IV(G).) The application will then be forwarded by the issuing office to the certifying commandant for filing in your service record.

b. Or, if it is more convenient, you may go to any Navy identification card-issuing activity, present a copy of your retirement orders to verify your retired status, fill out the application there (NAVPERS 2721), and receive a new identification card. Take your old card for exchange. If the activity should have any doubt concerning your status, instead of issuing the card, they will forward your application to your Commandant for certification.

2. For Dependent's ID Card, DD Form 1173 (Buff). If you are entitled to DD Form 2N (Gray), you may, on behalf of your eligible dependents, obtain application blanks (DD Form 1172) at any U.S. military (Air Force, Army, Marine, or Navy) card-issuing activity. Fill out and submit the application to the Commandant of the Naval District holding your service records for certification. When the application is returned properly certified, your dependents may present it to any U.S. military cardissuing activity and obtain identification card, DD Form 1173 (Buff). Children under 10 years of age are not issued identification cards. The application will then be returned by the issuing office to the certifying commandant for filing in the member's service record.

III. UNIFORM REGULATIONS AND USE OF MILITARY TITLE

A. WEARING THE UNIFORM

Retired members may wear the uniform only when authorized. When worn, the uniform must conform to current uniform regulations and the uniform of the day as prescribed by competent authority. However, the pattern of the uniform and equipment may be either as prescribed by current regulations or by the regulations in effect at the time of retirement.

1. Appearance. Appearance and conduct in uniform reflect not only upon yourself but upon the Naval service as a whole. In order to achieve the necessary smart appearance that should distinguish naval personnel, wear only a uniform that is well fitted and has had proper care and maintenance; wear it with justifiable pride and with the conviction that you are discharging your responsibility to the Navy.

2. When Uniform is Authorized. The wearing of the naval uniform is governed by U.S. Navy Uniform Regulations 1959 which provide that retired personnel not on active duty are entitled to wear the prescribed uniform of the grade or rating held on the retired list when appropriate. In general, the uniform may be worn upon occasions of ceremony or at official functions when the dignity of the occasion and good taste would dictate the propriety of the uniform. Specifically the wearing of the uniform is considered to be appropriate upon the following occasions:

Memorial services, military weddings, military funerals, and military balls.

- Patriotic parades on national holidays or other military parades or ceremonies in which any active or reserve United States military unit is taking part.

- Meetings or functions of associations formed for military purposes, the membership of which is composed largely or entirely of honorably discharged or retired veterans of the Armed Forces, or of Reserve personnel.

On these occasions, authority to wear the uniform includes periods while traveling to and from the ceremony, provided such travel in uniform can be completed on the day of the ceremony. Retired officers also may wear the uniform of their grade when engaged in the instruction of a cadet corps or similar organization at approved naval or military academies or other approved institutions of learning.

3. When Uniform is Not Authorized. Retired personnel are prohibited from wearing the uniform in connection with non-military, civilian, or personal enterprises or activities of a business nature. Retired personnel residing in or visiting a foreign country may not wear the uniform except when attending by formal invitation ceremonies or social functions at which the wearing of the uniform is required by the terms of the invitation or by the regulations or customs of the country.

4. The Uniform is Not Required to be worn while a retired member is traveling on Military Air Transportation Service or Military Sea Transportation Service.

B. USE OF MILITARY TITLE

1. Permission to Use. Retired personnel are permitted to use their military titles, subject to certain restrictions and the exercise of good judgment. Considerable discretion should be shown by a member in permitting the use of his name and military title to endorse any commercial enterprise so as not to indicate in any way that the Navy Department approves the enterprise, and especially to avoid an endorsement or contract which would bring discredit to the Navy.

2. The Designations USN(Retired) or USNR(Retired) will be used by all Regular and Reserve members retired for service, age, or for physical disability, including personnel on the Temporary Disability Retired List.

USNFR will be used by all Fleet Reserve members.

C. MEDALS AND AWARDS

1. Information and Guidance on personal decorations, campaign, service medals and other awards including foreign decorations is contained in the Navy and Marine Corps Awards Manual (NAVPERS 15790). Instructions for proper wearing of medals and badges is given in the Uniform Regulations. 2. Requests for Verification and Issuance of medals or unit awards should be addressed to the Chief of Naval Personnel (Attn: Pers E24 for officers; Pers E3 for enlisted personnel), Navy Department, Washington 25, D.C. The request should include full name, file or service number, and address to which the requested items are to be mailed. The request should also indicate approximate dates of service and any other data which will help in establishing eligibility for the award in question.

On requests for replacement of lost or damaged medals, a determination is made based on the circumstances surrounding the incident. Replacement of the item is made free of charge or at cost as appropriate.

3. Foreign Awards. Personnel who are awarded foreign decorations are required to submit them to the Chief of Naval Personnel (Attn: Pers G25) for further delivery to the Department of State. The awards are retained until the recipient has permanently retired and appropriate legislation is enacted at which time they will be automatically returned to the recipient. (See SECNAV INSTRUCTION 1650.9 series for information concerning the handling of foreign awards.)

IV. RESPONSIBILITIES AND RESTRICTIONS OF RETIRED PERSONNEL

It is your responsibility as a retired member of the Navy to keep yourself informed of the laws and regulations affecting retired personnel.

In addition to the responsibilities and restrictions of retired naval personnel covered in this section, there are certain Federal Statutes which have a direct bearing on employment or dealing with the Federal Government. For further information on this subject, read Chapter 8, "Employment After Retirement," and specifically, section II, "Restrictions on Civilian Employment."

Retired members should be aware of the statute which restricts payment of retired pay for criminal convictions (explained in Chapter 3, section V(F).

A. STANDARDS OF CONDUCT

Retired Regular personnel entitled to receive retired pay or the Fleet Reserve are subject to the Uniform Code of Military Justice at all times. Retired members of Reserve components are subject to the Uniform Code of Military Justice while on active duty or while receiving hospitalization from an armed force.

B. SECURITY PROGRAM

All retired Naval personnel are enjoined to refrain from conduct or associations in aid of Communist, Fascist, Totalitarian, or otherwise subversive ideologies or movements, or in aid of advocating

denial to persons or rights guaranteed by the Constitution of the United States. Retired personnel are enjoined to cooperate fully with Committees and Subcommittees of the Congress of the United States and with other Federal and State agencies investigating organizations and activities deemed subversive with respect to the Government of the United States. Association with organizations and activities of the types indicated, or failure or refusal upon any ground to testify concerning such organizations or activities may hazard one's eligibility for retired, retirement, or retainer pay under the Act of 1 September 1954, 68 Stat. 1142, and other Federal legislation.

Pursuant to Executive Order 10450 (Security Regulations Applicable to Federal Officers and Employees), the Attorney General has designated certain organizations as being variously Communist, Fascist, Totalitarian, dedicated to forcible governmental overthrow, or dedicated to denial of Constitutional Rights. A copy of the list of organizations so designated may be obtained upon request to the Chief of Naval Personnel (Attn: Pers G224), Navy Department, Washington 25, D.C. Retired personnel are cautioned, however, that this list does not purport to be all-inclusive and may not be completely current.

The responsibility for determining whether one's prospective conduct or associations may fall within any of the prescribed spheres must rest upon the individual retired member concerned.

C. PUBLICATION OF ARTICLES

In accordance with Navy Regulations, Article 1252, retired members writing articles, books, scripts, or speeches on professional, political, or international subjects based on their naval experience, should upon acceptance of such articles for publication, forward a complete copy of the manuscript to the Secretary of the Navy for the files of the Navy Department.

It is desirable to submit for review articles pertaining to international affairs, missiles, atomic energy, or articles in which the security classification may be questionable. Send to: The Chief of Information, Coordination Branch, Navy Department, Washington 25, D.C.

Each retired member must take full responsibility for the classification category of any written or published article that he originates.

All articles published should bear a statement to the effect that the opinions expressed are those of the author and do not reflect the views of the Navy Department.

D. POLITICAL ACTIVITIES

Retired members while not on active duty are NOT subject to certain restrictions on political activities imposed by Navy Regulations and by the Hatch Act (5 U.S.C. 118i).

Chapter 3

RETIRED PAY AND INCOME TAX

Contents of Chapter: I. Retired Pay; II. Income Tax on Retired Pay; III. Allotments; IV. The Uniformed Services Contingency Option Act; V. Miscellaneous Pay Matters

I. RETIRED PAY

There are various provisions of law under which the computation of Navy retired pay may be made in different circumstances. Any retired member who has a question regarding the particular formula used in computing his Navy retired pay should address his inquiry to the U.S. Navy Finance Center, Retired Pay Department, Cleveland 14, Ohio.

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A. ESTABLISHMENT OF RETIRED PAY ACCOUNT

Upon receipt of a member's retirement orders, the Retired Pay Department of the U.S. Navy Finance Center establishes a retired pay account in the member's name.

Retired pay is reduced in accordance with Contingency Option Act elections, and deductions are made for allotments and taxes as explained in the following sections.

B. PAYCHECKS

Retired paychecks are issued monthly by the Navy Finance Center.

1. Initial Pay Check. The first retirement check from the Navy Finance Center will be issued at the end of the first month for which a member is entitled to receive pay, or as soon thereafter as the documents necessary to establish the account are received. In advance of, or with the first check, a retired member will receive a "Pay Account Certification" which will indicate the following:

a. Gross monthly pay.

b. Amount of gross monthly pay considered taxable income, if any.

c. Credit or debit balance, if any, brought forward from last active duty account.

d. Amount of insurance allotments, if any, being deducted from retired pay account.

e. Amount of Federal income tax, if any, being withheld from monthly checks.

f. Amount of Uniformed Services Contingency Option Act reduction, if any.

g. Net amount of check.

2. Subsequent Pay Checks. Retired pay checks are issued only once a month and mailed on the last day of the month for which pay accrues. In order to expedite the distribution of checks, the Cleveland Post Office does not cancel the envelopes, as this would delay the checks from one to three days.

Because of the large number of accounts handled, requests for payments to be made oftener than once each month, or on dates other than the last day of the month cannot be approved. Furthermore, because of the "cutoff" dates required when preparing large payrolls on a mechanical basis, changes in allotments, withholding tax, or other similar items occasionally may be effected a month later than requested. Retroactive charges or credits will be made as appropriate.

3. Designation of Payee and Mailing Address. Ordinarily pay checks will be drawn payable to the retired member as the payee and mailed to him, except as otherwise requested in certain circumstances described below. Some circumstances require that the member submit a monthly report of existence, and some do not. Retired members should familiarize themselves with these requirements:

Any references used hereafter in the text refer to the U.S. Navy Finance Center, Retired Pay Department, Cleveland 14, Ohio

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a. Mailed to member residing in the Continental Limits of the United States. Checks will be made payable to the member and mailed to his home address. All retired personnel with the exception of those declared mentally incompetent are eligible to receive checks in this way. NO MONTHLY REPORT OF EXISTENCE IS REQUIRED.

If because of illness, a member is not physically able to endorse his check by signing his name as it appears on the check, he may endorse it with an "X" provided it is witnessed by two disinterested persons who must sign their names in full and give their complete addresses on the back of the check.

b. Mailed to a Bank for Deposit, or to an Individual Other than the Retired Member. If the retired member wishes to have his check mailed to a bank for deposit to his account, or to himself in care of another individual holding power of attorney, the member must arrange for a power of attorney to be given the bank or individual in accordance with U.S. Treasury Regulations, which require the completion of Treasury Form 6711 for a banking institution and Treasury Form 6570 for an individual. The member should then advise the Navy Finance Center by card (change-of address or postal) or letter OVER HIS SIGNATURE of the name and address of his attorney in fact, that is, the bank or individual. The Navy Finance Center will draw checks payable to the member and mail them as requested. A COPY OF THE POWER OF ATTORNEY IS NOT REQUIRED BY THE NAVY FINANCE CENTER.

When checks are mailed to a bank or another individual, withholding tax statements (Treasury Form W-2), other documents, and notices ordinarily enclosed with checks will go to the bank or individual having power of attorney. This is a reminder that the member may want to make arrangements to have these documents forwarded to him by the bank or individual who receives the check.

Monthly Reports of Existence are NOT required unless the member is residing outside the United States, its possessions, or territories. Note that a power of attorney granted by a member does not constitute authority to sign and submit reports of existence.

c. Checks Payable to Member and Mailed to Member Residing or Traveling Outside the United States, Its Territories, or Possessions for a Period in Excess of Six Months. If a member is residing or traveling as indicated above, he may request the Navy Finance Center by signed letter or card to mail his check to the address he fumishes.

Monthly Report of Existence IS Required. (as explained in D. following.) Checks are not mailed until the Navy Finance Center receives the properly signed and dated report of Existence. All members, except those declared mentally incompetent, are eligible to have checks so forwarded.

A member may have checks forwarded to a disbursing officer, naval attache, or American Consulate, located in the country in which the member is residing or traveling. The aforementioned officer will then release checks to the member upon receipt of a signed dated report of existence, or when the member reports his existence in person.

d. Checks Payable to Legal Representative of Mentally Incompetent Member. Checks in this category are made payable to the guardian, trustee, committee, conservator, fiduciary, or other legal representative in his official capacity for the account of the mentally incompetent member, and mailed to a specified address designated by the legal representative. Monthly report of Existence IS required. (Explained in D. following).

A copy of the court order, bearing the seal of the court, must be forwarded to the Navy Finance Center before checks may be made payable to the legal representative (trustee or guardian).

4. Non-Receipt of Checks. If the monthly retired check does not arrive on time, it is possible that events such as strikes, floods or other disasters may have delayed it. However, if it becomes apparent that the check has gone astray, send a request for stop-payment over your signature to the Navy Finance Center. Be sure to identify the check properly; for example, refer to the check issued on 31 July as the July check (and not the August check even though you receive it in August). The Finance Center will send your stop-payment request to the Treasury Department, which will furnish the necessary forms for you to complete in order that the Treasury Department may issue a substitute check. If you report a check as not received or lost and later receive or find it, notify the Navy