David Bradley posted on May 01, 2009 00:15
Lately, several questions from members have arisen concerning the above subjects so this seems the appropriate place to address them and gain a better understanding.
DFAS (Defense Finance Accounting Service)
DFAS is a DoD entity that was established in 1991 to combine all DoD payments under one umbrella. It is the
resource for all military (both AC and RC), DoD civilian, retirees, travel, and contractor/ vendor payments. It is accessed at http://www.dfas.mil/index.html.
The military section is divided by Service, and the Navy section contains all the information concerning your pay,
allowances, deductions, allotments, leave, etc. and requires a LogonID and pin for access (through the myPay portal at https://mypay.dfas.mil/mypay.aspx), and the instructions are on that page to obtain same. This page allows you to control all facets of your pay information, leave and earnings statements, W-2s, and more. Special attention should be paid to your mailing address and direct deposit information. An important adjunct to this is the DEERS home page, accessed at https://www.dmdc.osd.mil/appj/address/ indexAction.do that allows you to maintain both mail and e-mail addresses of yourself and family members.
GRAY AREA RETIREES
When you have received your 20-year letter and you are ready to transfer out of drilling status, you will probably
transfer into the Retired Reserve, becoming a Gray Area Retiree. As a member of the Retired Reserve you receive no retirement points, though you will continue to earn time towards longevity for pay purposes.
If you are a retired enlisted member of the Navy or Marine Corps with 20, but not 30, years in, you are moved into what is called the Fleet Reserve or Fleet Marine Reserve.
So, after you’ve had an exciting and fulfilling career in the service of your country, and have reached the 30-year mark, in addition to having an endless supply of stories to impress your family and friends, you will be assigned to one of three categories in the Retired Reserve. These categories depend on your age, physical fitness, and date of retirement from service.
If you are not yet 60 years old, or disabled, you will be placed in Categories 1 or 2. Which category you are assigned to will depend on your physical condition and how critical your skill is. Here, you are still considered eligible to be mobilized in the event of a national emergency or war.
If you are a disabled veteran or over 60 years old, you are still not free from being called back to the colors. However, in Category 3, your case is evaluated on an individual basis.
As a Gray Area Retiree, you are eligible to carry a Military ID Card marked “(Ret)” and your eligible family members can continue to carry a Reserve Family Member’s Card. You maintain military base privileges and you are authorized the same commissary privileges that you and your family had while you were in an active reserve status. You are also eligible for the VGLI life insurance offered for the Retired Reserves. As a member of the Retired Reserve, at age 59 years and six months, NPC will mail you notification of your eligibility to apply for retired pay.
COLA (Cost of Living Allowance)
Each year, military retirement pay is adjusted to meet the increased cost of living. This cost-of-living-adjustment (COLA) varies from year to year based on the previous year’s Consumer Price Index (CPI).
The 2009 military retired pay cost-of-living adjustment (COLA) was 5.8%, nearly 2% higher than the 3.9% 2009 military pay raise. This increase, which went into effect on 1 December 2008, also applies to SBP annuities, Social Security checks, and VA disability and survivor benefits. Retirees saw the increase in their January 2009 direct
deposits.
Note: This annual cost-of-livingadjustment is NOT in any way related to the annual military pay raise for active duty and Reserve service members. In fact, this year’s COLA increase was larger than the 2009 military pay raise of 3.9%.
All retirees who retired before 1 January 2008 received the 5.8 percent cost-of-living-adjustment.
Retirees who first became a member of the uniformed services before 8 September 1980 and retired on or after 1 January 2008 received the 5.0 percent cost-of-living-adjustment.
Retirees who first became a member of the uniformed services on or after 8 September 1980, and retired in 2008, will receive a partial COLA on a prorated basis as follows:
* 1 Jan 2008, and 31 Mar 2008, will
receive 5.0%
* 1 Apr - 30 Jun 2008 will receive 3.8%
* 1 July - 30 Sep 2008 will receive 1.2%
* Those who retired after 1 Oct 2008 will see no COLA this year.
Retirees who first entered the military after 8 September 1980 and retired before 1 January 2008 will also receive the 5.8 percent COLA.
Retirees who first became members of the uniformed services on or after 1 August 1986 and elected to receive a Career Status Bonus at 15 years, and retired on or before 1 January 2008, will receive an increase of only 4.8 percent.