Posted on Mar 26, 2016
15-year Army retirements OK'd through 2018
3.62K
21
10
7
7
0
The Army will continue to offer separation pay for soldiers who are being forced out.
Temporary Early Retirement Authority
This benefit, also known as the 15-year early retirement plan, has been authorized by Congress for use during the drawdown through fiscal 2018.
TERA is not an entitlement, but rather an option that to date has been limited to soldiers who are being involuntarily separated from active duty because of the drawdown, or in the case of some officers, because of promotion non-selection.
Unlike the TERA option that was available during the drawdown of the 1990s, soldiers cannot volunteer for the benefit if they have not been selected for involuntary separation.
TERA allows soldiers with at least 15, but fewer than 20 years of active service to receive the same benefits as those who retire with 20 or more years of service, except that their retirement pay is reduced accordingly.
Army budget officials estimate that over the next two years, 923 officers will qualify for TERA, and 315 enlisted soldiers as the Army continues to involuntary separate soldiers in over-strength specialties and year groups.
Involuntary Separation Pay
Soldiers who fail to qualify for TERA, but who have six to 15 years of active service at the time they are separated, generally qualify for involuntary separation pay, provided they are not being forced out for cause, such as a courts-martial conviction.
There are two types of involuntary separation pay:
• Half Severance Pay – for soldiers who are not fully qualified for retention, and who have been denied re-enlistment or continuation, such as under the Qualitative Management Program. The payment is calculated by multiplying 5 percent of a soldier’s basic pay at the time of separation by years and partial years of active service.
• Full Severance Pay – for enlisted soldiers and officers who are fully qualified for retention, but who are denied re-enlistment or continuation. The payment is calculated by multiplying 10 percent of a soldier’s basic pay at the time of separation by years and partial years of active service.
Budget officials estimate that during the next two years, about 11,400 enlisted soldiers and 2,654 officers will receive involuntary separation pay.
Severance Pay for Disability
For officers and enlisted soldiers with less than 20 years of service who are discharged from active duty because of a physical disability rated at less than 30 percent.
Payments are based on complex formulas described in the provisions of Title 10 of the U.S. Code. Army budget projections indicated that about 10,600 enlisted soldiers and nearly 200 officers will receive these benefits in 2016 and 2017 combined. On average, enlisted soldiers will receive $35,000, and officers $86,000
Temporary Early Retirement Authority
This benefit, also known as the 15-year early retirement plan, has been authorized by Congress for use during the drawdown through fiscal 2018.
TERA is not an entitlement, but rather an option that to date has been limited to soldiers who are being involuntarily separated from active duty because of the drawdown, or in the case of some officers, because of promotion non-selection.
Unlike the TERA option that was available during the drawdown of the 1990s, soldiers cannot volunteer for the benefit if they have not been selected for involuntary separation.
TERA allows soldiers with at least 15, but fewer than 20 years of active service to receive the same benefits as those who retire with 20 or more years of service, except that their retirement pay is reduced accordingly.
Army budget officials estimate that over the next two years, 923 officers will qualify for TERA, and 315 enlisted soldiers as the Army continues to involuntary separate soldiers in over-strength specialties and year groups.
Involuntary Separation Pay
Soldiers who fail to qualify for TERA, but who have six to 15 years of active service at the time they are separated, generally qualify for involuntary separation pay, provided they are not being forced out for cause, such as a courts-martial conviction.
There are two types of involuntary separation pay:
• Half Severance Pay – for soldiers who are not fully qualified for retention, and who have been denied re-enlistment or continuation, such as under the Qualitative Management Program. The payment is calculated by multiplying 5 percent of a soldier’s basic pay at the time of separation by years and partial years of active service.
• Full Severance Pay – for enlisted soldiers and officers who are fully qualified for retention, but who are denied re-enlistment or continuation. The payment is calculated by multiplying 10 percent of a soldier’s basic pay at the time of separation by years and partial years of active service.
Budget officials estimate that during the next two years, about 11,400 enlisted soldiers and 2,654 officers will receive involuntary separation pay.
Severance Pay for Disability
For officers and enlisted soldiers with less than 20 years of service who are discharged from active duty because of a physical disability rated at less than 30 percent.
Payments are based on complex formulas described in the provisions of Title 10 of the U.S. Code. Army budget projections indicated that about 10,600 enlisted soldiers and nearly 200 officers will receive these benefits in 2016 and 2017 combined. On average, enlisted soldiers will receive $35,000, and officers $86,000
15-year Army retirements OK'd through 2018
Posted from armytimes.comPosted in these groups: 
Military Pay
Military Pay
Posted >1 y ago
Responses: 5
3
3
0
That is interesting SFC Joe S. Davis Jr., MSM, DSL. I am glad the Army is offering early separation pay for soldiers who are being forced out including 15 year early retirement.
Back in 1992 when I was forced out with over 16 years active duty there was no authority for me to be to retire early. I know the Lord knew my desire to be a soldier and he allowed me to leave the RA and accept a USAR commission which allowed me to serve until 2008 by His grace.
Back in 1992 when I was forced out with over 16 years active duty there was no authority for me to be to retire early. I know the Lord knew my desire to be a soldier and he allowed me to leave the RA and accept a USAR commission which allowed me to serve until 2008 by His grace.
(3)
(0)
SFC Joe S. Davis Jr., MSM, DSL
LTC Stephen F. thanks for the response and sharing your personal experience. Wow times have changed! Like the old saying, "its better to have something, than nothing".
(1)
(0)
2
2
0
involuntary separation pay....this is BS of the highest. I understand why a SM should get it, and I fully support it. What I don't like about it is should the SM try to ever come back in, he has to pay that mess back. If you're being put out and you're NOT at fault, then it should be forgiven, OR prorated should you be allowed to continue your service again in an active position. If I am wrong PLEASE correct me, but that is how I understood invol sep pay.
(2)
(0)
SFC Joe S. Davis Jr., MSM, DSL
SSG Warren Swan thanks for the education brother. I was not aware of paying back sep/pay wow is that unfair, when you was involuntary forced out. Is it any logic between the Pentagon, Congress and the White House. Somebody needs to fix this crap!
(2)
(0)
SSG Warren Swan
SFC Joe S. Davis Jr., MSM, DSL - I could be wrong, so I'm hoping I am actually, but this is how I took it. Logic and military? That's like PT belts on COB's or OP's?
(0)
(0)
SFC William Farrell
SFC Joe S. Davis Jr., MSM, DSL - Its like anything the government does for us Joe, if they pay you and you want to do something else later, you are paying them back. My brother was discharged after Vietnam with a lump sum disability payment from the Army. Prior to him starting to receive VA disability payments from the VA, he had to pay all that lump sum back. I think it took him a couple years before he was caught up to start receiving payments from the VA.
(0)
(0)
1
1
0
"Used to be" there was a time if a SM left for almost any reason with less than 19/6 s/he got absolutely nothing for their time. Always thought this was a horrible injustice for those who had served honorably and dedicated themselves to honest service, yet were passed over twice or just decided to hang it up after maybe 10 yrs or so. Now things have changed and even the current compensation plan provides 'retirement' pay for time less than 20 yrs. In addition there is a savings plan comparable to many major successful private sector companies to help SMs accumulate a good saving account. The various severance pay plans referred to in the article are other fair forms of compensation for those eligible to avail themselves. Times have really changed and many people feel for the better.
(1)
(0)
Read This Next
Continue with Facebook 
Continue with Google