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Navy to Issue Letters of Intent for Most PCS Moves
From Chief of Naval Personnel Public Affairs
WASHINGTON (NNS) — The Navy announced Friday in NAVADMIN 159/17 that beginning July 5, most Sailors will receive a Letter of Intent (LOI) that will help them coordinate a Permanent Change of Station (PCS) household good shipment much earlier, as well as complete other necessary screenings.
These mitigation efforts and innovative process changes will now allow most Sailors to complete operational (sea duty) screenings, update security clearances, take permissive Temporary Duty (TDY) to find a residence, and begin the entitlement counseling and application processes for the movement of Household Goods (HHG) before receiving funded orders.
“We understand the impact that compressed PCS lead times have had on Sailors and their families preparing to move,” said Chief of Naval Personnel Vice Adm. Robert Burke. “That is why we have been working hard to develop and implement solutions within our control that minimize the impact to our Sailors. Our focus and priority remains on manning the Fleet, and taking care of Sailors and their families.”
Previously, only Sailors receiving orders to an overseas duty location were issued LOIs to start the process of completing overseas and medical screenings, dependent entry approval, passport applications and security clearance requests. Now, most Sailors will receive an LOI.
“While we are working hard to ultimately provide Sailors six months of orders lead time, these are tangible changes that will help Sailors prepare for their upcoming move several months in advance,” said Burke. “We believe these changes will enable greater flexibility and help alleviate some of the challenges of the already stressful situation associated with a PCS move.”
Upon receipt of an LOI, Sailors should access the Defense Personal Property System (DPS), accessible through http://www.move.mil. If not in receipt of funded PCS orders, “NAVYLOI” should be entered as the PCS order number to begin the process of shipping their HHG. When funding is received and PCS orders are issued, NPC will provide the HHG offices with a copy of the Sailor’s PCS orders for upload into DPS and send the moving request to industry. Additionally, Personnel Support Detachments can make reservations for travel with the LOI.
However, because an LOI does not contain a line of accounting, it cannot be used to issue tickets, receive advanced military and/or travel pay, ship HHGs and Privately Owned Vehicles (POV) or place them in storage, or used to reimburse for a personally procured move.
While most Sailors will receive an LOI for their PCS orders, the following types of orders are not eligible to receive one: Temporary Limited Duty (TLD), Home Port Changes, Pre Commission units, Expeditionary Combat Readiness Center (ECRC), Afghanistan-Pakistan (AFPAK) Hands, pregnancies, accessions, retirements and separations. These types of orders have defined release timelines well in advance, making an LOI unnecessary.
Service members are encouraged to visit https://www.navsup.navy.mil/household/ for the schedule of Household Goods Entitlement Webinars and other valuable information. This website or the local Personal Property Office will provide families with detailed instructions on completing the online household goods move application. Commands are requested to proactively encourage members to begin the HHG move application process as early as possible.
Commander Navy Installations Command (CNIC) provides the following reminders to facilitate other aspects of PCS move planning:
Those Sailors applying for Navy family housing can be placed on the housing waitlist according to the date of detachment from the Sailor’s prior permanent duty station based on their PCS orders, provided that a housing application is submitted within 30 days of the reporting date. Advance applications will be accepted. However, placement on the list will not occur until the Sailor reports to the gaining Command. This ensures Navy family housing waitlists are independent of orders receipt date.
Housing also provides a tool that allows Sailors and their families to engage with Housing Service Center staff at one or more Navy installations worldwide earlier in the PCS process. The Housing Early Assistance Tool (HEAT) can be accessed at http://www.cnic.navy.mil/HEAT, even before PCS orders are issued. No CAC is required to access the website.
Additionally, MilitaryChildCare.com provides a single online gateway for families to access military-operated or military-subsidized child care options worldwide across all Services. Due to the standardized request process and waitlist management tools, the DoD site offers a more streamlined approach for finding and requesting care and providing Anticipated Placement Time (APT) estimates. This allows families to submit requests for care at programs with an APT that most closely fulfills their needs. Since APT estimates may change, families are advised to review all their options on a regular basis and submit requests for all DoD child care operations that may meet their requirements.
For more information on PCS orders lead times and LOI issuance, read NAVADMIN 159/17.
Sailors can also contact the Navy Personnel Customer Service Center at: (866) U-Ask-NPC (827-5672), or via email at: UASKNPC@NAVY.MIL.
I Paid Off My Mortgage – Should You?
(Here is a pdf of this article, one of my personal finance columns I write for a national Emergency Medicine newsletter. Find more of them here.)
I cut a check and paid off my mortgage in February, making me debt-free. It cut my living expenses by about a third and ensured that in four years, at the age of 45, I’ll be financially independent and eligible for military retirement. What a glorious feeling! Should you pay off your mortgage as soon as you can?
Benefits of Paying Off Your Mortgage
You have one less thing to worry about! You’ve got food. You’ve got water. Now you’ve locked in your shelter and may be debt-free on top of that. You can move from “safety” to “love and belonging” on Maslow’s hierarchy of needs.
It reduces your fixed monthly expenses, which goes a long way toward setting you up for retirement, fewer shifts, or even an alternative career path. Housing is usually a large percentage of your monthly expenses, and everyone who decides to purchase their primary domicile should make being mortgage-free a major goal by the time of retirement.
It saves you money, since you’ll likely save tens of thousands of dollars in interest you otherwise would have paid. In addition, if you no longer have a mortgage you should be able to reduce the amount of life and disability insurance you are paying for each month.
Without a mortgage, you can save and invest more money every month. Before I paid off my mortgage I saved 30% of my gross income. I’m not sure how much I’ll save now, but it’ll be more than 30%.
When you pay off your mortgage, you are getting a guaranteed rate of return on the investment. In my case, the rate on my mortgage was 3%. I’m usually in the 33% tax bracket, which means that every dollar I put toward paying off my mortgage earned me a guaranteed return of 2%. This is a remarkably similar return when compared to most low-risk bond yields in recent years. In fact, this is exactly why I paid off my mortgage. I wanted to have a small portion of my retirement savings in bonds, but it made no sense to own bonds that would pay me 3-4% while paying 3% on my mortgage. Paying down your mortgage is a reasonable substitute for buying bonds.
There can be asset protection benefits to paying off your home loan. Some states provide unlimited asset protection for home equity, which makes it nearly impossible to lose your home if a lawsuit doesn’t go your way. Other states, however, protect very little of your home equity. If you want to see what your state protects, go to this link and look for each state’s “homestead exemption”:
http://www.assetprotectionbook.com/forum/viewtopic.php?f=142&t=1566
If you are paying a financial advisor who charges you a fee based on a percentage of your assets under management, by taking some of those assets and using them to pay off your house you reduce your investment expenses.
Benefits to Keeping Your Mortgage
When you make your mortgage payment, some of it goes toward principle and increases the equity in your home. For me this was about $2000/month of forced savings. If you are not financially disciplined, making a mortgage payment will ensure that every month you are squirreling away at least a little bit of money.
Mortgage rates are still near their all-time lows. If you can borrow money at 3-4% and invest it in something that will give you a higher net return, it makes sense to invest the money instead of paying off the mortgage. That said, you have to make sure that you actually invest the money. In addition, there are very few investments that guarantee a return greater than your mortgage. Actually, there probably aren’t any, because of the word “guarantee.” Yes – stocks, high-yield or corporate bonds, real estate, etc. will probably make more than 3-4%, and you can protect yourself by diversifying – but that is certainly not guaranteed.
The after-tax mortgage rate you are paying may be below inflation. For example, my after-tax mortgage rate was 2%. If inflation had been above 2%, I would have been getting paid (in real terms) to borrow money!
The value of real estate tends to rise with inflation but your mortgage payment is fixed, so when inflation increases the value of your house but your mortgage payment remains the same, you are paying the loan back with dollars that are worth less and less as time goes on. When your mortgage is paid off, you give up this benefit.
What Should You Do?
Like most financial decisions, situations vary and this decision can be complicated. The best on-line article I could find that goes through all the complexities of the issue, which my brief article does not, can be found here:
https://financialmentor.com/financial-advice/pay-off-mortgage-early-or-invest/7478
You should always maximize contributions to your retirement accounts, pay off all non-mortgage debt that has a higher interest rate, and save for your children’s education before you consider paying your mortgage off early. But if you find yourself having taken care of all of this, and weighing investing in bonds versus paying off your mortgage, you can’t beat the peace of mind that comes with being mortgage-free!
Conference Approval Made Easy
As put out by BUMED, here are the steps you need to take for the new/updated/easier conference approval process:
- Check the Conference Approval Website (you need to pick your e-mail certificate on your CAC card) for the most current ‘Requiring BUMED Approval’ List.
- If the conference IS NOT on the list, commands are authorized to approve travel. The member only needs to route a TAD request as per local command policy.
- If the conference IS on the list, members are required to work through their Specialty Leader or Quota Manager to be approved per the BUMED Conference Approval Process (similar to before).
The new process is supposed to be much easier for everyone. The intent is to make it easy for anyone to attend a conference costing < $100K, while still maintaining cognizance of conferences > $100K (without recreating an administrative burden).
NOTE – This is a summary of the new conference approval policy. Please refer to guidance posted on the Conference Approval Website (you need to pick your e-mail certificate on your CAC card) for directive guidance.
2017 Joint Service GME Selection Board Application Procedures
Here is the just released BUMED Note that spells out how to apply for GME in 2017 and which residencies/fellowships are anticipated to be available:
Nominations Call for MHS Female Physician Leadership Award
The deadline for nominations for the Military Health System (MHS) Female Physician Leadership Award is COB 10 JUL 2017. Here are three documents to help with completing the nomination package:
Command Letter of Recommendation Sample
MHS Female Physician Leadership Award Criteria
MHS Female Physician Leadership Award Nomination Form
Nomination packages should contain the Command Endorsement, CV, and Nomination Form. Package documents should be submitted in one consolidated PDF format with the following standardized naming – title the PDF “Last Name First Initial_Service_Jr or Sr_FPL_17”
Example: SmithB_Navy_Jr_FPL_17
The suspense for packages to be submitted for Service vetting is COB 10 JUL 2017, (1600 EST). This suspense is FIRM, as packages must be vetted and selected by Navy/SG for submission to MHS. Packages should be sent to the NAVY POC: CAPT Charmagne G. Beckett (e-mail address in BUMED global).
Military Times Article – Blended Retirement: Should I Make the Switch?
Here’s a link to another article about the new blended retirement system (BRS):
Director, Armed Forces Radiobiology Research Institute – CAPT/CAPT(s)
Here is the announcement looking for the next Director of the Armed Forces Radiobiology Research Institute. Any interested parties should send their CV/BIO/Letter of Intent and three references to CDR Frank Mullens (in the BUMED global address book) for consideration. The report no later than date is June 2018. All applicants should have Specialty Leader/Detailer concurrence.
NOTE – applicants are not to submit an application directly to USU. All nominees from the Navy must come from BUMED.
Guest Post: Important Update Regarding Disability Insurance for Active Duty Military Doctors and Dentists
[Editor’s Note: This is a guest post/update from the company that was able to get me supplemental disability insurance (DI), which can be a challenge when you are Active Duty. I have no current financial relationship with them and they did not pay for this post, although in the past I received some restaurant gift cards when referring people to them. I asked them to provide it so they could explain recent changes in the disability insurance market for Active Duty personnel. If you want to read about DI, you can go to my Personal Finance page or some other posts like this one or this one.]
As you are likely aware, as a physician/dentist, your greatest asset is your ability to practice your specialty. Military physicians and dentists are not completely protected in the event they become disabled. Those who are informed of this risk exposure have been able to insure themselves by establishing individual disability insurance. Currently, there are two companies offering specialty specific coverage to military physicians/dentists; MassMutual and Lloyd’s of London. Of the two, MassMutual is the only one which offers a non-cancelable and guaranteed renewable policy to age 65. This type of policy cannot be canceled by the company, have its premiums and/or contractual provisions modified, exclusions added, etc. This is the type of policy we recommend to all physicians and dentists regardless of military status. MassMutual has eliminated this policy’s availability in all states except the following:
- California
- New York
- Florida
- Connecticut
- Montana
If you reside in one of these states and wish to protect yourself by obtaining the type of policy that will protect your medical career in the event of disability while you are in the military and while you are out, it is highly advisable to act now. To protect your medical career in the event of disability, please contact us below:
Andy G. Borgia, CLU (andyb@di4mds.com)
D.K. Unger (dku@di4mds.com)
10505 Sorrento Valley Rd., # 250
San Diego, California 92121
888-934-4637
858-523-7511 after 5pm
858-622-1883 fax
Navy Urges Patience for Sailors Waiting on PCS Orders
From Chief of Naval Personnel Public Affairs
WASHINGTON (NNS) — Following passage of the 2017 Consolidated Appropriations Act, the Navy announced today that Sailors should continue to expect to receive permanent change of station (PCS) orders with approximately two months or less lead time through the end of the fiscal year.
While the Navy will make every effort to ensure PCS orders are released as expeditiously as possible, the service does not have sufficient funds to allow for longer PCS orders lead times.
“We recognize the impact this has on Sailors and their families preparing to move, and we’re working hard to remedy this situation,” said Chief of Naval Personnel, Vice Adm. Robert Burke. “Leadership is engaged at all levels to develop and implement solutions to minimize the impact to our Sailors. Our focus and priority remains on manning the Fleet, and taking care of Sailors and their families.”
Currently, the Navy is using a prioritization strategy, as it has previously done, to help minimize the impact on Fleet readiness, career timing, and families. Emphasis will remain on global support assignment rotations, career milestone billets, critical readiness fills, minimizing gaps at sea for deployed units and those working up to deploy, and keeping the training pipelines moving. Those Sailors who are going to operational units about to deploy, numbered fleet staffs, overseas billets, individual augmentees or must-moves (safety, early return of dependents, humanitarian) will be issued their orders first.
Additionally, Navy Personnel Command will continue to issue letters of intent for overseas moves. That way, while orders may not be in hand, individuals can start the process of doing overseas and medical screenings, dependent entry approval, passport applications and security clearance requests.
We encourage all Sailors who have not yet received PCS orders to contact their detailers with questions and concerns with the understanding that there may be a delay as we work through budgetary issues.
Those with questions regarding their Household Goods moves should contact householdgoods@navy.mil. Additionally, Sailors and family members are advised to go to http://www.navsup.navy.mil/household to review various “how-to” guides for using the Defense Personal Property System. The website also includes a schedule of webinars where those planning moves can interact directly with HHG staff.
You Were Selected for Promotion to O5 or O6 – Should You Accept It?
BLUF – If you are hoping to retire but are not willing to serve 3 years as a Commander or Captain, you should decline the promotion. (This is not applicable if you are resigning. Only if you are hoping to retire.)
The policy regarding promotions and retirements is governed by OPNAVINST 1811.3A. If you are lucky enough to be selected for promotion to O5 or O6, you should be familiar with this instruction and make sure you are willing to spend 3 years as a CDR or CAPT before you plan to retire.
Paragraph 4b of the OPNAVINST states:
“Officers must satisfy the minimum active duty time-in-grade requirement to retire in the highest grade satisfactorily served…Officers who desire to retire before completion of the minimum time-in-grade requirement must decline appointment to the next higher grade. Officers who have accepted appointment to the next higher grade must satisfy the retired grade criteria in paragraph 7.”
Seems like we need to go to paragraph 7…
“7. Time-in-Grade Requirements. Unless retirement in the next inferior grade is directed by SECNAV for an officer or warrant officer under reference (c), then officers, warrant officers, and enlisted members retired voluntarily or transferred to the Fleet Reserve shall be retired in the highest grade satisfactorily held upon completion of the following time-in-grade requirements…Three years for an officer serving on active duty in pay grade O5 or O6.”
Paragraph 5b states:
“Unless waived by proper authority, approval of requests for voluntary retirement or transfer to the Fleet Reserve will normally be denied until an individual has completed: (1) The applicable time-in-grade requirements of paragraph 7;”
In addition, paragraph 7e states:
“COMNAVPERSCOM shall normally deny retirement requests or Fleet Reserve requests of members serving on active duty in, whose length of service in the highest grade held while on active duty does not meet the time-in-grade requirements specified above.”
What’s the bottom line? There are certain exceptions spelled out in this policy, and you can get information on time-in-grade or next-lower-grade waivers here and here, but if you want to retire and accept promotion to CDR or CAPT you should be willing to serve in that rank for 3 years. Otherwise, you should decline the promotion.
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