ADMINISTRATIVE MESSAGE PRIORITY P 191851Z SEP 01 ZYB MIN PSN 080135J17 FM CNO WASHINGTON DC//N1// TO NAVADMIN UNCLAS //N07000// NAVADMIN 245/01 MSGID/GENADMIN/N1// SUBJ/PROCEDURES FOR ELECTING THE CAREER STATUS BONUS AND REDUX /RETIRED PAY SYSTEM// REF/A/RMG/CNO WASHINGTON DC/021648ZFEB2001// REF/B/RMG/DFAS CLEVELAND OH/270930ZMAR2001// NARR/REF A IS NAVADMIN 020/01 THAT PROVIDES POLICIES, PROCEDURES, AND RESPONSIBILITIES THAT 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). REF B IS MILITARY PAY ADVISORY 37/01 THAT PROVIDES GUIDANCE ON THE DIEMS DATE, RETIRED PAY INDICATOR (RPI), AND REMARK ADDED TO EACH MEMBER'S LEAVE AND EARNINGS STATEMENT STARTING IN MARCH 2001.// RMKS/1. THIS NAVADMIN PROVIDES ADDITIONAL PROCEDURES, GUIDANCE, AND EDUCATION FOR THE ADMINISTRATION OF THE NEW CSB/REDUX SYSTEM AND TO UPDATE MPA 37/01 WITH INFORMATION ON HOW TO CORRECT DIEMS DATES. REQUEST WIDEST DISSEMINATION TO ALL HANDS. 2. SUBTITLE D OF TITLE VI, OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 (PUBLIC LAW 106-65 OR FY-00 NDAA), 5 OCT 99, REFORMS THE RETIREMENT SYSTEM FOR THOSE PERSONNEL WITH A DIEMS (DATE OF ENTRY TO MILITARY/UNIFORMED SERVICE) ON OR AFTER 1 AUG 86. THE MILITARY RETIREMENT REFORM ACT OF 1986 (86 MRRA, POPULARLY KNOWN AS REDUX) PROVIDED SUCH MEMBERS A RETIREMENT SYSTEM WITH A REDUCED MULTIPLIER UNTIL AGE 62 AND A REDUCED LIFETIME COST-OF-LIVING ADJUSTMENT (COLA) WITH A ONE-TIME CATCH UP AT AGE 62. THE FY-00 NDAA PLACES THESE MEMBERS UNDER THE PRIOR HIGH-3 RETIREMENT PROVISIONS UNLESS THEY ELECT TO RECEIVE A $30,000 CAREER STATUS BONUS (CSB) AT THE 15TH YEAR OF ACTIVE DUTY SERVICE. AN ELECTION TO RECEIVE THE CSB REQUIRES THE MEMBER AGREE TO REMAIN IN SERVICE UNTIL COMPLETION OF 20 YEARS OF ACTIVE DUTY AND BE SUBJECT, UPON RETIREMENT, TO THE RETIREMENT PROVISIONS OF REDUX. ALL HANDS ARE ADVISED THAT THIS ELECTION, ONCE MADE, IS IRREVOCABLE. "RETIREMENT" IN THIS CONTEXT, AND THROUGHOUT THIS MESSAGE, INCLUDES TRANSFER TO THE FLEET RESERVE. 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 AUG 86 (I.E., THE MEMBER'S DATE OF INITIAL ENTRY TO MILITARY/UNIFORMED SERVICE (DIEMS) IS 1 AUG 86 OR LATER), (1) THE MEANING OF "FIRST BECAME A MEMBER" AND THE CORRESPONDING DATA ELEMENT "DIEMS" PERTAINS TO THE EARLIEST DATE OF ENLISTMENT, INDUCTION, OR APPOINTMENT IN A REGULAR OR RESERVE COMPONENT OF A UNIFORMED SERVICE AS A COMMISSIONED OFFICER, WARRANT OFFICER, OR ENLISTED MEMBER. BREAKS IN SERVICE DO NOT EFFECT THE DATE AN INDIVIDUAL FIRST BECAME A MEMBER. THE DATE AN INDIVIDUAL BECAME A CADET OR MIDSHIPMAN OF A SERVICE ACADEMY, RESERVE OFFICER TRAINING CORPS (ROTC), OR A MEMBER OF THE DELAYED ENTRY PROGRAM (DEP) (WHICHEVER IS EARLIER IN SOME CASES) IS THAT INDIVIDUAL'S DIEMS DATE. THE DIEMS DATE APPLIES ONLY TO THE MEMBER'S RETIREMENT PLAN AND SHOULD NOT BE CONFUSED WITH YOUR PAY ENTRY BASE DATE (PEBD) OR ACTIVE DUTY SERVICE DATE (ADSD). (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 HE IS RECALLED TO ACTIVE DUTY BY THE SERVICE WITH THE INTENT OF RETURNING THE MEMBER TO INACTIVE DUTY BEFORE HE EARNS 20 OR MORE YEARS OF ACTIVE DUTY. (2) MEMBERS OF THE REGULAR NAVY, TRAINING AND ADMINISTRATION OF THE RESERVES (TAR) PERSONNEL, RESERVE OFFICERS ON THE ACTIVE DUTY LIST, AND RESERVE ENLISTED MEMBERS WHO ARE RECALLED TO ACTIVE DUTY UNDER THE ENLISTED GENERAL RECALL PROGRAM 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. (3) AUTHORITY TO DETERMINE ELIGIBILITY TO CONTINUE ON ACTIVE DUTY UNTIL COMPLETION OF 20 YEARS OF ACTIVE DUTY SERVICE FOR THE PURPOSE OF DETERMINING ELIGIBILITY FOR THE CSB/REDUX IS GRANTED TO REPORTING SENIORS AS DEFINED IN ANNEX B OF BUPERSINST 1610.10. 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 HIS 15TH ANNIVERSARY OF ACTIVE DUTY MAY NOT LATER BE GIVEN THE OPPORTUNITY TO ELECT THE CSB/REDUX UNLESS HE RECEIVES FAVORABLE RESULTS ON A DISCIPLINARY, MEDICAL, OR ADMINISTRATIVE CASE THAT WAS ACTIVE ON THE MEMBER'S 15TH ANNIVERSARY. 5. ALL HANDS ARE ADVISED THE FOLLOWING REMARK HAS BEEN ADDED TO YOUR LEAVE AND EARNINGS STATEMENT: "DIEMS DATE: XXXXXX RETIREMENT PLAN XX: THE DATE YOU INITIALLY ENTERED MILITARY SERVICE (DIEMS) DETERMINES YOUR RETIRED PAY FORMULA. FOR MORE INFORMATION ON DIEMS, RETIRED PAY FORMULAS, YOUR RETIRED PAY INDICATOR, AND CSB/REDUX, VISIT HTTP:/PAY2000.DTIC.MIL/." A. THE DIEMS DATE XXXXXX REPRESENTS THE DIEMS DATE INDICATED IN YOUR ELECTRONIC RECORD IN THE NAVY ENLISTED SYSTEM (NES) AND/OR NAVY OFFICER PERSONNEL INFORMATION SYSTEM (OPINS). B. IF YOU FIND A DISCREPANCY BETWEEN THE DIEMS DATE ON YOUR LES AND DOCUMENTS IN YOUR PERMANENT SERVICE RECORD, OR YOU DID NOT RECEIVE YOUR GENADMIN CSB NOTIFICATION MESSAGE ON SCHEDULE, REPORT THE DISCREPANCY BY OFFICIAL CORRESPONDENCE TO CHNAVPERS, PERSONNEL PAY ASSISTANCE CENTER (PPAC) VIA YOUR COMMAND. INCLUDE YOUR FULL NAME, SSN, COMMAND ADDRESS, PHONE NUMBER, AND A COPY OF THE DOCUMENT SUBSTANTIATING YOUR REQUEST. SUBSTANTIATING DOCUMENTS INCLUDE, BUT ARE NOT LIMITED, TO YOUR DD FORM 4 "ENLISTMENT/REENLISTMENT DOCUMENT - ARMED FORCES OF THE U.S. (AND ANNEXES)", OR DD FORM 1966 "RECORD OF MILITARY PROCESSING - ARMED FORCES OF THE U.S.", OR NAVCRUIT FORM 1000/20 "OFFICER APPOINTMENT ACCEPTANCE AND OATH OF OFFICE", OR NAVPERS 1070/877 "STATEMENT OF SERVICE", OR CONTRACT WITH THE ARMY, AIR FORCE, MARINE CORPS, COAST GUARD, NATIONAL OCEANIC, AND ATMOSPHERE ADMINISTRATION OR PUBLIC HEALTH SERVICE. IF NEEDED, A MICROFICHE COPY OF YOUR PERMANENT SERVICE RECORD MAY BE REQUESTED FROM CHNAVPERS (PERS 313C) BY FAX OR MAIL. INCLUDE YOUR NAME, RANK, SSN, MAILING ADDRESS, AND SIGNATURE IN YOUR REQUEST. A REQUEST WITHOUT A SIGNATURE, AND TELEPHONE OR EMAIL REQUESTS WILL NOT BE ACCEPTED. FAX REQUESTS TO (901) 874-2664/DSN 882. SEND ALL MAIL REQUESTS TO COMMANDER, NAVY PERSONNEL COMMAND, PERS-313C, 5720 INTEGRITY DRIVE, MILLINGTON, TN 38055-3130. IF YOU HAVE BROKEN SERVICE, A COPY OF YOUR FIRST CONTRACT FROM YOUR PRIOR ACTIVE DUTY SERVICE RECORD MAY BE REQUESTED FROM THE NATIONAL PERSONNEL RECORD CENTER (NPRC), MILITARY PERSONNEL RECORDS (MPR) IN ST. LOUIS, MISSOURI. A COPY OF STANDARD FORM 180 "REQUEST PERTAINING TO MILITARY RECORDS IS AVAILABLE AT HTTP:/WWW.NARA.GOV/REGIONAL/. C. THE RETIREMENT PLAN XX ON YOUR LES REMARK REPRESENTS YOUR RETIRED PAY INDICATOR. IF YOU HAVE A DIEMS DATE OF 7 SEP 80 OR EARLIER YOU ARE UNDER THE "FINAL PAY" RETIREMENT SYSTEM AND WILL SEE AN "F" RETIRED PAY INDICATOR ON YOUR LES AND ELECTRONIC MASTER FILE. IF YOU HAVE A DIEMS DATE OF 8 SEP 80 OR LATER YOU ARE UNDER THE "HIGH-3" RETIREMENT SYSTEM AND WILL SEE AN "H" RETIRED PAY INDICATOR ON YOUR LES AND ELECTRONIC MASTER FILE. IF YOU HAVE A DIEMS DATE OF 1 AUG 86 OR LATER YOU WILL SEE A "C" RETIRED PAY INDICATOR FOR THE WORD "CHOICE" ON YOUR LES AND ELECTRONIC MASTER FILE UNTIL A CSB/REDUX OR HIGH-3 RETIRED PAY ELECTION IS MADE AT 15 YEARS OF ACTIVE DUTY. THE SYSTEM WILL CONVERT TO "H" IF YOU ELECT TO REMAIN UNDER THE HIGH-3 SYSTEM, OR CONVERT TO "R" IF YOU ELECT THE CSB/REDUX SYSTEM. 6. A GENADMIN MESSAGE WILL BE SENT TO EACH ELIGIBLE MEMBER ON THE DATE THAT HE COMPLETES 14 YEARS AND 6 MONTHS OF ACTIVE DUTY TO NOTIFY HIM THAT HE MAY BE ELIGIBLE TO ELECT THE CSB/REDUX. UPON RECEIPT OF THE GENADMIN NOTIFICATION MESSAGE, THE MEMBER WILL BE DIRECTED TO SEE HIS COMMAND CAREER COUNSELOR (CCC) OR ADMINISTRATIVE OFFICER (AO) TO RECEIVE HIS COPY OF THE DEPARTMENT OF DEFENSE FACT SHEET OF INFORMATION FOR ELIGIBLE CSB MEMBERS. THIS FACT SHEET (AVAILABLE AT HTTP:/WWW.STAYNAVY.NAVY.MIL/) EXPLAINS AVAILABLE OPTIONS AND LOOKS AT SOME BASIC CONSIDERATIONS ON HOW THE FUTURE VALUE OF THE CSB MONEY COULD BE EFFECTED BY A MEMBER'S PLANNED USE OF THE BONUS. THE FACT SHEET ALSO ENCOURGES ELIGIBLE MEMBERS TO SEEK FINANCIAL COUNSELING FROM THE COMMAND FINANCIAL ADVISOR. 7. DOD ALSO HAS A VERY INFORMATIVE WEBSITE THAT DISCUSSES THE CSB. THE SITE INCLUDES AN INTERACTIVE CALCULATOR TO HELP THE ELIGIBLE MEMBERS DECIDE WHETHER TO STAY IN THE HIGH-3 RETIRED PAY SYSTEM OR ELECT THE CSB/REDUX RETIRED PAY SYSTEM. ELIGIBLE MEMBERS ARE STRONGLY ENCOURAGED TO TAKE A LOOK AT THE WEB ADDRESS HTTP:/PAY2000.DTIC.MIL AND DISCUSS THEIR ALTERNATIVES WITH THEIR FAMILY AND FINANCIAL ADVISORS. 8. ELIGIBLE MEMBERS WILL HAVE SIX MONTHS AS OF THE DATE OF THE GENADMIN NOTIFICATION MESSAGE TO MAKE AN ELECTION DECISION. THERE ARE THREE EXCEPTIONS TO THIS RULE: A. THE MEMBER HAS SIX MONTHS FROM ACTUAL PERSONAL RECEIPT OF THE MESSAGE IF HIS REPORTING SENIOR HOLDS DELIVERY OF THE MESSAGE IN ABEYANCE WHILE THE MEMBER IS ON LEAVE, SICK IN QUARTERS, HOSPITALIZED, ON OFFICIAL TAD/TDY TRAVEL, PERMISSIVE TAD, TAD/TDY/TEMDU TO ATTEND A SCHOOL, DUSTWUN, MIA, CAPTURED/INTERNED/ BESEIGED/DETAINED BY A FOREIGN POWER, TERMINALLY/VERY SERIOUSLY/SERIOUSLY ILL OR INJURED, OR SUFFERING AN INCAPACITATING ILLNESS OR INJURY, B. IF THE MEMBER'S REPORTING SENIOR HOLDS THE MEMBER'S ELIGIBILITY IN ABEYANCE DUE TO AN ACTIVE DISCIPLINARY, MEDICAL, OR ADMINISTRATIVE CASE ON THE MEMBER'S 15TH ANNIVERSARY THAT COULD AFFECT HIS RETENTION, THEN THE MEMBER HAS SIX MONTHS TO MAKE AN ELECTION AS OF THE DATE HE RECEIVES FAVORABLE RESULTS ON THE CASE, AND C. THE SECRETARY OF DEFENSE HAS EXTENDED THE OPPORTUNITY TO ELECT THE CSB/REDUX UNTIL TWO MONTHS AFTER THE START DATE OF THE THRIFT SAVINGS PLAN (TSP). A KEY TO THE VALUE OF THE CSB OPTION IS THE AVAILABILITY OF TSP. LAWMAKERS EXPECTED TSP TO BE AVAILABLE IN CONJUNCTION WITH CSB. HOWEVER, IMPLEMENTATION OF TSP IS NOT EXPECTED BEFORE OCT 01 WITH FIRST CONTRIBUTIONS AFTER 1 JAN 02. A MEMBER MUST BE A TSP PARTICIPANT ON THE EFFECTIVE DATE OF THEIR CSB/REDUX ELECTION IN ORDER TO DEPOSIT ANY OF THOSE FUNDS IN THE TSP. IF TSP IMPLEMENTATION STAYS ON TRACK THIS SHOULD EXTEND A MEMBER'S OPPORTUNITY TO ELECT CSB/REDUX TO 1 MAR 02 IF HIS 15-YEAR ANNIVERSARY OF ACTIVE DUTY IS BETWEEN 1 AUG 01 AND 28 FEB 02. 9. ONCE A GENADMIN NOTIFICATION MESSAGE ARRIVES, THE MEMBER'S REPORTING SENIOR SHOULD BE STANDING BY TO GIVE THE MEMBER HIS CSB AND REDUX RETIRED PAY ELECTION FORM (DD FORM 2839) WITH SECTION I AND II COMPLETED, AND COUNSEL THE MEMBER ON THE REPORTING SENIOR'S RETENTION DETERMINATION. 10. THE MEMBER IS DIRECTED TO MAKE AN APPOINTMENT WITH HIS REPORTING SENIOR AS SOON AS HE IS READY TO BEGIN THE ELECTION PROCESS. WHEN THE MEMBER MEETS WITH HIS REPORTING SENIOR HE WILL BE GIVEN A COPY OF THE FORM. SECTION I WILL BE COMPLETED WITH THE MEMBER'S NAME, SSN, RANK/PAYGRADE/BRANCH OF SERVICE, DIEMS, ADSD, AND THE DATE OF HIS GENADMIN NOTIFICATION ORDER MESSAGE. THE MEMBER IS CAUTIONED TO REVIEW THE INFORMATION IN SECTION I CAREFULLY AND POINT OUT ANY NEEDED CORRECTIONS. 11. AN IMPORTANT ELEMENT IN DETERMINING WHETHER A MEMBER HAS THE RIGHT TO ELECT THE CSB IS HIS OR HER ELIGIBILITY TO REMAIN IN THE SERVICE THROUGH THE 20TH ANNIVERSARY OF ACTIVE DUTY. THIS IS A DETERMINATION THE MEMBER'S REPORTING SENIOR WILL MAKE IN SECTION II OF THE MEMBER'S DD FORM 2839 BASED ON RETENTION STANDARDS FOUND IN LAW, REGULATIONS, AND INSTRUCTIONS USED FOR REENLISTMENT AND CONTINUATION. THE REPORTING SENIOR HAS THREE OPTIONS: A. INDICATE THE MEMBER IS ELIGIBLE TO ELECT THE CSB IF HE/SHE QUALIFIES FOR RETENTION ON CONTINUOUS ACTIVE DUTY THROUGH HIS/HER 20TH ANNIVERSARY, B. INDICATE THE MEMBER IS NOT ELIGIBLE TO ELECT THE CSB. AN EXPLANATION MUST BE PROVIDED IN THE SPACE IN SECTION II OF THE FORM ENTITLED "REASON." THE REPORTING SENIOR IS REQUIRED TO PROVIDE RETENTION AND CAREER COUNSELING IF THE MEMBER IS DETERMINED IN SETION II TO BE INELIGIBLE TO ELECT THE BONUS, OR C. INDICATE THE MEMBER IS NOT ELIGIBLE TO ELECT THE CSB AND ANNOTATE THE FOLLOWING AS THE REASON IN SECTION II: "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 HIS/HER 20TH ANNIVERSARY OF ACTIVE DUTY. UPON FAVORABLE DETERMINATION OF PROCEEDINGS MEMBER IS AUTHORIZED TO RESUBMIT CSB ELECTION FORM FOR FINAL DETERMINATION." 12. FOR MEMBERS WHO ARE ELIGIBLE AND DESIRE TO ELECT CSB/REDUX; YOU MUST: A. READ SECTION IV BLOCK 12 OF YOUR DD FORM 2839 THOROUGHLY AND SIGN/DATE YOUR AGREEMENT TO REMAIN ON ACTIVE DUTY IN EXCHANGE FOR THE CSB/REDUX RETIRED PAY SYSTEM, B. LEAVE SECTION III AND V BLANK AND RETURN THE FORM TO YOUR CCC OR AO SO THAT PERSON CAN WITNESS THE ELECTION IN SECTION IV BLOCK 13, COMPLETE SECTION VI, AND PROCESS THE ELECTION, C. CONTINUE UNDER YOUR EXISTING CONTRACT, EXTENSION OR OTHER AGREEMENT. THE EXECUTION OF A NEW REENLISTMENT CONTRACT FOR THE SOLE PURPOSE OF ELECTING THE CSB/REDUX IS NOT REQUIRED NOR ENCOURAGED. BY LAW, THE CSB/REDUX OBLIGATION MAY RUN CONCURRENT WITH OTHER OBLIGATIONS TO THE GOVERNMENT, AND THE CSB MAY BE PROVIDED IN ADDITION TO OTHER BONUSES, SPECIAL OR INCENTIVE PAYS, AND D. REQUEST YOUR CCC OR AO ADD THE FOLLOWING REMARK IN SECTION II, BLOCK 7 IF YOU WILL CELEBRATE YOUR 15TH ANNIVERSARY OF ACTIVE DUTY PRIOR TO 1 MAR 02 AND WISH TO ELECT THE CSB/REDUX AND DEPOSIT A PORTION OF THE BONUS INTO TSP: "AS AUTHORIZED BY SECDEF, MEMBER REQUESTS CSB/REDUX ELECTION BE HELD IN ABEYANCE TO NO LATER THAN 1 MAR 02 TO AFFORD HIM/HER AN OPPORTUNITY TO ESTABLISH A TSP ACCOUNT AND DEPOSIT THEREIN A PORTION OF THE CSB." 13. FOR MEMBERS WHO ARE ELIGIBLE AND ELECT NOT TO RECEIVE THE CSB, YOU MUST READ SECTION V BLOCK 14 THROUGHLY AND SIGN/DATE YOUR ELECTION NOT TO RECEIVE THE CSB AND DECISION TO REMAIN UNDER THE HIGH-3 RETIRED PAY SYSTEM. LEAVE SECTIONS III AND IV BLANK AND RETURN THE FORM TO YOUR CCC OR AO SO THAT PERSON CAN WITNESS THE ELECTION NOT TO RECEIVE THE CSB IN SECTION V BLOCK 15, AND PROCESS THE ELECTION. CCCS AND AOS SHOULD LEAVE SECTION VI BLANK IF THE MEMBER ELECTS NOT TO RECEIVE THE CSB/REDUX. 14. A MEMBER WHO IS NOT ELIGIBLE TO ELECT THE CSB MUST READ SECTION III BLOCK 10 THOROUGHLY AND SIGN/DATE THE STATEMENT OF UNDERSTANDING THAT INELIGIBILITY DOES NOT PRECLUDE THE MEMBER FROM CONTINUING TO SERVE TO RETIREMENT IF THE NAVY PERMITS. SUCH A MEMBER IS TO LEAVE SECTIONS IV AND V BLANK AND RETURN THE FORM TO THE CCC OR AO SO THAT PERSON CAN WITNESS THE SIGNING OF THE STATEMENT OF UNDERSTANDING IN SECTION III AND COMPLETE THE PROCESS. THE CCC OR AO SHOULD LEAVE SECTION VI BLANK. 15. A MEMBER'S ELECTION IS CONSIDERED TO BE EFFECTIVE AND IRREVOCABLE ON EITHER: A. THE MEMBER'S 15TH ANNIVERSARY OF ACTIVE DUTY, OR B. THE DATE THE ELECTION WAS MADE IN CASES WHERE THE OPPORTUNITY TO MAKE AN ELECTION SURPASSES THE MEMBERS 15TH ANNIVERSARY. 16. THE LAW PROVIDES THAT THE 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. FOR EXAMPLE, A CSB ELECTION THAT BECOMES EFFECTIVE ON 1 OCT 01 MUST BE PAID NO EARLIER THAN 1 OCT 01 AND NO LATER THAN 31 JAN 02. FOR BUDGETARY REASONS, THE EARLIEST DATE DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) WILL MAKE NAVY PAYMENTS OF THE CSB WILL BE 15 OCT 01. 17. DFAS WILL ADVISE MEMBERS OF THE TAXABILITY OF CSB PAYMENTS. GENERALLY, THE CSB IS SUBJECT TO THE SAME TAX CONSIDERATIONS AS ANY OTHER BONUS PAYMENT. CSB IS NOT TAXABLE IF THE CSB EFFECTIVE DATE OCCURS IN A MONTH DURING WHICH COMBAT ZONE OR QUALIFIED HAZARDOUS DUTY AREA EXCLUSION APPLIES. THE CSB, IF TAXABLE, IS INCOME AS OF THE DATE ON WHICH THE PAYMENT IS ACTUALLY MADE TO THE MEMBER. IF THE MEMBER IS OTHERWISE ELIGIBLE FOR 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. 18. THE CSB IS AN ACTIVE DUTY BONUS UNDER THE PROVISIONS OF TITLE 37, U.S. CODE. IT IS NOT MILITARY RETIRED PAY AND, THEREFORE, IS NOT SUBJECT TO DIVISION UNDER THE UNIFORMED SERVICES FORMER SPOUSES' PROTECTION ACT. 19. IF A MEMBER FAILS TO SERVE CONTINUOUSLY ON ACTIVE DUTY UNTIL HIS 20TH ANNIVERSARY, THE LAW STIPULATES THAT A PROPORTIONATE SHARE OF THE CSB MUST BE REPAID. SECDEF HAS WAIVED BONUS REPAYMENT IF A MEMBER DIES ON ACTIVE DUTY, IS SEPARATED OR RETIRED AS A RESULT OF A PHYSICAL DISABILITY UNDER CHAPTER 61 OF TITLE 10 U.S. CODE, OR SEPARATED UNDER A SERVICE OFFER FOR EARLY RETIREMENT (SUCH AS TERA) OR SEPARATION PROGRAM. THIS WAIVER IS NOT AVAILABLE IF A MEMBER IS SEPARATED DUE TO MISCONDUCT OR IF THE WAIVER WOULD BE INCONSISTENT WITH OTHER PRESCRIBED LAW, REGULATION, OR POLICY. 20. FOLLOWING GUIDANCE ESTABLISHES COMMAND RESPONSIBILITY AND PROCEDURES TO NOTIFY AND COUNSEL MEMBER ON ELIGIBILITY TO ELECT THE CSB/REDUX RETIRED PAY SYSTEM. 21. DELIVER THE GENADMIN NOTIFICATION ORDER MESSAGE TO THE AFFECTED MEMBER WITHIN THREE WORKING DAYS OF RECEIPT. COMMANDS ARE AUTHORIZED TO HOLD DELIVERY IN ABEYANCE WHILE MEMBER IS ON LEAVE, SIQ, HOSPITALIZED, ON OFFICIAL TAD/TDY TRAVEL, PERMISSIVE TAD, OR TAD/TDY/TEMDU TO ATTEND SCHOOL. 22. COMMANDS ARE DIRECTED TO CANCEL GENADMIN NOTIFICATION ORDER BY MESSAGE TO ADDRESSEES IF: A. MEMBER IS DECEASED. REFERENCE PERSONNEL CASUALTY REPORT MESSAGE AS AUTHORITY TO CANCEL NOTIFICATION ORDER DUE TO DEATH. B. MEMBER HAS A FINAL DETERMINATION BY SEPARATION AUTHORITY THAT DIRECTS SEPARATION, DISCHARGE, OR DROPPING FROM THE ROLLS. REFERENCE SEPARATION AUTHORITY DOCUMENTATION AS AUTHORITY TO CANCEL NOTIFICATION ORDER DUE TO SEPARATION. C. MEMBER'S RESIGNATION HAS BEEN ACCEPTED BY SECNAV OR CHNAVPERS. REFERENCE ACCEPTANCE DOCUMENTATION AS AUTHORITY TO CANCEL NOTIFICATION ORDER DUE TO RESIGNATION. D. MEMBER IS SEPARATED, DISCHARGED, OR DROPPED FROM THE ROLLS. REFERENCE SEPARATION DOCUMENTATION AS AUTHORITY TO CANCEL NOTIFICATION ORDER DUE TO SEPARATION. E. MEMBER IS ABSENT WITHOUT LEAVE, A DESERTER, OR UNDER U.S. CIVIL OR MILITARY CONFINEMENT. REFERENCE SUPPORTING DOCUMENTATION AS AUTHORITY TO CANCEL NOTIFICATION ORDER. 23. COMMANDS ARE DIRECTED TO FORWARD THE GENADMIN NOTIFICATION ORDER MESSAGE TO: A. INTERMEDIATE AND ULTIMATE DUTY STATIONS FOR ACTION IF MEMBER HAS DETACHED. NOTIFY BY MESSAGE THE ULTIMATE AND INTERMEDIATE DUTY STATIONS AND ADDRESSEES OF THIS MESSAGE REFERENCING THE PCS TRANSFER ORDERS AS AUTHORITY FOR FORWARDING NOTIFICATION TO SNM'S PRESENT STATION. B. CHNAVPERS CASUALTY ASSISTANCE BRANCH (PERS 621) IF MEMBER IS DUSTWUN, MIA, CAPTURED/INTERNED/BESIEGED/DETAINED BY A FOREIGN POWER, TERMINALLY/VERY SERIOUSLY/SERIOUSLY ILL OR INJURED, OR SUFFERING AN INCAPACITATING ILLNESS OR INJURY. REFERENCE PERSONNEL CASUALTY REPORT MESSAGE AS AUTHORITY FOR FORWARDING NOTIFICATION ORDER TO PERS 621. 24. AO'S AND CCC'S ARE RESPONSIBLE FOR: A. ENSURING GENADMIN NOTIFICATION ORDER MESSAGES ARE DELIVERED TO THE AFFECTED MEMBERS OF THEIR COMMAND. B. COMPLETING DD FORM 2839 SECTION I "PERSONAL IDENTIFICATION." C. ENSURING THAT THE MEMBER'S REPORTING SENIOR COMPLETES DD FORM 2839 SECTION II. D. WHEN REQUESTED, ADDING THE REMARK STIPULATED IN PARA 11.D ABOVE IN SECTION II, BLOCK 7, OF THE DD FORM 2839 IF THE MEMBER WILL CELEBRATE HIS 15TH ANNIVERSARY OF ACTIVE DUTY PRIOR TO 1 MAR 02 AND WISHES TO ELECT THE CSB/REDUX AND DEPOSIT A PORTION OF THE BONUS INTO TSP. E. ADVISING MEMBERS THAT IN ORDER TO ENROLL IN TSP AND DEPOSIT A PORTION OF THEIR CSB INTO TSP THEY NEED TO COMPLETE THE TSP-U-1 FORM AND SUBMIT IT TO THEIR LOCAL PAY/PERSONNEL OFFICE DURING A TSP OPEN SEASON ONCE TSP BEGINS IN OCT 01. F. ENSURING THAT MEMBERS COMPLETE DD FORM 2839 SECTION III IF THEY ARE NOT CURRENTLY ELIGIBLE FOR CSB; SECTION IV IF THEY ARE ELIGIBLE AND ELECT CSB; AND SECTION V IF THEY ARE ELIGIBLE BUT ELECT TO REMAIN UNDER THE HIGH-3 RETIRED PAY SYSTEM AND NOT RECEIVE THE CSB. G. WITNESSING THE MEMBER'S ELECTION ON DD FORM 2839 IN SECTION III, BLOCK 11; SECTION IV, BLOCK 13; OR SECTION V, BLOCK 15. H. COMPLETING DD FORM 2839 SECTION VI, SERVICE RECORDING OF ELECTION IF THE MEMBER IS ELIGIBLE AND ELECTS THE CSB/REDUX. THE FOLLOWING EXAMPLES ARE PROVIDED TO HELP AO'S AND CCC'S UNDERSTAND WHAT DATE TO USE IN BLOCK 16 FOR THE CSB ELECTION EFFECTIVE DATE. EXAMPLE ONE: MEMBER'S ADSD IS 1 SEP 86 MAKING 1 SEP 01 SNM'S 15TH ANNIVERSARY OF ACTIVE SERVICE. MEMBER'S OFFICIAL GENADMIN NOTIFICATION MESSAGE DTG IS 15 JUL 01. MEMBER'S REPORTING SENIOR COMPLETES SECTION II OF DD FORM 2839 INDICATING MEMBER IS ELIGIBLE FOR RETENTION. MEMBER SIGNS SECTION IV OF DD FORM 2839 ON 20 JUL 01 ELECTING CSB/REDUX. MEMBER'S CSB ELECTION EFFECTIVE DATE IS SNM'S 15TH ANNIVERSARY OF ACTIVE DUTY OF 1 SEP 01. EXAMPLE TWO: MEMBER'S ADSD IS 1 SEP 86 MAKING 1 SEP 01 SNM'S 15TH ANNIVERSARY OF ACTIVE SERVICE. MEMBER'S OFFICIAL GENADMIN NOTIFICATION MESSAGE DTG IS 15 JUL 01 NORMALLY MAKING THEIR 6 MONTH WINDOW FOR MAKING AN ELECTION FROM 15 JUL 01 THROUGH 15 JAN 02 BUT SECDEF HAS EXTENDED OPPORTUNITY TO 1 MAR 02 IF MEMBER WISHES TO DEPOSIT PORTION OF CSB INTO TSP. MEMBER'S REPORTING SENIOR COMPLETES SECTION II OF DD FORM 2839 INDICATING MEMBER IS ELIGIBLE FOR RETENTION. MEMBER REQUESTS SECTION II REMARK TO EXTEND CSB ELECTION OPPORTUNITY TO ALLOW ENROLLMENT IN TSP. MEMBER ENROLLS IN TSP ON 15 OCT 01 FILLING OUT THE TSP ENROLLMENT FORM SHOWING THAT HE WANTS TO DEPOSIT ONE PERCENT OF MEMBERS BASE PAY EACH MONTH AND $10,000 OF HIS CSB. MEMBER'S LES FOR THE 1 JAN 02 PAYDAY SHOWS THE TSP ACCOUNT IS OPEN AND ONE PERCENT OF MEMBERS BASE PAY HAS BEEN TRANSFERRED TO HIS TSP ACCOUNT. MEMBER SIGNS SECTION IV OF DD FORM 2839 ON 20 JAN 02 ELECTING CSB/REDUX AND MEMBER'S CCC TRANSMITS ELECTION USING FORMAN CSB/REDUX ELECTION SCREEN ON 22 JAN 02. SINCE THE MEMBER WAITED UNTIL AFTER HIS 15TH ANNIVERSARY TO MAKE HIS CSB/REDUX ELECTION, HIS ELECTION EFFECTIVE DATE IS THE DATE HE SIGNS SECTION IV OF HIS DD FORM 2839 WHICH IS 20 JAN 02. EXAMPLE THREE: MEMBER'S ADSD IS 15 MAR 87 MAKING 15 MAR 02 SNM'S 15TH ANNIVERSARY OF ACTIVE SERVICE. MEMBER'S OFFICIAL GENADMIN NOTIFICATION MESSAGE DTG IS 15 SEP 01. MEMBER'S REPORTING SENIOR COMPLETES SECTION II OF DD FORM 2839 INDICATING MEMBER IS ELIGIBLE FOR RETENTION. MEMBER ENROLLS IN TSP ON 15 OCT 01 FILLING OUT THE TSP ENROLLMENT FORM SHOWING THAT HE WANTS TO DEPOSIT ONE PERCENT OF HIS BASE PAY EACH MONTH AND $10,000 OF HIS CSB. MEMBER'S LES FOR THE 1 JAN 02 PAYDAY SHOWS SNM'S TSP ACCOUNT IS OPEN AND ONE PERCENT OF SNM'S BASE PAY HAS BEEN TRANSFERRED TO THE TSP ACCOUNT. MEMBER SIGNS SECTION IV OF DD FORM 2839 ON 20 JAN 02 ELECTING CSB/REDUX AND MEMBER'S CCC TRANSMITS ELECTION USING FORMAN CSB/REDUX ELECTION SCREEN ON 22 JAN 02. ELECTION EFFECTIVE DATE IS THE MEMBERS 15TH ANNIVERSARY ON 15 MAR 02. EXAMPLE FOUR: MEMBER'S ADSD IS 15 MAR 87 MAKING 15 MAR 02 HIS 15TH ANNIVERSARY OF ACTIVE SERVICE. MEMBER'S OFFICIAL GENADMIN NOTIFICATION MESSAGE DTG IS 15 SEP 01. MEMBER'S REPORTING SENIOR COMPLETES SECTION II OF DD FORM 2839 INDICATING MEMBER IS NOT ELIGIBLE TO ELECT THE CSB AND GIVES THE 'REASON' AS "FINAL DETERMININATION IS BEING HELD IN ABEYANCE PENDING A FAVORABLE DETERMINATION ON MEDICAL PROCEEDINGS." ON 10 NOV 02 A MEDICAL BOARD FINDS THE MEMBER FIT FOR DUTY. MEMBER'S REPORTING SENIOR REVISES SECTION II OF THE MEMBER'S DD FORM 2839 INDICATING MEMBER IS ELIGIBLE. MEMBER HAS UNTIL 10 MAY 03 (6 MONTHS) TO MAKE A CSB/REDUX ELECTION. MEMBER SIGNS SECTION V, ELECTING TO REMAIN UNDER THE HIGH-3 RETIRED PAY SYSTEM ON 15 DEC 02. MEMBER'S ELECTION EFFECTIVE DATE IS 15 DEC 02. I. ENTERING MEMBER'S CSB/REDUX ELECTION DATA (BASED ON INFORMATION CONTAINED IN THE MEMBER'S COMPLETED DD FORM 2839) IN THE FORCE MANAGEMENT SYSTEM (FORMAN) FOR TRANSMISSION OF THE DATA TO DFAS FOR PAYMENT. (1) TO ESTABLISH ACCESS TO FORMAN, EMAIL THE FOLLOWING INFORMATION TO P333C@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 PERS-333, AT (901) 874-4734/ DSN 882. THE FORMAN COMPUTER APPLICATION IS AVAILABLE FOR DOWNLOAD BY GOING TO THE CENTER FOR CAREER DEVELOPMENT (CCD) WEBSITE (HTTP:/WWW.STAYNAVY.NAVY.MIL/), CLICKING ON THE "COUNSELOR'S CORNER", THEN CLICKING ON "DOWNLOADS", AND THEN CHOOSING "COMPUTER APPLICATIONS." A USERS GUIDE AND ACCESS FORM ARE ALSO AVAILABLE. (2) TO ENTER CSB/REDUX ELECTION DATA FROM THE OPINS/FORMAN BANNER SCREEN, EACH AO AND CCC MUST ENTER THEIR SOURCE CODE, PASSWORD, AND SECONDARY SOURCE CODE (OPTIONAL). THE CSB SCREEN IS REACHED BY ENTERING 'UNK' IN THE UPPER LEFT CORNER OF THE OPINS MAIN MENU SCREEN. TO USE THE MENU SCREENS, ENTER 'A', AND THEN ENTER 'K'. INQUIRY SCREEN I44 DISPLAYS THE CSB DATA. (3) FORMAN CSB/REDUX ELECTION SCREEN WILL INCLUDE FIELD: ACTION: SSN: ENTER NINE DIGITS WITH NO HYPHENS NAME: ENTER FIRST FOUR CHARACTERS OF LAST NAME. IF NAME LESS THAN FOUR CHARACTERS IN LENGTH, ENTER ENTIRE LAST NAME. ELIGIBILITY CODE: ENTER EITHER "R" FOR RETAINABLE, "H" FOR HELD IN ABEYANCE, OR "N" FOR NOT ELIGIBLE. ELECTION CODE: ENTER "Y" IF CSB/REDUX ELECTED, ENTER "N" IF ELECTING TO REMAIN UNDER HIGH-3, OR LEAVE BLANK IF MEMBER IS NOT ELIGIBLE. MEMBER SIGNATURE DATE: ENTER DATE (YYMMDD) FROM SECTION III BLOCK 10B, SECTION IV BLOCK 12B, OR SECTION V BLOCK 14B. ELECTION EFFECTIVE DATE: IF MEMBER ELECTS CSB/REDUX ENTER THE EFFECTIVE DATE (YYMMDD) FROM SECTION VI BLOCK 16. LEAVE BLANK IF MEMBER IS NOT ELIGIBLE OR ELECTS TO REMAIN UNDER THE HIGH-3 RETIREMENT SYSTEM. RETIRED PAY INDICATOR: NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. DIEMS: NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. RANK/GRADE: NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. ADSD/ADBD: NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. DTG: NO ENTRY REQUIRED, DATA PULLED FROM DTG OF GENADMIN NOTIFICATION MESSAGE. 2ND DTG: NO ENTRY REQUIRED, DATA PULLED FROM DTG OF FOLLOW UP MESSAGE TO REPORTING SENIOR IF NO ELECTION IS MADE. SEPARATION CODE (SPD): NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. DATE OF SEPARATION: NO ENTRY REQUIRED, DATA PULLED FROM PERSONNEL MASTER FILES. J. MAINTAINING A COMMAND COPY OF THE MEMBER'S CSB/REDUX ELECTION FORM WHILE THE MEMBER IS ASSIGNED TO THE COMMAND AND FORWARDING THE ORIGINAL COPY OF THE CSB/REDUX ELECTION FORM TO COMMANDER, NAVY PERSONNEL COMMAND (PERS 313C) FOR INCLUSION IN THE MEMBER'S PERMANENT SERVICE RECORD. EACH CCC MUST ALSO FORWARD A COPY OF THE CSB/REDUX ELECTION FORM TO THEIR SHIP PERSONNEL OFFICE OR PERSONNEL SUPPORT DETACHMENT FOR INCLUSION IN THE MEMBER'S FIELD SERVICE RECORD. K. PROVIDING THE MEMBER WITH A COPY OF THE COMPLETED CSB/REDUX ELECTION FORM (DD FORM 2839) FOR HIS PERSONAL FILES. 25. AS CSB ELIGIBLE SAILORS, YOU WILL HAVE A VERY IMPORTANT DECISION TO MAKE WHEN YOU RECEIVE YOUR OFFICIAL GENADMIN NOTIFICATION MESSAGE AND IT IS NOT AN EASY ONE. YOUR DECISION CONCERNING CSB AND YOUR RETIRED PAY WILL BECOME IRREVOCABLE AFTER THE EFFECTIVE DATE OF YOUR ELECTION SO I URGE YOU TO LEARN AS MUCH AS YOU CAN ABOUT YOUR OPTIONS AND CONSULT SEVERAL SOURCES TO MAKE SURE YOU ARE WELL INFORMED. THE CENTER FOR CAREER DEVELOPMENT (CCD) WEBSITE AT HTTP:/WWW.STAYNAVY.NAVY.MIL AND THE DOD WEBSITE AT HTTP:/PAY2000.DTIC.MIL MAY BE GOOD PLACES TO START. BEFORE YOU MAKE THAT FINAL DECISION, DISCUSS IT WITH ADVISORS YOU TRUST, ASSESS YOUR CAREER EXPECTATIONS, DECIDE HOW YOU PROBABLY WILL USE THE CSB MONEY, AND WHAT RISKS YOU ARE WILLING TO TOLERATE. YOU WILL WANT TO PUT ENOUGH EFFORT INTO THE DECISION TO MAKE YOURSELF COMFORTABLE WITH YOUR CHOICE. COMMAND CAREER COUNSELORS AND COMMAND FINANCIAL ADVISORS ARE STANDING BY TO ASSIST YOU WITH YOUR DECISION, BUT ULITMATELY, ONLY YOU CAN DETERMINE WHICH OPTION IS MORE ADVANTAGEOUS FOR YOU BASED ON YOUR OWN UNIQUE CIRCUMSTANCES AND PREFERENCES. 26. POC FOR DIEMS CORRECTION IS PERS-333 AT 1-888-297-7194/DSN 882-2521 FAX (901) 874-2780/DSN 882. POC FOR FORCE MANAGEMENT SYSTEMS IS PERS-333C AT (901) 874-4734/DSN 882. POC FOR MIL PERS REC MNGMET IS PERS-313C AT (901) 874-3406/DSN 882. POC FOR CSB REDUX POLICY IS N130G AT (703) 695-3158/DSN 225. 27. RELEASED BY VADM NORB RYAN, JR., N1.// BT