The Army will continue to use involuntary separations and retirements to trim the ranks of overstrength specialties and year groups.
Gen. Ray Odierno, Army chief of staff, earlier told Army Times that separation boards are needed "to keep the force in balance," and to compensate for the additional officers and enlisted soldiers who were brought into service during the manpower buildup for the wars in Afghanistan and Iraq.
"My guess is that as we continue to draw the force down, we will have to do (selective release) boards every year through 2019," he said.
Many of the involuntary separations that take effect this year have been generated by selective early retirement, officer separation and Qualitative Service Program boards that met in 2014.
Similarly, most separations generated by boards that meet this year will take place in 2016.
A look at three special pays related to separations:
Temporary Early Retirement Authority
This benefit, also known as the 15-year early retirement plan, has been authorized by Congress for use during the drawdown through fiscal 2018.
TERA is not an entitlement, but rather than an option that to date has been limited to soldiers who are being involuntarily separated from active duty because of the drawdown, or in the case of some officers, because of promotion non-selection.
Unlike the TERA option that was available during the drawdown of the 1990s, soldiers cannot volunteer for the benefit of they have not been selected for involuntary separation.
TERA allows soldiers with at least 15, but fewer than 20 years of active service to receive the same benefits as those who retire with 20 or more years of service, except that their retirement pay is reduced accordingly.
Army budget officials estimate that $94 million will be spent on this program in 2015, with 874 enlisted soldiers and 493 officers receiving benefits. Funding is projected to drop to $46 million in 2016, with 303 enlisted soldiers and 311 officers signing on for TERA benefits.
Involuntary Separation Pay
Soldiers who fail to qualify for TERA, but who have six to 15 years of active service at the time they are separated, generally qualify for involuntary separation pay, provided they are not being forced out for cause, such as a courts-martial conviction.
There are two types of involuntary separation pay:
• Half Severance Pay: for enlisted soldiers and officers who are not fully qualified for retention, and who have been denied re-enlistment or continuation. The payment is calculated by multiplying 5 percent of a soldier's basic pay at the time of separation by years and partial years of active service.
• Full Severance Pay: for enlisted soldiers and officers who are fully qualified for retention, but who are denied re-enlistment or continuation. The payment is calculated by multiplying 10 percent of a soldier's basic pay at the time of separation by years and partial years of active service.
Budget officials estimate that during 2015, nearly 4,000 enlisted soldiers and 3,270 officers will receive involuntary separation pay. Enlisted totals are projected to remain at that level in 2016, while the number of officers will drop 1,859.
Severance Pay for Disability
This is for officers and enlisted soldiers with less than 20 years of service who are discharged from active duty because of a physical disability rated at less than 30 percent.
Payments are based on complex formulas described in the provisions of Title 10 of the U.S. Code. Budget officials project that about 4,000 enlisted soldiers and nearly 70 officers will receive these benefits in 2015. On average, enlisted soldiers will receive $$35,100, and officers $100,000.
