rate Period of service Jul basic pay 17 days $1203.90 $1203.90 30 $40.13 $40.13 17 $682.21
The Pvts basic pay for 14-28 Feb 2007 is $682.21.

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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 1 2 Action Find the basic pay rate. LCpl with more than 2 years is $1630.80. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days in a non-pay status. Deduct the non-pay deduction from the basic pay rate. Example Basic pay rate $1630.80 Basic pay rate Divide by 30 $1630.80 30
3 4
Daily pay rate $54.36 Daily pay rate $54.36 Days in non-pay status 3 Non-pay deduction $163.08 Basic pay rate $1630.80 Non-pay deduction 163.08 Apr basic pay $1467.72
The LCpls basic pay rate for April is $1467.72.

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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 1 2 Action Find the basic pay rate. LCpl with more than 2 years is $1630.80. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days of unauthorized absence. Deduct the non-pay deduction from the basic pay rate. Example Basic pay rate $1630.80 Basic pay rate Divide by 30 Daily pay rate Daily pay rate Days of UA Non-pay deduction Basic pay rate Non-pay deduction Apr basic pay $1630.80 30 $54.36 $54.36 3* $163.08 $1630.80 163.08 $1467.72
3 4
The LCpls 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.
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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 1 2 Action Find the basic pay rate. PFC pay is $1458.90. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days in a non-pay status. Deduct the non-pay deduction from the basic pay rate. Example Basic pay rate $1458.90 Basic pay rate Divide by 30 $1458.90 30
3 4
Daily pay rate $48.63 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.
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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. 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 1 2 Action Find the basic pay rate. LCpl with more than 2 years is $1630.80. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days the member was a LCpl. Find the basic pay rate. Cpl with more than 2 years is $1786.50. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days the member is a Cpl. Add the basic pay for LCpl and the basic pay for Cpl to determine the basic pay for May. Example Basic pay rate LCpl Basic pay rate LCpl Divide by 30 Daily pay rate LCpl Daily pay rate LCpl 2 days as LCpl Basic pay for LCpl Basic pay rate Cpl Basic pay rate Cpl Divide by 30 Daily pay rate Cpl Daily pay rate Cpl 28 days as Cpl Basic pay for Cpl Basic pay for LCpl Basic pay for Cpl Basic pay for May $1630.80 $1630.80 30 $54.36 $54.36 2 $108.72 $1786.50 $1786.50 30 $59.55 $59.55 28 $1667.40 $ 108.72 + 1667.40 $1776.12
Example
3 4 5
6 7
The Cpls basic pay for May is $1776.12.

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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. 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 1 2 Action Find the basic pay rate. LCpl with more than 2 years $1630.80. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days of service as E3/2; period involved 5/1 and 5/2 Find the basic pay rate. LCpl with more than 3 years $1729.20. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days of service as E3/3; period involved is 5/35/31. Add the basic pay rates of an E3/2 and an E3/3 to get the basic pay rate for the month of May. Example Basic pay rate E3/2 Basic pay rate E3/2 Divide by 30 Daily pay rate E3/2 Daily pay rate E3/2 2 days in May as E3/2 Basic pay for E3/2 Basic pay rate E3/3 Basic pay rate E3/3 Divide by 30 $1630.80 $1630.80 30 $54.36 $54.36 2 $108.72 $1729.20 $1729.20 30
Example: Time in Service
4 5
Daily pay rate E3/3 $57.64 Daily pay rate E3/3 $57.64 28 28 days in May as E3/3 Basic pay rate E3/3 $1613.92 Basic pay for E3/2 Basic pay for E3/3 Basic pay for May $ 108.72 + $1613.92 $1722.64
The LCpls basic pay for May 2007 is $1722.64.

MCI Course 3422B
1-23
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. 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 1 2 Action Find the basic pay rate. LCpl with more than 2 years is $1630.80. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days as an E3/2, period 5/1 and 5/2. Find the basic pay rate; PFC, $1458.90. Divide the basic pay rate by 30 days in the month. Multiply the daily pay rate by the number of days of service as an E2; period 5/3-5/31. Add the basic pay rates of an E3/2 and an E2 to get the basic pay rate for the month of May. Example Basic pay rate E3/2 Basic pay rate E3/2 Divide by 30 Daily pay rate E3/2 Daily pay rate E3/2 2 days as E3/2 Basic pay for E3/2 Basic pay rate PFC Basic pay rate PFC Divide by 30 Daily pay rate PFC Daily pay rate PFC 28 days May basic pay E2 Basic pay for E3/2 Basic pay for E2 Basic pay for May
Example: Reductions in Pay
$1630.80 $1630.80 30 $54.36 $54.36 2 $108.72 $1458.90 $1458.90 30 $48.63 $48.63 28 $1,361.64 $108.72 + $1,361.64 $1,470.36
3 4 5
6 7
PFC Streets basic pay for May 2007 is $1,470.36.
MCI Course 3422B
1-24
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 members Leave and Earning Statement (LES). Section E (Leave Information)
BLK 19 LV BF 2.5 BLK 20 EARNED 2.5 BLK 21 USED 0 BLK 22 EXCESS 0 BLK 23 BAL 5.0 BLK 24 MAX ACCRUAL 90.0 BLK 25 LOST 0 BLK 26 SOLD 0 BLK 27 CBT LV BAL 0
LES Section E Example
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 1 through 6 7 through 12 13 through 18 19 through 24 25 through 31 Leave Accrual 0.5 1 1.5 2 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.
MCI Course 3422B
1-25
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. 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? Oct LES leave balance Nov member accrues 2.5 leave days Subtract leave days (5-10 Nov = 6 days) Sgt Martys leave balance on 1 Dec is 36.5 days.
Example: Leave Account
Solution
40.0 + 2.5 42.5 6.0 36.5
MCI Course 3422B
1-26
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. Todays 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? Use this area to compute Sgt Ramos leave balance for 1 Oct 2007.
Computation Area
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 Sgt Ramos earned 2.5 days for the month of Jun Sgt Ramos earned 2.5 days for the month of Jul Sgt Ramos earned 2.5 days for the month of Aug Sgt Ramos earned 2.5 days for the month of Sep Total days earned 70.0 2.5 2.5 2.5 2.5 80.0
MCI Course 3422B
1-27
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.
MCI Course 3422B
1-28
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. Using the statement of service below, what is Sgt Hernandezs total creditable service? USMCR USMC USMC a. b. c. d. Yr 04 05 04 04 Mo 03 01 02 02 19841012 to 19850112 19850113 to 19890113 19890114 to Present Days 02 01 02 01 Inact Act 0 (Time lost) 0 (Time lost)
Item 1
Item 2
Using the statement of service below, what is Cpl Burtons PEBD? USMCR 20020528 to 20020712 USMC 20020713 to 20060712 USMC 20060713 to Present a. b. c. d. 20020528 20020713 20020718 20020529 Inact Act 0 (Time lost) 0 (Time lost)
Item 3
Pvt Ross reported to boot camp on 16 March 2007. Pvt Rosss monthly basic pay rate is $1203.90. What is Pvt Rosss pay for the month of March? a. b. c. d. $583.00 $650.00 $601.95 $612.90
MCI Course 3422B
1-29
Study Unit 1, Lesson 1 Exercise
Lesson 1 Exercise, Continued
Item 4
PFC Sharks Nov LES Section E (Leave Information)

BLK 19 LV BF 2.5 BLK 20 EARNED 2.5 BLK 21 USED 0 BLK 22 EXCESS 0 BLK 23 BAL 5.0 BLK 24 MAX ACCRUAL 115.0 BLK 25 LOST 0 BLK 26 SOLD 0 BLK 27 CBT LV BAL 0
Using PFC Sharks 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
MCI Course 3422B
1-30
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 1 2 3 4 Answer a b c b Reference 1-4 1-9 1-13 1-26
MCI Course 3422B
1-31
MCI Course 3422B
1-32
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 members pay is computed for accuracy. By the end of this lesson, you will be able to Compute a members selective reenlistment bonus. Compute a members entitlement to special duty assignment pay. Compute a members entitlement to hostile fire or imminent danger pay. Compute a members entitlement to diving duty pay. Compute a members entitlement to hardship duty pay. Compute a members entitlement to career sea pay. Compute a members entitlement to foreign language proficiency pay.
Learning Objective
MCI Course 3422B
1-33
Introduction, Continued
In This Lesson
This lesson contains the following topics: Topic Introduction Selective Reenlistment Bonus Special Duty Assignment Pay Hostile Fire and Imminent Danger Pays Diving Duty Pay Hardship Duty Pay Career Sea Pay Foreign Language Proficiency Pay Lesson 2 Exercise See Page 1-33 1-35 1-38 1-40 1-42 1-44 1-47 1-49 1-52
MCI Course 3422B
1-34
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. The following table shows the requirement for each zone:
Zone A Minimum/Maximum Active Service Complete 17 months of continuous active duty, but no more than 6 years on reenlistment date. 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. 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. Years of Service 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. 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. 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. Restrictions Not previously paid a Zone A SRB.
Zone Requirements
Not previously paid a Zone B SRB.
Not previously paid a Zone C SRB.

MCI Course 3422B
1-35
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. MARADMIN 436/00 states and provides guidelines to the SRB program. 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 1 2 Action Multiply basic pay by the MOS multiple. Multiply step 1 amount by years/months eligible for bonus that equals the total SRB entitlement. Subtract 25% federal tax. Subtract the flat percentage state tax. (Look up the tax percentage for the state you claim.) Example Basic Pay MOS multiple Step 1 total 4 year enlistment 25% fed income tax withholding (FITW) 7% state income tax $1,978.50 2 $3,957.00 $3,957.00 4 $15,828.00 $15,828.00 - 3,957.00 $11,871.00 $11,871.00 - 808.81 $11,062.19
SRB Payment
SRB Formula Example
3 4
Note: The SITW tax percent will be based on the state the member claims for tax purposes.
MCI Course 3422B
1-36
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 Clarks monthly salary is $2,323.80 and claims Florida for tax purposes. Use the information provided to compute Sgt Clarks SRBP. Use this area to compute Sgt Clarks SRBP.
Computation Area
Practice Solution 8
Sgt Clarks SRBP is computed as follows: Step 1 2 Action Multiply basic pay by the MOS multiple. Example Basic Pay MOS multiple $2,323.80 2 $4,647.60 $4,647.60 4 $18,590.40
3 4
Multiply step 1 amount by Step 1 total years/months eligible for 4 year enlistment bonus that equals the total SRB entitlement. Subtract 25% federal tax. 25% fed income tax 18,590.40 FITW 4,647.60 $13,942.80 Subtract the flat percentage 0% state income tax $13,942.80 state tax. (Look up the tax SITW 000.00 percentage for the state you for Florida $13,942.80 claim.)
Sgt Clark will be receiving $13,942.80 for his SRB of 2 upon reenlisting.
MCI Course 3422B
1-37
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 (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. 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.
Special Duty Assignment
Requirements to Receive SDA 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. The monthly rates for SDA pay is as follows: SDA Recruiting duty Drill instructor duty Marine security guard Career retention specialist Marine combat instructor Pay $450 $375 $75 $150 $150
Minimum Rates
MCI Course 3422B
1-38
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? Use this area to compute Sgt Moses SDA Pay for the month of January.
Computation Area
Practice Solution 9
Sgt Moses SDA payment is computed as follows: Always use 30 days in a month when computing for SDA pay. Step 1 Action Divide SDA pay for DI Duty by 30 days in a month. Multiply step 1 amount by number of days in month eligible for SDA pay. Example SDA pay Divide by 30 day month Amount of SDAP per day Step 1 total No. eligible SDA pay days $375.00 30 $12.50 $12.50 20 $250.00
Sgt Moses SDA pay for January is $250.
MCI Course 3422B
1-39
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. 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. IDP is payable when a member is on official duty in a designated IDP area.
Hostile Fire Pay
Imminent Danger Pay
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. 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.
Designated Changes
MCI Course 3422B
1-40
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? Use this area to compute SSgt Chestys HFP/IDP total amount received while deployed to Iraq from 28 Feb 2006 to 2 Nov 2006.
Computation Area
Practice Solution 10
SSgt Chestys HFP/IDP is computed as follows: Step 1 2 Action HFP/IDP is $225 per month. Multiply step one amount by number of months deployed. SSgt Chesty was deployed as follows: 28 Feb Mar Apr May Jun Jul Aug Sep Oct 2 Nov 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 10 months Example HF/IDP $225 Step 1 $225 No. months 10 deployed $2250
SSgt Chestys 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.
MCI Course 3422B
1-41
Diving Duty Pay
Qualifications
Members must be designated divers, be assigned to diving duty under competent orders, and maintain their qualifications for diving. 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 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. For conditions of entitlement, refer to DODFMR 7000.14R, Vol. 7A, Ch 11.
Officer Rates Payable
Enlisted Rates Payable
Conditions of Entitlement
MCI Course 3422B
1-42
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? Use this area to compute Capt Masts diving duty pay for July 2007: Officers rate is $240 per month.
Computation Area
Capt Masts diving duty pay is computed as follows: Step 1 2 Action Divide $240 by 30 days. Multiply answer in step 1 by number of days in month-rated diving duty pay. Example $240.00 30 $8.00 $8.00 23 $184.00
Capt Mast will receive $184 diving duty pay for July 2007.
MCI Course 3422B
1-43
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. 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.
Rates Payable
MCI Course 3422B
1-44
Hardship Duty Pay, Continued
Rates Payable, continued
Grade E1 E2 E3 E4 E5
Monthly Rate $8.00 $8.00 $9.00 $13.00 $16.00
Grade E6 E7 E8 E9
Monthly Rate $20.00 $22.50 $22.50 $22.50
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? Use this area to compute Sgt Thomas total HDP-M from 2 Jun to 2 Aug.
Computation Area
MCI Course 3422B
1-45
Hardship Duty Pay, Continued
Sgt Thomas total hardship duty pay is computed as follows: Monthly HDP-M is $150 per month. Action Multiply $150 by number of months Sgt Thomas was deployed. 2 Jun arrived designated area Gets credit for whole month Month of Jul gets credit for month 2 Aug departs designated area Gets credit for whole month $150 $150 $150 $450 Example $150 3 $450
Sgt Thomas will receive a total of $450 for hardship duty pay.
MCI Course 3422B
1-46
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. 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. When computing sea duty periods, follow chart below: Step 1 2 3 4 5 Action List and add all beginning dates of each sea duty period. List and add all ending dates of each sea duty period. Subtract total beginning dates from total ending dates. Add 1 day for each sea duty period to account for inclusive dates. Total sea service. Example
Commencement and Termination
Computing Sea Duty Periods
Using SSgt Wallabys sea duty periods listed below, compute SSgt Wallabys total sea service. From To 2000 08 14 2002 03 21 2004 03 10 2004 11 27
MCI Course 3422B
1-47
Career Sea Pay, Continued
Computation Area
Use this area to compute SSgt Wallabys total sea service.
SSgt Wallabys total sea service is computed as follows: Step 1 2 3 4 5 Action List and add all beginning dates of each sea duty period. List and add all ending dates of each sea duty period. Subtract total beginning dates from total ending dates. Add 1 day for each sea duty period to account for inclusive dates. Total sea service Example 2000 08 14 2004 03 10 4004 11 24 2002 03 21 2004 11 27 4006 14 48 4006 14 48 4004 11 24 02 03 24 02 03 24 + 2 02 03 26 2 yrs 3 mo 26 days
SSgt Wallabys total sea service is 2 years, 3 months, and 26 days. Now that we know SSgt Wallabys total sea service, look at the monthly CSP chart and determine SSgt Wallabys monthly CSP. Monthly Career Sea Pay Chart
Pay Grade E-6 1 Yr or Less $135 Over 1 Yr $135 Over 2 Yrs $160 Over 3 Yrs $280
SSgt Wallabys monthly career sea pay is $160.
MCI Course 3422B
1-48
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. 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. FLPP rates are according to the members 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. 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. 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)
Testing
Rates
Entitlement Dates
FLPP Schedules
MCI Course 3422B
1-49
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 Level of Proficiency 1/1, 1+1, or 1/1+ 2/2 2+/2 or 2/2+ 2+/2+ 3/2+ or 2+/3 3/3 3/3/3/ or 4/4 FLPP B Level of Proficiency 1/1, 1+1 or 1/1+ 2/2 2+/2 or 2/2+ 2+/2+ 3/2+ or 2+/3 3/3 3/3/3/ or 4/4 FLPP C Level of Proficiency 1/1, 1+1 or 1/1+ 2/2 2+/2 or 2/2+ 2+/2+ 3/2+ or 2+/3 3/3 3/3/3/ or 4/4 Monthly Rate $25 $125 $150 $175 $200 $275 $300
Monthly Rate $100 $200 $250 $300 $350 $400 $500
Monthly Rate $50 $150 $175 $200 $250 $300 $400
MCI Course 3422B
1-50
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 Betancourts FLPP start? 2. What is Sgt Betancourts 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? Use this area to compute Sgt Betancourts FLPP start date, monthly FLPP amount, termination date, and restart date.
Computation Area
Your answers are: 1. Sgt Betancourts FLPP will begin on the date of his DLPT, which is 3 Jan 2006. 2. Sgt Betancourts 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.
MCI Course 3422B
1-51
Lesson 2 Exercise
Directions
Complete exercise items 1 through 7 by performing the action required. Check your answers against those listed at the end of this lesson. Sgt Murphy is reenlisting for a period of 4 years. He qualifies for an SRBP multiple of 2. Sgt Murphys monthly salary is $2,323.80. What is Sgt Murphys total SRBP amount before taxes? a. b. c. d. $15,985.00 $20,151.00 $18,590.40 $17,550.00
Item 1
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. b. c. d. $450 $240 $255 $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. b. c. d. $225 $000 $450 $675
MCI Course 3422B
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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. b. c. d. $150 $240 $175 $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 E-9/E-8/E-7 E-6 E-5 MONTHLY RATE $22.50 $20.00 $16.00 GRADE E-4 E-3 E-2/E-1 MONTHLY RATE $13.00 $9.00 $8.00
a. b. c. d.
$9 $13 $8 $16
Item 6
Using Sgt Wallabys sea duty periods listed below, compute Sgt Wallabys total sea service?
From 14 Aug 2000 10 Mar 2004 To 21 Mar 2002 27 Nov 2004
a. b. c. d.
3 years, 3 months, and 26 days 2 years, 3 months, and 25 days 2 years, 3 months, and 26 days 3 years, 3 months, and 25 days
MCI Course 3422B
1-53
Item 7
Sgt Jackson reported to Camp LeJeune on 3 Jan 2006. He then went TAD to the sergeants 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 Jacksons FLPP entitlement start? a. b. c. d. 3 Jan 2006 3 May 2006 15 May 2006 3 Mar 2006
MCI Course 3422B
1-54
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 1 2 3 4 5 6 7 Answer c b c d d c b Reference 1-36 1-39 1-41 1-42 1-45 1-47 1-49
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(This page left intentionally blank.)
MCI Course 3422B
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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 moments 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 members entitlement accurately to the various types of incentive pay based on job risk, and the members length of time in service (TIS). By the end of this lesson, you will be able to Compute a members entitlement to overseas extension incentive. Compute a members entitlement to hazardous duty incentive pay for flight duty. Compute a members entitlement to hazardous duty incentive pay for parachute and demolition duty. This lesson contains the following topics: Topic Introduction Overseas Extension Incentive Hazardous Duty Incentive Pay: Flight Duty Hazardous Duty Incentive Pay: Parachute and Demolition Lesson 3 Exercise See Page 1-57 1-58 1-61 1-64 1-68
Learning Objective
In This Lesson
MCI Course 3422B
1-57
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. 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 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 Marines leave account.
Types of Entitlement
Restrictions
MCI Course 3422B
1-58
Overseas Extension Incentive, Continued
Termination of Overseas Incentive
Voluntary early departure from overseas theater: An enlisted members 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 members 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? Use this area to compute how many days of leave will be charged.
Computation Area
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.
MCI Course 3422B
1-59
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? Use this area to compute how much money is given back.
Computation Area
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.
MCI Course 3422B
1-60
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. 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.
Rates
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. 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.
Minimum Flying Time Required Each Month
MCI Course 3422B
1-61
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 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Hours 4 4 0 4 8 8 0 5 0 0 0 1
MCI Course 3422B
1-62
Hazardous Duty Incentive Pay: Flight Duty, Continued
Capt Airys HDIP per month is as follows: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Hours 4 4 0 4 8 8 0 5 0 0 0 1 Rate 175 175 175 175 175 175 175 175 0 0 0 0 Reason Meets minimum requirement. Meets minimum requirement. First month of 3-month period; enough hours flown in May to cover March. Meets minimum requirement. Meets minimum requirement and 4 hours can be used to cover March. Meets minimum requirement with 4 additional hours. First month of 3-month period. Can use additional 4 hours from June to meet requirement for July. Meets minimum requirement. First month of 3-month period; 1 hour available from August. Not enough hours to meet requirement. Not enough hours to meet requirement. Not enough hours to meet requirement.
MCI Course 3422B
1-63
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. 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. 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 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.
Begin and Termination Dates
Rates
Requirements for Parachute HDIP
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1-64
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. 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. 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.
Jump Frequency Requirements
Requirements for Demolition HDIP
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Continued
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 members 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? Use this area to compute HDIP for SSgt Parks for the month of June.
Computation Area
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1-66

Continued
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 1 2 Action HDIP rate + $150 Divide the HDIP rate by 30 days in the month. Parachute training date began to end of month. Multiply the daily pay rate by the number of days entitled to HDIP for the month. Example HDIP rate $150.00 Basic pay rate $150.00 Divide by 30 30 Daily pay rate 14-30 Jun Daily pay rate Period of service $5.00 17 days $5.00 17 $85.00
3 4
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Lesson 3 Exercise
Directions
Complete exercise items 1 through 3 by choosing the correct answer. Check answers against correct ones listed at the end. 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. b. c. d. None 30 days 15 days 10 days
Item 1
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 Kirks flight hour chart provided, what is his total flight pay for Jan, Feb, and Mar combined? a. b. c. d. $175 $350 $600 $525
Month Jan Feb Mar Hours 4 3 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. b. c. d. $75 $150 $65 $85
MCI Course 3422B
1-68
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 1 2 3 Answer a d d Reference 1-58 1-61 1-67
Study Unit 1 Summary
We have covered many different areas: a members 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 members moving expense.
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MCI Course 3422B
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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. This study unit includes topics on allowances and advance entitlements. It will provide you with the principles and techniques needed to accurately compute a members allowances and advance entitlements. This study unit contains the following lessons: Lesson Allowances Advance Entitlements See Page 2-3 2-39
Scope
In This Study Unit
MCI Course 3422B
2-1
Study Unit 2
MCI Course 3422B
2-2
Study Unit 2
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 members 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. By the end of this lesson, you will be able to Compute a members basic allowance for housing. Compute a members basic allowance for subsistence. Compute a members clothing replacement allowance. Compute a members family separation allowance. Compute a members cost of living allowance. Compute a members overseas housing allowance. Compute a members temporary lodging allowance.
Learning Objectives
MCI Course 3422B
2-3
In This Lesson
This lesson contains the following topics: Topic Introduction Basic Allowance for Housing Basic Allowance for Subsistence Clothing Replacement Allowance Family Separation Allowance Cost of Living Allowance Overseas Housing Allowance Temporary Lodging Allowance Lesson 1 Exercise See Page 2-3 2-5 2-10 2-13 2-17 2-21 2-25 2-30 2-34
MCI Course 3422B
2-4
Study Unit 2
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. 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 SECDEFs redetermination 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. 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
Rates
Types of BAH
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).
MCI Course 3422B
2-5
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 members 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 members 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. 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 members 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. 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 for Members Without Dependents
BAH Member Married to Another Member
MCI Course 3422B
2-6
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. Members without dependents stationed overseas and authorized to reside off base, when government quarters are not assigned, are entitled to BAH II without dependents. 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 members 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 members pay grade.
BAH II Without Dependents
BAH Difference
MCI Course 3422B
2-7
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 ____ 1. SSgt Price is stationed at Camp Lejeune, NC. His dependents reside at Beaufort, SC, and do not reside in family-type government quarters. ____ 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.
Column 2 a. b. c. d. BAH without dependents BAH partial BAH with dependents BAH DIFF
MCI Course 3422B
2-8
Practice Solution 1
Column 1 _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. _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. a. b. c. d.
Column 2 BAH without dependents BAH partial BAH with dependents BAH DIFF
MCI Course 3422B
2-9
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. 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 members DMR is checked, the Marine Corps Total Force System (MCTFS) will automatically stop the DMR to the Marines 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.
Essential Station Messing
MCI Course 3422B
2-10
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 Stantons BAS for the month of March? Use this area to compute Cpl Stantons BAS for the month of March.
Computation Area
MCI Course 3422B
2-11
Basic Allowance for Subsistence, Continued
Practice Solution 2
Cpl Stantons BAS for the month of March is computed as follows:
Step Action 1 Monthly BAS (070301-070331) 2 Multiply the BAS DMR ($7.70) by the DMR checkage days (070301070305; 5 days). 3 Subtract step 2 total from monthly BAS rate. 4 5
Example Monthly BAS $279.88 BAS discounted rate $7.70 Days of checkage 5 $38.50 Monthly BAS $279.88 Step 2 total 38.50 241.38 Multiply the BAS DMR ($7.70) by BAS discounted rate $7.70 75% for one-day credit (070305). 75% $5.77 Add step 3 and step 4 totals to get Step 4 total $241.38 Cpl Stantons BAS for the month + 5.77 of March. $247.15
Cpl Stantons 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.
MCI Course 3422B
2-12
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 members CRA date is the first day of the month, then the member will receive CRA on the previous months end of the month payday. Example: If a members CRA date is 19960401, the member will receive CRA on the April 1st payday. 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. 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 members 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).
Restrictions
Types of CRA
MCI Course 3422B
2-13
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 members 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. 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. 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 members 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.
Rates Payable
Prorating CRA
MCI Course 3422B
2-14
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 members 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? Use this area to compute PFC Bonds CRA entitlement.
Computation Area
MCI Course 3422B
2-15
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 2006090120070228. 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.
MCI Course 3422B
2-16
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. 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.
Types of FSA
MCI Course 3422B
2-17
Family Separation Allowance, Continued
Types of FSA, continued
Example: SSgt Dixons 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 members dependent parent does not reside in a home, which the member controls, supervises, and maintains for mutual use when circumstances permit.
MCI Course 3422B
2-18
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. 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. 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.
Rates
Beginning and Termination of FSA
MCI Course 3422B
2-19
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? Use this area to compute the amount of FSA-T SSgt Rollins received for the period of 20070420 through 20070715.
Computation Area
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.
MCI Course 3422B
2-20
Cost of Living Allowance
Required Information
COLA is computed on a daily basis and is based on the members 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: Members pay grade Years of service Members annual compensation (basic military compensation) Number of dependents Members average annual spendable income Members 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.
MCI Course 3422B
2-21
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 members 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 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 members duty station. 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.
Barracks COLA
Commencement
MCI Course 3422B
2-22
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. 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 1 2 Action Ascertain the members annual compensation in Table I, based on the members pay grade and years of service. Locate in Table II the column headed Annual Compensation. Find the line that includes the annual compensation ascertained under step 1. Read the members Average Annual Spendable Income in the column corresponding to the members dependency status. Ascertain the COLA index prescribed for the members PDS COLA indexes are listed in Appendix J of the JFTR. Subtract 100 from the COLA index prescribed for the members PDS and convert the difference to a percentage. Change the percentage to a decimal. Multiply the members Average Annual Spendable Income ascertained in step 2 above by the percentage (decimal) derived in step 4. The result is the members 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 members COLA.
Determine COLA Payable
3 4 5
MCI Course 3422B
2-23
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 1 2 3 4 Action Annual Compensation from Table I, Appendix B. Average Annual Spendable Income from Table II, Appendix B. Hawaii COLA index (Appendix J of JFTR); COLA index for Hawaii is 126. Subtract 100 from the Hawaii COLA index (126) and turn total number into a percent. Change the percentage into a decimal. Multiply step 2 number by decimal in step 4. Divide the annual COLA by 360 to get the daily COLA. Multiply daily COLA by number of days entitled. Example: For month of June, use 30 days. Result SSgt over 14 yrs with dependents is $35,026 Income 35,026 with 3 dependents is $20,500 Hawaii COLA index is 126 126 100 26 Turn the 26 into percentage 26% Change % into decimal 26% .26 Step 2 number 20,500 Decimal number in step 4 .26 Annual COLA 5,330 Annual COLA 5,330 360 Daily COLA $14.8055 Daily COLA $14.8055 Number of days entitled 30 $444.16 Hawaii COLA index Subtract 100
5 6 7
MCI Course 3422B
2-24
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. 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.
Types of Housing Allowance
MCI Course 3422B
2-25
Overseas Housing Allowance, Continued
Entitlement and Commencement
A member is entitled to OHA at the with- or without-dependents rate when the member or members 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. 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
MCI Course 3422B
2-26
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 members 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. 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 longterm 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 2 3 2 2 1 1
Climate Codes
Electricity Heating Air conditioning Water/sewage Trash disposal
1 3 1 1 1 1
3 3 3 3 1 1
Note: The utility point score is the sum of the numbers in each category.
MCI Course 3422B
2-27
Climate Codes, continued
If Utility Point Score is 0 1 or 2 3 or 4 59
Then the Utility Multiplier is 0 0.25 0.65 1
OHA Calculation
OHA is calculated by comparing the members 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. Compare MSgt Wheelers monthly rent to his OHA max rental ceiling to determine his OHA allowance.
Computation Area
MCI Course 3422B
2-28
Practice Solution 5
MSgt Wheelers OHA is computed as follows:
MSgt Wheelers Monthly Rate Step 1 2 3 Action Monthly rent Average utilities (rent includes no utilities) MSgt Wheelers total rent allowance Computation $1,050.00 $500.00 Rent: Utility: $1,050.00 $500.00 $1,550.00
Compared to MSgt Wheelers OHA Max Rental Ceiling Step 1 2 3 Action Rental allowance ceiling Utilities Total Computation $1,800.00 $500.00 $2,300.00
MSgt Wheelers OHA is $1,550. Note: If members rent is greater than the max rental ceiling, then the member is entitled to the OHA max rental ceiling amount.
MCI Course 3422B
2-29
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. 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 members assigned duties requires the member to be away from the PDS.
Entitlement
MCI Course 3422B
2-30
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. 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. 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. TLA is payable during the period of entitlement when a member and his/her dependents occupy temporary lodging at personal expense. 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.
Delayed Departure
Early Termination
Payable
Responsibilities of the Overseas Commander for Quarters Assignments
MCI Course 3422B
2-31
SSgt Hayes and spouse were forced to evacuate government quarters on 20070504. SSgt Hayes PCSs 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? Use this area to compute SSgt Hayes TLA amount for the 10-day period.
Computation Area
MCI Course 3422B
2-32
Practice Solution 6
SSgt Hayes TLA entitlement for the 10-day period is computed as follows:
Step 1 2 3 4
Action Determine percentage based on the number of individuals. Determine the M&IE equivalency. Multiply local M&IE rate ($65.00) by step 1 total. Determine actual daily lodging with the M&IE. Take step 2 total and add it to the actual daily lodging cost. Determine the max lodging payable for area. Compare the results from steps 3 and 4. Use the lesser of the two to obtain the applicable daily rate (APR). Multiply the APR by the number of days member entitled to TLA (in this exercise 10).
Computation 100% M&IE rate step 1 total M&IE rate lodging Step 3 total Max lodging M&IE Lesser of 3/4 APR or step 6 total No. of days $65.00 100% $65.00 $65.00 + $94.00 $159.00 $112.00 + $65.00 $177.00 $159.00
5 6
$159.00 10 $1,590.00
SSgt Hayes is entitled to $1,590 of TLA for the 10-day period.
MCI Course 3422B
2-33
Lesson 1 Exercise
Directions
Complete exercise items 1 through 8 by performing the action required. Check your answers against those listed at the end of this lesson. 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. b. c. d. BAH active duty spouse BAH difference BAH with dependents Not entitled to BAH
Item 1
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 Demarcos BAS entitlement for the month of March? a. b. c. d. $279.88 $270.25 $264.48 $170.25
Item 3
Who is entitled to Clothing Replacement Allowance (CRA)? a. b. c. d. Colonel Thrifty Chief Warrant Officer Torres Master Sergeant Roberts Captain Connors
MCI Course 3422B
2-34
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. b. c. d. FSA-I FSA-II FSA-S 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. b. c. d. $250.00 $500.00 $516.66 $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. b. c. d. 47 50 75 100
MCI Course 3422B
2-35
Item 7
A member is entitled to OHA at the with- or without-dependents rate when the member a. PCSs 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 members 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. A member is entitled to how many days of TLA before leaving the PDS? a. b. c. d. 2.5 5 10 15
Item 8
MCI Course 3422B
2-36
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 1 2 3 4 5 6 7 8 Answer d b c b c a c c Reference 2-5 2-11 2-13 2-17 2-20 2-22 2-26 2-30
MCI Course 3422B
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MCI Course 3422B
2-38
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. By the end of this lesson, you will be able to Compute a members advance pay. Compute a members advance basic allowance for housing. Compute a members advance per diem. This lesson contains the following topics: Topic Introduction Advance Pay Advance BAH Advance Per Diem Lesson 2 Exercise See Page 2-39 2-40 2-43 2-45 2-48
Learning Objectives
In This Lesson
MCI Course 3422B
2-39
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. For Corporals (E-4) and above, no approval is required when requesting one months 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. Written approval is required from the Marines commanding officer for any advance pay request outside the normal parameters. For Lance Corporals (E-3s) and below, written approval is required from the Marines commanding officer for all requests, regardless of the amount requested.
Normal Parameters for Advance Pay
Outside Normal Parameters
MCI Course 3422B
2-40
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. The five steps for computing the amount of advance pay for the month are as follows: Step 1 Action Compute the amount of advance pay for one month. Take the Marines monthly basic pay and subtract federal income tax withholding (FITW), state income tax withholding (SITW), Social Security/Medicare, Servicemembers Group Life Insurance (SGLI), Montgomery GI Bill (MGB), garnishments, forfeitures, dependent dental plan, Thrift Savings Plan (TSP), and USN/MC Retirement Home. Multiply the amount computed in step 1 by the number of months being requested. Divide the total from step 2 by the number of months of repayment. Drop the cents. 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. The final step is to determine whether the member can afford to repay the advance pay. Do this by computing the Marines 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.
Computation of Advance Pay
2 3 4 5
MCI Course 3422B
2-41
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 Marines ECC date. 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.
Payment Types
MCI Course 3422B
2-42
Advance BAH
General Knowledge
When allowed by the regulation of the service concerned, a members commanding officer, the commanding officers 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 members 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. Advance BAH is substantiated with a completed NAVMC 11116 Miscellaneous Military Pay Order/Special Pay Authorization. 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 Marines commanding officer. Repayment of the advance will be for 12 months, but not to exceed the members 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 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.
Substantiation
Amount
Repayment
Lump Sum
MCI Course 3422B
2-43
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.
MCI Course 3422B
2-44
Advance Per Diem

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 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. 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
General Knowledge
Per Diem Allowance
Per Diem Not Payable
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)
MCI Course 3422B
2-45
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 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. 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.
Per Diem Rates
Beginning and Ending of Per Diem
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2-46
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.
MCI Course 3422B
2-47
Lesson 2 Exercise
Directions
Complete exercise items 1 through 3 by performing the action required. Check your answers against those listed at the end of this lesson. 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. b. c. d. Lance Corporal Smith Gunnery Sergeant Wickman Corporal Matthews Captain Hayes
Item 1
Item 2
Sgt Cashs 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. b. c. d. 24 48 72 96
Item 3
Advance per diem is payable to a member when a a. b. c. d. traveler is on field duty. traveler is a bed patient in the hospital. member is on official TAD orders. traveler is on a group travel status.
MCI Course 3422B
2-48
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 1 2 3 Answer a b c Reference 2-40 2-44 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.
MCI Course 3422B
2-49
MCI Course 3422B
2-50
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. 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 members pay for deduction. This lesson also provides you with the principles and techniques needed in order to compute those paid deductions for accuracy. This study unit contains the following lessons: Lesson Deductions Collections See Page 3-3 3-29
Scope
In This Study Unit
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Study Unit 3
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MCI Course 3422B
3-2
Study Unit 3
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), Servicemans Group Life Insurance, miscellaneous deductions, and allotments from your pay. By the end of this lesson, you will be able to Compute a members federal income tax withholding deduction. Compute a members state income tax withholding deduction. Compute a members Federal Insurance Contributions Act deduction. Compute a members Servicemans Group Life Insurance deduction. Compute a members Montgomery G.I. Bill deduction. Compute a members armed forces retirement homes deduction. Compute a members dependent dental deduction. Compute a members thrift savings plan deduction. Compute a members allotment of pay.
Learning Objectives
MCI Course 3422B
3-3
In This Lesson
This lesson contains the following topics: Topic Introduction Federal Income Tax Withholding State Income Tax Withholding Federal Insurance Contributions Act Servicemans Group Life Insurance Montgomery G.I. Bill Armed Forces Retirement Homes Dependent Dental Plan Thrift Savings Plan Allotment of Pay Lesson 1 Exercise See Page 3-3 3-5 3-9 3-11 3-13 3-16 3-18 3-19 3-21 3-22 3-25
MCI Course 3422B
3-4
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. 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
Taxable Wages
*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. 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.
MCI Course 3422B
Wages Not Subject to Federal Income Tax
3-5
Federal Income Tax Withholding, 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 members taxable income for each month in which it is deducted. Each member must designate a legal residence and report any changes of legal residence. A members 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. 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
Wages Not Subject to Federal Income Tax, continued
Legal Residence
Combat Tax Exclusion
Use the following table to compute married members federal income tax.
Federal Income Tax Table for Married Members Amount of Income Tax Withheld 0.00 plus 00 percent 0.00 plus 10 percent 1,535 plus 15 percent 8,637.50 plus 25 percent 24,412.50 plus 28 percent 43,830.50 plus 33 percent 94,601 plus 35 percent
Over 0.00 8,000 23,350 70,700 133,800 203,150 357,000
Not Over 8,000 23,350 70,700 133,800 203,150 357,000 and up
Excess Over -8,000 23,350 70,700 133,800 203,150 357,000
Note: Updated Federal Income Tax Withholding tables are published as PAANS and can be obtained under website www.missa.manpower.usmc.mil.
MCI Course 3422B
3-6
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. 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? Use this area to compute Sgt Aimes monthly federal tax withholding.
Practice Situation
Computation Area
MCI Course 3422B
3-7
Practice Solution
Sgt Aimes monthly federal tax withholding is computed as follows: Step 1 2 3 4 5 6 Action Monthly wages (wages subject to federal income tax) 12. Number of exemptions 3,300. Subtract block 2 total from block 1 total. Subtract standard deduction for M-3 exemption from block 3 total. Multiply block 4 total by the set percentage. Divide yearly tax by 12. Example $2273.70 12 $27,284.40 3 3,300 $9,900.00 $27,284.40 9,900.00 17,384.40 $17,384.40 8000.00 $9384.40 $9384.40 10% 938.44 $938.44 12 $78.20
Sgt Aimes monthly federal tax withholding is $78.20.
MCI Course 3422B
3-8
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. 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. 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.
Taxable Wages
Wages Not Subject to State Income Tax
MCI Course 3422B
3-9
State Income Tax Withholding, 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 members taxable income for each month in which it is deducted. The state in which a member claims legal residence may tax compensation and other income regardless of the members 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. 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
Wages Not Subject to State Income Tax, continued
General Knowledge
Steps to Compute State Taxes
State Tax Requirement
The state in which a member claims legal residence may tax compensation and other income regardless of the members 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.
MCI Course 3422B
3-10
Federal Insurance Contributions Act
General Knowledge
For active duty Marines, effective 1 Jan 1957, the Servicemens and Veterans 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. 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. 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 members absence from duty because of injury, sickness, or hospitalization. Amounts received by a member before the governments voidance of the members enlistment contract. Note: The Montgomery G.I. Bill (38 U.S.C. 1411) educational benefit is not subject to FICA tax.
Amount of Withholding for FICA
Wages Subject to FICA
MCI Course 3422B
3-11
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
STATE CODE EXEMPTIONS WAGES THIS PRD WAGES YTD STATE TAX YTD VA M-01 $4161.30 $29129.10 $1393.91
34. FEDERAL TAX

EXEMPTIONS M-01 WAGES THIS PRD $4161.30 WAGES YTD $29129.10 STATE TAX YTD $2924.18
35. FICA (SS TAX)

SSEC WAGES THIS PRD SSEC WAGES YTD SSEC TAX YTD MEDICARE WAGES THIS PRD MEDICARE WAGES YTD MEDICARE TAX YTD $4161.30 $29129.10 $1806.00 $4161.30 $29129.10 $422.37
Computation of Social Security Tax
Follow these steps to compute the Social Security portion of FICA.
Step 1 2
Action Find the taxable amount: block 35 of the LES (Social Security wages this period). Multiply by 6.2% (current rate for Social Security) Monthly deduction for Social Security
Example $4161.30 $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 1 2 Action Find the taxable amount: block 35 of the LES (Medicare wages this period). Multiply by 1.45% (current rate for Medicare). Monthly deduction for Medicare Example $4161.30 $4161.30 1.45% $ 60.34
MCI Course 3422B
3-12
Servicemans Group Life Insurance
SGLI Coverage
Effective 1 Sep 2006, the Servicemans 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. Below are current rates for SGLI. Current rates can be found in the DODFMR Vol. 7A. Rate $28.00 $24.50 $21.00 $17.50 $14.00 $10.50 $7.00 $3.50 Coverage $400,000 $350,000 $300,000 $250,000 $200,000 $150.000 $100,000 $50,000
Rates
MCI Course 3422B
3-13
Servicemans 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 members SGLI premium to cover TSGLI. 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. 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. The premiums are based on the age and the amount of coverage of spouse. 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. 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
Family SGLI
Cost
Dependent Coverage
Effective Date
MCI Course 3422B
3-14
Servicemans 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 members 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.
MCI Course 3422B
3-15
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 persons eligibility and duty status. 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. 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. 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.
Benefits
Payment Rate
Eligibility
MCI Course 3422B
3-16
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. 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 Associates or Bachelors degree). Officers using TA agree to remain on active duty for two years following the completion of the TA-funded courses. 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
Tuition Assistance
Tuition Assistance Payment
MCI Course 3422B
3-17
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. 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) 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
Members Subject to Deduction
Members Not Subject to Deduction
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.
MCI Course 3422B
3-18
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 DODs Tricare Management Activity. United Concordia Companies, Inc., administers and underwrites the TDP. 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. In most cases, the coverage is effective the first day of the month after the month in which a sponsor enrolls and one months 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. 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.
Eligibility
Effective Date of Coverage
Disenrollment
MCI Course 3422B
3-19
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. If the member has a payroll account and if sufficient funds are available at the time of collection, the government will collect the members 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.
Allotments
MCI Course 3422B
3-20
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 Any eligible member may elect to participate in the TSP. Members can elect TSP Deductions 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 members servicing activity.
MCI Course 3422B
3-21
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. All active duty servicemembers, midshipmen, cadets, and reservists are eligible to make allotments from their pay. In addition, to help the servicemembers transition from active duty to retired status, retirees are eligible to continue all existing authorized 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. 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 members 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.
Eligibility
Types of Allotments
Discretionary Allotments
MCI Course 3422B
3-22
Allotment of Pay, 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 may be voluntary or involuntary, and they cannot be started or stopped at the members 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 PostVietnam 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 Servicemans Family Protection Plan, in the case of retired servicemembers serving on active duty.
Discretionary Allotments, continued
NonDiscretionary Allotments
MCI Course 3422B
3-23
Allotment of Pay, 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. 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)
NonDiscretionary Allotments, continued
Allotment Payment Office
MCI Course 3422B
3-24
Lesson 1 Exercise
Directions
Complete exercise items 1 through 8 by choosing the correct answer. Check your answer against those listed at the end. Which of the following wages is subject to federal income tax? a. b. c. d. Basic pay Pay to legal residents of Puerto Rico Missing in action pay Combat zone pay
Item 1
Item 2
A Marine ___________________ is exempt from paying state income tax on earnings during that month. a. b. c. d. deployed in a combat zone hospitalized for a week reenlisting with a cash reenlistment bonus 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.
MCI Course 3422B
3-25
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. b. c. d. 150,000 200,000 300,000 400,000
Item 5
One of the requirements to qualify for the Montgomery G.I. Bill is that a. b. c. d. member must be an officer. member must have served six years on active duty. one must have completed the fifth grade. 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. b. c. d. President of the United States Commandant of the Marine Corps Secretary of Defense 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. b. c. d. 6 months 8 months 12 months 36 months
MCI Course 3422B
3-26
Item 8
When can any eligible member elect to participate in the Thrift Savings Plan? a. b. c. d. When approved by the Commanding Officer At any time Upon enlisted senior member approval When instructed by the Commander-in-Chief
Item 9
The two types of authorized allotments of military pay and allowances are a. b. c. d. discretionary and special. basic and special. voluntary and non-voluntary. discretionary and non-discretionary.
MCI Course 3422B
3-27
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 1 2 3 4 5 6 7 8 9 Answer a b c d d c c b d Reference 3-5 3-9 3-11 3-13 3-16 3-18 3-19 3-21 3-22
MCI Course 3422B
3-28
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. By the end of this lesson, you will be able to Compute a members court-martial monetary collection. Compute a members non-judicial punishment monetary collection. This lesson contains the following topics: Topic Introduction Court-Martial Non-Judicial Punishment Lesson 2 Exercise See Page 3-29 3-30 3-32 3-35
Learning Objectives
In This Lesson
MCI Course 3422B
3-29
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. 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 members current pay, or Collected by deduction on settlement of a members pay account at discharge. Allowances are forfeited only when a sentence by a general court-martial includes forfeiture of all pay and allowances. Forfeitures, other than total forfeitures, apply to: Basic pay, based on the members 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.) Forfeitures, other than total forfeitures, do not apply to special (other than sea or hardship duty pay) or incentive pay.
Effects of Fines
Forfeiture of Allowances
Pay Subject to Forfeiture
Pay Not Subject to Forfeiture
MCI Course 3422B
3-30
Court-Martial, Continued
Maximum Amount
By law, the maximum amount that can be withheld from a Marines pay is an amount equal to two-thirds of the members gross pay. 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. If the members 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.) 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.
Taxes
Reduction in Grade
Concurrent Forfeitures
MCI Course 3422B
3-31
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. 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. 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. 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 members 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.
Limitations
Effective Dates
Collection of Forfeitures
MCI Course 3422B
3-32
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 Divided by Daily rate Multiply by number of days Deduction for June Deduction for July would be $100. Deduction for August would be as follows: Daily rate Multiply by number days Deduction for August 3.3333 16 $53.33 8/1 to 8/16 $100 30 3.333 14 6/17 to 6/30 (14) $46.67
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. A member restored to duty following a non-pay status is again entitled to pay; therefore, forfeitures may apply. 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.
Restoration to Duty
Concurrent Forfeitures
MCI Course 3422B
3-33
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.
MCI Course 3422B
3-34
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. By law, the maximum amount that can be withheld from a Marines pay is equal to a. b. c. d. one-half of the members gross pay. two-thirds of the members gross pay. one-third of the members gross pay. one-quarter of the members gross pay.
Item 1
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.
MCI Course 3422B
3-35
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 1 2 Answer b a Reference 3-31 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
3-36
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 USMC USMC a. b. c. d. 04 YRS 04 YRS 04 YRS 04 YRS 19841012 TO 19850112 19850113 TO 19890113 19890114 TO PRESENT 03 MOS 05 MOS 02 MOS 01 MOS 02 DAYS 01 DAYS 01 DAYS 02 DAYS
INACT ACT
0 (TIME LOST) 0 (TIME LOST)
MCI Course 3422B
R-1
Review Lesson Examination
Review Lesson, Continued

Item 2
Using Cpl Burtons statement of service below, compute Cpl Burtons PEBD. Cpl Burtons Statement of Service USMCR USMC USMC a. b. c. d. 20020718 20020713 20020528 20020520 20020528 TO 20020712 20020713 TO 20060712 20060713 TO PRESENT INACT ACT 0 (TIME LOST) 0 (TIME LOST)
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. b. c. d. $683.15 $650.00 $601.95 $575.90
Item 4
Leave is accrued at the rate of how many days for each full month of active service? a. b. c. d. 1 1.5 2 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.
MCI Course 3422B
R-2

Item 6
Which from the below must a member meet in order to be eligible for SDA pay? a. b. c. d. Serve in a pay grade of E-2 or higher. Qualify and serve in a designated special duty assignment. Be an officer in receipt of basic pay. 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. b. c. d. $150 $225 $450 $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. b. c. d. $150 $175 $184 $240
MCI Course 3422B
R-3

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 E-9/E-8/E-7 E-6 a. b. c. d. $9 $13 $15 $16 Monthly Rate $22.50 $20.00 Grade E-5 E-4 Monthly Rate $16.00 $13.00
Item 10
Using Sgt Wallabys sea service period below, compute Sgt Wallabys total sea service. Sgt Wallabys Sea Service Period From 14 Aug 2000 10 Mar 2004 a. b. c. d. 2 YRS 2 YRS 3 YRS 3 YRS 3 MOS 3 MOS 3 MOS 3 MOS To 21 Mar 2002 27 Nov 2004 25 DAYS 26 DAYS 25 DAYS 26 DAYS
Item 11
When does the Foreign Language Proficiency Pay (FLPP) entitlement start? a. b. c. d. The date a member reports to their PDS. The date of detachment from the old PDS. The date the member takes the Defense Language Proficiency Test (DLPT). Upon approval from the Commanding Officer.
MCI Course 3422B
R-4

Item 12
Which from the below is an overseas extension incentive? a. b. c. d. $10,000 annual bonus for 4 years 60 days leave non-chargeable Special pay in monthly installments not to exceed $80 per month 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 Kirks monthly flight hour chart below, what is his total flight pay for the months of Jan, Feb, and Mar combined? Capt Kirks Monthly Flight Hour Chart Month January February March a. b. c. d. $175 $350 $525 $600 Hours 4 3 5
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. b. c. d. $65 $75 $85 $150
MCI Course 3422B
R-5

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 Escobars 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 Breakfast Lunch Dinner a. b. c. d. $18.50 $20.05 $21.15 $23.40 Amount $1.60 $3.05 $3.05 Time of Day 0700 1200 1800
Item 17
Who is entitled to Clothing Replacement Allowance (CRA)? a. b. c. d. All enlisted Marines and officers Enlisted Marines Company grade officers Field grade officers
Item 18
What are the two types of FSAs? a. b. c. d. FSA prime and FSA alternate FSA-I and FSA-II FSA-A and FSA-B FSA-Y and FSA-Z
MCI Course 3422B
R-6

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. b. c. d. COLA with dependents COLA without dependents COLA prime 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 sectorleased 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. b. c. d. Transfer from old duty station to new duty station. Reenlistment after a break in service. A member is in debt and needs some money. Commencement of active duty by newly commissioned officers.
MCI Course 3422B
R-7

Item 23
What is the purpose of advance BAH? a. To have maintenance done on members 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
MCI Course 3422B
R-8

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. b. c. d. $100,000 $200,000 $300,000 $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. b. c. d. Support the war effort. Raise money to develop better technology. Pay for recruit initial clothing. Support retirees with a place to live, and medical care.
MCI Course 3422B
R-9

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. b. c. d. 6 months 8 months 12 months 24 months
Item 32
What is the purpose of the Thrift Savings Plan? a. b. c. d. Optional checking account. Provide retirement income. Support the war effort. Provide optional funds for junior Marines.
Item 33
What are the two types of allotments? a. b. c. d. Discretionary and non-discretionary Direct and indirect Ordinary and special 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 Marines pay? a. b. c. d. An amount equal to two-thirds of the members gross pay. Half the members gross pay. An amount not to exceed $100 per month. 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. b. c. d. Under Article 999, Uniform Code of Military Justice Under Article 15, Uniform Code of Military Justice Under Article 666, Uniform Code of Military Justice Under Article 19, Uniform Code of Military Justice
MCI Course 3422B
R-10

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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Answer a b c d b b c c d b c c c c b b b b b b c c c a b b a d b d c b a a b Reference Page 1-5 1-9 1-13 1-25 1-35 1-38 1-41 1-43 1-46 1-48 1-49 1-58 1-63 1-67 2-5 2-12 2-13 2-17 2-21 2-25 2-30 2-40 2-43 2-45 3-5 3-9 3-11 3-13 3-16 3-18 3-19 3-21 3-22 3-30 3-32
MCI Course 3422B
R-11

3422B (Basic Pay and Allowances)

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MCI 3422B

MARINE CORPS INSTITUTE

BASIC PAY AND ALLOWANCES

MARINE BARRACKS WASHINGTON, DC

UNITED STATES MARINE CORPS

M.SCOTT REICHENBAUGH By direction

THIS DOCUMENT IS UNCLASSIFIED

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Review Lesson ..................................................................................................................

MCI Course 3422B

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MCI Course 3422B

Number and Title

Reserve Retirement Credits (RRC)

MCI Course 3422B

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MCI Course 3422B

Your Personal Characteristics

MCI Course 3422B

Study Guide, Continued

Beginning Your Course

The First Study Unit

Reading the Learning Objectives

Completing the Exercises

MCI Course 3422B

Study Guide, Continued

Preparing for the Final Exam

MCI Course 3422B

Study Guide, Continued

Tackling the Final Exam

Completing Your Course

MCI Course 3422B

STUDY UNIT 1 BASIC, SPECIAL, AND INCENTIVE PAYS Overview

In This Study Unit

MCI Course 3422B

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MCI Course 3422B

LESSON 1 BASIC PAY Introduction

MCI Course 3422B

Study Unit 1, Lesson 1

Creditable Service for Basic Pay

Computing Creditable Service

5 years, 11 months, and 15 days

Continued on next page

MCI Course 3422B

Study Unit 1, Lesson 1

Creditable Service for Basic Pay, Continued

Delayed Enlistment Program

Use this area to compute the creditable service.

Continued on next page

MCI Course 3422B

Study Unit 1, Lesson 1

Creditable Service for Basic Pay, Continued

This is the solution to computing the creditable service. Step

6 6 years, 1 month, and 19 days -

2007 02 21 6 01 19 2001 01 02 (PEBD)

MCI Course 3422B

Study Unit 1, Lesson 1

Creditable Service for Basic Pay, Continued

Time Lost Not Made Good

1993 1992 - 1990 2 2 + 2 2 2

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