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Military Pay Newsletter |
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December 2008 |
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Foreign Language Skill Proficiency Bonus |
The
secretaries of the military departments recognize the need for
a corps of commissioned officers proficient in critical
foreign languages and/or foreign cultures. The Quadrennial
Defense Review (QDR) emphasized the need for greater language
capability and included the following wording in their report:
"Developing broader linguistic capability and cultural
understanding is also critical to prevail in the long war and
to meet 21st century challenges..."
This training and expertise needs to be acquired before the
officers are commissioned. To this end, the DoD has instituted
a Foreign Language and Cultural Studies Skill Proficiency
Bonus (SPB) program with a goal to encourage SROTC members to
acquire proficiency in critical foreign languages and
cultures.
Currently these critical languages include Arabic, Chinese,
Dari, Farsi and the Central Asian languages. Central Asian
languages are defined as the former Soviet Republics of
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and
Uzbekistan. The nations of Mongolia and Afghanistan are also
included in Central Asia, in addition to the western Chinese
provinces of Inner Mongolia, Xinjiang, Qinghai and Tibet. In
addition to these languages, the secretary of the service may
designate other languages as critical to the mission of the
service and therefore eligible under Foreign Language SPB
guidelines.
Payment of the Foreign Language SPB may not exceed $3,000 per
year. The program will be in effect from the date of the
Office of the Undersecretary of Defense (Personnel &
Readiness) memorandum authorizing payment (not yet released)
through December 31, 2013. |
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Thrift Savings Plan Contribution Limits for 2009 |
There are
annual limits set by the IRS for tax-deferred contributions
and tax-exempt contributions to TSP. Tax-deferred
contributions are made from a member's taxable pay, such as
military basic pay and various special or incentive pays. For
members serving in a tax-exempt status, such as a designated
combat zone, contributions made from tax-exempt pay earned
while located in that area are also tax-exempt.
The Internal Revenue Service limits for calendar year 2009 are
$16,500 for tax-deferred contributions (up from $15,500 in
2008). Tax-exempt contributions are subject to the annual
addition limit, which sets the most a member can contribute
from tax-exempt pay earned in a combat zone. The annual
addition limit also includes total deferred contributions to
the member's military TSP account, as well as the member's
civilian TSP account if the member is also a civilian federal
employee during the year, and civilian automatic TSP
contributions, and any matching contributions. It does not
include over-50 catch-up contributions. The annual addition
limit for 2009 is $49,000 (an increase from the $46,000 level
in 2008), or 100% of compensation, whichever is less.
Note: For officers, tax-exempt contributions are those made
from earnings in a combat zone up to the amount of the highest
enlisted member's pay in the service, plus Imminent
Danger/Hostile Fire pay if they are receiving it. If the
monthly TSP contribution made while in a combat zone is higher
than the tax-exempt pay limit, the amount above the limit will
be tax-deferred.
Catch-up contributions are supplemental tax-deferred
contributions available to TSP participants age 50 or older
who are already contributing the maximum amount of
tax-deferred TSP contributions for which they are eligible.
Catch-up contributions have their own annual limit of $5,500
(the limit for 2008 was $5,000). For more information, see
www.tsp.gov |
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Continuation of Bonuses and Entitlements |
On October
14, 2008, President Bush signed the FY 2009 NDAA into Public
Law 110-417. This law contains many of the authorizations
needed to continue to pay existing military pay entitlements,
such as officer and enlisted bonuses that would otherwise have
expired. Among these bonuses are Nuclear Officer, Health Care
Professionals, Reserve Income Replacement Program, and Special
Pays for Reserve Forces. To see all bonuses that have been
extended, go to http://thomas.loc.gov/ and search for P.L.
110-417, then see sections 611 to 615.
The NDAA also authorizes new military pay entitlements, some
of which are discretionary (meaning either the Secretary of
Defense or the service secretaries concerned may offer, but
are not required to offer). Some significant authorizations
contained in this year's NDAA include the following:
Change the maximum length of a reenlistment contract from 6
years to 8 years; however, only the Army plans to implement
the 8 year contract at this time. This change will allow
qualified service members to enhance their quality of life by
selecting a station or unit of choice reenlistment option that
would guarantee stabilization at one location or unit for up
to 8 years instead of 6 years. The amount of reenlistment
bonus a member may receive would also be affected.
Family Separation Allowance (FSA) for married service couples
with dependents. Prior to October 14, 2008, when two service
members, married to each other, were both assigned to duty
stations where their dependents were not authorized to
accompany them and did not live near their duty stations, and
the members resided together with their dependents immediately
before their assignments, only one of the members was
authorized FSA. However, thanks to P.L. 110-417, both members
in this situation are entitled to full FSA effective October
14, 2008. See your local personnel office to see if your
situation qualifies for entitlement. |
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Repayment of Bonuses for some Disabled members |
Fiscal Year
2009's National Defense Authorization Act, which the President
signed into Public Law 110-417 on October 14, 2008, amended
the existing law to preclude repayment of any unearned
portions of a bonus or benefit from a member or member's
estate, and to mandate payment of any unpaid portion to the
member or member's estate, in cases where the member dies or
is retired or separated with a combat related disability, as
defined by law (Title 10, section 1413a). Payments will be
made in lump sum within 90 days of the incident. NOTE: Payment
does not apply if the death or disability of the member is a
result of the member's misconduct.
The Hubbard Act, Public Law 110-317, which was signed on
August 29, 2008, addresses sole-survivorship discharges. This
law requires that unearned portions of bonuses previously paid
to service members not be subject to repayment, and authorizes
Service Secretaries to pay the remaining amounts of bonuses if
they determine that the payments are equitable. It also
authorizes members with less than six years active service,
who receive sole-survivorship discharges, to receive
separation pay. |
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Warrior Care Month Recap |
November
was declared as Warrior Care Month to increase awareness of
programs and resources available to wounded, ill, and injured
service members, their families, and those who care about
them. Secretary of Defense Robert Gates recognized the
significant strides made in improving treatment for our
service members, but also acknowledged that much work still
needs to be done.
Each military service has a program to provide personalized
medical and non-medical assistance to wounded, ill, and
injured service members and their families. To simplify access
to all the programs and resources available, regardless of
service, the department has created http://www.WarriorCare.mil/
to serve as a portal to all warrior information. This Web site
has great downloads available, as well as links to other
government agency Web sites like the Department of Veterans
Affairs and the Department of Labor that can make the
adjustment after deployment, injury, illness or separation
easier. |
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Tax Tip Reminders |
1. Verify
your personal and tax information from your Leave and Earnings
Statements (LES). Any changes will need to be made through
your payroll office. Pay information, including your W-2, is
available 24/7 at www.mypay.dfas.mil . Further pay information
is available at your servicing finance office.
2. The Internal Revenue Service Publication 3 entitled "Armed
Forces' Tax Guide" is available at www.irs.gov/pub/irs-pdf/p3.pdf
3. Prepare for next year by reviewing your withholding for
federal and state taxes.
4. Get refunds in less than half the time by using IRS e-file
with a direct deposit into your bank account. It's faster,
safer and more convenient. |
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(Source:
Defense Finance and Accounting Service. Military News Network
is not affiliated with the United States Department of
Defense) |
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Military Pay Newsletter December 2008
