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What is separation pay?
Separation pay is pay awarded to an individual who is involuntarily separated, discharged, or released from active duty. The type of separation and conditions under which you are being separated will determine if you qualify for separation pay.
A service member with dependents who serves an unaccompanied tour of duty may be entitled to a family separation allowance (FSA) of $250 per month. According to 10 U.S. Code SS 1174: Active-duty officers with between 6 and 20 years of active service who are involuntarily separated are entitled to separation pay equal to:
10% x years of active service x 12 x most recent monthly pay.
Months of service are counted as 1/12 of a year.
Service Secretaries determine whether the computation should be reduced by half for those officers who are discharged for not being qualified for promotion to O2; for chaplains who lose their professional qualifications; or for officers who request discharge while under investigation by a board of inquiry.
Officers ineligible for separation pay include those who
ask not to be selected for promotion,
decline continuation on active duty for a period that will qualify the officer for retirement,
are discharged or released at their request,
are released from active duty for training, or
upon discharge are immediately eligible for retired pay.
As a condition of receiving separation pay, personnel must agree to serve in the Ready Reserve for at least three years. If still under a service obligation, the three-year obligation runs consecutively to the other obligations.
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