From Navy Personnel Command Public Affairs
MILLINGTON, Tenn. – Active-duty Sailors involuntarily separated from the Navy may be eligible for separation pay to help ease their re-entry to civilian life, officials said Nov. 17.
“Separation pay is intended to assist members who are involuntarily separated in returning to civilian life,” said CDR Jeffrey Krusling, head of the Navy pay and compensation policy branch. “Separation pay will be paid to members involuntarily separated from active service and to those not accepted for an additional tour of active duty for which they volunteered.”
Sailors selected for separation by the enlisted retention board may be eligible for involuntary separation pay provided they meet the requirements set forth in OPNAVINST 1900.4 and MILPERSMAN 1910-050.
“Regular enlisted members must have completed at least six years of active duty and be willing to affiliate with the Inactive Ready Reserve (IRR) for three years,” said Krusling.
Involuntary Separation Pay (ISP) is offered and generally based on the following formula: Monthly base pay X 12 X Years of Service X 10 percent. It may also be paid at a reduced rate under circumstances outlined in the instruction.
OPNAV Instruction 1900.4 applies to Sailors involuntarily separated from active duty on or after November 1990.
Sailors who are separated from active duty at their own request, as part of a court-martial sentence, or from misconduct or unsatisfactory performance are not eligible for separation pay.
Members who receive separation pay and later qualify and collect military retirement pay are required to repay their separation pay. Repayment may be deducted from the members retirement pay.
For more information read OPNAVINST 1900.4 and talk with your career counselor.