ALCOAST 006/08: FY2008 MILITARY PAY AND BENEFITS

R 042012Z JAN 08
FM COMDT COGARD WASHINGTON DC//CG-1//
TO ALCOAST
BT
UNCLAS //N07220//
ALCOAST 006/08
COMDTNOTE 7220
SUBJ: FY2008 MILITARY PAY AND BENEFITS
A. TITLE 37 USC, SECTION 1009(C)
B. PERSONNEL MANUAL, COMDTINST M1000.6 (SERIES)
C. COMDT COGARD WASHINGTON DC 051932Z FEB 07, ALCOAST 064/07
D. JOINT FEDERAL TRAVEL REGULATIONS (JFTR)
1. GENERAL:
A. THE ABSENCE OF A NATIONAL DEFENSE AUTHORIZATION ACT (NDAA) AS
OF 31 DEC 2007 AFFECTED THE INCREASE TO BASIC PAY EFFECTIVE 1 JAN
2008. THIS ALCOAST DISCUSSES THE RESULTING IMPACT ON THE 2008
MILITARY BASIC PAY INCREASE AND OTHER BASIC ALLOWANCE RATES THAT
HAVE GONE INTO EFFECT ON 1 JAN 2008.
B. AUTHORITY TO PAY ACTIVE DUTY AND RESERVE BONUSES USED BY THE
COAST GUARD TO SHAPE OUR MILITARY WORK FORCE EXPIRED ON 31 DEC
2007. THIS ALCOAST PROVIDES INTERIM GUIDANCE FOR ADMINISTRATION OF
THOSE BONUSES UNTIL THE ENACTMENT OF A FY08 NDAA OR OTHER
LEGISLATION RESTORES OUR AUTHORITY TO MAKE THOSE BONUS PAYMENTS.
C. OTHER PAY AND BENEFIT CHANGES CONTAINED IN THE CURRENT 2008
DEFENSE AUTHORIZATION BILL WILL BE THE SUBJECT OF A FUTURE ALCOAST
ONCE THE BILL IS SIGNED INTO LAW.
2. PAY AND ALLOWANCES.
A. BASIC PAY CHANGES.
(1) JANUARY BASIC PAY RAISE - SINCE THE 2008 DEFENSE
AUTHORIZATION BILL WAS NOT SIGNED INTO LAW, THE 1 JAN 2008 BASIC
PAY RAISE WILL BE 3.0 PERCENT ACROSS-THE-BOARD, PER REF A, INSTEAD
OF THE PROPOSED THREE AND A HALF (3.5) PERCENT PAY RAISE.
(2) THE PLANNED 3.5 PERCENT PAY RAISE, AND ITS POSSIBLE
RETROACTIVE PAYMENT, IS DEPENDENT UPON FUTURE LEGISLATIVE ACTION.
B. BASIC ALLOWANCE FOR HOUSING (BAH).
(1) IN 2008, BAH RATES REFLECT A NATIONAL AVERAGE INCREASE FOR
THE COAST GUARD OF 7.0 PERCENT OVERALL. HOWEVER, ACTUAL BAH RATES
WITHIN EACH MILITARY HOUSING AREA (MHA) AND COUNTY COST GROUP VARY
ACCORDING TO LOCAL RENTAL MARKET CONDITIONS. DOD BAH POLICY CHANGES
THAT ELIMINATED GEOGRAPHIC BAH RATE PROTECTION IN 2006 RESULTED IN
RATE INCREASES OR REDUCTIONS THAT WERE VALIDATED BY THE ANNUAL
RENTAL HOUSING COST DATA SURVEY. INDIVIDUAL RATE PROTECTION
PREVENTS THE DECREASE OF AN INDIVIDUAL MEMBERS BAH RATE AS A RESULT
OF CHANGES IN HOUSING COSTS IN AN MHA, CHANGES IN THE NATIONAL
MONTHLY HOUSING COST, OR A MEMBERS PROMOTION. RATE-PROTECTED
SERVICE MEMBERS WILL RECEIVE ANY PUBLISHED BAH INCREASES, BUT NO
DECREASES. RATE PROTECTION HELPS TO ENSURE THAT THE SERVICE MEMBERS
TYPICAL OUT-OF-POCKET COSTS MAY BE LESS, BUT NEVER MORE, THAN UPON
THEIR REPORTING DATE.
(2) INDIVIDUAL 2008 BAH RATES FOR EACH MILITARY HOUSING AREA AND
PAY GRADE MAY BE VIEWED AT:
HTTPS://SECUREAPP2.HQDA.PENTAGON.MIL/PERDIEM/BAH.HTML.
(3) AS A RESULT OF RECOMMENDATIONS FROM THE TENTH QUADRENNIAL
REVIEW OF MILITARY COMPENSATION (QRMC), ALL WITHOUT-DEPENDENT BAH
RATES WERE SET WITH A MINIMUM FLOOR EQUAL TO 75 PERCENT OF THE
EQUIVALENT WITH-DEPENDENT RATE OF THE SAME PAY GRADE AND MILITARY
HOUSING AREA (MHA). RATES IN MHAS WHERE THE WITHOUT-DEPENDENT BAH
RATE FOR A GIVEN PAY GRADE WAS ALREADY HIGHER THAN 75 PERCENT OF
THE EQUIVALENT WITH-DEPENDENT RATE ARE UNAFFECTED.
C. BASIC ALLOWANCE FOR SUBSISTENCE (BAS). EFFECTIVE 1 JAN 2008,
BAS WILL INCREASE TO THE FOLLOWING MONTHLY RATES:
(1) OFFICERS: 202.76 USD.
(2) ENLISTED: 294.43 USD.
(3) ENLISTED DAILY DISCOUNT MEAL RATE (DMR) DEDUCTION: 8.35 USD
PER DAY.
D. BONUSES AND SPECIAL PAYS: UNTIL THE FY08 NDAA IS SIGNED, ALL
INCENTIVE, ENLISTMENT, AND REENLISTMENT BONUSES UNDER REFS B AND C
ARE SUSPENDED FOR NEW CONTRACTS AS OF 1 JAN 2008. HOWEVER, THE
FOLLOWING GENERAL GUIDANCE MUST BE FOLLOWED UNTIL THE LEGISLATION
REINSTATING THE REQUIRED AUTHORITIES IS ENACTED:
(1) THE WORDING FOR CONTINGENT BONUS ADDENDUMS STATED BELOW SHALL
BE ADDED TO BOTH ENLISTMENT/REENLISTMENT CONTRACTS AND
ADMINISTRATIVE REMARKS (CG-3307), WHICH ACKNOWLEDGE ELIGIBILITY FOR
A BONUS BUT DOES NOT GUARANTEE A BONUS PAYMENT. THIS WILL ENABLE
BONUSES TO BE PAID AT A LATER DATE WITHOUT FURTHER ACTION BY THE
MEMBER ONCE, OR IF, AUTHORITY IS REESTABLISHED. HOWEVER, WHETHER
PAYMENTS WILL BE RETROACTIVE WILL DEPEND ON HOW CONGRESS REINSTATES
THE LAPSED AUTHORITIES.
(2) ACTIVE DUTY AND RESERVE AGREEMENTS EXECUTED DURING THE PERIOD
OF LAPSED AUTHORITY SHALL NOT INCLUDE BONUS GUARANTEES UNLESS THE
FOLLOWING WORDING FOR THE CONTINGENT BONUS ADDENDUM IS INCLUDED:
(A) BONUSES MUST BE AUTHORIZED BY CONGRESS AND ENACTED INTO LAW.
THE AUTHORIZATION FOR PREVIOUS BONUSES EXPIRED ON 31 DEC 2007.
CONGRESS IS CONSIDERING RENEWING THESE AUTHORIZATIONS. THESE
AUTHORIZATIONS MAY BE RETROACTIVE TO 1 JAN 2008, OR THEY MAY TAKE
EFFECT WHEN ENACTED, OR THEY MAY NOT BE ENACTED.
(B) I UNDERSTAND THAT MY ENTITLEMENT TO A (FILL IN THE AMOUNT OR
ZONE) BONUS IS CONTINGENT UPON ENACTMENT OF AUTHORITY FOR THE (FILL
IN APPROPRIATE BONUS PROGRAM). THE POSSIBILITY OF RECEIVING A
BONUS WAS A CONSIDERATION IN MY CONTRACT DECISION. HOWEVER, IF
CONGRESS FAILS TO AUTHORIZE THE (FILL IN APPROPRIATE BONUS
PROGRAM), MY CONTRACT TO SERVE IN THE U.S. COAST GUARD IS STILL
VALID AND ENFORCEABLE. ANY VERBAL REPRESENTATIONS BY ANY BONUS-
PROFFERING PERSONNEL THAT DIFFER FROM THOSE CONTAINED IN THIS
ADDENDUM ARE UNAUTHORIZED AND UNENFORCEABLE.(UNQUOTE)
(C) THIS ADDENDUM AND THE CG-3307 MUST BE SIGNED AND DATED BY
BOTH THE APPLICANT AND A COMMAND REPRESENTATIVE.
(3) THE FOLLOWING LIST OF BONUS AND INCENTIVE PROGRAM AUTHORITIES
EXPIRED 31 DEC 2007:
(A) BONUS AND SPECIAL PAYS FOR RESERVE FORCES.
1. BONUS FOR AFFILIATION OR ENLISTMENT IN THE SELECTED
RESERVE - 37 USC 308C(I) AND 308I(F), SECTIONS 3-E-5 THRU 3-E-7 OF
REF B.
2. SPECIAL PAY FOR MEMBERS OF THE SELECTED RESERVE ASSIGNED
TO CERTAIN HIGH PRIORITY UNITS - 37 USC 308D(C), REF C.
3. REPAYMENT OF EDUCATIONAL LOANS FOR CERTAIN HEALTH
PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE - 10 USC 16302(D),
REF C.
(B) AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES AND
SPECIAL PAYS
1. SPECIAL PAY: REENLISTMENT BONUS - 37 USC 308(G), SECTION
3-A OF REF B.
2. SPECIAL PAY: ENLISTMENT BONUS - 37 USC 309(E), SECTION 3-
C OF REF B.
E. BENEFITS AND RETIRED PAY: THE CURRENT DEFENSE AUTHORIZATION
BILL HAS A NUMBER OF CHANGES TO RETIRED PAY AND OTHER BENEFITS THAT
WILL GO INTO EFFECT WHEN THE BILL IS SIGNED INTO LAW AND WILL BE
THE SUBJECT OF A FUTURE ALCOAST.
3. TRAVEL AND TRANSPORTATION.
A. FULL REPLACEMENT VALUE (FRV) INSURANCE FOR HOUSEHOLD GOODS
(HHG) AT NO COST TO SERVICE MEMBERS APPLIES TO SHIPMENTS WITH A
PICK UP DATE ON OR AFTER:
(1) 1 OCT 2007 FOR INTERNATIONAL HHG SHIPMENTS,
(2) 1 NOV 2007 FOR DOMESTIC HHG SHIPMENTS,
(3) 1 MAR 2008 FOR NON-TEMPORARY STORAGE (NTS) AND DIRECT
PROCUREMENT METHOD (DPM) MOVES (LOCAL MOVES, INTRA-THEATER).
SOME DOMESTIC AND INTERNATIONAL SHIPMENTS MAY BE MOVED UNDER THE
DPM BEFORE 1 MAR 2008. ADDITIONAL INFORMATION CAN BE FOUND AT
HTTP://WWW.FINCEN.USCG.MIL/HHG.HTM.
B. ANY MEMBERS MOVING UNDER THE FAMILIES FIRST PROGRAM ON 1 MAR
2008 WILL AUTOMATICALLY BE COVERED FOR FRV. PLEASE SEE THE LINK
ABOVE FOR ADDITIONAL INFORMATION AFFECTING THE NEW PROGRAM.
C. IT IS IMPORTANT THAT SERVICE MEMBERS NOT MISUNDERSTAND THE TERM
(QUOTE)FULL REPLACEMENT VALUE(UNQUOTE). THIS DOES NOT NECESSARILY
MEAN THAT A MEMBER WOULD AUTOMATICALLY RECEIVE THE FULL REPLACEMENT
COST OF EVERY ITEM DESTROYED, DAMAGED, OR LOST. IN CASES WHERE THE
REPAIR COST IS LESS THAN THE FRV, THE CARRIER MAY ELECT TO REPAIR
THE DAMAGED ITEM. THE LIMITATIONS FOR PERSONAL PROPERTY LOST,
DAMAGED, OR DESTROYED WHILE IN THE CARE OF THE TRANSPORTATION
SERVICE PROVIDER OR CARRIER ARE 5,000 USD PER SHIPMENT, OR, 4.00
USD TIMES THE NET WEIGHT OF THE SHIPMENT, WHICHEVER IS GREATER, UP
TO A MAXIMUM OF 50,000 USD. IF ADDITIONAL COVERAGE IS NECESSARY,
THE MEMBER SHOULD PURCHASE IT FROM A PRIVATE INSURANCE COMPANY. THE
ABOVE ITEMS WILL BE INCORPORATED INTO A FORTHCOMING CHANGE TO REF
D.
4. QUESTIONS AND CONCERNS MAY BE SUBMITTED VIA E-MAIL TO:
COMPENSATION (AT) COMDT.USCG.MIL.
5. INTERNET RELEASE AUTHORIZED.
6. RADM CLIFFORD I. PEARSON, ASSISTANT COMMANDANT FOR HUMAN
RESOURCES, SENDS.
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