PART THREE RETIRED PAY Chapter 9 GENERAL INFORMATION 51. General. Upon your retirement, final pay and allowances will be paid by the accounting and finance officer designated to pay your active duty pay. This officer will also pay you a lumpsum settlement for your unused accrued leave not to exceed 60 days. 52. Eligibility To Receive Retired Pay. Once your application for voluntary retirement or mandatory retirement has been approved, you are then eligible to receive retired pay unless you are restricted from such under Public Law 83-769 (Hiss Act). a. Under the provisions of Public Law 83-769 (5 USC 2281 et. seq.), as amended by Public Law 87-299, 26 September 1961, payment of retired pay may not be made to officers and employees of the United States including members and former members of the armed services who: (1) Are convicted of crimes involving loyalty, those which impair the national security, and allied offenses. (2) Are guilty of perjury under the laws of the United States or the District of Columbia in falsely testifying or concealing any material facts in connection with crimes in the category mentioned above. b. Public Law 83-769 further prohibits the payment of annuities to the survivors or beneficiaries of the persons referred to above. c. The right to receive retired pay may be restored to a person so convicted if the President of the United States grants a pardon for the offense for which convicted, or by action of the Air Force Board for Correction of Military Records. 53. Designated Accounting and Finance Office: a. Retired pay ("retired pay" and "retirement pay" are synonymous in this pamphlet unless otherwise indicated), based on length of service, age or disability, of regular and nonregular commissioned officers, warrant officers and enlisted personnel of the Air Force is paid by the Retired Pay Division, Air Force Accounting and Finance Center. The correct mailing address is AFAFC (MR), 3800 York St Denver Colo 80205. b. If, at the time of retirement, you reside outside the United States or if you contemplate moving or traveling outside the United States after retirement, the Retired Pay Division, AFAFC, will forward appropriate instructions and information regarding your pay. (See paragraphs 99 through 104, this pamphlet, for other information concerning restrictions and regulations to be complied with while traveling or residing abroad.) c. If you will remember that the accounting and finance office paying your retired pay is performing for you as a retired member services similar to those that the base accounting and finance officer provided while you were on active duty, you will have a better understanding of the relationship and the extent of the services that the Retired Pay Division, AFAFC, can provide you after retirement. All correspondence in connection with your pay account should be sent to the mailing address of the retired pay division, AFAFC, as shown in subparagraph a above. Because of the large number of retired pay accounts and the possibility of duplication and similarity of names, an officer's or airman's service number is essential to identify an account. Accordingly, always state your full name and service number as they appear on your retirement orders. Enlisted personnel who have served temporarily as warrant or commissioned officers should show only enlisted rating and service numbers until such time as their retired pay accounts are officially adjusted to officer grade. 54. Method of Payment: a. Retired Pay Checks. All retired pay is paid by U.S. Treasury checks, the object for which drawn is designated "Retired pay-payable only through life of payee." Checks to retired members in Alaska, Hawaii, territories and possessions of the United States and in foreign countries are air mailed. All other checks are sent by regular mail. An account statement will be mailed in advance of the initial check and at any time that a change occurs in your retired pay account. This statement will show a complete breakdown of your retired pay from "gross pay entitlement" to "net pay" and in addition will show the amount of retired pay considered as taxable income. Retired pay checks are prepared by electrical accounting machines and production line methods. This process expedites the issuance of the checks but due to space limitations they cannot include grade, rating or class designation. on the face of checks. Because of the large volume of retired pay checks prepared monthly, "cut-off" dates are required. Therefore changes in allotments, withholding tax, check mailing address, or other items must be received in the Retired Pay Division, AFAFC, by the 15th of the month in which the change is to become effective. b. Nonreceipt of Check. If you do not receive your monthly check on the normal receipt date, you should consider any unusual occurrences that may have delayed the mails; however, if circumstances seem to indicate that your check may have gone astray, you should submit a request for stop-payment. You must submit the request over your handwritten signature to AFAFC (MR), 3800 York St Denver Colo 80205. That office will transmit it to the Treas ury Department for action toward stoppayment. If you have reported your check as not received or as lost and later you receive or find it, you must notify the same office immediately so that the stop-payment orders may be rescinded. Do not attempt to cash or deposit the check until you have received notice that clearance has been obtained from the Treasury Department, because payment will be disallowed before removal of the stop-payment action. c. Authorized Methods of Processing Retired Pay Checks. The various authorized methods by which your retired pay checks may be written and addressed, plus pertinent instructions to be followed in each instance, are: (1) Optional Methods of Check Payment: (a) Mailed to Specific Address within the United States, Its Territories and Possessions. All retired personnel, except those who have been declared mentally incompetent, are eligible for this type of check payment. The check will be made out in your name and mailed to your home or other specified address. These checks will be placed in the mail on the last workday of the month. (b) Mailed in Care of a Bank for Deposit. Eligible personnel are the same as in subparagraph (a) above. The check will be made payable to you and will be mailed to your bank on the last workday of the month. However, some banks may require a limited power of attorney authorizing them to receive, negotiate, and deposit the proceeds of your check. If so, arrangements are a matter between you and your bank. (2) Checks for Payment of Retired Personnel Residing or Traveling Outside the United States: (a) A check addressed to a retired member at an address outside the United States, its territories or possessions-if delivery will be made through foreign postal channels-must be held each month until a "report of existence" has been received from the retired member. (See subparagraph d below, on report of existence requirements.) AFAFC Form 540– 76, "Report of Existence-Foreign," is used in these cases. Checks will be air mailed promptly upon receipt of the properly completed report. (b) AFAFC Form 540-76, "Report of Existence-Foreign," is not required of a retired member who is residing or traveling in any of the territories or possessions of the United States. A retired member who is residing or traveling in a foreign country is not required to submit a monthly report of existence if his check is mailed: 1. In case of an APO, FPO, U.S. Consulate, American Embassy, or Air Attaché in a foreign country and the check will be delivered to the member personally by the State Department or service official. States. 2. To an address within the United (3) Check for Payment of Mentally Incompetent Retired Member. Such a check will be made out in the name of a trustee, guardian, committee, or other legal representative, and will be mailed to a specified address. The monthly submission of AFAFC Form 540-77, "Report of Existence-Fiduciary," is required. (4) Check to be Negotiated under Power of Attorney Granted Individuals by Retired Member. Such a check will be made out to the retired member, and will be mailed to a specified address. The retired member will report his existence by the monthly submission of a brief signed and dated note addressed to the Retired Pay Division (no "Report of Existence," forms are available for this purpose). d. Reports of Existence. These reports are required under the circumstances stated in subparagraphs c(2) (a), c(3) and c(4) above. The reports must be signed personally by retired members or by the legal representatives of incompetent members. The reports are required to be filed on a "one month behind" basis, that is, checks will be mailed at the end of each month and receipt of the report within the next month will verify the retired member's existence. A blank Report of Existence is included with each check mailed, except under conditions cited in paragraph 54c(4) above. Retired pay checks will be withheld until a proper report has been received. Under no circumstances may a "Report of Existence," be signed by other than the retired individual or the legal representative of an incompetent member. If, because of illness, you are not physi cally able to sign your name on the report, it will be accepted if inscribed with an "X" witnessed by at least one other person. You must keep the Retired Pay Division, AFAFC, advised of your mailing address so that documents and other information that require your immediate action or that are essential to you for your financial records, e.g., withholding tax statements, can be mailed to you. If you choose to have your checks mailed to a bank or to some individual who holds your power of attorney, and you do not have a temporary or permanent mailing address for correspondence purposes, you must arrange to have that bank or individual promptly forward these items to you. e. Change of Address. AFAFC Form 54088, "Request for Change in Check-Mailing Address," is the card prescribed by the Air Force Accounting and Finance Center (AFAFC) to report a check-mailing address. You should also keep them informed of changes in resi dence address. This form is mailed to all newly retired personnel when their pay account is established. On change of check-mailing address the form should be mailed promptly to AFAFC (MR), 3800 York St Denver Colo 80205. Change of address should be over your own signature and received in the Retired Pay Division, AFAFC, by the 15th of the month to insure mailing of your check for that month to the new address. When a request for change in address is received by the Retired Pay Division, AFAFC, a blank Form 540-88, "Request for Change in Check-Mailing Address," will be mailed automatically to the member for future use. f. In the absence of the card forms, changes of address may be reported by letter or postcard. When using this method, be sure to include your retirement date, full name, retired grade, and service number. g. Any retired person who has granted a power of attorney to a second party to cover receipt and indorsement of checks and who is reporting a change of address should state whether the change applies to his address or to the address of the attorney-in-fact. Your correct permanent address, as well as the address of the attorney-in-fact should be known by the Retired Pay Division, AFAFC, at all times. or 55. Garnishee of pay. The retired pay of an officer or enlisted member cannot be attached nor garnisheed by order of any court. Only the Government of the United States can control or take such pay. Indebtedness to the U.S. Government may be taken out of retired pay. When a retired member is notified of indebtedness to the U.S. Government, he should promptly remit the entire amount of the indebtedness or arrange with the Retired Pay Division, AFAFC, for reimbursement to the Government by monthly installments monthly deductions from his retired pay. In any case, repayment must be made unless the retired member can definitely establish that the notification of indebtedness is in error. Repayment of an indebtedness will in no way jeopardize a member's right to file a claim with the General Accounting Office, Wash DC 20548, if he feels that the indebtedness is not justified. However, a Notice of Levy, served by the Internal Revenue Service for amounts due that office is required by law to be immediately satisfied. Under this condition no contact will be made with the retired member by AFAFC, before withholding the amount demanded by the Internal Revenue Service. 56. Suspension of Pay: a. If a retired officer or airman is ordered to active duty, his retired pay will be suspended during each period of active duty, but will be resumed from the day following his release from such active duty. Retired pay will be recomputed to allow credit for all active duty performed after retirement except that, in no event, shall retired pay exceed 75% of the active duty pay or basic pay that the person would be entitled to receive if he were serving on active duty in the grade forming the basis for computing his retired pay. b. If a member has been removed from the temporary disability retired list and has received disability severance pay, the amount of such disability severance pay shall be deducted from any compensation to which he or his dependents become entitled thereafter under laws administered by the Veterans Administration for the same disability. c. A retired officer who received a lump sum readjustment payment, as a reserve member separated involuntarily after 28 June 1962, under Public Law 87-509, and who later qualified for retired pay based on years of active service, may receive that pay subject to the immediate deduction of an amount equal to 75% of the amount of the readjustment payment. This amount can be paid in full upon retirement or retired pay will be suspended until 75% of the readjustment payment has been recovered. 57. Election or Retirement Pay. Retired personnel who have waived a portion or all of their retired pay, so as to receive VA compensation, may subsequently reelect to receive retirement pay. A retired member's waiver of a statutory right to retired pay will not preclude his later asserting that right. Such a waiver may be considered effective without restoration rights only if it is construed as a renunciation of his retired status. 58. Restriction on Retired Pay When Receiving Federal Employees' Compensation. Section 7(a) of the Federal Employees' Compensation Act, as amended, (5 USC 757) prohibits concurrent payments of retired pay and disability compensation payable under the act. A retired member may elect to receive one or the other, but not both. This act provides, in effect, that civilian employees of the U.S. Government who suffer injuries in the performance of their duties are entitled to compensation for disability and death, as well as for medical care. No entitlement to retired pay exists for the period covered by the compensation award. A retired member who has filed claim for compensation under this act should notify the Retired Pay Division, AFAFC, so his retired pay may be properly adjusted. 59. Estimating Retired Pay. General rules for estimating retired pay are shown in the following table: Note: 10 USC 1405 makes an exception in the case of Reserve members who performed inactive service subsequent to 31 May 1958. Inactive service performed after that date is not counted on a year-for-year basis for the purpose of determining the multiplier. In such a case, the member can estimate the number of years of service for the multiplier by adding: 1. All service creditable for basic pay prior to 1 June 1958. 2. All service performed on active duty after 31 May 1958. 3. One day's service for each point earned while not on active duty after 31 May 1958, subject to the limit of 60 points in any one year. This would be points creditable in accordance with AFR 45-15. Example: A Reserve member who has served continuously on active duty has 22 years, 5 months and 2 days of service creditable for basic pay as of his CDOS of 30 Sep 1964. He elects to be separated rather than retired on that date. Subsequently he applies for retirement effective 1 Jan 1965. At that time (3 months later) he will have 22 years, 8 months and 2 days creditable for basic pay. However, the service used as the multiplier will only be 22 years, 5 months and 6 days reflecting the pro rata share of the 15 points awarded gratuitously for membership in a Reserve component. If, during that 3-month period, he had also earned additional points for training periods, etc., the multiplier would have been increased by 1 day for each of these points. |