Federal law set forth in 5 USC 8521 makes an ex-service member eligible for Unemployment Compensation (UCX) benefits provided the member was discharged or released under honorable conditions (and if an officer, did not resign for the good of the service) and completed the first full term of active obligated service which was initially agreed to serve.
If you were discharged before completing your first full term, the discharge or release must be for an approved reason under the law. In most cases, active duty service in excess of 365 continuous days is required to be eligible for UCX benefits.
Navy service members who are drawing retired pay are eligible for UCX benefits. However, since Navy retirements are considered to be 100% Navy funded, unemployment benefits are reduced accordingly. Disability benefits received from the Veterans Administration are not deducted from unemployment benefits.
The Navy does not have authority to change the reason or character of your discharge. If you feel that you have suffered an injustice, make your appeals to the Navy Discharge Review Board.
For questions about eligibility, please contact our UCX Assistant, at DSN 882-3351 or Commercial (901) 874-3351.