3422C

MCI 3422C
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
26 Mar 2012

From: Director
To: Marine Corps Institute Student

Subj: BASIC PAY AND ALLOWANCES (MCI 3422C)

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 all Marines, regardless of MOS, to provide information on current pay and
allowance policies and procedures. This course will prove beneficial to Marines assigned duties
as disbursing clerks or in 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. S. REICHENBAUGH
By direction

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MCI Course 3422C i
Table of Contents

Page

Contents ............................................................................................................................ i

Student Information .......................................................................................................... iii

Study Guide ...................................................................................................................... v

Study Unit 1 Basic Entitlements ........................................................................ 1-1

Lesson 1 Basic Pay ....................................................................................... 1-3
Lesson 2 Basic Allowances .......................................................................... 1-33

Study Unit 2 Additional Entitlements ................................................................ 2-1

Lesson 1 Special Pay .................................................................................... 2-3
Lesson 2 Incentive Pay ................................................................................. 2-33
Lesson 3 Advance Entitlements ................................................................... 2-47

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

Lesson 1 Deductions .................................................................................... 3-3
Lesson 2 Collections .................................................................................... 3-27

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

MCI Course 3422C ii

MCI Course 3422C iii
Student Information

Number and
Title
MCI 3422C
BASIC PAY AND ALLOWANCES

Study Hours 6

Course
Materials
Text

Review Agency Marine Barracks Washington
Washington, DC

Reserve
Retirement
Credits (RRC)
2

ACE This course is scheduled for review by the American Council on Education
during 2012.

Assistance For administrative assistance, have your training officer or NCO log on to the
MCI home page at www.mci.usmc.mil. Marines CONUS may call toll free
1-800-MCI-USMC. Marines worldwide may call commercial (202) 685-
7596 or DSN 325-7596.

MCI Course 3422C iv

MCI Course 3422C v
Study Guide

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

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

YOU SEEK TO IMPROVE YOURSELF. You are enrolled to improve
those skills you already possess, and to learn new skills. When you
improve yourself, you improve the Corps!

YOU HAVE THE INITIATIVE TO ACT. By acting on your own, you
have shown you are a self-starter, willing to reach out for opportunities to
learn and grow.

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

YOU ARE ABLE TO SET AND ACCOMPLISH PRACTICAL
GOALS. You are willing to commit time, effort, and the resources
necessary to set and accomplish your goals. These professional traits will
help you successfully complete this distance learning course.

Continued on next page
MCI Course 3422C vi
Study Guide, Continued

Beginning Your
Course
Before you actually begin this course of study, read the student information
page. If you find any course materials missing, notify your training officer or
training NCO. If you have all the required materials, you are ready to begin.

To begin your course of study, familiarize yourself with the structure of the
course text. One way to do this is to read the table of contents. Notice the
table of contents covers specific areas of study and the order in which they are
presented. You will find the text divided into several study units. Each study
unit is comprised of two or more lessons and lesson exercises.

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

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

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

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

MCI Course 3422C vii

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

Preparing for
the Final Exam
To prepare for your final exam, you must review what you learned in the
course. The following suggestions will help make the review interesting and
challenging.

CHALLENGE YOURSELF. Try to recall the entire learning sequence
without referring to the text. Can you do it? Now look back at the text to
see if you have left anything out. This review should be interesting.
Undoubtedly, 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.

MCI Course 3422C viii

Tackling the
Final Exam
When you have completed your study of the course material and are confident
with the results attained on your Review Lesson exercise, you are ready to
take the final examination. Your training NCO or officer will administer the
final examination either online at www.mci.usmc.mil or by using Form
DP-37 (answer sheet) that is provided in the sealed envelope marked FINAL
EXAM. If you use Form DP-37 to take your final examination, your
training NCO or officer will return it to MCI for grading. Ensure you read all
the directions carefully, whether online or on Form DP-37, before taking your
final examination.

Completing
Your Course
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.

Graduating! As a graduate of this distance education course and as a dedicated Marine,
your job performance skills will improve, benefiting you, your unit, and the
Marine Corps.

Semper Fidelis!

MCI Course 3422C 1-1 Study Unit 1
STUDY UNIT 1
BASIC PAY AND ALLOWANCES
Overview

Purpose Finances are important to everyone. Knowing what you are entitled to receive
and understanding how to compute those entitlements for accuracy can be a very
valuable lesson when dealing with your personal finances, and planning for your
financial future.

Scope This study unit includes topics on basic pay and allowances. It will provide you
with the principles and techniques needed to compute a members creditable
service and entitlements accurately to basic pay and allowances.

References The references used in the development of this study unit are listed below:

DoD Financial Management Regulation 7000-14R, Volume 7A
Joint Federal Travel Regulation (JFTR), Appendix J

In This Study
Unit
The following lessons are in this study unit:

Lesson See Page
Basic Pay 1-3
Allowances 1-33


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MCI Course 3422C 1-3 Study Unit 1, Lesson 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.

Learning
Objectives
Upon completion of this lesson, you should 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.

In This Lesson The following topics are in this lesson:

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

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

Step Action Example:
Yr Mo Day
1 List all beginning dates. Never change this step
of the process.
2003 01 31(1
st
Period)
2008 02 02(2
nd
Period)
2 List all ending dates. Change the ending date to
30 if the last day of the month is 31. If service
ends on
28 Feb of a leap year, do not change the 28 to 30
since the 29th is the last day of the month.
2007 02 01(1
st
Period)
2011 02 01(2
nd
Period)

3 Add all beginning dates. 2003 01 31
+ 2008 02 02
4011 03 33
4 Add all ending dates. 2007 02 01
+ 2011 02 01
4018 04 02
5 Subtract total beginning dates from total ending
dates. (If more months are needed to make the
subtraction, deduct 1 year from the total ending
dates and add 12 months. If more days are
needed, deduct 1 month from the total of ending
dates and add 30 days to the Day column).

4018 04 02
- 4011 03 33
6 11 29

6 Always add 1 day for each period of continuous
service to account for inclusive dates.
6 11 29
+ 2
6 11 31
7 Subtract the number of days time lost, if any. 0 00 00
8 Convert the result into full years, months, and
day; this result would be the service creditable
for basic pay purposes for PEBD. (Remember,
use 30 days for each month.)

7 years,
0 months,
and 1 day
9 Subtract total creditable service from first day of
current contract. This step is used to compute a
constructive PEBD when there are no breaks in
service.
2011 02 02
- 07 00 01
2004 02 01
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 that began before service
on active duty or active duty for training in a reserve component is creditable
if the member enlisted in the reserve component before 18 Nov 1989. For
enlistment on or after that date, service is creditable if the reserve member
performs inactive duty training before beginning service on active duty for
training.

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

USMCR 20001215 to 20010101 Inactive 0 (Time lost)
USMC 20010102 to 20031110 Active 0 (Time lost)
USMC 20070221 to Present

Computation
Area
Use this area to compute the creditable service.


Practice
Solution
This is the solution to computing the creditable service.

Step Action Example
Yr Mo Day
1 List all beginning dates. 2001 01 02
2003 11 11
2 List all ending dates. Change the ending date to 30 if
the last day of the month is 31. If service ends on 28
February of a leap year, do not change the 28 to 30

2003 11 10
2007 02 20

+ 2003 11 11
4004 12 13
+ 2007 02 20
4010 13 30
5 Subtract total beginning dates from total ending dates.
If more months are needed to make the subtraction,
deduct 1 year from the total ending dates and add 12
months. If more days are needed, deduct 1 month
from the total of ending dates and add 30 days to the
Day column.

4010 13 30
- 4004 12 13
6 01 17
6 01 17
+ 2
6 01 19
- 0
6 01 19
8 Convert the result into full years, months, and days;
this result would be the service creditable for basic
pay purposes for PEBD. (Remember, use 30 days for
each month).
6 years,
1 month, and
19 days
constructive PEBD when there are breaks in service.
2007 02 21
- 6 01 19
2001 01 02
(PEBD)

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

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

Step Action Example
1 Subtract the date of
enlistment from the date of
discharge.
2003 08 10 Date of discharge
2002 19 40 Date above converted
- 2000 07 18 Date of enlistment
2 12 22
2 Add 1 day for inclusive
dates.
2 12 22
+ 01 Inclusive days
2 12 23
3 Subtract the number of days
of time lost.
2 12 23
- 01 07 Lost time
2 11 16
4 Convert to full years,
months, and days. This is
the members creditable
service involving time lost
not made good.

2 11 16 Creditable service

2 years, 11 months, and 16 days

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

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

Step Action Example
1 Subtract the date of enlistment
from the date of discharge.
2004 08 21 Date of discharge
2000 07 18 Date of enlistment
04 01 03
2 Add 1 day for inclusive dates. 04 01 03
+ 1 Inclusive day
04 01 04
3 Compute total time lost both on a
30-day month basis and on a day-
for-day basis. Use the results that
produce the least amount of days
lost.
Time Lost:

Day-for-day
10-28 Feb 19 days
1-16 Mar 16 days
35 days
30-day month
10-29 Feb 20 days
1-16 Mar 16 days
36 days
4 Subtract total of the third step (time
lost) from the second step (service
before time lost).

04 01 04 Service before time lost
03 12 34 Date above converted
- 01 05 Total time lost
03 11 29 Creditable service
If result is
greater than
contractual
agreement, use
result for
creditable
service.
If result is less
than contractual
agreement, use
the period of the
enlistment
contract.
5 Add above result to any other
creditable service the member
might have.
3 years, 11 months, and 29 days

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 Pay Entry Base Date, or 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.

Example In practice situation 1, the current enlistment date was 2007 02 21 and the
creditable service was 6 years, 1 month, and 19 days. To compute the new
PEBD, subtract the creditable service from the current enlistment date. The
members new PEBD is 2001 01 02.

2007 02 21 current enlistment date
- 06 01 19 creditable service
2001 01 02 new PEBD

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

Notes: 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 refers to the delayed entry program.

USMC 20060116 to present
Pay Entry Base Date, Continued

Computation
Area
Use this area to compute the creditable service and PEBD.

Practice
Solution
Creditable service for the following member is computed as follows:

Step Action Example
Yr Mo Day
1 List all beginning dates. Never change this step of
the process.
1996 01 16
2000 01 16
2 List all ending dates. Change the ending date to 30
if the last day of the month is 31. If service ends on
28 Feb of a leap year, do not change the 28 to 30
2000 01 15
2006 01 15
+2000 01 16
3996 02 32
+2006 01 15
4006 02 30
5 Subtract total beginning dates from total ending
dates. If more months are needed to make the
subtraction, deduct 1 year from the total ending dates
and add 12 months. If more days are needed, deduct
1 month from the total of ending dates and add 30
days to the Day column.

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

Practice
Solution,
continued

Step Action Example
Yr Mo Day
9 11 28
+ 2
9 11 30
8 Convert the result into full years, months, and days.
The result would be the service creditable for basic
pay purposes for PEBD. (Remember, use 30 days for
each month.)

10 years,
00 months,
and 00 days
constructive PEBD when there are breaks in service.
2006 01 16
10 00 00
1996 01 16

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

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

Adjust the
PEBD for Time
Lost
When an enlisted member loses time in a non-duty status, advance the PEBD
by the lost time computed on a 30-day month basis. (Refer to DODFMR
7000.14R, Vol. 7A, Absence from Duty in Enlistment Status.) This date is
not affected for an officers non-duty status.

When the PEBD falls on 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.

PEBD Example An enlisted member with no prior service enlisted on 18 Jul 2003. The
member was UA from 10 Feb 2005 through 16 Mar 2005. On the members
return to full duty status, PEBD changes from 18 Jul 2003 to 25 Aug 2003.
Change is computed as follows:

10-28 Feb 19 days
1-16 Mar 16 days
35 days of lost time

Yr Mo Day
2003 07 18 Original PEBD
+ 01 05 35 days of lost time
2003 08 23 Adjusted PEBD

Computing Basic Pay

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.

Basic Pay
Example
A Marine reports to active duty on 16 Feb 2011 as a Private (Pvt). Basic pay
for a Private with less than four months of service is $1,357.20. The
members pay would be computed as follows:

Step Action Example
1 Find period of service. 16-28 Feb 15 days
2 Find the basic pay rate: Pvt
with less than 4 months is
$1357.20.
Basic pay rate $1357.20
3 Divide the basic pay rate by 30
days in the month.
Divide by 30 30

Daily pay rate $45.24
4 Multiply the daily pay rate by
the period of service.
Period of service 15
Feb basic pay $678.60

The Marines basic pay for 16-28 Feb 2011 is $678.60. Remember, the
month of February is counted as a 30-day month.
Computing Basic Pay, Continued

Practice
Situation 1
Compute the basic pay for the following situation:

A Marine reports to active duty on 5 July 2011 (his PEBD) as a Private.
Basic pay for a Private with less than four months of service is $1,357.20.
What is the members basic pay for July 2011?

Computation
Area
Use this area to compute the Marines basic pay for the month of July.

Practice
Solution 1
The Marines basic pay for July is computed as follows:

Step Action Example
1 Find period of service. 5-31 Jul 26 days
2 Find the basic pay rate. Pvt with
less than 4 months is $1357.20.
days in the month.
Divide by 30 30

4 Multiply the daily pay rate by the
period of service.
Jul basic pay $1176.24

Practice
Solution 1,
continued
The Marines basic pay for 5-31 Jul 2011 is $1176.24.

Note: Use 26 days vice 27 days because with service of 30 days or more, the
Marine will be paid for the actual number of days served through the
30th day of the month.

Example:
Member is
Discharged
A Marine Lance Corporal (LCpl) is discharged from active duty on 16 Feb
2011 with more than 3 years of active service. Basic pay for a Lance
Corporal with more than three years of service is $1950.00. The members
pay is computed as follows:

Step Action Example
2 Find the basic pay rate. LCpl
with more than 3 years is
$1950.00.
days in the month.
Divide by 30 30

period of service.
Feb basic pay $1040.00

The Lance Corporals basic pay for 1-16 Feb 2011 is $1040.00.

Practice
Situation 2
A Marine Staff Sergeant (SSgt) is discharged from active duty on 29 Aug
2011 with more than 10 years of service. Basic pay for a Staff Sergeant with
more than 10 years is $3,192.30. Compute the members pay for the month of
August.

Computation
Area
Use this area to compute the Marines basic pay for the month of August.

Practice
Solution 2
The Staff Sergeants basic pay for August is computed as follows:

Step Action Example
1 Find period of service. 1-29 Aug 29 days
2 Find the basic pay rate. SSgt
$3192.30.
days in the month.
Divide by 30 30

period of service.
Aug basic pay $3085.89

The Staff Sergeants basic pay for 1-29 Aug 2011 is $3085.89.

Example:
Member
Reports on 31st
Day of Month
A Marine reports to active duty on 31 Jan 2011 as a Private. The members
pay is computed as follows:

Step Action Example
1 Find period of service. 31 Jan 0 days
1-28 Feb 30 days
Basic pay rate
for Feb 2007 $1357.20

Practice
Situation 3
A Marine reports to active duty on 14 Feb 2011 (PEBD) as a Private (E-1;
less than 4 months). Basic pay for a Private with less than four months of
service is $1357.20. What is the amount of the members pay for February?

Computation
Area
Use this area to compute the Marines basic pay for February.


Practice
Solution 3
The Privates basic pay for February is computed as follows:

Step Action Example
days in the month.
Divide by 30 30

period of service.

The Privates basic pay for 14-28 Feb 2011 is $678.60.

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

Step Action Example
$1838.70.
days in the month.
Divide by 30 30

the number of days in a non-pay
status.
Days in non-pay status 3
Non-pay deduction $183.87
4 Deduct the non-pay deduction
from the basic pay rate.
Non-pay deduction 183.87
Apr basic pay $1654.83

The Lance Corporals basic pay rate for April is $1654.83.

Example: UA
Involving 31st
Day of Month
A Lance Corporal with more than 2 years of service was UA during May.
The inclusive dates of UA were 28-31 May.

Step Action Example
$1838.70.
days in the month.
Divide by 30 30

number of days of unauthorized
absence.
Days of UA 3
Non-pay deduction $ 183.96
Apr basic pay $1654.83

The Lance Corporals basic pay rate for April is $1654.83.

Note: Remember, the 31st does not count as a day of UA unless it was the
first day of absence.

Practice
Situation 4
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 a Private First
Class (PFC) is $1,644.90. Compute PFC Bones basic pay for the month of
July.

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

Practice
Solution 4
PFC Bones basic pay for July is computed as follows:

Step Action Example
1 Find the basic pay rate. PFC
pay is $1644.90.
days in the month.
Divide by 30 30

the number of days in a non-pay
status.
Days in non-pay status 7
Non-pay deduction $383.81

PFC Bones basic pay for July is $1261.09.


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

Example A Lance Corporal with over 2 years of service was promoted to Corporal
(Cpl) meritoriously effective 2 May. Basic pay for a Lance Corporal with
more than two years is $1838.70. The basic pay is computed as follows:

Step Action Example
$1838.70.
Basic pay rate LCpl $1838.70
days in the month.
Basic pay rate LCpl $1838.70
Divide by 30 30

Daily pay rate LCpl $61.29
the number of days the member
was a LCpl.
Daily pay rate LCpl $61.29
2 days as LCpl 1
Basic pay for LCpl $ 61.29
4 Find the basic pay rate. Cpl
$2014.20.
Basic pay rate Cpl $2014.20
days in the month.
Basic pay rate Cpl $2014.20
Divide by 30 30

Daily pay rate Cpl $67.14
the number of days the member
is a Cpl.
Daily pay rate Cpl $67.14
28 days as Cpl 29
Basic pay for Cpl $1947.06
7 Add the basic pay for LCpl and
the basic pay for Cpl to
determine the basic pay for
May.
Basic pay for LCpl $ 61.29
Basic pay for Cpl + 1947.06
Basic pay for May $2008.35

The Corporals basic pay for May is $2008.35.

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 at www.dfas.mil.

Example: Time
in Service
A Lance Corporal with more than 2 years of service and a PEBD of 3 May
2008 is entitled to the increase pay of an E-3 over 3 years (E3/3), effective 3
May 2011. The basic pay is computed as follows:

Step Action Example
with more than 2 years
$1838.70.
Basic pay rate E3/2 $1838.70
days in the month.
Divide by 30 30

Daily pay rate E3/2 $61.29
the number of days of service as
E3/2; period involved 5/1 and
5/2
2 days in May as E3/2 2
Basic pay for E3/2 $122.58
with more than 3 years
$1950.00.
days in the month.
Divide by 30 30

E3/3; period involved is 5/3-
5/31.
28 days in May as E3/3 28
7 Add the basic pay rates of an
E3/2 and an E3/3 to get the
basic pay rate for the month of
May.
Basic pay for E3/2 $ 122.58
Basic pay for E3/3 + $1820.00
Basic pay for May $1942.58

The Lance Corporals basic pay for May 2011 is $1942.58.

Pay Reductions Any member who is reduced in rank will receive basic pay at the lower pay
grade. The decrease is effective on the date of reduction.

Example:
Reductions in
Pay
LCpl Doyen, with over 2 years of service, was reduced to PFC with an
effective date of 3 May 2011. The basic pay is computed as follows:

Step Action Example
$1838.70.
days in the month.
Divide by 30 30

the number of days as an E3/2,
period 5/1 and 5/2.
2 days as E3/2 2
4 Find the basic pay rate; PFC,
$1644.90.
Basic pay rate PFC $1644.90
days in the month.
Basic pay rate PFC $1644.90
Divide by 30 30

Daily pay rate PFC $54.83
an E2; period 5/3-5/31.
Daily pay rate PFC $54.83
28 days 28
May basic pay E2 $1535.24
7 Add the basic pay rates of an
E3/2 and an E2 to get the basic
pay rate for the month of May.
Basic pay for E2 + $1,535.24
Basic pay for May $1,657.82

PFC Doyens basic pay for May 2011 is $1,657.82.

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).

LES Section E
Example
Section E (Leave Information)

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

SOLD CBT
LV
BAL
2.5 2.5 0 0 5.0 90.0 0 0 0

Rate of Leave
Accrual
Leave is accrued at a rate of 2.5 days for each full month of active service.
When active service begins or ends on an intermediate day of the month,
leave accrues as shown in the table below.

Note: February is considered a 30-day month for accrual purposes. The 31st
day of the month is only considered if it is the day the Marine enters
active service.

Number of Days Served Leave Accrual
1 through 6 0.5
7 through 12 1
13 through 18 1.5
19 through 24 2
25 through 31 2.5
Leave Account, Continued

Maximum
Leave Accrual
United States Code Section 701 of Title 10 limits service members from
carrying over more than 60 days at the start of any fiscal year. If a service
member has more than 60 days on October 1, the leave balance is reduced to
60.

However, the National Defense Authorization Act (NDAA) for FY 2008 and
FY 2010 provide a temporary modification to this policy. Effective 28
January 2008, the NDAA allows service members to carry over 75 days of
leave at the beginning of the fiscal year vice 60 days. Currently, this
provision of the NDAA will remain in effect until 30 September 2013. It may
be extended if operational commitments remain high.

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.

Cash
Settlements
On 10 Feb 1976, Congress passed a law stating that a member may be paid
for no more than 60 days of accrued leave in a career. However, any leave
sold before that date is grandfathered, meaning that it is exempted from this
restriction. Members may elect cash settlements for any unused leave on the
following occasions:

Discharge for immediate reenlistment. Discharge must not occur more
than 3 months prior to the normal end of current contract.

Temporary officer reverting to enlisted status when the temporary
appointment has expired.

Upon first extension of enlistment.

Upon departure on involuntary appellate leave.

Example:
Leave Account
If SSgt Kantner wants to take leave from 5 to 10 Nov and his Oct LES leave
balance is 40 days, what would his balance be on 1 Dec?

Solution Oct LES leave balance 40.0
Nov member accrues 2.5 leave days + 2.5
42.5
Subtract leave days (5-10 Nov = 6 days) 6.0
36.5
SSgt Kantners leave balance on 1 Dec is 36.5 days.

Practice
Situation
Sgt Ramos has just received an LES for May 2007. Sgt Ramos leave
balance (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?

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


Practice
Solution
Sgt Ramos leave balance on 30 Sep 2007 is 63.0 days.
Sgt Ramos lost 3.0 days of leave.

Breakdown of Leave Earned:

Sgt Ramos had 70.0 days of leave in the month of May 70.0
Sgt Ramos earned 2.5 days for the month of Jun 2.5
Sgt Ramos earned 2.5 days for the month of Jul 2.5
Sgt Ramos earned 2.5 days for the month of Aug 2.5
Sgt Ramos earned 2.5 days for the month of Sep 2.5
Total days earned 80.0

Leave Taken:

Sgt Ramos took leave from 16-27 May for a total of 12 days.
Sgt Ramos also took leave on 1-5 Aug for a total of 5 days.
Total number of leave days taken 17 days

Subtract the number of leave days taken from the number of leave earned.

80.0 (leave earned prior to 1 Oct)
17.0 (leave taken prior to 1 Oct)
63.0 total number of leave days

Note: Leave balances that exceed 60 days on 30 Sep of each year will be
reduced to 60 days. Any leave taken before 1 Oct but not processed
until after 1 Oct will be charged against the lost leave to the extent that
lost leave is available. Sgt Ramos was not eligible to keep his leave
under the provisions of the NDAA; the time period in question was
before the act was signed.

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

Directions Complete items 1 through 4 by performing the action required. Check your
answers against those listed at the end of this lesson.

Item 1 Using the statement of service below, what is Sgt Hernandezs total creditable
service?


Yr Mo Days
a. 04 00 02
b. 05 01 01
c. 04 02 02
d. 04 02 01

Item 2 Using the statement of service below, what is Cpl Burtons PEBD?

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

Item 3 Pvt Ross reported to boot camp on 16 March 2007. Pvt Rosss monthly basic
pay rate is $1357.20. What is Pvt Rosss pay for the month of March?

a. $583.00
b. $650.00
c. $678.60
d. $612.90
Lesson 1 Exercise, Continued

Item 4 PFC Sharks Nov LES Section E (Leave Information)

BLK 19 BLK 20 BLK 21 BLK 22 BLK 23 BLK 24 BLK 25 BLK 26 BLK 27
LV BF EARNED USED EXCESS BAL MAX
ACCRUAL
LOST SOLD CBT
LV
BAL
2.5 2.5 0 0 5.0 115.0 0 0 0

Using PFC 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

Answers The table below lists the answers to the exercise items. If you have questions
about these items, refer to the reference page.

Item Number Answer Reference
1 a 1-4
2 b 1-9
3 c 1-13
4 b 1-27


LESSON 2
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.

Learning
Objectives

Determine a members basic allowance for housing.

Compute a members basic allowance for subsistence.

Determine a members clothing replacement allowance.

Determine a members family separation allowance.

Compute a members cost of living allowance.

Determine a members overseas housing allowance.

Determine a members dislocation allowance.

Determine a members temporary lodging allowance.
Introduction, Continued


Topic See Page
Introduction 1-33
Basic Allowance for Housing 1-35
Basic Allowance for Subsistence 1-41
Clothing Replacement Allowance 1-44
Family Separation Allowance 1-48
Cost of Living Allowance 1-52
Overseas Housing Allowance 1-55
Dislocation Allowance 1-60
Temporary Lodging Allowance 1-62

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.

Rates The Secretary of Defense (SECDEF) determines the cost of adequate housing
in a military housing area (MHA) for all members of the uniformed services
entitled to BAH by location. The determination of housing allowance is
based upon the cost of adequate rental housing for civilians with comparable
income levels in the same area.

An adjustment in the rates of BAH because of the 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.

Types of BAH There are several different types of BAH:

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

Note: BAH with or without dependents is strictly for members stationed
within the Continental United States (CONUS).
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 a PDS outside the United States, the
member is entitled to BAH at the rate prescribed for the area within the
United States where the dependents reside.

When serving on an accompanied tour outside the United States, the member
is not entitled to BAH with dependents.

BAH for
Members
Without
Dependents
Members without dependents who are entitled to basic pay and stationed in
CONUS are entitled to receive BAH on their behalf (BAH own right), at the
rate prescribed for the 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.

BAH Member
Married to
Another
Member
When a BAH member is married to another member of the armed services
and both are stationed in the same geographical area, reside together, and
neither have children, both members are entitled to BAH without dependents.

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 without dependents.

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 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 assigned duty (TAD) site, whichever occurs first. The member
then becomes entitled to BAH with dependents at the new PDS rate, effective
the date of reporting.

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

BAH Difference A member who is assigned to single-type government quarters and paying
child support is entitled to BAH difference (BAH DIFF). This amount is
equal to the difference between the BAH II with dependents and BAH II
without dependents for the 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 Partial BAH partial is a set rate of entitlement for members assigned to single-type
government quarters (barracks) and not in receipt of any other 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.

Practice
Situation
Matching: For items 1 through 4, match the type of BAH entitlement in column
2 to the situation in column 1.

Column 1

Situation

Column 2

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


Practice
Solution

Column 1

Situation

Column 2

BAH Entitlement
_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. BAH without dependents
b. BAH partial
d. BAH DIFF

Basic Allowance for Subsistence

General
Knowledge
Active duty and reserve Marines are entitled to a standard (monthly) basic
allowance for subsistence (BAS) rate. Enlisted Marines attending basic
military training (boot camp) and Marines going through initial officer
training (officer candidate school, officer training school) who have no
continuous prior enlisted service (active or reserve) will not be entitled to
monthly BAS.

Effective 1 Jan 2011, the enlisted monthly BAS rate is $325.04 (prorated
monthly).

Officers entitled to basic pay are entitled to full BAS at all times on a monthly
(30 day) basis. The rate is $223.84, effective 1 Jan 2011.

Essential
Station Messing
Enlisted Marines in pay grades E-1 through E-6, permanently assigned to
single government quarters ashore and who are being subsisted in kind
(issued a meal card) are entitled monthly BAS, but will be in an essential
station messing (ESM) status. This includes enlisted members attending
accession pipeline military training. Enlisted members in pay grades E-7
through E-9 performing duty at a shore installation (not in field duty or group
travel) are exempt from ESM.

Enlisted members assigned to ESM will be automatically charged for all
meals made available (whether eaten or not) at the discounted meal rate
(DMR) of $9.25 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, TAD, or hospitalization status, upon joining,
personnel officers will be required to report start DMR, provided the
member returns to an ESM status.
Basic Allowance for Subsistence, Continued

Essential
Station
Messing,
continued
The day the member goes into or out of an ESM status, the Marine is only
checked 25% of the daily DMR for that day. This does not apply to leave
status.

Marines assigned to ESM who are TAD 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 TAD (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 TAD to sea duty, field duty, EUM, or group
travel, the DMR checkage applies and members will pay for meals by payroll
deductions (field rations checkage) via unit diary entries.

Practice
Situation
Cpl Stanton is stationed at MCB Camp Lejeune. The member has a meal card
and is subsisted at the messing facility. On 5 Mar 2011, 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?

Computation
Area
Use this area to compute Cpl Stantons BAS for the month of March.

Basic Allowance for Subsistence, Continued

Practice
Solution
Cpl Stantons BAS for the month of March is computed as follows:

Step Action Example
1 Monthly BAS (070301-070331) Monthly BAS $325.04
2 Multiply the BAS DMR ($9.25) by
the DMR checkage days (070301-
070305; 5 days).
BAS discounted rate $9.25
Days of checkage 5
$46.25
3 Subtract step 2 total from monthly
BAS rate.
Monthly BAS $325.04
Step 2 total 46.25
$278.79
4 Multiply the BAS DMR ($9.25) by
75% for one-day credit (070305).
BAS discounted rate $9.25
75%
$6.94
5 Add step 3 and step 4 totals to get
Cpl Stantons BAS for the month
of March.
Step 4 total $278.79
+ 6.94
$285.73

Cpl Stantons BAS for March is $285.73.

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 ($9.25) for that
day; therefore, in step 4, the member is credited back 75% of
that DMR for one day.

Clothing Replacement Allowance

General
Knowledge
Clothing replacement allowance (CRA) is provided for repair and replace-
ment 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 20110401, the member will receive
CRA on the 1 April payday.

Restrictions CRA does not accrue when a Marine is assigned to a combat area, where
replacement of clothing is made without charge on an in-kind issue basis.

CRA is terminated when a member is sentenced to confinement involving a
punitive discharge, during unauthorized absence total forfeiture of pay, or
when the member is declared in a missing status.

Basic
Replacement
Allowance
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).
Clothing Replacement Allowance, Continued

Standard
Replacement
Allowance
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 the 20050801 pay
day.

Rates Payable The annual CRA payment of BRA or SRA will be paid at the rate in effect for
that fiscal year (fiscal year begins on October 1st).

Effective 1 Oct 2010, annual BRA annual rate for male Marines is $403.20,
and the annual BRA rate for female Marines is $428.40. Also effective 1 Oct
2010, the annual SRA rate for male Marines is $572.40, and the annual SRA
for female Marines is $608.40.

Prorating CRA When the member serves less than 12 months since the last anniversary
payment, a prorated amount will be paid for the number of whole months 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 20060923 and member was last paid
CRA on 20101001. Member was honorably discharged on
20110722. The member would be paid for 10 months of SRA on
the date of separation (20101001 to 20110731).

Thus, $572.40 (annual male Marine CRA) divided by 12 is $47.70;
47.70 10 (number of months from 20101001 to 20110731) is
$477. The member is entitled to $477 for CRA from his last CRA
date to his discharge date.

Prorating CRA,
continued
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 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 20060507. He was last paid CRA on
20100601. Member had time lost from 20110101 to 20110115 (15
days).

Practice
Situation
PFC Bonds CRA is 20100205. PFC Bonds will complete six months of
active duty on 20100804. He is entitled to CRA from 20100901 through
20110228. If the annual BRA rate for male Marines is $403.20, how much
CRA will PFC Bonds receive on 20110301 pay day?

Computation
Area
Use this area to compute PFC Bonds CRA entitlement.


Practice
Solution
Under the CRA entitlement, members are entitled to BRA from the first day
of the month following completion of 6 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 Bonds CRA is 20100205. PFC Bonds completes six months active
service on 20100804. The CRA entitlement period is 2010090120110228.

PFC Bond is entitled to one half of the annual BRA rate for male Marines
($403.20); therefore, PFC Bond will receive $201.60 of CRA entitlement on
20110301 pay day.

Family Separation Allowance

Types of FSA 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 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.

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.
Family Separation Allowance, Continued

FSA-II 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 be 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 a child 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.

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 type.

Rates FSA-I is payable in a monthly amount based on a 30-day month equal to the
amount paid a member for BAH II without dependents in the same pay grade.

FSA-II (all categories) is $250 per month, based on a 30-day month.

Beginning and
Termination of
FSA
FSA-I starts on the date of arrival to the PDS and continues through the date
of departure from the PDS.

Credit for FSA-T may not be made until the member has been on TAD
continuously for more than 30 days. See DODFMR, Vol. 7A, Ch. 27 for
computation of days.

FSA-S credit for this may not be made until the member has been on duty on
board ship away from the home port for a continuous period of more than 30
days. FSA-S starts on the day of departure on board a ship away from its
home port and stops on the day prior to the date the ship returns to its home
port.

FSA-R accounts for the day of detachment or first day of authorized travel
time (following day), whichever is later, plus subsequent days of authorized
delay or proceed time used. FSA-R stops when member reports arrival of
dependents.

Upon PCS, FSA-R stops the day before the date the member arrives at the
new PDS minus any days of proceed and delay.

Exceptions Credit for FSA-T may not be made until the member has been on TAD/TDY
for more than 30 consecutive days. In computing to 30-day period, count the
actual number of days in the month, including the day the member departs the
PDS. Include the 31st day of 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.

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

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


Practice
Solution
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 20070630 = $250
For month of July, 20070701 20070714; $250 divided by 30 = $8.33 a day
14 days = $116.66

SSgt Rollins total amount for FSA-T entitlement is $708.33.

Cost of Living Allowance

Required
Information
Cost of Living Allowance (COLA) is computed on a daily basis and is based
on the members pay grade, years of service, number of dependents and
COLA index, located in the Joint Federal Travel Regulation (JFTR),
Appendix J.

To determine how much COLA a member is entitled, 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 COLA except:

For any days in excess of 30 consecutive days that a member and his
dependents are on leave in CONUS. This rule applies to all types of
COLA.

When one or more dependent(s) return(s) to CONUS for a period of more
than 30 consecutive days, then COLA is reduced to the daily rate for the
remaining dependents.

When all dependents return to CONUS on leave for more than 30 days, the
member is then paid as a member without dependents.

When government messing facilities are available for both the member and
dependents for all meals.
Cost of Living Allowance, Continued

Member
Without
Dependents
A member without dependents is entitled to COLA at the without-dependent
rate for any day that a government mess is not available for three meals per
day at the 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 military member married
to another military 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
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.

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

Termination Entitlement to COLA terminates on the day before the member departs in
compliance with the PCS Orders on the day the last dependent departs, if the
dependent departs within the 60-day period after the effective date of the PCS
Orders. If departure TLA is paid, then COLA terminates the day before the
first day of TLA.

Determine
COLA Payable
To determine the COLA payable in any case, follow these steps:

Note: Members Annual Compensation, Table I and Average Annual
Spendable Income, Table II, can be found in Appendix B of the JFTR.

Step Action
1 Determine the members annual compensation in Table I (referenced
above), based on the members pay grade and years of service.
2 Locate in Table II (referenced above) the column headed Annual
Compensation. Find the line that includes the annual compensation
determined under step 1. Read the members Average Annual
Spendable Income in the column corresponding to the members
dependency status.
3 Determine the COLA index prescribed for the members PDS.
COLA indexes are listed in Appendix J of the JFTR.
4 Subtract 100 from the COLA index prescribed for the members
PDS and convert the difference to a percentage. Change the
percentage to a decimal.
5 Multiply the members Average Annual Spendable Income
determined in step 2 above by the percentage (decimal) derived in
step 4. The result is the members annual COLA.
6 Divide this amount by 360 and carry out to 5 digits to the right of
the decimal.
7 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.

Example SSgt Gypsy reported aboard MCAS Kaneohe Bay, HI. The Temporary
Lodging Allowance has terminated, and the member has three dependents.
SSgt Gypsy is over 14 years for pay purposes. The COLA entitlement is
computed as follows:

Step Action Result
1 Annual Compensation from Table
I, Appendix B.
SSgt over 14 yrs with dependents
is $35,026
2 Average Annual Spendable Income
from Table II, Appendix B.
Income 35,026 with 3 dependents
is $20,500
3 Hawaii COLA index (Appendix J
of JFTR); COLA index for Hawaii
is 126.
Hawaii COLA index is 126
4 Subtract 100 from the Hawaii
COLA index (126) and turn total
number into a percent.
Change the percentage into a
decimal.
Hawaii COLA index 126
Subtract 100 100
26
Turn the 26 into percentage 26%

Change % into decimal 26% .26
5 Multiply step 2 number by decimal
in step 4.
Step 2 number 20,500
Decimal number in step 4 .26
Annual COLA 5,330
6 Divide the annual COLA by 360 to
get the daily COLA.
Annual COLA 5,330
360
Daily COLA $14.8055
7 Multiply daily COLA by number
of days entitled.

Example: For month of June,
use 30 days.
Daily COLA $14.8055
Number of days entitled 30
$444.16

Overseas Housing Allowance

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

Types of
Housing
Allowance
The two types of OHA are

An up-front, lump-sum, move-in housing allowance (MIHA) for those
who qualify

A monthly OHA, including a utility/recurring maintenance allowance

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.

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.
Overseas Housing Allowance, Continued

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

Rules When possible, the utility/recurring maintenance allowance is based on
average expenses reported by members with dependents.

1. For utility/recurring maintenance allowance purposes, members are
classified into one of the following categories:

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

Member defined as a sharer is entitled to a prorated share of the
utility/recurring maintenance allowance subject to rules 2, 3, and 4
below.

Member without dependents and not defined as a sharer is entitled to
75% of the utility/recurring maintenance allowance (unless a specific
rate has been prescribed for such members in Appendix K, Table I, of
the JFTR) subject to rules 2, 3, and 4 below.

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.

Climate Codes Based on the climate code of the duty location and the number of utilities/
services paid by the tenant(s), a utility point score is computed for the
member. The score will determine the amount of utility/recurring
maintenance allowance entitlement.

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

Using the appropriate climate code column in the table shown below, the
member is credited with utility points when the particular utility/service is not
provided by the landlord. (There is no credit for any utility/service provided
by the landlord.)

Code 1 (cold): Long-term mean temperature of 45 F or colder
Code 2 (moderate): All other climate
Code 3 (hot): Long-term average of 69 F or warmer, except when long-
term average for one or more months of the year drops to 45 F or colder.
If so, a climate code of 2 is assigned.

CLIMATE CODE
1 2 3
Electricity 3 3 3
Heating 1 2 3
Air conditioning 1 2 3
Water/sewage 1 1 1
Trash disposal 1 1 1

If Utility Point Score is Then the Utility Multiplier is
0 0
1 or 2 0.25
3 or 4 0.65
59 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.

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

Computation
Area
Compare MSgt Wheelers monthly rent to his OHA max rental ceiling to
determine his OHA allowance.


Practice
Solution
MSgt Wheelers OHA is computed as follows:

MSgt Wheelers Monthly Rate

Step Action Computation
1 Monthly rent $1,050.00
2 Average utilities (rent
includes no utilities)
$500.00
3 MSgt Wheelers total rent
allowance
Rent: $1,050.00
Utility: $500.00
$1,550.00

Compared to

MSgt Wheelers OHA Max Rental Ceiling

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

Dislocation Allowance

Background The purpose of Dislocation Allowance (DLA) is to partially reimburse a
member for the expenses incurred in relocating the household on a PCS,
ordered for the Government's convenience, or incident to an evacuation. This
allowance is in addition to all other allowances authorized in this Joint
Federal Travel Regulation (JFTR) and may be paid in advance. DLA is
intended to partially reimburse relocation expenses not otherwise reimbursed
and probably will not reimburse all of your relocation expenses.

Entitlement DLA is payable as an advance to Permanent Change of Station Orders or
upon initial settlement after the execution of orders. The rate of DLA payable
depends on a members rank and marital status at time of PCS. Service
members may only receive DLA once per fiscal year.

Practice
Situation
SSgt Jones receives PCS Orders to Camp Lejeune from Camp Pendleton with
a 20110601 execution date. SSgt Jones is married with 1 child. He will live
in private owned housing outside of Camp Lejeune. The 2011 dislocation
allowance for an E6 without dependents is $1,498.47 and $2,200.90 with
dependents.

Computation
Area
Compute SSgt Jones Dislocation Allowance.

Dislocation Allowance, Continued

Practice
Solution
SSgt Jones is relocating his household incident to PCS orders. Since SSgt
Jones has dependents and will be residing on the economy, he will rate DLA
at the with-dependents rate for an E6, which is $2,200.90.

Temporary Lodging Allowance

General
Conditions
Temporary Lodging Allowance (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
TAD 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 PCS
orders or after surrender of the other permanent living accommodations.

During a period of hospitalization while en route between PDS during
which dependents are required to use temporary lodging.

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

One or more of the dependents remain after the member departs. They
will then have 10 days as long as the departure is less than 60 days after
the effective date of the PCS orders.

A longer period of entitlement is authorized due to a delayed departure or
due to early termination of permanent housing.

The member or a dependent is hospitalized or the nature of the members
assigned duties requires the member to be away from the PDS.
Temporary Lodging Allowance, Continued

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

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

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

Payable TLA is payable during the period of entitlement when a member and his/her
dependents occupy temporary lodging at personal expense.

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

Practice
Situation
SSgt Hayes and spouse were forced to evacuate government quarters on
20070504. SSgt Hayes will PCS on 20110515. SSgt Hayes was in TLA
status from 20110505 to 20110514.

The daily cost of lodging at KUWAE Lodge is $94. The lodging has no
facilities for preparing and consuming meals. The local meals and incidental
expenses (M&IE) rate is $65. The max lodging is $112. What is the amount
of TLA for the 10-day period?

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


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

1 Determine percentage based on the
number of individuals.
100%
2 Determine the M&IE equivalency.
Multiply local M&IE rate ($65.00) by
step 1 total.
M&IE rate $65.00
step 1 total 100%
$65.00
3 Determine actual daily lodging with the
M&IE. Take step 2 total and add it to
the actual daily lodging cost.
M&IE rate $65.00
lodging + $94.00
$159.00
4 Determine the max lodging payable for
area.
Step 3 total $112.00
Max lodging
M&IE + $65.00
$177.00
5 Compare the results from steps 3 and 4.
Use the lesser of the two to obtain the
applicable daily rate (APR).
Lesser of 3/4 $159.00
6 Multiply the APR by the number of
days member entitled to TLA (in this
exercise 10).
APR or
step 6 total $159.00
No. of days 10
$1,590.00

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

Lesson 2 Exercise


Item 1 SSgt Perez and his family reported to Okinawa, Japan, on an accompanied
tour and are living in government quarters. What type of BAH, if any, are
they entitled to receive?

a. BAH active duty spouse
b. BAH difference
d. Not entitled to BAH

Item 2 Cpl Demarco is stationed at Camp Lejeune. The member has a meal card and
is subsisted at the messing facility. On 2 Jan 2011, the commanding officer
authorized Cpl Demarco to subsist on his own and turn in his meal card.
Monthly BAS is $325.04. BAS discounted meal rate is $9.25. What is Cpl
Demarcos BAS entitlement for the month of March?

a. $279.88
b. $270.25
c. $307.14
d. $315.79

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

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

Item 4 SSgt Nunez has received unaccompanied orders to Okinawa, Japan. His
dependents live in Norfolk, VA. What type of FSA is SSgt Nunez
authorized?

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

Item 5 SSgt Nunez and his dependents are stationed at Norfolk, VA. SSgt Nunez
will be going TAD to Camp Lejeune, NC from 1 Jun 2007 through 2 Aug
2007. FSA-T is $250 a month. How much FSA-T will SSgt Nunez receive
for his entire TAD period?

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

Item 6 Sgt Pickles is single with no dependents and lives in the barracks.
Government mess is available for all three meals. Sgt Pickles is entitled to
barracks COLA at what percentage of the without dependent rate?

a. 47
b. 50
c. 75
d. 100

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

a. PCSs to a PDS within the continental United States.
b. 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.

Item 8 Dislocation allowance is available for

a. any officer who does not live in the Bachelor Officers Quarters (BOQ).
b. any service member with dependants upon Permanent Change of Station
Orders (PCS).
c. officers only.
d. only NCOs and above upon PCS orders.

Item 9 A member is entitled to how many days of TLA before leaving the PDS?

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


1 d 1-37
2 d 1-43
3 c 1-44
4 b 1-48
5 c 1-49
6 a 1-53
7 c 1-59
8 b 1-61
9 c 1-63


STUDY UNIT 2
ADDITIONAL ENTITLEMENTS
Overview

Purpose As a Marine, it is important to know what allowances you are entitled to, which
entitlements you can draw advances on, how much each type of allowance is
worth, and how to compute them for accuracy.

This study unit will increase your understanding of allowances and advance
entitlements to further assist you in computing the amount of income for that pay
period.

Scope This study unit includes topics on allowances and advance entitlements. It will
provide you with the principles and techniques needed to accurately compute a
members allowances and advance entitlements.

References

The references used in the development of this study unit are listed below:

DoD Financial Management Regulation (FMR) 7000.14-R, Volume 7A
Joint Federal Travel Regulation (JFTR)
MARADMIN 436/00
MCO 7220.52E

In This Study
Unit

Lesson See Page
Special Pay 2-3
Incentive Pay 2-33
Advance Entitlements 2-47



LESSON 1
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, 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.

Learning
Objectives

Compute a members selective reenlistment bonus.

Determine 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.

Determine a members eligibility for career sea pay.

Determine a members eligibility for foreign language proficiency pay.


Topic See Page
Introduction 2-3
Selective Reenlistment Bonus 2-5
Special Duty Assignment Pay 2-9
Hostile Fire and Imminent Danger Pays 2-12
Diving Duty Pay 2-15
Hardship Duty Pay 2-18
Career Sea Pay 2-21
Foreign Language Proficiency Pay 2-24

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 military occupational specialties (MOS) entitled to SRB are determined by
HQMC. Each 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 a
SRB: A, B, and C.

Zone
Requirements
The following table shows the requirements for each zone:

Zone Minimum/Maximum
Active Service
Years of Service Restrictions
A Complete 17 months
of continuous active
duty, but no more than
6 years on reenlistment
date.
Reenlist or voluntarily extend for
a period of at least 4 years:
reenlistment or extension couple
with existing active service
provides a total of at least 6 years
active service.
Not previously
paid a Zone A
SRB.
B Complete at least 6
years, but no more
than 10 years of active
duty on the date of
reenlistment or the
beginning of
enlistment extension.
a period of 4 years: reenlistment
or extension when coupled with
the existing active service
provides a total of at least 10
years active service.
Not previously
paid a Zone B
SRB.
C Complete at least 10
years, but no more
than 14 years of active
duty on the date of
reenlistment or the
beginning of
enlistment extension.
a period of 4 years: reenlistment
or extension when coupled with
the existing active service
provides a total of at least 14
years active service.
Not previously
paid a Zone C
SRB.
Selective Reenlistment Bonus, Continued

Rate of
Withholding
Taxes on an
SRB
SRBs are taxed as follows:

Effective 1 Jan 2003, the applicable flat percentage-withholding rate used
to determine federal tax is 25% for one-time entitlements.

Effective 1 Jan 1993, the applicable flat percentage withholding rates will
be used to determine state income tax withholding for one-time
entitlements.

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

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

Step Action Example
1 Multiply basic pay by the
MOS multiple.
Basic Pay $1,978.50
MOS multiple 2
$3,957.00
2 Multiply step 1 amount
by years/months eligible
for bonus that equals the
total SRB entitlement.
Step 1 total $3,957.00
4 year enlistment 4
$15,828.00
3 Subtract 25% federal tax. 25% fed income tax $15,828.00
withholding (FITW) - 3,957.00
$11,871.00
4 Subtract the flat
percentage state tax.
(Look up the tax
percentage for the state
you claim.)
7% state income tax $11,871.00
withholding (SITW) - 808.81
$11,062.19

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

Practice
Situation
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
multiple of 2. Sgt Clarks monthly salary is $2,620.20 and claims Florida for
tax purposes. The state of Florida does not tax military entitlements. Use the
information provided to compute Sgt Clarks SRBP.

Computation
Area
Use this area to compute Sgt Clarks SRBP.


Practice
Solution
Sgt Clarks SRBP is computed as follows:

Step Action Example
1 Multiply basic pay by the
MOS multiple.
Basic Pay $2,620.20
MOS multiple 2
$5,240.40
2 Multiply step 1 amount by
years/months eligible for
bonus that equals the total SRB
entitlement.
Step 1 total $5,240.40
4 year enlistment 4
$20,961.60
3 Subtract 25% federal tax. 25% fed income tax 20,961.60
FITW 5,240.40
$15,721.20
4 Subtract the flat percentage
state tax. (Look up the tax
percentage for the state you
claim.)
0% state income tax $15,721.20
SITW 000.00
for Florida $15,721.20

Sgt Clark will be receiving $15,721.20 for his SRB multiple of 2 upon
reenlisting.

Special Duty Assignment Pay

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

Special Duty
Assignment
Special duty assignment (SDA) has its own MOS and is usually short of
qualified personnel.

SDA pay is for those enlisted members who perform extremely difficult
duties or jobs that involve an unusual degree of responsibility. SDA pay is
awarded by CMC (Code MPP), according to the needs of the Marine Corps.

Requirements
to Receive SDA
Pay
A member must meet the following to receive SDA:

Enlisted career member in receipt of basic pay.
Not receiving any other type of proficiency pay.
Serve in the pay grade of E-3 or higher.
Qualify and serve in a designated special duty assignment.
Have a minimum of 6 months continuous active service immediately
before the award of proficiency pay.

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

Note: Always use 30 days in a month when computing SDA pay.
Special Duty Assignment Pay, Continued

Minimum
Rates
The monthly rates for SDA pay are listed in the table below.

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

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

Computation
Area
Use this area to compute Sgt Moses SDA pay for the month of January.

Special Duty Assignment Pay, Continued

Practice
Solution
Sgt Moses SDA payment is computed as follows:

Step Action Example
1 Divide SDA pay for DI
Duty by 30 days in a
month.
SDA pay $375.00
Divide by 30 day month 30

Amount of SDAP per day $12.50
2 Multiply step 1 amount
by number of days in
month eligible for SDA
pay.
Step 1 total $12.50
No. eligible SDA pay days 20
$250.00

Sgt Moses SDA pay for January is $250.

Hostile Fire and Imminent Danger Pays

General
Provisions
A member may be paid hostile fire pay (HFP) or imminent danger pay (IDP)
for any period of time 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, regardless of whether the member
served the entire month or one day in the month. IDP is paid on a day-to-day
basis for the actual number of days served.

Hostile Fire
Pay
HFP is payable when, as certified by the appropriate commander, a member is

Subject to hostile fire or explosion of a hostile mine.

On duty in an area in close proximity to a hostile fire incident, and is in
danger of being exposed to the same dangers actually experienced by other
service members subjected to hostile fire or explosion of hostile mines.

Killed, injured, or wounded by hostile fire, explosion of a hostile mine, or
any other hostile action.

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

Payment Effective 1 Oct 2002, HFP/IDP is payable at a monthly rate of $225. It is
paid in addition to all other pay or allowances. Additionally, it is payable on
a prorated basis. A member will receive the entitlement on a day-to-day basis
for the time served in a designated area.

Designated
Changes
Unified or specified commanders continuously appraise conditions in the
designated areas to ensure that service there is still hazardous. Whenever
appropriate, commanders submit recommendations to the Secretary of
Defense to remove particular areas from the HFP or IDP list. For an up to
date table that shows areas on the HFP or IDP list, refer to DoDFMR
7000.14-R, Vol. 7A, Ch 10.
Hostile Fire and Imminent Danger Pays, Continued

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

Computation
Area
Use this area to compute SSgt Chestys HFP total amount received while
deployed to Iraq from 28 Feb 2006 to 2 Nov 2006.

Hostile Fire and Imminent Danger Pays, Continued

Practice
Solution
SSgt Chestys HFP is computed as follows:

Step Action Example
1 HFP/IDP is $225 per month. HF/IDP $225
2 Multiply step one amount by number of
months deployed.

SSgt Chesty was deployed as follows:

28 Feb 1 month
Mar 1 month
Apr 1 month
May 1 month
Jun 1 month
Jul 1 month
Aug 1 month
Sep 1 month
Oct 1 month
2 Nov 1 month
10 months
Step 1 $225
No. months 10
deployed $2250

SSgt Chestys total HFP while deployed was $2250. Member gets credited
for a full month, regardless of whether he or she served the entire month or
one day in the month.

Diving Duty Pay

Qualifications Members must be designated divers, be assigned to diving duty under
competent orders, and maintain their qualifications for diving.

Officer Rates
Payable
Officers assigned to diving duty are entitled to special pay for diving duty at a
rate of not more than $240 per month.

Officers assigned to and performing initial diving duty training under
instructions (at an approved Armed Services diving school) will be paid
special pay for diving duty at the rate of $110 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 $215 per month.

Enlisted Rates
Payable
Enlisted members assigned to diving duty are entitled to special pay for
diving duty at a rate of not more than $340 per month.

Enlisted members assigned to and performing initial diving duty training
under instructions (at an approved Armed Services diving school), or when
performing scuba diving duties will be paid special pay for diving duty at the
rate of $110 per month. This period of entitlement will start with the date of
the first dive during instruction through the date dropped from the course or
date of graduation, whichever is earlier. Enlisted members designated as
combat divers are entitled to special pay for diving duty at the rate of $215 a
month.

Conditions of
Entitlement
For conditions of entitlement, refer to DoDFMR 7000.14-R, Vol. 7A, Ch 11.
Diving Duty Pay, Continued

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

Computation
Area
Use this area to compute Capt Masts diving duty pay for July 2007:
Officers rate is $215 per month.

Diving Duty Pay, Continued

Practice
Solution
Capt Masts diving duty pay is computed as follows:

Step Action Example
1 Divide $215 by 30 days. $215.00
30
$7.17
2 Multiply answer in step 1 by number of days
in month-rated diving duty pay.
$7.17
23
$164.91

Capt Mast will receive $164.91 diving duty pay for July 2007.

Hardship Duty Pay

General
Provisions
Hardship duty pay (HDP) superseded foreign duty pay (FDP). HDP was
established effective 4 Feb 1999, and FDP was terminated effective
3 Feb 1999.

HDP is payable to members entitled to basic pay, at a monthly rate not to
exceed $300, while the member is performing duty designated by the
Secretary of Defense as hardship duty. The Secretary of Defense has
established that HDP will be paid to members for performing a designated
hardship mission, when assigned to a designated location or when serving on
a designated involuntary extension of duty.

The approved HDP missions, locations, and involuntary extensions of duty
requirements, and the applicable HDP rates can be found in DoDFMR
7000.14-R, Vol. 7A, Ch. 17. Entitlements will start on the day of arrival for
duty in the designated area and will terminate the day after the date of
departure from the designated area.

Rates Payable The entitlement for mission assignment (HDP-M) is payable to members both
officer and enlisted for performing designated hardship missions. It is
payable at the full monthly rate, without prorating or reduction, for each
month, during any part of which the member performs a specific mission at
the rate of $150 per month, regardless of pay grade.

The entitlement for location assignment (HDP-L) is payable to members for
either permanent change of station duty/deployed/attached duty of over 30
days duration in a specified location deemed as a hardship duty location by
the Secretary of Defense. There are two HDP-L payables:

HDP-L for designated areas is payable to all members, regardless of pay
grade, at the rates shown in ref DoDFMR 7000.14-R, Vol. 7A, Ch. 17.

HDP-L for certain areas is payable only to enlisted members at the rates
shown on the following page.
Hardship Duty Pay, Continued

Rates Payable,
continued

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

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

Grade Monthly Rate Grade Monthly Rate
E1 $8.00 E6 $20.00
E2 $8.00 E7 $22.50
E3 $9.00 E8 $22.50
E4 $13.00 E9 $22.50
E5 $16.00
Hardship Duty Pay, Continued

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

Action Example
Multiply $150 by number of months Sgt
Thomas was deployed.

2 Jun arrived designated area
Gets credit for whole month $150
Month of Jul gets credit for month $150
2 Aug departs designated area $150
Gets credit for whole month $450
$150
3
$450

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

Career Sea Pay

Career Sea Pay
Rates
For general conditions of entitlement and restrictions, refer to DoDFMR
7000.14-R, Vol. 7A, Ch. 18.

The rate of career sea pay (CSP) is dependent upon the individuals pay grade
and total cumulative years of sea duty. All members in pay grades E-1
through O-6 are eligible for CSP. CSP is paid on a monthly basis but can be
prorated on a daily basis. CSP is taxable for federal and state income taxes.

A member who is entitled to CSP and has served 36 consecutive months of
sea duty is entitled to career sea pay premium (CSP-P), beginning with the
first day following completion of 36 consecutive months and each month
thereafter. The monthly rate of CSP-P is $100 per month for all members and
is paid in addition to CSP.

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

Computing Sea
Duty Periods
When computing sea duty periods, follow chart below:

Step Action Example
1 List and add all beginning dates of each sea
duty period.
2000 06 05
2004 03 20
4004 09 25
2 List and add all ending dates of each sea duty
period.
2002 07 21
2005 03 15
4006 10 36
3 Subtract total beginning dates from total
ending dates.
4006 10 36
4004 09 25
02 01 11
4 Add 1 day for each sea duty period to account
for inclusive dates.
02 01 11
+ 2
02 01 13
5 Total sea service. 2 yrs 1 mo 13 days
Career Sea Pay, Continued

Practice
Situation
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

Computation
Area
Use this area to compute SSgt Wallabys total sea service.

Career Sea Pay, Continued

Practice
Solution
SSgt Wallabys total sea service is computed as follows:

Step Action Example
1 List and add all beginning dates of each sea
duty period.
2000 08 14
2004 03 10
4004 11 24
2 List and add all ending dates of each sea duty
period.
2002 03 21
2004 11 27
4006 14 48
3 Subtract total beginning dates from total
ending dates.
4006 14 48
4004 11 24
02 03 24
4 Add 1 day for each sea duty period to account
for inclusive dates.
02 03 24
+ 2
02 03 26
5 Total sea service 2 yrs 3 mo 26 days

SSgt 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

SSgt Wallabys monthly career sea pay is $160.
Pay
Grade
1 Yr
or Less
Over
1 Yr
Over
2 Yrs
Over
3 Yrs
E-6 $135 $135 $160 $280

Foreign Language Proficiency Pay

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

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

Rates FLPP rates are according to the 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.

Entitlement
Dates
FLPP entitlement starts on the DLPT test date and continues automatically for
a period of one year. Members must re-test annually and maintain a
qualifying proficiency level to remain eligible for FLPP.

Termination of FLPP occurs when a member fails to re-test or maintain the
minimum level of proficiency score required or loses eligibility due to loss of
a qualifying MOS or AMOS or through PCS or billet reassignment.

FLPP
Schedules
There are three categories of languages authorized for Marines:

Immediate Investment (FLPP A)
Stronghold (FLPP B)
Other DoD-approved languages not on the strategic list (FLPP C)
Foreign Language Proficiency Pay, Continued

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

FLPP A

FLPP B

FLPP C
Level of Proficiency Monthly Rate
1/1, 1+1, or 1/1+ $100
2/2 $200
2+/2 or 2/2+ $250
2+/2+ $300
3/2+ or 2+/3 $350
3/3 $400
3/3/3/ or 4/4 $500
1/1, 1+1 or 1/1+ $50
2/2 $150
2+/2 or 2/2+ $175
2+/2+ $200
3/2+ or 2+/3 $250
3/3 $300
3/3/3/ or 4/4 $400
1/1, 1+1 or 1/1+ $25
2/2 $125
2+/2 or 2/2+ $150
2+/2+ $175
3/2+ or 2+/3 $200
3/3 $275
3/3/3/ or 4/4 $300

Practice
Situation
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?

Computation
Area
Use this area to compute Sgt Betancourts FLPP start date, monthly FLPP
amount, termination date, and restart date.


Practice
Solution
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.

Lesson 1 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.

Item 1 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. $15,985.00
b. $20,151.00
c. $18,590.40
d. $17,550.60

Item 2 SSgt Rodgers graduated from Recruiting School on 2 Feb 2007. He was on
leave from 3 to 28 Feb 2007. He reported to 1st Marine Corps District,
Recruiting Station New York on 15 Mar 2007, and was immediately sent to
recruit out of recruiting sub-station Manhattan. Recruiting monthly SDA pay
is $450. What is SSgt Rodgers SDA pay amount for the month of Mar
2007?

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

Item 3 Hostile fire or imminent danger is $225 per month. Cpl Huey was assigned
TAD to Afghanistan on official duty from 08 Apr to 10 May. What is the
total amount of hostile fire/imminent danger pay he will receive while TAD
to Afghanistan?

a. $225
b. $240
c. $450
d. $675

Item 4 After 3 years assigned to MCAS as a combatant diver, receiving a monthly
diving duty pay of $240 a month, Capt Mast detached his permanent duty
station on 23 July 2007. How much diving duty pay was Capt Mast entitled
to for the month of July 2007?

a. $150
b. $240
c. $175
d. $184

Item 5 Use the chart provided to answer the following question. Cpl Hernandez has
been stationed in a designated hardship duty location for over a year now
receiving hardship duty pay in the amount of $13 a month. Cpl Hernandez
was promoted on 1 July 2007 to the rank of Sgt. What is Sgt Hernandez
hardship duty pay for the month of July?

Foreign Hardship Duty Pay Chart

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

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

Item 6 Using the sea duty periods below, compute Sgt Wallabys total sea service.

From To
14 Aug 2000 21 Mar 2002
10 Mar 2004 27 Nov 2004

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

Item 7 Sgt Jackson reported to Camp LeJeune on 3 Jan 2006. He then went TAD to
the 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. 3 Jan 2006
b. 3 May 2006
c. 15 May 2006
d. 3 Mar 2006

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.

1 c 2-6
2 b 2-9
3 c 2-12
4 d 2-15
5 d 2-19
6 c 2-21
7 b 2-24



LESSON 2
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 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 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).

Learning
Objective

Determine 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.


Topic See Page
Introduction 2-33
Overseas Extension Incentive 2-34
Hazardous Duty Incentive Pay: Flight Duty 2-38
Hazardous Duty Incentive Pay: Parachute and Demolition 2-41

Overseas Extension Incentive

Conditions of
Entitlement
Enlisted members entitled to basic pay are entitled to this special pay, if they

Have a specialty designated by the Secretary concerned.

Completed a tour of duty at a location outside the continental United States
designated by the Secretary concerned.

Execute, at the end of the tour of duty, an agreement to extend that tour for
a period of at least one year.

Types of
Entitlement
When a member has agreed (and is approved) to extend the tour of duty, the
member is entitled to one of the following incentives:

Special pay in monthly installments not to exceed $80 per month.

An annual bonus not to exceed $2000 per year is paid in lump sum or
monthly installments.

Member may elect to receive a period of special rest and recuperative
absence instead of the special pay or bonus. Member may not receive any
special pay or bonus for the same extension period.

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

Restrictions A member may not receive more than one of the following bonuses:

Overseas extension bonus
Rest/recuperative absence
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.
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 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.

Practice
Situation 1
Sgt Parker has completed a one-year tour and has decided to extend in
Okinawa, Japan, for an additional year. Sgt Parker has decided to take the 15
days leave with the round trip ticket to his homeport. How much of these 15
days of leave will Sgt Parker be charged?

Computation
Area 1
Use this area to compute how many days of leave will be charged.


Practice
Solution 1
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.

Practice
Situation 2
GySgt Moses has completed a one-year tour and has decided to extend in
Iwakuni, Japan, for an additional year. GySgt Moses has decided to take the
annual bonus lump sum money not to exceed $2000. In the 10th month of his
12-month extension, he received orders to report immediately to Camp
LeJeune for duty. How much money does GySgt Moses have to give back
from his lump sum received?

Computation
Area 2
Use this area to compute how much money is given back.


Practice
Solution 2
GySgt Moses will not have to pay back any of his lump sum incentive pay
since his PCS departure date from the overseas area is the result of actions
taken by the military service concerned and no fault of his own.

Hazardous Duty Incentive Pay: Flight Duty

General
Provisions and
Definitions
Members under competent orders to participate in regular and frequent aerial
flights as crew or non-crew members and that meet the requirements are
entitled to hazardous duty incentive pay (HDIP).

A crewmember is an officer or enlisted service member who is specifically
assigned and routinely performs flight duties that relate to actual aircraft
operations or contribute directly to in-flight operations or maintenance of
associated equipment.

A non-crewmember is an officer or enlisted service member assigned to duty
involving frequent and regular participation in aerial flight, but who does not
perform flight duties that relate to actual operation of the aircraft or contribute
directly to the in-flight operation or maintenance of associated equipment.

Rates The monthly HDIP rate for non-crewmembers is $150. Monthly HDIP rates
for crewmembers are based on pay grade. Refer to DoDFMR 7000.14-R, Vol.
7, Ch. 22.

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

Minimum
Flying Time
Required Each
Month
A member in a flying status must perform the minimum number of hours in
aerial flights. The minimum hours required are 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 has not been met, then 12 hours of aerial flight are
required.
Hazardous Duty Incentive Pay: Flight Duty, Continued

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

Month Hours Rate
Jan 4
Feb 4
Mar 0
Apr 4
May 8
Jun 8
Jul 0
Aug 5
Sep 0
Oct 0
Nov 0
Dec 1
Hazardous Duty Incentive Pay: Flight Duty, Continued

Practice
Solution
Capt Airys HDIP per month is as follows:

Month Hours Rate Reason
Jan 4 175 Meets minimum requirement.
Feb 4 175 Meets minimum requirement.
Mar 0 175 First month of 3-month period; enough hours
flown in May to cover March.
Apr 4 175 Meets minimum requirement.
May 8 175 Meets minimum requirement and 4 hours can
be used to cover March.
Jun 8 175 Meets minimum requirement with 4 additional
hours.
Jul 0 175 First month of 3-month period. Can use
additional 4 hours from June to meet
requirement for July.
Aug 5 175 Meets minimum requirement.
Sep 0 0 First month of 3-month period; 1 hour
available from August.
Oct 0 0 Not enough hours to meet requirement.
Nov 0 0 Not enough hours to meet requirement.
Dec 1 0 Not enough hours to meet requirement.

Hazardous Duty Incentive Pay: Parachute and Demolition

Purpose The purpose of Hazardous Duty Incentive Pay (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.

Entitlement
Dates
A service member is entitled to HDIP on the date the member reports for and
enters into duty in compliance with orders.

Entitlement to HDIP terminates on the date published in the termination
orders or on the date the member is detached from the command, and is no
longer required to perform the hazardous duty, if the date is different from
what appears on the orders.

Rates The rate payable for hazardous duty is $150 per month. A member qualified
as a high-altitude, low-opening (HALO) parachutist will receive hazardous
duty pay in the amount of $225 per month. Incentive pay is payable for any
full month and is prorated for any portion of a calendar month during which a
member under orders performs demolition duty by use of live explosives.

Requirements
for Parachute
HDIP
Requirements to receive parachute HDIP, the member must

Undergo training or has already completed training to be designated a
parachutist or a parachute rigger.

Be required by orders to engage in parachute jumping from an aircraft in
aerial flight.

Perform the specified minimum jumps.
Hazardous Duty Incentive Pay: Parachute and Demolition,
Continued

Requirements
for Parachute
HDIP,
continued
To receive HALO pay, the member must

Jump at an altitude greater than 10,000 feet with a free-fall to low altitude
before opening the parachute.
Jump at high altitude without using a static line.
Graduate from the US Army (or other military) free-fall course.
Perform free-fall jumps.

Note: A member may draw only one type of parachute pay at a time. If a
member is qualified for both, the member is entitled to the higher rate.

Jump
Frequency
When a jump is performed in any calendar month, the member qualifies for
parachute duty pay for that month and one month before and after, or for that
month and the next two following months.

When jumps are made two or more consecutive months, a new three-month
period starts with each month a jump is made.

When a member begins parachute training or reports for duty with a
parachute unit during the month, the month the training or duty begins
becomes the first month of the three-month period. If that date is other than
the first day of a month, the month of pay is prorated.

Requirements
for Demolition
HDIP
To receive demolition pay, a member is required by orders to perform the
following duties involving the use of live explosives:

Demolish underwater objects.
Participate as students or instructors in training for training for demolition
duty.
Participate in proficiency training to maintain skills.
Experiment with or develop tools, equipment, or procedures for
demolition.
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.

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

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

Continued

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

Step Action Example
1 HDIP rate + $150 HDIP rate $150.00
2 Divide the HDIP rate by
30 days in the month.
Divide by 30 30

3 Parachute training date
began to end of month.
14-30 Jun 17 days
4 Multiply the daily pay
rate by the number of
days entitled to HDIP
for the month.
$85.00

Lesson 2 Exercise

Directions Complete exercise items 1 through 3 by choosing the correct answer. Check
answers against correct ones listed at the end.

Item 1 GySgt Knox has completed a one-year tour and has decided to extend on
Okinawa for another year. GySgt Knox has decided to take 30 days leave as
his incentive entitlement for extending. How much of this leave is
chargeable?

a. None
b. 30 days
c. 15 days
d. 10 days

Item 2 Capt Kirk receives $175 per month for flight pay if he meets his 4-hour flight
requirement for that month, or a combination of 12 hours within a continuous
three-month period. Using Capt Kirks flight hour chart provided, what is
his total flight pay for January, February, and March combined?

a. $175
b. $350
c. $600
d. $525
Month Hours $
Jan 4
Feb 3
Mar 5

Item 3 Incentive pay for parachute duty is $150 a month. SSgt Parks began
parachute training on 14 June. How much parachute HDIP will SSgt Parks
receive for the month of June?

a. $75
b. $150
c. $65
d. $85


1 a 2-34
2 d 2-38
3 d 2-41
LESSON 3
ADVANCE ENTITLEMENTS
Introduction

Scope Almost every Marine will receive PCSO, TAD orders, or both in their first
enlistment in the Marine Corps. For some it can be an easy transition, but for
others, it can be a financial nightmare if not planned accordingly. There are
certain entitlements that members can draw in advance with PCSO.

In this lesson, you will learn how to compute the different entitlements and
allowances associated with either PCS or TDY move.

Learning
Objectives

Identify procedures to request a members advance pay.

Identify procedures to request a members advance basic allowance for
housing.

Determine a members eligibility for advance per diem.

Determine a members eligibility for advance dislocation allowance.


Topic See Page
Introduction 2-47
Advance Pay 2-48
Advance BAH 2-51
Advance Per Diem 2-53
Advance Dislocation Allowance 2-56
Advance Pay

General
Knowledge
A member may be entitled to advance pay upon receipt of Permanent Change
of Station (PCS) orders. This includes:

Transfer from the old duty station to a new duty station.
Reenlistment after a break in service.
Commencement of active duty by newly commissioned officers.

Advance pay may be paid for one, two, or three months. A specific monetary
amount may be requested provided the amount specified does not exceed the
amount authorized by regulation or the commanding officer.

Do not pay advance pay in an amount that would require the stoppage of
allotments for insurance or support of dependents.

Normal
Parameters for
Advance Pay
For Corporals (E-4) and above, no approval is required when requesting one
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 normal parameters must
submit the following substantiation:

A copy of PCS orders
A signed statement of understanding stating the purpose of the advance
pay program and confirming that the intended use of the funds is in
accordance with the stated purpose.

Outside Normal
Parameters
Written approval is required from the 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.
Advance Pay, Continued

Outside Normal
Parameters,
continued
Requesting advance pay outside the normal parameters requires

A NAVMC 11116 Miscellaneous Military Pay Order/Special Payment
Authorization, signed by the commanding or executive officer.

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

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

Step Action
1 Compute the amount of advance pay for one month. Take the
Marines monthly basic pay and subtract federal income tax
withholding (FITW), state income tax withholding (SITW),
Social Security/Medicare, Servicemembers Group Life Insurance
(SGLI), garnishments, forfeitures, dependent dental plan, Thrift
Savings Plan (TSP), and USN/MC Retirement Home.
2 Multiply the amount computed in step 1 by the number of months
being requested.
3 Divide the total from step 2 by the number of months of
repayment. Drop the cents.
4 Multiply the amount computed in step 3 by the number of months
of repayment. This is the amount of advance pay that the member
will receive.
5 The final step is to determine whether the member can afford to
repay the advance pay. Do this by computing the 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.
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 end of current contract (ECC)
date.

Payment Types Normal payment. For Marines enrolled in Direct Deposit/Electronic Fund
Transfer (DD/EFT), payments will be made to their financial institution
within approximately 48 hours. Marines not enrolled in DD/EFT will receive
their advance on the next scheduled payday.

Special payment. A special payment is made by using a Military Payroll
Money List (MPML), also known as a daily special payroll.

Advance BAH

General
Knowledge
When allowed by the regulation of the service concerned, a 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 occupying
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 PCS Orders.

Normally, the advance will not be disbursed more than three working days
before the date payment under the lease or rent must be made. Disbursement
more than three working days before the date payment can be made in
extenuating circumstances.

Substantiation Advance BAH is substantiated with a completed NAVMC 11116
Miscellaneous Military Pay Order/Special Pay Authorization.

Amount The amount of the advance will be the actual cost to move into the residence
supported by copies of leases, utility company statements, and any other
pertinent documents available. This amount will not exceed the total BAH
amount that was authorized by the Marines commanding officer.

Repayment 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 Lump sum recoupment of any outstanding housing advance will be made
immediately on receipt of information that the member has vacated the
housing for which the advance was made.
Advance BAH, Continued

Payment Types Normal payment. For Marines enrolled in DD/EFT, payments will be made
to their financial institution within approximately 48 hours. Marines not
enrolled in DD/EFT will receive their advance in the next scheduled payday.

Special payment. A special payment is made by using a MPML also known
as a daily special payroll.

Advance Per Diem

General
Knowledge
Per diem is a daily allowance payable for all periods of temporary duty, to
cover the cost of lodging plus meals and incidental expenses (M&IE) relating
to the ordered travel.

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

Per Diem Not
Payable
At any period, per diem is not payable under the following circumstances:

The traveler is on field duty.

On temporary duty while a traveler is a bed patient in the hospital. (This
does not preclude payment of per diem for the day of arrival at the hospital
or for the day of departure from the hospital.

On temporary duty aboard a government vessel when both quarters and
mess are available.

On a group travel status exists, except for meals and/or quarters
necessarily procured.

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

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

Fee and tips to bell hops, maids, porters, and baggage handlers at hotels
Personal laundry, cleaning and pressing of uniforms
Phone calls necessary to reserve lodging
Mailing costs associated with filing travel vouchers and payment of
government charge cards
Local transportation to meals, if meals cannot be obtained at the TAD site
Taxes (except for lodging in CONUS)
Advance Per Diem, Continued

Incidental
Expenses,
continued
CONUS rate is $5.00; OCONUS rate is $3.50 if the lodging is on a U.S.
installation. Otherwise, it is the localitys incidental rate to include travel
days overseas.

Per Diem Rates Per diem rates can be found in Appendix D of the Joint Federal Travel
Regulation (JFTR). Per diem rate within CONUS is $12.05 a day ($10.80 per
day for meals in a government mess plus $5.00 for incidental expenses).

OCONUS rates are as follows:

In a government mess, meals are $10.80 per day plus the incidental amount
listed in Appendix B of the JFTR 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 of the JFTR
will be added to the M&IE rate to determine the per rate for the day.

Beginning and
Ending of Per
Diem
Per diem is based on the location of the traveler at 2400; however, there are
occasions when the traveler is en route to a TAD location and does not arrive
at the lodging site until after 2400. In that case, the maximum per diem will
be determined as if the traveler had been at the lodging location prior to 2400.

If authorized travel requires more than one day and a stopover for the night is
required, the maximum per diem will be based on the stopover point. The
M&IE rate is payable to the traveler without itemization of expenses and
without receipts.

If a TAD period is for more than 12 hours, but less than 24 hours, per diem
will be determined by allowing 75% of the M&IE rate for the location of the
TAD.

If more than one location is involved and the traveler is not required to obtain
lodging, the per diem will be based on the highest M&IE rate for all locations
concerned.
Advance Per Diem, Continued

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

Advance Dislocation Allowance

General
Knowledge
The purpose of Dislocation Allowance (DLA) is to partially reimburse a
member for the expenses incurred in relocating the household on a PCS,
ordered for the Government's convenience, or incident to an evacuation.

Dislocation
Allowance
DLA is payable as an advance to PCS Orders or upon initial settlement after
the execution of orders. The rate of DLA payable depends on a members
rank and marital status at time of PCS.

Amount
Allowed
Advance dislocation allowance, as authorized on the PCS/PCA orders by the
order issuing official, is payable at 80% of the amount of DLA allowed. DLA
will be paid at a rate determined by the service members rank and dependent
status at the time of PCS/PCA orders.

Lesson 3 Exercise

Directions Complete exercise items 1 through 4 by performing the action required.
Check your answers against those listed at the end of this lesson.

Item 1 Which would fall outside normal parameters and be required to have written
approval from the commanding officer for an advance pay request regardless
of the amount requested?

a. Lance Corporal Smith
b. Gunnery Sergeant Wickman
c. Corporal Matthews
d. Captain Hayes

Item 2 Sgt 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. 24
b. 48
c. 72
d. 96

Item 3 Advance per diem is payable to a member when he or she is

a. on field duty.
b. a bed patient in the hospital.
c. on official TAD orders.
d. on a group travel status.

Item 4 Advance dislocation allowance is payable upon __________ orders.

a. Temporary Additional Duty (TAD)
b. deployment
c. Permanent Change of Station (PCS) and Permanent Change of
Assignment (PCA)
d. Permanent Change of Station (PCA) only


1 a 2-48
2 b 2-52
3 c 2-53
4 c 2-56

STUDY UNIT 3
DEDUCTIONS AND COLLECTIONS
Overview

Scope 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.

Purpose 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.

In This Study
Unit

Lesson See Page
Deductions 3-3
Collections 3-27


(This page left intentionally blank.)
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.

Learning
Objectives

Identify items subject to federal income tax withholding deduction.

Identify items subject to state income tax withholding deduction.

Identify items subject to Federal Insurance Contributions Act deduction.

Compute a members Servicemans Group Life Insurance deduction.

Compute a members Armed Forces Retirement Homes deduction.

Determine a members Dependent Dental Plan eligibility.

Determine a members Thrift Savings Plan (TSP) eligibility.

Identify the two types of pay allotments.


Topic See Page
Introduction 3-3
Federal Income Tax Withholding 3-5
State Income Tax Withholding 3-9
Federal Insurance Contributions Act 3-11
Servicemans Group Life Insurance 3-13
Armed Forces Retirement Home Deductions 3-16
Dependent Dental Plan 3-17
Thrift Savings Plan 3-19
Pay Allotments 3-20

Federal Income Tax Withholding

Authority Federal Income Tax Withholding (FITW) rates are published in accordance
with Treasury Department, Circular E, and other U.S. Department of Treasury
regulations.

A member may authorize additional amounts to be withheld monthly to meet
income tax needs.

Taxable Wages The following categories are subject to federal withholding:

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

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

Note: When basic pay exceeds $7,489.80 (Sergeant Major of the Marine
Corps), combat zone tax exclusion for 01 and above is based on that
amount, plus HFP/IDP of $225. All over that amount is taxed.

Wages Not
Subject to
Federal Income
Tax
The following wages are not subject to FITW:

Wages earned by all active duty members for any month during which
they qualify for combat zone tax exclusion.

Wages earned by all active duty members for any part of any month in
which the member is in a missing status.

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

Wages Not
Subject to
Federal Income
Tax, continued
Pay that is forfeited by court-martial sentence or non-judicial punishment
(NJP) is a loss of entitlement and is not subject to federal income tax.

Legal
Residence
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
2058, State of Legal Residence Certificate.

Combat Tax
Exclusion
All active duty members, for any month during which they qualify for combat
zone tax exclusion, are exempt from paying taxes on the monies earned
during that month, as prescribed in paragraph 440103, of DODFMR, Vol. 7A.

The termination date for tax exclusion cannot extend beyond the effective
date specified in an executive order terminating the designation of the combat
zone.

Federal Income
Tax Table
Use the following table to compute married members federal income tax.

Federal Income Tax Table for Married Members

Over

Not Over
Amount of Income Tax
Withheld

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

Note: Updated Federal Income Tax Withholding tables are published as
PAANS and can be obtained under website www.missa.manpower.usmc.mil.

Computing
Federal Taxes
Follow the steps below to compute federal taxes:

Step Action
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.

Note: Effective 1 January 2012, the standard deduction for each
exemption is $3,800.
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 the given percentage and add to the pre-
determined tax in the table.
6 Divide the yearly taxes by twelve. This gives you the amount of
federal income tax to be withheld.

Practice
Situation
Sgt Aimes has been on active duty for 6 years. His basic pay is $2,662.20,
and he claims Married-3 for federal exemptions purposes. What is Sgt
Aimes monthly federal tax withholding?

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


Practice
Solution
Sgt Aimes monthly federal tax withholding is computed as follows:

Step Action Example
1 Monthly wages (wages subject to federal
income tax) 12.
$2662.20
12
$31,946.40
2 Number of exemptions 3,800. 3
3,800
$11,400.00
3 Subtract block 2 total from block 1 total. $31,946.40
11,400.00
$20,546.40
4 Subtract standard deduction for M-3
exemption from block 3 total.
$20,546.40
8000.00
$12,546.40
5 Multiply block 4 total by the set percentage. $12,546.40
.10
$1,254.64
6 Divide yearly tax by 12. $1,254.64
12

$104.55

Sgt Aimes monthly federal tax withholding is $104.55.

State Income Tax Withholding

Authority State income tax withholding (SITW) rates are published in accordance with
Treasury Department, Circular E, and other Treasury Department regulations.

A member may authorize additional amounts to be withheld monthly to meet
income tax needs.

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

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

*Entitlement is taxed at the applicable percentage rate for federal tax.
Entitlement is taxed at the flat percentage rate in accordance with APSM,
Appendix D, for state tax.

Wages Not
Subject to State
Income Tax
The following wages are not subject to state income tax withholding:

Wages earned by all active duty members for any month during which
they qualify for combat zone tax exclusion.

Wages earned by all active duty members for any part of any month in
which the member is in a missing status.

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

Pay that is forfeited by court-martial sentence or NJP is a loss of
entitlement and is not subject to state income tax.
State Income Tax Withholding, Continued

General
Knowledge
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 (State of Legal Residence Certificate).

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.

Computing
State Taxes
The tax table is broken down into the seven areas below. Since all areas are
not used in every state, please refer to APSM, Appendix D.

Wages: Minimum income
Standard deductions
Standard exemptions
Military exemption
Tax credit
FITW credit
Taxation tables and percentages

State Tax
Requirement
The state in which a member claims legal residence may tax compensation
and other income regardless of the 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.
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.

Amount of
Withholding
for FICA
Calendar year tax amounts are shown in the DODFMR, Vol. 7A. FICA is
deducted on a year-to-date basis at the rate of 7.65%. This is broken down as
follows: 6.2% for Social Security and 1.45% for Medicare.

Effective 1 Jan 2010, the maximum taxable wages for Social Security is
$106,800.

Wages Subject
to FICA
The following types of compensation are subject to FICA:

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

Taxable amounts earned, but unpaid, on the date of death.

Basic pay or compensation earned during a members absence from duty
because of injury, sickness, or hospitalization.

Amounts received by a member before the governments voidance of the
members enlistment contract.
Federal Insurance Contributions Act, Continued

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

Section G of the Leave and Earning Statement (LES)

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

EXEMPTIONS M-01
WAGES THIS PRD $4161.30
WAGES YTD $29129.10
FEDERAL TAX YTD $2924.18
SSEC WAGES THIS PRD $4161.30
SSEC WAGES YTD $29129.10
SSEC TAX YTD $1806.00
MEDICARE WAGES THIS PRD $4161.30
MEDICARE WAGES YTD $29129.10
MEDICARE TAX YTD $422.37

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

Step Action Example
1 Find the taxable amount: block 35 of the LES
(Social Security wages this period).
$4161.30
2 Multiply by 6.2% (current rate for Social
Security)

Monthly deduction for Social Security

$4161.30
.062
$ 258.00

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

Step Action Example
1 Find the taxable amount: block 35 of the LES
(Medicare wages this period).
$4161.30
2 Multiply by .0145 (current rate for Medicare).

Monthly deduction for Medicare
$4161.30
.0145
$ 60.34

Servicemembers Group Life Insurance

SGLI Coverage Effective 1 Sep 2006, the Servicemembers 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 they may elect to waive
coverage. The coverage will terminate the last day of the month that the
member elects no coverage or a reduced amount, and the reduced amount will
commence on the 1st of the next month.

If no elections are made, the member will automatically be covered for
$400,000.

Members may change their election at any time.

Rates Below are current rates for SGLI. Current rates can be found in the
DODFMR Vol. 7A.

Rate Coverage
$28.00 $400,000
$24.50 $350,000
$21.00 $300,000
$17.50 $250,000
$14.00 $200,000
$10.50 $150.000
$7.00 $100,000
$3.50 $50,000
Servicemembers 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 T-
SGLI.
This program helps severely injured servicemembers through their time of
need with a one-time payment. The amount varies depending on the injury.
As of 1 Dec 2005, all members covered by SGLI are eligible for T-SGLI
coverage. This coverage applies to active duty members, reservists, funeral
honors duty, and one-day muster duty.

Family SGLI Effective 1 Nov 2001, family SGLI (F-SGLI) automatically covers spouse
and dependent children of uniformed servicemembers. For the spouse and
children to be eligible for family coverage, the servicemember must be
enrolled in the full-time SGLI coverage. Enrollment is based on dependent
information on the MCTFS.

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

Dependent
Coverage
A spouse of an eligible member automatically is covered in the amount of
$100,000.

Each child is covered in the amount of $10,000 at no cost to the member.

Effective Date Coverage under F-SGLI is effective with regard 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
Servicemembers 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.

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. Deductions for
partial months of service are not prorated.

Members
Subject to
Deduction
The following are personnel subject to the Armed Forces Retirement Home
deduction:

Regular enlisted members

Warrant and limited duty officers of the Armed Forces (includes the Coast
Guard only when operating as a military service in the Navy)

Members Not
Subject to
Deduction
The following are personnel not subject to the Armed Forces Retirement
Home deduction:

Reserve component members
Commissioned officers other than Limited Duty Officers (LDOs)
Selective trainees inducted into federal service
Members in a non-pay status for the entire calendar month

Deduction
Precedence
Retirement home deductions apply only against pay. They take precedence
over all other deductions and collections, except forfeitures, and FICA taxes.

Dependent Dental Plan

Purpose 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. Metropolitan Life Insurance Company, Inc.
(MetLife) administers and underwrites the TDP.

Eligibility To be eligible for the TDP, the sponsor must have at least 12 months
remaining on his or her service commitment with the parent service at the
time of enrollment. Individuals eligible to enroll in the TDP include family
members of active duty, selected reserves, and IRR servicemembers. This
includes spouses and unmarried children (including stepchildren, adopted
children, and wards) under the age of 21. Family members may be eligible
for TDP until the end of the month in which they turn 23 if they are

Enrolled full time at an accredited college or university

More than 50% dependent on the sponsor for their financial support, or

Disabled by illness or injury that occurred before their 21st birthday or
between the ages of 21 and 23, if they were enrolled as a full-time student
at the time of the illness or injury, and they were more than 50% dependent
on the sponsor for financial support.

Effective Date
of Coverage
In most cases, the coverage is effective the first day of the month after the
month in which a sponsor enrolls and one 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.
Dependent Dental Plan, Continued

Disenrollment New enrollees must remain enrolled in the TDP for a minimum of 12 months.
Anyone who disenrolls prior to completing his or her 12-month lock-in is
responsible for payment of all remaining premiums, unless disenrolled for a
valid reason. 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 to an 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
unavailable at the local uniformed service dental treatment facility, the
active duty member may elect (within 90 days of the transfer) to disenroll
his or her family members from the TDP.

When an active duty, selective reserve, or IRR member is transferred to
the standby or retired reserves.

Allotments If the member has a payroll account and if sufficient funds are available at the
time of collection, the government will collect the 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.

Thrift Savings Plan

General
Knowledge
The 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 private corporations to their employees
under a 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.

Enrolling in
TSP
Any eligible member may elect to participate in the TSP. Members can elect
to start their elections during open season and may make changes at any time.
An election form (TSP-1) must be submitted for enrollment.

Note: Open season dates may vary.

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.

Pay Allotments

General
Knowledge
An allotment is a designated amount of money that is automatically
distributed from your pay. There are many reasons to have an allotment,
including setting aside funds for family, paying off a loan from the military,
or paying your life insurance premiums. It is a convenience and privilege that
should not be exploited or abused.

Eligibility All active duty servicemembers, midshipmen, cadets, and reservists are
eligible to make allotments from their pay. In addition, to help the
servicemembers transition from active duty to retired status, retirees are
eligible to continue all existing authorized allotments.

Types of
Allotments
There are two types of allotments: discretionary and non-discretionary.

You can have up to 6 discretionary allotments per month, and any number of
non-discretionary allotments, as long as the total allotments per month are 15
or fewer.

Discretionary
Allotments
A discretionary allotment is a voluntary allotment that is setup by a member
and may be stopped, started, or adjusted at will. Examples include, but are
not restricted to the following:

Payments of premiums for commercial life insurance on the member or
the 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.
Pay Allotments, Continued

Discretionary
Allotments,
continued
Payment of a loan to repay a consumer credit card company, such as
Household Finance, Beneficial, etc.

Payments into a savings deposit program.

Non-
Discretionary
Allotments
Non-discretionary allotments may be voluntary or involuntary, and they
cannot be started or stopped at the 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
Post-Vietnam Era Veterans Educational Assistance Program.

Voluntary liquidation of indebtedness to the United States government
that include the following:

Indebtedness incurred due to defaulted notes insured by the
Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs.

Payment of amounts due under the Retired Servicemans Family
Protection Plan, in the case of retired servicemembers serving on
active duty.
Pay Allotments, Continued

Non-
Discretionary
Allotments,
continued
Involuntary allotments:

Court ordered payments, such as child support.

Any repayment of debts owed to an organization for funds administered
on behalf of the U.S. Government and any such debts assigned to a
collection agency.

Payment for pledges for charitable contributions such as Combined
Federal Campaign (CFC) and Navy and Marine Corps Relief Society.

Payment of delinquent federal, state, or local income or employment
taxes.

Repayment of indebtedness due to overpayment of pay or allowances.

Allotment
Payment Office
The allotment payment office for the Marine Corps is

Marine Corps
The Defense Finance and Accounting Service-Kansas City Center
Kansas City, MO 64197

Telephone: 1-888-DFAS411 (888-332-7411)

Lesson 1 Exercise


Item 1 Which of the following wages is subject to federal income tax?

a. Basic pay
b. Pay to legal residents of Puerto Rico
c. Missing in action pay
d. Combat zone pay

Item 2 A Marine __________ is exempt from paying state income tax on earnings
during that month.

a. deployed in a combat zone
b. hospitalized for a week
c. reenlisting with a cash reenlistment bonus
d. recruiter receiving special duty pay

Item 3 Which type of compensation is subject to FICA?

a. Montgomery G.I. Bill
b. Special pay
c. Monthly basic pay or compensation received for the performance of
active duty.
d. Monthly basic pay earned while serving in a combat zone

Item 4 Effective 1 Sep 2006, how much coverage does SGLI automatically insure
every member against death while the member is serving full time active duty
or training on orders to duty not limited to 30 days or less.

a. 150,000
b. 200,000
c. 300,000
d. 400,000

Item 5 Who sets the maximum monetary amount for the Armed Forces Retirement
Home monthly deductions?

a. President of the United States
b. Commandant of the Marine Corps
c. Secretary of Defense
d. Company commander

Item 6 To be eligible for the Tricare dental plan, the sponsor must have how many
months remaining on his or her service commitment with the parent service at
the time of enrollment?

a. 6 months
b. 9 months
c. 12 months
d. 24 months

Item 7 When can any eligible member elect to participate in the Thrift Savings Plan?

a. When approved by the Commanding Officer
b. At any time
c. Upon enlisted senior member approval
d. When instructed by the Commander-in-Chief

Item 8 The two types of authorized allotments of military pay and allowances are

a. discretionary and special.
b. basic and special.
c. voluntary and non-voluntary.
d. discretionary and non-discretionary.


1 a 3-5
2 a 3-9
3 c 3-11
4 d 3-13
5 c 3-16
6 c 3-17
7 b 3-19
8 d 3-22


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LESSON 2
COLLECTIONS
Introduction

Scope It is never a good feeling when someone else has your fate in their hands just
because you lacked judgment for a few seconds and discredited yourself and
the Marine Corps by your actions. Now you await verdict as to a possible
reduction in grade, forfeiture of pay for a number of months, bad conduct
discharge, or even hard time in prison. How will a forfeiture of money affect
your pay? In this lesson, you will learn about court-martial sentences and
non-judicial punishment deductions.

Learning
Objectives

Determine a members maximum court-martial monetary forfeiture.

Determine a members non-judicial punishment monetary collection.


Topic See Page
Introduction 3-27
Court-Martial Forfeitures 3-28
Non-Judicial Punishment 3-30

Court-Martial Forfeitures

Effects and
Application of
Forfeitures
A partial forfeiture of pay deprives a member of the amount of pay stated in
the sentence. The sentence applies for the number of months or days
expressly stated.

When a sentence includes forfeitures in addition to confinement, not
suspended, the forfeitures will apply to pay (and allowances, if total
forfeitures are adjudged) becoming due on or after the date the sentence is
approved by the convening authority, unless the convening authority defers
application of the forfeitures pending completion of further appellate review.

Effects of Fines If a fine is in the nature of a judgment, it makes a member monetarily liable to
the United States for the amounts specified in the sentence. Fines are not
self-executing. They are debts to the government until

Paid in cash by the member,
Collected by deduction from the members current pay, or
Collected by deduction on settlement of a members pay account at
discharge.

Forfeiture of
Allowances
Allowances are forfeited only when a sentence by a general court-martial
includes forfeiture of all pay and allowances.

Pay Subject to
Forfeiture
Forfeitures, other than total forfeitures, apply to:

Basic pay, based on the 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.)

Pay Not
Subject to
Forfeiture
Forfeitures, other than total forfeitures, do not apply to special pay (other than
sea or hardship duty pay) or incentive pay.
Court-Martial Forfeitures, 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.

Taxes Forfeiture is a loss of entitlement to the pay involved. Consequently,
forfeitures are not taxed. Compute the amount of pay to be forfeited before
withholding for federal and state income and FICA taxes. Compute taxes on
the gross pay remaining after deductions of the forfeiture.

Reduction in
Grade
If the 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.)

Concurrent
Forfeitures
When two or more sentences require forfeitures for a concurrent period, the
amount stated in each sentence is forfeited only for the specific period. If
forfeiture results from a court-martial under which the maximum forfeiture
that could be imposed is two-thirds of the pay subject to forfeiture, collect
only two-thirds of the pay subject to forfeiture for the concurrent period.
Following the concurrent period, pay is forfeited under the remaining
sentence at the rate specified in the sentence for the time remaining in that
sentence.

Non-Judicial Punishment

General
Knowledge
Under authority of Article 15, Uniform Code of Military Justice (UCMJ),
authorized commanders may impose NJP for minor offenses, without
resorting to court-martial.

NJP that affects pay includes forfeiture of pay, reduction in grade, or a
combination of these. Except as provided in chapter 49 of the DODFMR,
provisions of chapter 48 of the DODFMR, relating to forfeiture of pay and
reduction in grade by court-martial, also apply when such penalties are
imposed as NJP.

Limitations The maximum forfeiture of pay that may be imposed under Article 15,
UCMJ, is outlined in the Manual for Court-Martial and is based on grade and
position of the officer imposing the NJP.

When punishment includes both reduction in grade, whether or not
suspended, and forfeiture of pay, the forfeiture is based on the grade to which
reduced.

Effective Dates NJP forfeitures and reductions in grade, if not suspended, are effective on the
date the commander imposes the punishment. If they are suspended, they
become effective only if suspension is vacated. Forfeitures of pay must not
be applied to pay which accrued before the punishment was imposed.

Collection of
Forfeitures
Since forfeitures constitute a loss entitlement for the pay concerned, they take
precedence over all debts. Charge forfeitures of pay, as approved and
ordered, against a 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.
Non-Judicial Punishment, Continued

Collection of
Forfeitures,
continued
Example: LCpl Joel was imposed a forfeiture of $100 for two months total
forfeiture $200 effective 17 Jun 2007. For the month of June, the
deduction would be computed as follows:

Forfeiture $100
Divided by 30
Daily rate 3.333
Multiply by number of days 14 6/17 to 6/30 (14)
Deduction for June $46.67

Deduction for July would be $100.

Deduction for August would be as follows:

Daily rate 3.3333
Multiply by number days 16 8/1 to 8/16
Deduction for August $53.33

Non-Pay Status During periods when a member is in a non-pay status, pay does not accrue;
therefore, forfeitures cannot be applied. Do not count such periods in
computing the time during which pay is forfeited for a specific period.

Restoration to
Duty
A member restored to duty following a non-pay status is again entitled to pay;
therefore, forfeitures may apply.

Concurrent
Forfeitures
When two or more court-martial sentences require forfeitures for a concurrent
period, the amount stated in each sentence is forfeited only for the specific
period, computed on a daily basis, not to exceed the two-thirds rule.

When NJP forfeitures run concurrently with partial court-martial forfeitures,
which are subject to the two-thirds limitation, the maximum total amount
collectible is two-thirds of the pay subject to forfeiture.

Multiple NJP forfeitures do not run concurrently. If such forfeiture is
imposed while a prior forfeiture is still in effect, it will not commence until
the prior forfeiture is complete.
Non-Judicial Punishment, Continued

Suspension and
Cancellation of
Forfeitures
The death or discharge of a member under a suspended sentence operates as a
complete remission of any sentence.

Discharge, release from active duty, or death of a member under sentence to
forfeiture cancels any portion of the forfeiture which would extend beyond
the date of discharge, release, or death.

When a suspension of a forfeiture is vacated, the uncollected forfeiture is
revived and prepare for collection, effective the date of the vacation of the
suspension.

Lesson 2 Exercise

Directions Complete items 1 and 2 by performing the action required. Check your

Item 1 By law, the maximum amount that can be withheld from a Marines pay is
equal to

a. one-half of the members gross pay.
b. two-thirds of the members gross pay.
c. one-third of the members gross pay.
d. one-quarter of the members gross pay.

Item 2 Forfeitures directed by an NJP are

a. effective on the date the commander imposes the punishment.
b. effective even if the forfeiture is suspended.
c. applied to pay accrued not more than month before the punishment was
imposed.
d. allowed to exceed the two-thirds rule if concurrent.


1 b 3-29
2 a 3-30

MCI Course 3422C R-1 Review Lesson Examination
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 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
USMCR 20001010 TO 20010101 INACT 0 (TIME LOST)
USMC 20010102 TO 20031110 ACT 0 (TIME LOST)
USMC 20070221 TO PRESENT

Using the statement of service provided above, compute the total creditable
service for SSgt Roman.

a. 06 YRS, 11 MOS, 16 DAYS
b. 07 YRS, 01 MOS, 19 DAYS
c. 07 YRS, 04 MOS, 01 DAYS
d. 07 YRS, 07 MOS, 01 DAYS

Item 2

Using the statement of service provided above, compute Cpl Franks PEBD.

a. 20030528
b. 20030713
c. 20030718
d. 20030729
USMCR 20020528 TO 20020712 INACT 0 (TIME LOST)
USMC 20060713 TO PRESENT
Review Lesson, Continued

Item 3 Pvt Harvey reports to boot camp on 22 Jun 2007. Pvt Harveys monthly basic
pay rate is $1203.90. What is Pvt Harveys pay for the month of June 2007?

a. $361.17
b. $375.08
c. $380.21
d. $1203.90

Item 4 Leave is accrued at the rate of how many days for each full month of active
service?

a. 1
b. 1.5
c. 2
d. 2.5

Item 5 What type of BAH will a member married to another member rate if neither
has children?

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

Item 6 Prorated BAS Chart.

MEAL AMOUNT TIME OF DAY
Breakfast $1.95 0700
Lunch $3.65 1200
Dinner $3.65 1800
Using the information provided, compute Cpl Steinbachs BAS entitlement.
Cpl Steinbach was hospitalized at 1600 on the 8th of June and later released
at 0945 on the 19th of June. How much BAS was Cpl Steinbach entitled to
while in the hospital?

a. $81.05
b. $85.10
c. $92.40
d. $98.10

Item 7 How often is a Clothing Replacement Allowance (CRA) paid to an enlisted
Marine?

a. Annually on the anniversary CRA date
b. Every six months
c. Monthly
d. One time per enlistment

Item 8 What are the three types of FSA-II categories?

a. FSA-A, FSA-B, and FSA-C
b. FSA-R, FSA-S, and FSA-T
c. FSA prime, FSA alternate and FSA other
d. FSA-X, FSA-Y, and FSA-Z

Item 9 Sgt Baer has no dependents and resides in government quarters. Government
mess is available for all three meals. Sgt Baer is entitled to Barracks COLA at
what percentage of the without dependent rate?

a. 25%
b. 30%
c. 35%
d. 47%

Item 10 When does OHA commence?

a. The day the member detaches from his PDS
b. A week after the member reports to the overseas station
c. A day after the member reports to the overseas station
d. On the day the member reports to the overseas station

Item 11 Service members may only receive DLA

a. every three years.
b. once per enlistment.
c. once per calendar year.
d. once per fiscal year.

Item 12 A member is entitled to temporary lodging allowance for the last _____ days
before leaving their permanent duty station (PDS).

a. 10
b. 15
c. 18
d. 20

Item 13 Cpl Colon is reenlisting for a period of 4 years. He qualifies for an SRBP
multiple of 3. Cpl Colon's base pay is $1,978.50. What is Cpl Colons total
SRBP amount before taxes?

a. $20,151
b. $22,985
c. $23,742
d. $24,550

Item 14 To be eligible for SDA pay, a member must

a. qualify and serve in a designated special duty assignment.
b. serve in a pay grade of E-2 or higher.
c. be an officer in receipt of basic pay.
d. be qualified as an infantryman.

Item 15 Hostile Fire/Imminent Danger pay is $225 a month. Cpl Brock reported in
country in Iraq on 15 Mar 2007. On 1 May he received a Red Cross
notification and immediately flew back to the states that same day on
emergency leave. How much fire/imminent danger pay did Cpl Brock receive
from 15 Mar to 2 May while he was deployed in Iraq?

a. $450
b. $525
c. $650
d. $675

Item 16 After 3 years assigned to MCAS Cherry Point as a combat diver, receiving a
monthly diving duty pay of $215 a month, Capt Mast detached his permanent
duty station on 23 Jul 2011. How much diving duty pay was Capt Mast
entitled to receive for the month of July 2011?

a. $150.00
b. $164.91
c. $172.08
d. $215.00

Item 17
GRADE MONTHLY
RATE
GRADE MONTHLY
RATE
E-9/E-8/E-7 $22.50 E-4 $13.00
E-6 $20.00 E-3 $9.00
E-5 $16.00 E-2/E-1 $8.00

Use the information provided to answer the following question. Sgt Rooks
has been stationed in a designated hardship duty location for over 1 year and
receiving hardship duty pay in the amount of $16 a month. Sgt Rooks
received NJP and was reduced to the rank of Cpl on 1 Jul 2011. What will
Cpl Rooks' hardship duty pay be for the month of July?

a. $10
b. $13
c. $16
d. $18

Item 18 Sgt Yus sea service.

From To
14 Aug 2000 21 Mar 2002
10 Mar 2004 27 Nov 2004

Using the sea duty periods provided, compute Sgt Yus total sea service.

a. 3 years, 4 months, and 1 day
b. 2 years, 2 months, and 15 days
c. 2 years, 3 months, and 24 days
d. 1 year, 11 months, and 12 days

Item 19 When does the Foreign Language Proficiency Pay (FLPP) entitlement start?

a. Upon approval from the Commanding Officer
b. The date the member takes the Defense Language Proficiency Test
(DLPT)
c. The date the member reports to their duty station
d. The date of detachment from the old PDS

Item 20 GySgt Knox has completed a one year tour and has decided to extend on
Okinawa, Japan for another year. GySgt Knox has decided to take 30 days
non-chargeable leave as his incentive for extending an additional year. How
much of this leave is chargeable?

a. 30 days
b. 15 days
c. 10 days
d. 0 days

Item 21 Capt Blues flight hours per month.

Month Hours
Jan 4
Feb 0
Mar 1

Capt Blue 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 Blues flight hour chart provided, what is his
total flight pay for the months of Jan, Feb, and Mar combined?

a. $100
b. $175
c. $375
d. $525

Item 22 Incentive pay for demolition duty is $150 per month. On 4 Feb, Sgt McGraw
was giving a class on how to blow up a bridge. During the explosion, Sgt
McGraw was hit in the arm by a piece of the bridge, causing his arm to break.
Which statement below accurately describes Sgt McGraws entitlement to
incentive pay?

a. Sgt McGraw will continue to draw incentive pay for a period of no longer
than three months.
b. Sgt McGraw will not be entitled to demolition duty incentive pay until his
arm is back to normal.
c. Sgt McGraw will be entitled to only 1 month of demolition duty incentive
pay.
d. Sgt McGraw will only be entitled to half a month demolition duty
incentive pay.

Item 23 Corporals and above requesting advance pay within the normal parameters
must submit what substantiation for advance pay?

a. Copy of marriage certificate and a copy of members PCS orders
b. Copy of enlistment contract and a copy of members PCS orders
c. Copy of members PCS orders and copy of birth certificate
d. Copy of members PCS orders and a signed statement of understanding
stating purpose and confirmation of intent of funds

Item 24 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, security deposits and/or initial expenses incident to
occupying other than government housing
d. For the member to have extra money in his/her pocket

Item 25 Travel advances, as authorized on the travel orders by the order issuing
official, should not exceed _____ percent of the estimated additional cash
expenses permitted.

a. 75
b. 80
c. 85
d. 90

Item 26 If a reserve member comes on active duty and rates PCS allowances at one
location, how long must the member wait to rate DLA?

a. 20 weeks
b. 40 weeks
c. 12 months
d. Reserve Marines rate DLA under no circumstances

Item 27 Which of the following is subject to federal income tax withholding?

a. Pay to legal residents of Puerto Rico
b. Wages earned by all active duty members for any part of any month in
which the member is in a missing status
c. Basic, special, and hazardous duty incentive pay
d. Pay that is forfeited by courts-martial sentence or NJP

Item 28 Which of the following is subject to state income tax withholding?

a. Wages earned by all active duty members for any month 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 a court-martial sentence or NJP

Item 29 Which type of compensation is subject to FICA?

a. Wages earned by all active duty members for any part of any month that
the member is in a missing status
b. Pay that is forfeited by a court-martial sentence or NJP
c. Monthly basic pay or compensation received for the performance of
active duty or inactive duty
d. Monthly basic pay earned while serving in a combat zone

Item 30 If no elections are made, the member will automatically be covered for how
much coverage of SGLI?

a. $200,000
b. $300,000
c. $400,000
d. $500,000

Item 31 What is the current legal deduction for the Armed Forces Retirement Homes?

a. 50 cents
b. 75 cents
c. 90 cents
d. 1 dollar

Item 32 When members enrolled in the Tricare Dental Plan relocate outside of the
Continental United States (OCONUS) service area, the service member may
elect to disenroll their family members and/or themselves within how many
calendar days of the relocation?

a. 90 days
b. 60 days
c. 30 days
d. 15 days

Item 33 Who can elect to participate in the Thrift Savings Plan?

a. Only Commissioned Officers
b. Only reserve members
c. Only enlisted members
d. Any eligible member

Item 34 Which from the below is an example of a discretionary allotment?

a. Repayment of loans to the Navy and Marine Corps Relief Society
b. Court ordered payments, such as child support
c. Payment of a car loan
d. Purchase of U.S. savings bonds

Item 35 By law, what is the maximum amount that can be withheld from a Marines
pay?

a. Half the member's gross pay
b. An amount not to exceed $100 per month
c. An amount equal to two-thirds of the member's gross pay
d. An amount no less than $300 per month for no less than 3 months

Item 36 Non-judicial punishment forfeitures and reductions in grade, if not suspended,
are effective on what date?

a. The month after the commander imposes the punishment
b. Two days after the commander imposes the punishment
c. On the date the commander imposes the punishment
d. A week after the commander imposes the punishment

Answers The table below lists the answers to the review lesson examination item. If
you have questions about these items, refer to the reference page.

1 b 1-4
2 b 1-9
3 a 1-13
4 d 1-25
5 b 1-36
6 d 1-41
7 a 1-44
8 b 1-47
9 d 1-52
10 d 1-56
11 d 1-60
12 a 1-62
13 c 2-6
14 a 2-9
15 d 2-12
16 b 2-15
17 b 2-19
18 c 2-21
19 b 2-24
20 d 2-34
21 b 2-38
22 a 2-41
23 d 2-48
24 c 2-51
25 b 2-55
26 b 2-56
27 c 3-5
28 b 3-9
29 c 3-11
30 c 3-13
31 a 3-16
32 a 3-18
33 d 3-19
34 c 3-20
35 c 3-29
36 c 3-30



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MARINE CORPS INSTITUTE

UNITED STATES MARINE CORPS

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