ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 021648Z FEB 01 ZYB MIN PSN 633742J25
 
FM CNO WASHINGTON DC//N1//
 
TO NAVADMIN
 
UNCLAS //N07000// 
NAVADMIN 020/01
 
MSGID/GENADMIN/N1//
 
SUBJ/CAREER STATUS BONUS AND REDUX RETIRED PAY SYSTEM//
 
REF/A/DOC/DOD/29NOV2000//
 
AMPN/REF A IS DEPARTMENT OF DEFENSE DRAFT CAREER STATUS BONUS
IMPLEMENTING GUIDANCE.//
 
RMKS/1.  THIS NAVADMIN PROVIDES REF A POLICIES, PROCEDURES AND
RESPONSIBILITIES THE DEPARTMENT OF DEFENSE (DOD) HAS DEVELOPED TO
IMPLEMENT AND ADMINISTER THE CAREER STATUS BONUS (CSB) AND RELATED
RETIRED PAY REFORMS ENACTED IN THE NATIONAL DEFENSE AUTHORIZATION
ACT OF FISCAL YEAR 2000 (FY-00 NDAA/PUBLIC LAW 106-65).
 
2.  SPECIFICALLY, THE FY-00 NDAA PULLED SERVICE MEMBERS OUT OF THE
UNATTRACTIVE REDUX RETIRED PAY SYSTEM (40% BASE PAY FOR 20 YEARS AND
CPI MINUS 1 PERCENT) AND PLACED THEM IN THE MORE GENEROUS HIGH THREE
RETIRED PAY SYSTEM (50% BASE PAY FOR 20 YEARS AND CPI) TO IMPROVE
RETENTION.  THE LAW ALSO CREATED A LUMP SUM $30,000 CSB FOR MEMBERS
WHO ENTERED 1 AUGUST 1986 OR LATER WHO ARE WILLING TO ELECT THE
REDUX RETIRED PAY SYSTEM ON THEIR 15TH ANNIVERSARY OF ACTIVE DUTY
AND AGREE TO REMAIN ON CONTINUOUS ACTIVE DUTY UNTIL THEIR 20TH
ANNIVERSARY.
 
3.  A MEMBER OF THE NAVY IS ELIGIBLE TO MAKE A 15-YEAR CSB/REDUX
ELECTION ONLY IF THE MEMBER:
    A.  IS SERVING ON ACTIVE DUTY,
    B.  FIRST BECAME A MEMBER OF A UNIFORMED SERVICE ON OR AFTER 1
AUGUST 1986 (I.E., THE MEMBER'S DATE OF INITIAL ENTRY TO
MILITARY/UNIFORMED SERVICE (DIEMS) IS 1 AUGUST 1986 OR LATER),
        (1) AN ACTIVE DUTY MEMBER'S DIEMS DATE IS THE FIRST DAY THE
MEMBER ENTERED UNIFORMED SERVICE.  IT IS THE FIRST DAY THEY WERE
APPOINTED, ENLISTED, OR CONSCRIPTED INTO THE UNIFORMED SERVICES.
THIS INCLUDES THE FIRST DATE OF ENLISTMENT IN THE REGULAR COMPONENT
DELAYED ENTRY PROGRAM (DEP), RESERVE AFFILIATION IN THE SENIOR
RESERVE OFFICER TRAINING CORPS (ROTC) PROGRAM, ENTRANCE AS A
SCHOLARSHIP CADET OR MIDSHIPMAN, OR THE DATE OF ENTRANCE AS A CADET
OR MIDSHIPMAN AT ONE OF THE SERVICE MILITARY ACADEMIES.
        (2) UNIFORMED SERVICES INCLUDE THE ARMY, NAVY, AIR FORCE,
MARINE CORPS, COAST GUARD, NATIONAL OCEANIC AND ATMOSPHERIC
ADMINISTRATION, AND PUBLIC HEALTH SERVICE.
    C.  COMPLETES 15 YEARS OF ACTIVE DUTY IN THE UNIFORMED SERVICES,
AND
    D.  IS OTHERWISE ELIGIBLE, AS DETERMINED BY THE SECRETARY OF THE
NAVY, TO CONTINUE ON ACTIVE DUTY UNTIL THE COMPLETION OF 20 YEARS OF
ACTIVE DUTY SERVICE.
        (1) RESERVISTS ON ACTIVE DUTY AT THEIR 15TH ANNIVERSARY OF
DAY FOR DAY ACTIVE DUTY WHO CANNOT REMAIN ON CONTINUOUS ACTIVE DUTY
TO THEIR 20TH ANNIVERSARY OF DAY FOR DAY ACTIVE DUTY ARE NOT
ELIGIBLE FOR THE CSB. SPECIFICALLY, A RESERVIST IS NOT ELIGIBLE FOR
THE CSB IF THEY ARE RECALLED TO ACTIVE DUTY BY THE SERVICE WITH THE
INTENT OF RETURNING THE MEMBER TO INACTIVE DUTY BEFORE THEY EARN 20
OR MORE YEARS OF ACTIVE DUTY.
        (2) MEMBERS OF THE REGULAR NAVY AND TRAINING AND
ADMINISTRATION OF THE RESERVES (TAR) ARE ELIGIBLE FOR THE CSB IF
THEY QUALIFY FOR RETENTION OR CONTINUATION TO THEIR 20TH ANNIVERSARY
OF ACTIVE DUTY, EVEN IF THEIR PRESENT ENLISTMENT CONTRACT EXPIRES
PRIOR TO THEIR 20TH ANNIVERSARY OF ACTIVE DUTY.
 
4.  EACH OF THE ABOVE FOUR RULES MUST BE SATISFIED TO BE ELIGIBLE
FOR THE CSB/REDUX RETIRED PAY SYSTEM.  A MEMBER WHO DOES NOT MEET
ALL FOUR RULES OF ELIGIBILITY ON THEIR 15TH ANNIVERSARY OF ACTIVE
DUTY BUT LATER DOES, MAY NOT LATER BE GIVEN THE OPPORTUNITY TO ELECT
THE CSB/REDUX, UNLESS THE MEMBER FALLS WITHIN EXCEPTIONS ISSUED BY
THE SECRETARY OF THE NAVY (SECNAV).  SECNAV WILL BE ISSUING A CAREER
STATUS BONUS INSTRUCTION FOR THE NAVY AND MARINE CORPS IN THE WEEKS
TO COME THAT WILL PUBLISH EXCEPTIONS.
 
5.  ACTIVE DUTY MEMBERS WITH A DIEMS OF 1 AUGUST 1986, OR LATER WILL
BE NOTIFIED BY A GENADMIN MESSAGE ON OR SHORTLY BEFORE THE DATE THEY
COMPLETE 14 YEARS AND 6 MONTHS OF ACTIVE DUTY SO THAT THEY MAY BE
ELIGIBLE TO MAKE A CSB/REDUX ELECTION.
 
6.  THE CSB NOTIFICATION MESSAGE WILL INCLUDE:
     A.  INFORMATION ON THE MEMBER'S DIEMS DATE AND ACTIVE DUTY
START DATE (ADSD) RECORDED IN THE NAVY'S ELECTRONIC MASTER FILE.
THE MESSAGE WILL EXPLAIN HOW MEMBERS CAN FIND THEIR DIEMS DATE ON
DOCUMENTS IN THEIR PERMANENT SERVICE RECORD AND MAKE CORRECTIONS TO
THE NAVY'S MASTER FILE OR THEIR PERMANENT SERVICE RECORD IF NEEDED.
     (1) AN EXPLANATION THAT THE CHIEF OF NAVAL PERSONNEL AND
DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) ARE ADDING THE DIEMS
DATE AND A RETIRED PAY INDICATOR TO EACH MEMBER'S ELECTRONIC MASTER
FILE AND LEAVE AND EARNING STATEMENT (LES) TO NOTIFY MEMBERS OF THE
RETIREMENT SYSTEM THEY BELONG UNDER.
         (2) MEMBERS WITH A DIEMS DATE OF 7 SEPTEMBER 1980 OR
EARLIER ARE UNDER THE "FINAL PAY" RETIREMENT SYSTEM AND WILL SEE AN
"F" RETIRED PAY INDICATOR ON THEIR LES AND ELECTRONIC MASTER FILE.
         (3) MEMBERS WITH A DIEMS DATE OF 8 SEPTEMBER 1980 OR LATER
ARE UNDER THE "HIGH THREE" RETIREMENT SYSTEM AND WILL SEE AN "H"
RETIRED PAY INDICATOR ON THEIR LES AND ELECTRONIC MASTER FILE.
         (4) MEMBERS WITH A DIEMS DATE OF 1 AUGUST 1986 OR LATER
WILL SEE AN "H" RETIRED PAY INDICATOR ON THEIR LES AND ELECTRONIC
MASTER FILE UNTIL THEIR 14 1/2 ANNIVERSARY OF ACTIVE DUTY.  AT THAT
TIME THEIR RETIRED PAY INDICATOR ON THEIR LES AND ELECTRONIC MASTER
FILE WILL CHANGE TO "C" TO REMIND THEM THAT THEY HAVE A 'CHOICE' TO
MAKE BETWEEN THEIR 14 1/2 AND 15TH ANNIVERSARY OF ACTIVE DUTY TO
ELECT THE CSB/REDUX.  IF THE MEMBER ELECTS TO REMAIN UNDER THE "HIGH
THREE" RETIRED PAY SYSTEM THEIR RETIRED PAY INDICATOR WILL CHANGE
BACK TO "H" ON THE EFFECTIVE DATE OF THEIR CSB ELECTION.  IF THE
MEMBER ELECTS THE CSB/REDUX RETIRED PAY SYSTEM THEIR RETIRED PAY
INDICATOR WILL CHANGE TO "R" ON THE EFFECTIVE DATE OF THEIR CSB
ELECTION.
     B.  AN EXPLANATION OF THE THREE DIFFERENT RETIRED PAY SYSTEMS,
THE FORMULA USED TO CALCULATE RETIRED PAY UNDER EACH SYSTEM, AND THE
RULES GOVERNING ELECTION OF CSB/REDUX.  THE MESSAGE WILL EXPLAIN
THAT:
         (1) IF YOUR DIEMS DATE IS BEFORE 8 SEPTEMBER 1980 YOU ARE
UNDER THE "FINAL PAY" RETIREMENT SYSTEM.  IT PROVIDES FOR RETIREMENT
COMPENSATION BASED ON THE AMOUNT OF YOUR FINAL BASE PAY AND
INCREASES ANNUALLY THROUGH COST OF LIVING ADJUSTMENTS (COLA) EQUAL
TO THE CONSUMER PRICE INDEX (CPI).  THE FORMULA PROVIDES AN AMOUNT
EQUAL TO 50 PERCENT AT 20 YEARS OF ACTIVE DUTY SERVICE AND AN
ADDITIONAL 2.5 PERCENT FOR EACH ADDITIONAL YEAR UP TO 75 PERCENT.
         (2) IF YOUR DIEMS DATE IS ON OR AFTER 8 SEPTEMBER 1980 YOU
ARE UNDER THE "HIGH THREE" RETIREMENT SYSTEM.  RETIRED PAY IS EQUAL
TO THE AVERAGE OF THE HIGH 36 MONTHS OF BASIC PAY TIMES A MULTIPLIER
EQUAL TO 2.5 PERCENT TIMES YOUR YEARS OF ACTIVE DUTY SERVICE.  "HIGH
THREE" RETIRED PAY INCREASES ANNUALLY THROUGH COLA EQUAL TO CPI.  BY
LAW, A TEMPORARY OFFICER TRANSFERRING TO THE FLEET RESERVE WILL
RECEIVE RETIRED PAY EQUAL TO THE AVERAGE OF THE HIGH 36 MONTHS OF
BASIC PAY THAT WOULD HAVE BEEN RECEIVED IN THE PERMANENT ENLISTED
RANK TIMES A MULTIPLIER EQUAL TO 2.5 PERCENT TIMES THE YEARS OF
ACTIVE DUTY SERVICE.  THE LAW ALSO STATES THAT UNDER CERTAIN
CONDITIONS YOU MAY BE PLACED UNDER THE "FINAL PAY" RETIREMENT SYSTEM
IF YOU ARE REDUCED IN RANK DUE TO DISCIPLINARY ACTION DURING YOUR
FINAL 36 MONTHS.
         (3) IF YOUR DIEMS DATE IS ON OR AFTER 1 AUGUST 1986 YOU
WERE UNDER THE "REDUX" RETIREMENT SYSTEM PRIOR TO THE FY-00 NDAA BUT
ARE NOW UNDER THE "HIGH THREE" RETIREMENT SYSTEM.  IF YOU ELECT THE
CSB, YOUR REDUX RETIRED PAY WILL BE COMPUTED FOR 20 YEARS OF
SERVICE USING 40 PERCENT OF THE 36 MONTH AVERAGE WITH AN ADDITIONAL
3.5% FOR EACH ADDITIONAL YEAR OF SERVICE UP TO 75%.  RETIRED PAY
INCREASES ANNUALLY THROUGH COLA EQUAL TO CPI-1 (1 PERCENTAGE POINT
LESS THAN CPI).  AT AGE 62, TWO ADJUSTMENTS ARE MADE.  FIRST, THERE
IS A ONE-TIME ADJUSTMENT TO THE AMOUNT OF RETIRED PAY TO THE VALUE
AT WHAT IT WOULD HAVE BEEN IF FULL COLAS WERE PROVIDED.  AFTER THIS
ADJUSTMENT, ANNUAL COST OF LIVING ADJUSTMENTS WILL GO BACK TO CPI-1.
THE SECOND ADJUSTMENT, AT AGE 62, IS THAT RETIRED PAY IS
RECALCULATED UNDER A NEW FORMULA THAT RESTORES THE VALUE OF THE
FIRST 20 YEARS OF SERVICE TO BE WORTH 50% OF THE HIGH THREE AVERAGE.
FOR EACH ADDITIONAL YEAR OF SERVICE, RETIRED PAY IS INCREASED BY
2.5% TO A MAXIMUM OF 75%.
     C.  AN EXPLANATION THAT THE STANDARDS REPORTING SENIORS WILL
USE TO DETERMINE IF MEMBERS ARE ELIGIBLE TO REMAIN ON CONTINUOUS
ACTIVE DUTY THROUGH THEIR 20TH ANNIVERSARY OF ACTIVE DUTY ARE THE
SAME REENLISTMENT AND CONTINUATION STANDARDS FOUND IN LAW,
REGULATIONS, AND INSTRUCTIONS.
     D.  AN EXPLANATION THAT THE CSB/REDUX ELECTION FORM INCLUDES
THE AGREEMENT TO REMAIN ON ACTIVE DUTY REQUIRED BY LAW, AND THAT THE
MEMBER IS REQUIRED TO SIGN THE AGREEMENT TO ELECT THE CSB.
         (1) THE LAW ALLOWS THE MEMBER TO CONTINUE UNDER THEIR
EXISTING CONTRACT, EXTENSION OR OTHER AGREEMENT.  THE EXECUTION OF A
NEW REENLISTMENT CONTRACT FOR THE SOLE PURPOSE OF ELECTING THE CSB
IS NOT REQUIRED OR ENCOURAGED.
         (2) BY LAW, THE CSB/REDUX OBLIGATION MAY RUN CONCURRENT
WITH OTHER OBLIGATIONS TO THE GOVERNMENT, AND THE $30,000 CSB MAY BE
PROVIDED IN ADDITION TO OTHER BONUSES, SPECIAL OR INCENTIVE PAYS.
     E.  THE SERVICES, DOCUMENTS, AND HTTP:\\PAY2000.DTIC.MIL WEBSITE
THAT ARE AVAILABLE TO PROVIDE ADDITIONAL INFORMATION AND COUNSELING
BEFORE THE MEMBER MAKES THEIR ELECTION.
     F.  THE PROCEDURES FOLLOWED TO MAKE A CSB/REDUX ELECTION,
INCLUDING INSTRUCTIONS FOR COMPLETING AND SUBMITTING THE CSB FORM
AND AVAILABLE COUNSELING.
     G.  AN EXPLANATION OF THE CSB/REDUX ELECTION EFFECTIVE DATE AND
THAT THE ELECTION BECOMES IRREVOCABLE ON THAT DATE.  SPECIFICALLY,
        (1) AN ELECTION IS CONSIDERED TO BE EFFECTIVE ON THE
MEMBER'S ANNIVERSARY OF 15 YEARS ACTIVE DUTY.  THE MEMBER MAY SUBMIT
AND WITHDRAW AN ELECTION AT ANY TIME BETWEEN THE DATE OF THE
MEMBER'S CSB NOTIFICATION MESSAGE AND THE DAY BEFORE THE MEMBER'S
15TH ANNIVERSARY.  ON THE MEMBER'S 15TH ANNIVERSARY OF ACTIVE DUTY
AN ELECTION SUBMIT TO DFAS IS IRREVOCABLE.
        (2) AN ELECTION IS CONSIDERED TO BE EFFECTIVE SIX MONTHS
AFTER A MEMBER RECEIVES A CSB NOTIFICATION MESSAGE HELD IN ABEYANCE
FOR REASONS DISCUSSED BELOW IN PARAGRAPH 7.
        (3) A CSB ELECTION IS EFFECTIVE AND IRREVOCABLE ON THE DATE
IT IS SUBMITTED TO DFAS IF THE MEMBER'S REPORTING SENIOR DETERMINES
THE MEMBER ELIGIBLE TO ELECT CSB/REDUX AFTER THE FAVORABLE RESULTS
OF A DISCIPLINARY, MEDICAL, OR ADMINISTRATIVE CASE THAT WAS ACTIVE
ON THE MEMBER'S 15TH ANNIVERSARY OF ACTIVE DUTY.
     H.  AN EXPLANATION OF HOW THE CSB WILL BE PAID, THE TAXABILITY
OF CSB PAYMENTS, HOW A PORTION OF THE CSB CAN BE PLACED IN THE
FEDERAL THRIFT SAVINGS PLAN (TSP), AND THE IMPACT OF THE COMBAT ZONE
EXCLUSION.
        (1) THE LAW PROVIDES THAT THE $30,000 LUMP-SUM CSB WILL BE
PAID NO LATER THAN THE FIRST MONTH THAT BEGINS ON OR AFTER THE DATE
THAT IS 60 DAYS AFTER THE DATE THE ELECTION IS EFFECTIVE.
        (2) FOR EXAMPLE, A CSB ELECTION THAT BECOMES EFFECTIVE ON 1
OCTOBER 2001 MUST BE PAID NO EARLIER THAN 1 OCTOBER 2001 AND NO
LATER THAN 31 JANUARY 2002.
        (3) FOR BUDGETARY REASONS, THE EARLIEST DATE DFAS WILL MAKE
NAVY PAYMENTS OF THE CSB WILL BE 1 OCTOBER 2001.
        (4) DFAS WILL ADVISE BONUS RECIPIENTS OF THE TAXABILITY OF
CSB PAYMENTS.  GENERALLY, THE CSB IS SUBJECT TO THE SAME TAX
CONSIDERATIONS AS ANY OTHER BONUS PAYMENT.  THE CSB, IF TAXABLE, IS
INCOME AS OF THE DATE ON WHICH THE PAYMENT IS ACTUALLY MADE TO THE
MEMBER.
        (5) IF THE MEMBER IS OTHERWISE ELIGIBLE FOR A COMBAT ZONE OR
QUALIFIED HAZARDOUS DUTY AREA (QHDA) TAX EXCLUSION ON THE EFFECTIVE
DATE OF THE CSB/REDUX ELECTION, THE CSB WILL NOT BE CONSIDERED
TAXABLE INCOME WITHIN ALLOWABLE LIMITS.
     I.  THAT CSB IS AN ACTIVE DUTY BONUS UNDER THE PROVISIONS OF
TITLE 37 OF UNITED STATES CODE AND IS NOT MILITARY RETIRED PAY,
THEREFORE, NOT SUBJECT TO DIVISION UNDER THE UNIFORMED SERVICES
FORMER SPOUSE PROTECTION ACT.
     J.  THE STANDARDS THE GOVERNMENT WILL APPLY TO RECOUPING THE
CSB IF THE MEMBER SEPARATES FROM SERVICE BEFORE FULFILLING THEIR
AGREEMENT.  THE LAW STIPULATES THAT A PROPORTIONATE SHARE OF THE CSB
MUST BE REPAID IF THE MEMBER FAILS TO COMPLETE 20 YEARS OF ACTIVE
DUTY, UNLESS THE SECRETARY OF THE NAVY WAIVES REPAYMENT.
 
7.  WHEN A CSB NOTIFICATION MESSAGE IS TRANSMITTED, THE MEMBER'S
REPORTING SENIOR SHALL HOLD DELIVERY OF THE MESSAGE IN ABEYANCE AND
HAVE THE MEMBER SIGN FOR RECEIPT WHEN THEY RETURN IF THE MEMBER IS
NOT ON DUTY OR AT THE DUTY STATION DUE TO ANY OF THE FOLLOWING
REASONS:
    A.  ON LEAVE
    B.  SICK IN QUARTERS
    C.  HOSPITALIZED
    D.  ON OFFICIAL TAD/TDY TRAVEL
    E.  PERMISSIVE TAD
    F.  TAD/TDY/TEMDU TO ATTEND SCHOOL
    G.  DUSTWUN
    H.  MIA
    I.  CAPTURED/INTERNED/BESEIGED/DETAINED BY A FOREIGN POWER
    J.  TERMINALLY/VERY SERIOUSLY/SERIOUSLY ILL OR INJURED
    K.  SUFFERS AN INCAPACITATING ILLNESS OR INJURY.
 
8.  THE MEMBER'S REPORTING SENIOR WILL ALSO BE AUTHORIZED TO CANCEL
NOTIFICATION BY MESSAGE IF:
    A.  THE MEMBER HAS A FINAL DETERMINATION BY SEPARATION AUTHORITY
THAT DIRECTS SEPARATION, DISCHARGE, OR DROPPING FROM THE ROLLS.
    B.  THE MEMBER'S RESIGNATION HAS BEEN ACCEPTED BY THE SECRETARY
OR CHNAVPERS.
    C.  THE MEMBER IS ABSENT WITHOUT LEAVE, DESERTED, UNDER UNITED
STATES CIVIL OR MILITARY CONFINEMENT.
 
9.  THE MEMBER'S REPORTING SENIOR WILL ALSO BE DIRECTED TO FORWARD
THE NOTIFICATION MESSAGE TO INTERMEDIATE AND ULTIMATE DUTY STATIONS
FOR ACTION IF THE MEMBER HAS DETACHED PRIOR TO RECEIPT OF THE
MESSAGE.
 
10.  IF ABOVE CONDITIONS DELAY DELIVERY OF THE MESSAGE TO THE
MEMBER, THE MEMBER'S REPORTING SENIOR SHALL DELIVER THE MESSAGE TO
THE MEMBER AT THE EARLIEST POSSIBLE OPPORTUNITY AND ALLOW THE MEMBER
SIX MONTHS (FROM THE DATE OF DELIVERY OF THE MESSAGE) TO MAKE A
FINAL ELECTION.
 
11.  NOTIFICATION MESSAGES TO THE FIRST MEMBERS POTENTIALLY AFFECTED
BY THIS RETIRED PAY REFORM WILL BEGIN 1 FEBRUARY 2001.  ACCORDINGLY,
REPORTING SENIORS SHOULD HAVE PROCEDURES AND RESOURCES IN PLACE TO
SUPPORT THE NOTIFICATION PROCESS (AND TO ASSIST ELIGIBLE MEMBERS IN
THE CSB/REDUX ELECTION DECISION-MAKING PROCESS) BY THE END OF
JANUARY 2001.
 
12.  MESSAGE CENTERS AND ADMINISTRATIVE STAFFS ARE ADVISED THAT
STARTING 1 FEBRUARY 2001 THEY WILL BEGIN SEEING GENADMIN
NOTIFICATION MESSAGES TO COMMAND MEMBERS WITH THE SUBJECT LINE
"NOTIFICATION OF ELIGIBILITY TO ELECT CAREER STATUS BONUS AND REDUX
RETIRED PAY."  COMMANDS ARE ADVISED THAT THEY SHOULD DEVELOP
PROCEDURES AS SOON AS POSSIBLE FOR DELIVERING COPIES OF THESE
MESSAGES TO THE MEMBER, REPORTING SENIOR, ADMINISTRATIVE OFFICER,
CAREER COUNSELOR, AND COMMAND FINANCIAL ADVISOR.
 
13.  THE DEPARTMENT OF DEFENSE IS FINALIZING THE DESIGN OF A DD FORM
THAT WILL BE USED TO RECORD THE MEMBER'S CSB ELECTION DECISION.  AS
SOON AS THIS FORM IS COMPLETED IT WILL BE POSTED ON THE
WWW.BUPERS.NAVY.MIL AND WWW.DEFENSELINK.MIL WEBSITES, AND WE WILL
NOTIFY YOU THAT IT IS AVAILABLE.
 
14.  ADMINISTRATIVE OFFICERS WILL BE RESPONSIBLE FOR ENSURING
COMMISSIONED OFFICER CSB NOTIFICATION MESSAGES ARE DELIVERED AND
ELECTIONS ARE PROCESSED THROUGH DEFENSE FINANCE AND ACCOUNTING
SERVICE (DFAS).
 
15.  CAREER COUNSELORS WILL BE RESPONSIBLE FOR ENSURING CSB
NOTIFICATION MESSAGES ARE DELIVERED AND ELECTIONS ARE PROCESSED
THROUGH DFAS FOR ENLISTED MEMBERS.
 
16.  BOTH ADMINISTRATIVE OFFICERS AND CAREER COUNSELORS WILL BE
RESPONSIBLE FOR:
    A.  COMPLETING SECTION I "PERSONAL IDENTIFICATION" ON THE
MEMBER'S CSB ELECTION FORM USING THE INFORMATION PROVIDED IN THE
NOTIFICATION MESSAGE.
    B.  ENSURING THE REPORTING SENIOR COMPLETES, DATES AND SIGNS
SECTION II "DETERMINATION OF ELIGIBILITY" ON THE MEMBER'S CSB
ELECTION FORM.
    C.  WITNESSING THE MEMBER'S COMPLETION OF SECTIONS III THROUGH V
ON THE MEMBER'S CSB ELECTION FORM.
    D.  COMPLETING, DATING AND SIGNING SECTION VI "SERVICE RECORDING
OF ELECTION" ON THE MEMBER'S CSB ELECTION FORM.
    E.  ENTERING MEMBER'S CSB/REDUX ELECTION DATA IN THE FORCE
MANAGEMENT SYSTEM (FORMAN) AND TRANSMITING DATA TO DFAS FOR PAYMENT.
TO ESTABLISH ACCESS TO FORMAN, EMAIL THE FOLLOWING INFORMATION TO
P333A@PERSNET.NAVY.MIL: COMMAND TITLE, FULL NAME, SOCIAL SECURITY
NUMBER (SSN), PROJECTED ROTATION DATE (PRD), MASTER MILITARY PAY
ACCOUNT (MMPA) LOGON, UNIT IDENTIFICATION CODE (UIC), DEFENSE SWITCH
NETWORK (DSN) AND COMMERCIAL PHONE NUMBERS, AND THE REASON FOR THE
REQUEST TO ACCESS FORMAN.  IF YOU HAVE ANY QUESTIONS CONCERNING
ESTABLISHING A MMPA ACCOUNT OR GAINING FORMAN ACCESS CONTACT CWO4 L.
CLARK, PERS-333, AT (901) 874-3527 OR DSN 882-3527.
    F.  MAINTAINING A COMMAND COPY OF THE MEMBER'S CSB/REDUX
ELECTION FORM WHILE THE MEMBER IS ASSIGNED TO THE COMMAND.
    G.  FORWARDING THE ORIGINAL COPY OF THE CSB/REDUX ELECTION FORM
TO COMMANDER, NAVY PERSONNEL COMMAND (COMNAVPERSCOM) FOR INCLUSION
IN THE MEMBER'S PERMANENT SERVICE RECORD.  CAREER COUNSELORS MUST
ALSO FORWARD A COPY OF THE CSB/REDUX ELECTION FORM FOR INCLUSION IN
THE MEMBER'S FIELD SERVICE RECORD.
    H.  PROVIDING THE MEMBER WITH A COPY OF THE COMPLETED CSB/REDUX
ELECTION FORM FOR THEIR PERSONAL FILES.
15.  REPORTING SENIORS WILL BE RESPONSIBLE FOR MAKING A
DETERMINATION OF ELIGIBILITY IN SECTION II OF THE CSB ELECTION FORM
USING THE REENLISTMENT AND CONTINUATION STANDARDS IN LAW, DIRECTIVES
AND INSTRUCTIONS.  SECTION II OF THE FORM OFFERS THE REPORTING
SENIOR THE OPTION TO CHECK EITHER THE BLOCK THAT STATES THE MEMBER
IS ELIGIBLE TO ELECT THE CSB; OR THE BLOCK THAT STATES THE MEMBER IS
NOT ELIGIBLE TO ELECT THE CSB.  IF THE BLOCK IS CHECKED INDICATING
THE MEMBER IS NOT ELIGIBLE, AN EXPLANATION MUST BE PROVIDED IN THE
SPACE IN SECTION II OF THE FORM ENTITLED "REASON."  WHEN THE MEMBER
IS INVOLVED IN AN ACTIVE DISCIPLINARY, MEDICAL, OR ADMINISTRATIVE
CASE ON THEIR 15TH ANNIVERSARY THAT COULD AFFECT THE MEMBER'S
RETENTION, HAVE THE REPORTING SENIOR INDICATE THAT THE MEMBER IS NOT
ELIGIBLE AND ANNOTATE THE FOLLOWING AS THE REASON:
"HOLDING FINAL DETERMINATION OF ELIGIBILITY IN ABEYANCE PENDING
A FAVORABLE DETERMINATION ON THE (CITE SPECIFIC DISCIPLINARY,
MEDICAL, OR ADMINISTRATIVE CASE) PROCEEDING THAT MAY ULTIMATELY
RESULT IN MEMBER'S SEPARATION FROM THE NAVY PRIOR TO THEIR 20TH
ANNIVERSARY OF ACTIVE DUTY.  UPON FAVORABLE DETERMINATION OF
PROCEEDINGS MEMBER IS AUTHORIZED TO RESUBMIT CSB ELECTION FORM FOR
FINAL DETERMINATION."
16.  REPORTING SENIORS ARE ENCOURAGED TO PROVIDE FINANCIAL
COUNSELING FOR EACH MEMBER ELIGIBLE FOR CSB/REDUX, AND ARE REQUIRED
TO PROVIDE RETENTION AND CAREER COUNSELING FOR EACH MEMBER
DETERMINED NOT ELIGIBLE TO ELECT THE BONUS IN SECTION II.
 
17.  A MEMBER WHO IS A THRIFT SAVINGS PLAN PARTICIPANT WHEN THEY
ELECT THE CSB MAY CONTRIBUTE ANY AMOUNT OF THEIR CSB ALLOWABLE UNDER
THE PROVISIONS OF LAW.
     A.  THE FY-00 AND FY-01 NDAA ESTABLISHED PROVISIONS FOR
MILITARY PARTICIPATION IN THE FEDERAL TSP PROGRAM.
B.  SERVICE MEMBERS ON ACTIVE DUTY MORE THAN 30 DAYS AND READY
RESERVISTS IN ANY PAY STATUS ARE ELIGIBLE TO PARTICIPATE IN THE TSP.
     C.  THE ACT ALLOWS MEMBERS TO REDIRECT UP TO 5 PERCENT OF THEIR
BASIC PAY TO A TAX DEFERRED TSP ACCOUNT, UP TO THE IRS ELECTIVE
DEFERRAL LIMIT PER TAX YEAR OF $10,500 IN 2000 AND 2001 FOUND IN IRS
CODE SECTION 402(G), WITH NO GOVERNMENT MATCHING FUNDS.  MEMBERS WHO
HAVE OPENED A TSP ACCOUNT WITH A PORTION OF THEIR BASIC PAY MAY ALSO
REDIRECT PAY PERIOD OR LUMP SUM BONUSES, SPECIAL OR INCENTIVE PAY
INTO THEIR TSP ACCOUNT UP TO THE IRS ELECTIVE DEFERRAL LIMIT.
     D.  CONTRIBUTIONS TO A TSP ACCOUNT WHILE UNDER THE COMBAT ZONE
EXCLUSION ARE NOT SUBJECT TO THE IRS CODE SECTION 402(G) TAX YEAR
ELECTIVE DEFERRAL LIMIT.  HOWEVER, CONTRIBUTIONS WHILE UNDER THE
COMBAT ZONE EXCLUSION ARE SUBJECT TO IRS CODE SECTION 415(C)
NONTAXABLE PAY LIMIT OF UP TO $30,000 OR 25 PERCENT OF COMPENSATION,
WHICHEVER IS LESS.
     E.  IRS IMPOSES STIFF PENALTIES FOR EXCESS DEFERRALS FROM ANY
COMBINATION OF TSP AND OTHER QUALIFIED PLANS DESCRIBED IN IRS CODE.
REFER TO WWW.TSP.GOV FOR DETAILS ON TSP AND THE ANNUAL LIMIT ON
ELECTIVE DEFERRALS TSP FACT SHEET.
     F.  THE FY-00 NDAA AND FY-01 NDAA ALSO AUTHORIZE, AT THE
SECRETARY OF THE NAVY DISCRETION, MATCHED CONTRIBUTIONS TO SERVICE
MEMBERS IN CRITICALLY MANNED SKILLS IN EXCHANGE FOR A SIX-YEAR
ADDITIONAL OBLIGATION.  AT THE PRESENT TIME THE SERVICES HAVE NO
PLAN IN THEIR BUDGETS TO USE THE TSP MATCHING FUND SPECIAL RETENTION
INCENTIVE BECAUSE OF THE SIGNIFICANT COST.
     G.  THE LAW STIPULATES THAT NO EARLIER THAN APRIL AND NO LATER
THAN OCTOBER 2001 MILITARY PARTICIPATION IN TSP WILL BEGIN.  THE
NAVY IS ASKING THE SECRETARY OF DEFENSE TO START MILITARY
PARTICIPATION AT THE EARLIEST POSSIBLE DATE, BUT IT IS LIKELY THAT
THE PROGRAM WILL NOT START TILL OCTOBER 2001 TO ALLOW THE FEDERAL
RETIREMENT THRIFT INVESTMENT BOARD TO CONFIGURE THEIR ELECTRONIC
SYSTEMS.
 
18.  MEMBERS WHO ELECT CSB/REDUX BEFORE THE MILITARY TSP PROGRAM
BEGINS MAY ELECT TO DEFER PAYMENT OF A PORTION OF THE CSB PAYMENT
UNTIL THEY'VE HAD AN OPPORTUNITY TO OPEN A TSP ACCOUNT.  THIS IS
NECESSARY, BECAUSE MONTHLY PAYMENTS OF BASE PAY OR BONUSES SENT TO A
MEMBER'S DIRECT DEPOSIT ACCOUNT CAN NOT BE RETURNED TO THE
GOVERNMENT FOR DEPOSIT INTO A MEMBER'S TSP ACCOUNT.
 
19.  POC IS LCDR L. LESTER, DCNO(M&P) (N130G), AT
(703) 695-3158/DSN 225 OR EMAIL:  P205A@BUPERS.NAVY.MIL.
 
20.  RELEASED BY MATTHEW G. HENRY, N1, ACTING.//
 
BT