Here’s a brief update on FY19 special pays from BUMED:
Ladies and Gentleman, appreciate if you could please get the word out to your Corps. The Assistant Secretary of Defense for Health Affairs [ASD(HA)] pay plan was signed on 26 Sep 2018, but the Navy Pay Guidance has not been signed. Any special pays requests effective 1 Oct 2018 or later cannot be submitted until the Navy’s Special Pays NAVADMIN has been released, which is not expected until possibly sometime in December 2018.
William L. “Bill” Marin
Program Manager, Navy Medical Special Pays Program
by Dr. Caroline Schlocker
There is very little information available on how a service member applies for continuation pay (CP) under the Blended Retirement System. MILPERSMAN 1810-081 provides some detail but does not mention the NSIPS requirement.
There are two items to complete in order to opt-in to CP:
- Fill out the appropriate section in NSIPS. Here is a go-by with PPI scrubbed screenshots.
- Through the Command Career Counselor office, have a NAVPERS 1070/613 generated and verified. It looks like this:
This needs to be sent by the Command Career Counselor Office to NAVPERSCOM (PERS-8) or the servicing PSD if access through the Navy Personnel System is unavailable.
The decision to opt-in to CP must occur between years 8-12 of military service. Once a person hits the 12 year mark, the decision is irrevocable. If you have not done the above steps by your 12 year mark, you will not be able to obtain CP. CP incurs a four year payback that is served concurrently with other service obligations.
by Brendon Drew
DFAS has struggled to accurately implement the new pay plan, and most physicians notice the impact on their LES. What most don’t realize, though, is that the errors may have also impacted their Thrift Savings Plan (TSP) investments. If you contribute to the TSP with any of your medical specialty pays, you should thoroughly investigate your LES and your TSP statements. Here’s an example of what can happen.
I was transitioned off of the legacy pay in February 2017:
When DFAS completed the retroactive pay changes, $785.93 was removed from my 2017 TSP contribution total:
While that may not seem like much, consider that my TSP earned 27% in 2017, the money grows tax-free in a Roth account, and I plan on having that account for another 30-40 years.
Since the involuntary withdrawal occurred in calendar year 2018 but went back into calendar year 2017, I was unable to provide “catch up” contributions in 2018.
I recommend that you review your LES carefully. In the month(s) you are transitioned from the legacy system, look for a negative VSP and/or BCP entitlement. If you see one of these, go pull your TSP statements from the corresponding period and you may find that money was taken out of your retirement account and given back to you as cash.
If you have questions about this, feel free to email me on the global address book. Make sure you have access to your LES and prior TSP statements.
The FY18 NAVADMIN has been released, and the NAVADMIN and the FY18 Pay Guidance for each Corps is attached here:
Officers can now submit for special pays through your command’s Special Pay coordinator with an effective date of 1 Oct 2017, until now, if they meet the eligibility requirements. Remember the request and endorsement cannot be dated earlier than the release date of the NAVADMIN, which is 25 Jan 2018.
Here’s a message about the special pays from the Medical Corps Chief (RDML Pearigen) and the Navy Surgeon General (VADM Faison):
From: “Pearigen, Paul RDML USN NAVMED WEST SAN CA (US)”
Date: December 27, 2017 at 11:33:05 CST
Subject: FW: MEDICAL SPECIAL PAYS UPDATE
Medical Corps Specialty Leaders:
Through email, newsletter, and other mechanisms, the MC Chief staff and I have kept you up-to-date on the ongoing issues related to transition to Consolidated Special Pays and, in particular, the challenges and problems DFAS has encountered in executing this in a timely and accurate manner for those officers from medical and other communities eligible for these pays.
The staff of BUMED Director, Total Force, in particular, Mr. Marin and his team in Special Pays, have worked diligently to assist and prod DFAS in getting this right, as well as to support the officers in your community as this conversion proceeds.
I know this has been, at a minimum, an inconvenience for our active duty physicians–and for some a financial hardship based on their expectations with respect to timing and associated commitments they may have entered. They deserve better, and it is not enough for us to simply say it is DFAS’s responsibility and out of our control. BUMED and the MC Chief’s staff continue to work this aggressively, including name-by-name efforts at resolution; the current status has been detailed for you in recent communications from the MC office. Thank you all for your patience and assistance in getting through this very rocky special pays program transition year.
I am forwarding the below message from the Surgeon General, which I ask you to further forward to your specialty community.
Thanks, and with respect,
Paul D. Pearigen, MD, MMM, CPE, FAAEM
RDML, MC, USN
Commander, Navy Medicine West
Chief of the Navy Medical Corps (M00C1)
Navy Medicine Team,
It has come to my attention that many of you have been directly impacted by the challenges DFAS Cleveland is having with processing special pays resulting in lengthy processing delays, errors in the rates DFAS is paying in addition to overpayment of Incentive Pay. In previous years, the individual Services were able to make these payments but they now must be processed by DFAS, resulting in delays of up to four months.
As background, Consolidated Special Pays were directed by the 2008 NDAA. As such, DoD was given 10 years to implement the change which ends in January 2018. However, ASD(HA) did not authorize the Services to convert until fiscal year 2017. I fully realize the financial impact this is having on you and your families. We are committed to doing everything possible both here at BUMED and working with DFAS to address this situation. I am personally
engaged on this and working this closely with our team. The BUMED Total Force team has been proactively working this issue on your behalf by engaging directly with Navy Manpower and DFAS Cleveland. Mr. Bill Marin, BUMED
Special Pays Program Manager, visited DFAS Cleveland in November to simplify the process and reduce the time it takes for DFAS to process and pay Medical Special Pays. In the meantime, DFAS also assigned additional personnel to focus on reducing the backlog. BUMED has and will continue to process all actions received.
Additionally, we are personally engaging the Director of DFAS who will continue to work this for you. Likewise, the BUMED team and I are committed to keeping you informed as updates become available on this issue. If you have
any immediate questions or concerns that need to be addressed, please contact the BUMED Navy Medical Special Pays Program at usn.ncr.bumedfchva.mbx.specialpays-bumed < at > mail.mil.
C. Forrest Faison III, M.D.
VADM MC USN
Surgeon General, U.S. Navy
Chief, Bureau of Medicine and Surgery
Here are the PPT slides used by the Medical Corps Career Planner at the Specialty Leader Business Meeting:
The remainder of the slides are marked “For Official Use Only” and won’t be posted.
BUMED Special Pays office has identified some Medical Corps and Dental Corps officers who will see a big increase in their 15 Dec 2017 paycheck, that is an overpayment of Incentive Pay (IP). DFAS has been contacted and is performing audits of records to determine who may have been overpaid, and how much. Once they are identified, DFAS will be inputting debts in those member’s accounts who have been overpaid.
Over the past couple of weeks, DFAS has tried to get caught up with the back log of special pays by processing what is called MASS TRANSACTIONS. However, in processing the MASS TRANSACTIONS, DFAS used the full annual IP
rate in determining the monthly amounts of IP to be paid vice the adjusted annual IP amount for those who received an ASP or ISP under the Legacy Special Pays where those pays crossed the start date of the new IP. This will mostly impact MC, but there may be some DC officers particularly OMFS who receive ISP, and those DC officers who entered an IP prior to the expiration of their ASP agreement.
DFAS and BUMED Special Pays office are working to try and audit all the records that may have been impacted, but it is going to take time to complete. In the meantime, the EOY tax cutoff is next week, which means any
records not completed, or the overpayment not repaid by then may have an impact on their 2017 taxes, which may require a Corrected W2 to have to be prepared. BUMED Special Pays office has inquired with DFAS how this is all
going to be corrected, and requested a time line, which they are still awaiting a response.
BUMED Special Pays office is asking that anyone who believes their 15 Dec 2017 paycheck may have an overpayment, to contact their command special pays office, or email BUMED Special Pays office (usn.ncr.bumedfchva.mbx.specialpays-bumed < at > mail.mil), so they can review the member’s record and notify DFAS if the member is overpaid, in order to get it completed hopefully in time for the 2017 tax year.