The new law also increases the maximum re-enlistment bonuses for reservists from $10,000 to $15,000, and authorizes the services to pay the bonuses in a "lump sum" (of course, that doesn't necessarily mean the services will choose to do so).
Additionally, the law increases the maximum enlistment bonus for reservists from $8,000 to $10,000, and allows the Reserves to pay a maximum $3,000 bonus for active duty troops who leave active duty to join the Reserves. Also, the bill allows the Reserves to pay a maximum $2,000 bonus to reservists who re-train into a critical job.
The bill allows the Reserves to pay a maximum $6,000 accession bonus to new commissioned officers in "critical skills."
Overseas Move Expense. The new law authorizes the military to reimburse members moving overseas for one-time expenses connected with the move, such as taxes and registration fees required by the foreign government. Only nonrecurring, one-time expenses are covered, and the expense needs to be something that is not already covered under other programs and/or must be significantly higher than like expenses in the United States. DoD will have to prepare a regulation to determine exactly what kind of expenses will be authorized for reimbursement. Expect this to take several months.
Survivor Benefit Plan. Under the old law, a survivor received 55 percent of a military member's retirement pay until age 62, when it drops to 35 percent. The new law eliminates this reduction, but it is phased in over the next 3 1/2 years:
- For months after September 2005 and before April 2006: 40 percent
For months after March 2006 and before April 2007: 45 percent
For months after March 2007 and before April 2008: 50 percent
For months after March 2008: 55 percent
Advanced Pay for Combat Zones. The act allows the services to advance (loan) up to three months of basic pay to military members assigned/deployed to a combat zone for more than 12 months. Under the plan, one month of basic pay would be automatic, and an additional advance of up to two months of basic pay would be based on hardship situations. The "loan" is repaid by monthly deductions for the member's pay over a 12 month period.
Servicemans Group Life Insurance. The FY 2005 Military Authorization Act increases maximum SGLI coverage from $250,000 to $350,000. However, this increase isn't effective until 1 October 2005. Additionally, the provision automatically increases the maximum coverage each year by a percentage equal to the average increase in basic pay, beginning in 2007. Also, beginning 1 October 2005, the first $10,000 of SGLI coverage will be provided to service members for free, with the amount of "free" coverage increasing each year by the same percentage as base pay increases.
Death Gratuity. The law increases the current $12,000 death gratuity paid to survivors when a military member dies on active duty, automatically each year to equal the percentage in average increase in basic pay. The first increase is 1 January, and will match this year's increase in basic pay, which is 3.5 percent. That means, beginning January 1, the death gratuity will increase to $12,420, with future automatic increases each year.
Continued Pay After Death. Beginning 1 October 2005, the services would pay a lump sum payment, equal to 12 months of the military member's base pay, to the family members of a service member, who died on active duty, if the death occurs in the line of duty. If the member died as a result of hostile fire, the survivor(s) would receive the member's basic pay for 2 years.
Exclusion of Pay for Federal Assistance. The new law excludes family separation allowance and combat pay when determining eligibility for certain Federal assistance programs, including the Richard B. Russell National School Lunch Act, Child Nutrition Act of 1966, the Head Start Act, Child Care and Development Block Grant Act of 1990, and the Low-Income Home Energy Assistance Act of 1981.
