QUICK question about severance pay
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Severance only calculates off of base pay, no BAS/BAH is included.
Here's the math: 1 Month Base Pay x 2 x Years in Service
i.e. 2000x2x4=16,000 minus 33% for taxes (figure high it's better!
) 16,000-5280=10,270 is the seperation pay taxed
Don't forget if injuries sustained in a combat zone, I believe it's a 6 year minimum for calculation purposes.
Never heard about that one...
SEC. 1646. ENHANCEMENT OF DISABILITY SEVERANCE PAY FOR MEMBERS OF THE
ARMED FORCES.
(a) In General.--Section 1212 of title 10, United States Code, is
amended--
(1) in subsection (a)(1), by striking ``his years of
service, but not more than 12, computed under section 1208 of
this title'' in the matter preceding subparagraph (A) and
inserting ``the member's years of service computed under section
1208 of this title (subject to the minimum and maximum years of
service provided for in subsection (c))'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):
``(c)(1) The minimum years of service of a member for purposes of subsection (a)(1) shall be as follows: ``(A) Six years in the case of a member separated from the armed forces for a disability incurred in line of duty in a combat zone (as designated by the Secretary of Defense for purposes of this subsection) or incurred during the performance of duty in combat-related operations as designated by the Secretary of Defense.
``(B) Three years in the case of any other member.
``(2) The maximum years of service of a member for purposes of
subsection (a)(1) shall be 19 years.''.
(b) No Deduction From Compensation of Severance Pay for Disabilities
Incurred in Combat Zones.--Subsection (d) of such section, as
redesignated by subsection (a)(2) of this section, is further amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking the second sentence; and
(3) by adding at the end the following new paragraphs:
``(2) No deduction may be made under paragraph (1) in the case of
disability severance pay received by a member for a disability incurred
in line of duty in a combat zone or incurred during performance of duty
in combat-related operations as designated by the Secretary of Defense.
``(3) No deduction may be made under paragraph (1) from any death
compensation to which a member's dependents become entitled after the
member's death.''.
(c) <<NOTE: 10 USC 1212 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act, and shall apply with respect to members of the Armed Forces
separated from the Armed Forces under chapter 61 of title 10, United
States Code, on or after that date.
[[Page 122 STAT. 473]]
ARMED FORCES.
(a) In General.--Section 1212 of title 10, United States Code, is
amended--
(1) in subsection (a)(1), by striking ``his years of
service, but not more than 12, computed under section 1208 of
this title'' in the matter preceding subparagraph (A) and
inserting ``the member's years of service computed under section
1208 of this title (subject to the minimum and maximum years of
service provided for in subsection (c))'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):
``(c)(1) The minimum years of service of a member for purposes of subsection (a)(1) shall be as follows: ``(A) Six years in the case of a member separated from the armed forces for a disability incurred in line of duty in a combat zone (as designated by the Secretary of Defense for purposes of this subsection) or incurred during the performance of duty in combat-related operations as designated by the Secretary of Defense.
``(B) Three years in the case of any other member.
``(2) The maximum years of service of a member for purposes of
subsection (a)(1) shall be 19 years.''.
(b) No Deduction From Compensation of Severance Pay for Disabilities
Incurred in Combat Zones.--Subsection (d) of such section, as
redesignated by subsection (a)(2) of this section, is further amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking the second sentence; and
(3) by adding at the end the following new paragraphs:
``(2) No deduction may be made under paragraph (1) in the case of
disability severance pay received by a member for a disability incurred
in line of duty in a combat zone or incurred during performance of duty
in combat-related operations as designated by the Secretary of Defense.
``(3) No deduction may be made under paragraph (1) from any death
compensation to which a member's dependents become entitled after the
member's death.''.
(c) <<NOTE: 10 USC 1212 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act, and shall apply with respect to members of the Armed Forces
separated from the Armed Forces under chapter 61 of title 10, United
States Code, on or after that date.
[[Page 122 STAT. 473]]
On the same subject .... My husband has been in the army for 10 years but has guard time that shows on his LES as 18 years in service so if he gets severance will it be for the army time only or for all 18 ?? Thanks 
Jason Perry
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His actual base pay (so the years of service count in determining that).
I meant what years would we multiply it by ? Thanks for the quick response
Jason Perry
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Take all points (active and reserve) and divide by 360. That will give you number of years. Remember, you round to nearest year.
I said that to my husband and he has no idea where to find the points that you are talking about lol Where would we find this ? Thank you again for the fast response
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He could find it in his RPAS (if current).
Jason, this is confusing for me too. My LES has 10 years of service, but I have 8 active years. I think the question trulymine was asking was which column in the Pay Table would they go by?
I'll use my example: I could be paid four different ways, depending on how this works (2012 Basic Pay Table):
8 active years x E4 (w/8y TIS) x 2 = $37,809.60
8 active years x E4 (w/10y TIS) x 2 = $37,809.60
8 active years x E5 (w/8y TIS) x 2 = $45,523.20
8 active years x E5 (w/10y TIS) x 2 = $47,913.60
I understand the mathematics of computing Active and Reserve years, but once that is determined is that number then the same number they use to determine the column they are paid from in the Pay Table, or do they continue to use the same column we are paid from today in total years of service? It won't make a huge difference in the severance pay, but it would be nice to know how it works. For E4, it makes no difference after 6 years, and for an E5 after 12. Before that however, and in any other pay grade, it can be quite a large difference.
An E-6 with 18 total years in service but only 8 active:
8 active years x E6 (w/8y TIS) x 2 = $50,289.60
8 active years x E6 (w/18y TIS) x 2 = $57.436.80
In my case it will not change the outcome much, or at all. In that prior Guard or Reserve career soldier with a break in service it could be worth $7,000, which is a pretty decent chunk of change for a newly unemployed person.
I'll use my example: I could be paid four different ways, depending on how this works (2012 Basic Pay Table):
8 active years x E4 (w/8y TIS) x 2 = $37,809.60
8 active years x E4 (w/10y TIS) x 2 = $37,809.60
8 active years x E5 (w/8y TIS) x 2 = $45,523.20
8 active years x E5 (w/10y TIS) x 2 = $47,913.60
I understand the mathematics of computing Active and Reserve years, but once that is determined is that number then the same number they use to determine the column they are paid from in the Pay Table, or do they continue to use the same column we are paid from today in total years of service? It won't make a huge difference in the severance pay, but it would be nice to know how it works. For E4, it makes no difference after 6 years, and for an E5 after 12. Before that however, and in any other pay grade, it can be quite a large difference.
An E-6 with 18 total years in service but only 8 active:
8 active years x E6 (w/8y TIS) x 2 = $50,289.60
8 active years x E6 (w/18y TIS) x 2 = $57.436.80
In my case it will not change the outcome much, or at all. In that prior Guard or Reserve career soldier with a break in service it could be worth $7,000, which is a pretty decent chunk of change for a newly unemployed person.
So how do you calculate national guard time and active time. My husband has 3 years if guard time(15 months of it spent in Iraq) and 7 years of of active time. His Les shows 10 years. He thought he knew where to find his points but he said he couldn't find them. I asked him what a RPAS is and he said he has no clue. He is and E-5.
Ask his NG unit administrator to print up a Retirement Points A(accounting?) Statement (RPAS). Your husband should get one at least once a year. It will have all of his points thoughout his service. It should be a very easy statement to receive.
You could guess the points by doing the following: (7 years X 365) + 450 (15 months OIF) + around 100 points for the rest = approx 3100 points (3000 points active and 100 inactive). This would be about 8 years 6 months of active service. Inactive duty points count as active duty points for severance pay.
Severance will be calculated for all time served on active duty while in reserves. That will be added to his regular active duty time, then it will be 2x base pay x total # of active time.