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Severance pay

cj90

PEB Forum Regular Member
Registered Member
I was told by the lawyer that since I will be eligible for E7 and over 11.5 years that my severance pay would be calculated at the rate of E7 over 12 years. So basically on my final day of terminal leave I will be at 11.6 years of service and that’s what DFAS uses to calculate my the pay and since I will be eligible for to be looked at for E7 DFAS will promote to the next rank on my DD214 and use that in the calculations. I have searched high and low to find a better answer but no luck. Can anyone point me in the right direction or give me more information on this subject. Thanks
 

RonG

PEB Forum Regular Member
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Registered Member
You have a duplicate post which I answered with:

I assume you were selected for promotion to E7 rather than just being eligible for consideration.

That said, the following applies:
Disability Severance Pay is a one-time, lump sum payment and is computed as follows:

  • 2 x basic pay for applicable grade x years of service (subject to minimum 3 or 6 years) not to exceed 19 years.
  • Applicable grade is the highest of the following:
    • Current grade
    • Highest grade satisfactorily served
    • Grade to which the Soldier would have been promoted had it not been for the disability for which he is being separated. This is colloquially referred to as, "promotion list grade"
  • Soldiers are credited with a minimum of 3 years of service as computed under 10 USC 1208 unless they qualify for the minimum 6 years of service
  • To qualify for the minimum 6 years, the disability must be incurred in line of duty in a combat zone as designated by the Secretary of Defense OR incurred during the performance of duty in combat-related operations as designated by the Secretary of Defense. DoD policy for the "combat related operations" determination is that the disability must be incurred as a result of armed conflict.

Your separation orders are one of the most important documents in this matter. During my 20+ years in the Army finance crops, I never completed anything with just a DD 214; the orders are required.

Ron
 
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