in Chapter 6, section VI). The right to use military base facilities is not lost by waiving Navy retired pay, but the right to travel on Military Sea Transportation Service and Military Air Transportation Service is lost. B. GARNISHMENT OF PAY Pay, whether active or retired, is not normally subject to garnishment, attachment, execution, or other legal process while in the hands of a Federal disbursing officer. The Government of the United States may recover indebtedness by "checkage" against retired pay, but there is no authority for involuntary "checkage" to satisfy private claims or judgments. C. TAX LEVIES 17 Retired pay is subject to levy and distraint by the Internal Revenue Service for collection of delinquent Federal taxes. For example, if you owe Federal taxes (any kind of Federal taxes), the Internal Revenue Service can send a tax levy on your pay to the Navy Finance Center unless you make arrangements with the Internal Revenue Service to liquidate your indebtedness. The Center will withhold from your net pay, due from the first day of the current month through the date levy is received, the maximum amount necessary to satisfy the levy. (Net pay is your gross pay less normal monthly deductions such as allotment, withholding tax, and liquidation of any outstanding overpayments.) You would then receive a check for the balance due, if any, for the month. D. BENEFICIARY DESIGNATION FOR UNPAID PAY AND ALLOWANCES DUE SURVIVORS The law governing settlement of unpaid pay and allowances provides that each member of the naval service may designate or change the designation of beneficiary or beneficiaries and designate the proportion of any amount due at the time of death to be paid to each beneficiary. Unpaid pay and allowances includes travel or transportation allowances, savings found on deposit, and the like which remains to the credit of the member at the time of his death. Payment of amount due on date of death is made by the Navy Finance Center. 1. Designating Beneficiary. Retired personnel (including Fleet Reservists) may obtain Navy Finance Center Form 1786A from the Center to file designation of beneficiary. If you will designate the beneficiary or beneficiaries to receive unpaid amount due you, you will expedite final settlement of retired pay account upon your death. You may designate any person you wish as beneficiary. If you designate more than one person, you must indicate the percent that you want each to receive. If you fail to designate a beneficiary, final settlement of amount due will be paid to the person or persons surviving you in the following order of precedence: a. Widow or widower b. If there is no surviving spouse, to the child or children and descendants of deceased children by representation. c. If no spouse or children survive, to the parents in equal parts, or if either is dead, to the survivor. d. If there are none of the above, to the duly appointed legal representative, or if there be none, to the person or persons determined to be entitled thereto under the laws of the decedent's domicile. 2. Changing Designation. You may change your designation of beneficiary at any time by submitting a signed designation to the Navy Finance Center. Such designation properly executed, witnessed and received at the "place designated for such purpose" prior to the death of the member supersedes all previous designations. Write to the Center for the proper forms. It is important to 17 Authorized by Internal Revenue Code of 1954, Section 6331, which provides that all property and rights to property, including salaries and wages, of officers and employees of the U.S. Government, including members of the Armed Forces, active and retired. keep your designation of beneficiary up to date and to make any changes, if that is your desire, in order to insure that the person or persons you intend will receive payment. (See Chapter 2, section I,(C) concerning correcting your records.) 3. Settlement of Unpaid Pay and Allowances. Upon the death of a retired member, the Navy Finance Center will send forms for applications for any unpaid pay and allowances due the beneficiary or beneficiaries designated, or to the next of kin, legal representative, or heirs at law. E. PAYMENT OF UNUSED LEAVE Upon retirement and release from active duty, retired members receive a lump-sum payment for unused leave. The amount representing pay, as distinguished from allowances, is included in your gross income for tax purposes and is subject to withholding of Federal income tax. (For additional information concerning taxation of retired pay, see section II of this chapter, Income Tax on Retired Pay.) F. LOSS OF PAY DUE TO CRIMINAL CONVICTION All retired members of the Navy, officer and enlisted, should be aware of the restrictions against receiving retirement pay in Public Law 769, 83rd Congress, of 1 September 1954. 1. Payment of retired pay may not be made, under the provisions of this Law, to officers and employees of the United States including members and former members of the Armed Services who: a. Are convicted by Court Martial or Federal Court of certain offenses relating to bribery and graft; claims, services, and contracts affecting the Government (see Conflict of Interest covered in Chapter 8, section II(C)); espionage and censorship; sabotage; treason, sedition and subversive activities; offenses involving the postal services; offenses which are considered felonies under the laws of the United States or of the District of Columbia involving improper use of authority, influence or privileges, either while a member of the service or after termination of that service. b. Fail or refuse to testify upon the grounds of self-incrimination with respect to their service or relationship with a foreign government in any proceeding before a Federal Grand Jury, court of the United States, or Congressional Committee. c. Are guilty of perjury committed under the laws of the United States or the District of Columbia in falsely testifying or concealing any material facts in connection with any of the above-mentioned crimes. 2. This act further prohibits the payment of USCOA annuities to the survivors or beneficiaries of the persons referred to above. (USCOA payments explained in Section IV of this Chapter.) 3. The right to receive retired pay may be restored to any person so convicted only if a pardon is granted by the President of the United States for the offense for which the member was convicted. NOTICE TO MEMBERS WHO ELECTED ANNUITY BENEFITS UNDER THE Upon your retirement or transfer to the Fleet Reserve, the Retired Pay Department, Navy Finance Center, will automatically deduct the monthly cost of your election from your pay account. If such a deduction is not indicated on the Pay Account Certification form furnished you prior to your first retired/retainer check, notify them that you made an election. If you waive your entire retired/retainer pay to receive a Veterans Administration pension or because of Federal civil employment, you are required to pay the USCO costs by direct remittance and you should be so notified by the Finance Center. If you do not receive notice within 30 days after retirement or transfer, inform the Center that you made an election. USCO costs must be paid from the date of retirement or transfer. Therefore, to avoid a large indebtedness at a later date, it is important to notify the Retired Pay Department promptly under the conditions explained above. Contents of Chapter: I. Travel Incident to Retirement; II. Shipment and Storage of Household Goods; III. Travel Privileges on Retirement; IV. Travel and Residence Overseas I. TRAVEL INCIDENT TO RETIREMENT A. TRAVEL OF MEMBERS 1. From Active Duty Station to Home Selected. A member of the regular Navy or Naval Reserve on active duty who is (a) retired for physical disability or placed on the Temporary Disability Retired List; or (b) retired with pay for any other reason, including transfer to the Fleet Reserve, with eight or more years of continuous active duty immediately preceding retirement or transfer, may select his home location and receive travel allowances from his last duty station to the selected location. The home "selected" incident to retirement does not have to agree with the home of record. However, once a member has selected a home and traveled to it, his selection is irrevocable as far as receipt of travel allowance is concerned, that is, he can receive travel allowance only to that home and to no other. CAUTION: Travel for retired member or dependents to any place other than the selected home location is not authorized regardless of comparative costs. 2. Time Limitation. Travel to the selected home location must be completed within one year after termination of active duty. a. The ONLY exception to the one-year time limitation is that a member who is undergoing treatment at a Government hospital (or civilian hospital at Government expense) ON THE DATE OF TERMINATION OF ACTIVE SERVICE may select his home location and receive travel allowances to it from his last duty station if he performs the travel to the selected home (1) within one year after date of discharge from the hospital or termination of treatment, or (2) two years after date of termination of active service, whichever is earlier; further extension of this time limit may be approved by the Secretary of the Navy ONLY if the member was confined in or was undergoing treatment at a hospital (as designated above) at the time of termination of active service. b. Advance payment of travel allowances to the selected home is not authorized. 3. Travel to Home Outside Continental Limits of U.S. For travel to selected home location outside the continental limits of the United States, the retired member should apply by letter or orally in person for transportation from the appropriate port of embarkation to one of the following, depending on location of selected home: a. For Pacific destinations, to the Commandant, 12th Naval District, San Francisco, California. b. For all other destinations: Chief of Naval Personnel (Attn: Pers B3) 1«Continuous active duty" means successive periods of active duty with no single break therein of more than 90 days. 27 4. Application. Submit with oral or written application two copies of orders directing retirement, transfer to the Temporary Disability Retired List, or transfer to the Fleet Reserve. The orders must contain a statement showing the place selected as home location. 2 5. Claims for Travel. After completion of travel, the retired member should submit claims to any Navy Disbursing Officer for payment of mileage or reimbursement for other travel expenses. Prepare claims on "Travel Claim-Mileage and/or Per Diem" (NavCompt 2021), in triplicate, and enclose the original orders and two copies containing all endorsements including the place selected as home and the date of arrival at that place. B. TRAVEL OF DEPENDENTS 1. Entitlement of Dependents. Upon retirement from the Navy, all officers, and enlisted personnel in the grades of E-4 with over four years of service, E-5, E-6, E-7, E-8, and E-9 are entitled to transportation of their dependents to the same home location that the member has selected for his personal travel. 2. Time Limitation for Dependents. Dependents must perform travel within one year after termination of the member's active duty with one exception ONLY, as follows: a. In those cases where the retired member is undergoing treatment in a Government hospital (or civilian hospital at Government expense) on the date of termination of active service, the period within which dependents must perform travel will be extended to correspond to the period within which the member must perform travel to his selected home. (See section A(2)(a) above.) b. Note that dependents do not necessarily have to travel at the same time as or with the retired member, but they MUST complete their travel WITHIN THE AUTHORIZED PERIOD. 3. Claims for Dependents3 Travel. Dependents' claims for travel should be submitted to any Navy Disbursing Officer on "Claim for Reimbursement for Dependent's Travel and/or Dislocation Allowance" (NavCompt Form 2023) in triplicate, together with member's original and two copies of orders containing all endorsements including the place selected as home location and the date of arrival in that place. II. SHIPMENT AND STORAGE OF HOUSEHOLD GOODS INCIDENT TO RETIREMENT A. ELIGIBILITY Active duty personnel having a prescribed weight allowance who are (1) retired for physical disability or placed on the Temporary Disability Retired List (without regard to length of service); or (2) retired with pay for any other reason, including transfer to the Fleet Reserve, with eight or more years of continuous active duty immediately preceding retirement, are eligible to ship and store household goods at Government expense as follows: From their last or any previous duty station, - From designated place in the United States, or From storage or any combination thereof, to the selected home location. CAUTION: Shipment of household goods to any place other than the home selected for travel allowance is NOT authorized, regardless of comparative costs. 2 If member and dependent claims are submitted together only the original orders and two copies are required. 3 See footnote 2. SUMMARY OF AUTHORIZATIONS AND RESTRICTIONS FOR SHIPPING AND STORAGE OF 4 The only exception to the time limit is for members confined in, or undergoing treatment at a government hospital (or civilian hospital at Government expense) on date of termination of active service. (See section I(A)(2)(a)`and I(B)(2)(a) of this chapter concerning travel of hospitalized retired members and their dependents.) |