Posted on Nov 11, 2020
If I ETS due to hitting my RCP, do I get severance or separation pay?
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I’m a SPC about to ets under RCP. I reenlisted in JAN as an E5(P), then got busted down. My chain told me two weeks ago that I had to clear. Is this legal? Do I get severance/sep pay? What are my options?
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Posted 4 y ago
Responses: 4
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If you were to ETS because you hit your RCP at your current rank, then yes. Once you were reduced you should have had your ETS date adjusted to 180 days from the date you were notified of your new ETS if you were already past RCP. Your Career Counselor is responsible for changing your ETS and counseling you. You can't change that you have a new ETS without promoting again, but you are due 180 to transition.
As for severance pay, the 8G code your Career Counselor will place on you prevents you from receiving severance pay. If they mess up and forget to place it on you, and you receive severance pay, a future audit will force you to repay all of the money at the pretax amount. In other words, you would probably rate around 30-40k in severance pay but receive 22-30k after taxes. You would be required to pay back the pretax amount
As for severance pay, the 8G code your Career Counselor will place on you prevents you from receiving severance pay. If they mess up and forget to place it on you, and you receive severance pay, a future audit will force you to repay all of the money at the pretax amount. In other words, you would probably rate around 30-40k in severance pay but receive 22-30k after taxes. You would be required to pay back the pretax amount
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LTC Jason Mackay it was only implemented about three years ago. It's covered in one of the newer regs, AR 637-2 Separation pay for nondisability
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Never heard of someone getting busted down and still thinking they are owed something. Blows my mind
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Military Pay and Benefits Website sponsored by the Office of the Under Secretary of Defense for Personnel and Readiness
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LTC Jason Mackay
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LTC Jason Mackay
Because RCP is mandatory, according to AR635-200 para 1-15, you are ineligible for an Admin Separation Board
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