Join the Discussion 2003 Pay and Benefits

Related Resources • 2002/2003 Pay Charts • Military Money matters • Military Pay Regulation • What the Recruiter Never Told You

From Other Guides • Congress and Laws

Elsewhere on the Web • Defense Finance & Accounting • Military Per Diem Committee • Library of Congress (Legislation)

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Per diem for Permanent Change of Station (PCS) moves

This was approved by last year's Defense Authorization Act, but implementation was delayed until January 1, 2003. For over 20 years, military members have received a flat $50.00 (per authorized travel day) for per diem (an allowance designed to cover meals and lodging during travel). This year, Congress has amended the law to allow military members to receive the same rate that federal civilians receive (for FY 2003, the rate is $85.00 per day). The new provisions also require the rate to be adjusted each fiscal year (October 1st). The new per diem rates are effective for any PCS travel performed after January 1, 2003. See PCS Travel Mileage Chart and PCS Entitlement Chart for more information.

Travel BAH for Lower-Rank Enlisted

This was approved by last year's Defense Authorization Act, but implementation was delayed until January 1, 2003. Under previous law, only E-5s and above were entitled to receive a Housing Allowance during travel and while on leave between PCS moves. Congress has provided a provision authorizing BAH to be paid to all enlisted members, regardless of rank during PCS moves.

Household Goods Weight Allowance for Lower-Rank Enlisted

This was approved under last years Defense Authorization Act, but implementation was delayed until January 1, 2003. E-4s and below (with dependents) can now ship up to 8,000 pounds of household goods during PCS moves. E-4s without dependents are now entitled to ship up to 7,000 pounds. E-3s and below without dependents can now ship up to $5,000 pounds. The new HHG weight allowances are effective January 1, 2003. See Property Shipment Weight Allowance Chart for more information.

Overseas Moves
(Section 602)

In the States, when a military member makes a PCS move of 50 miles or less, they have a choice of continuing to receive the housing allowance rate of their old duty station, or receiving the housing allowance rate of their new duty station. Until now, overseas members did not have this option. They were required to receive the Overseas Housing Allowance (OHA) rates of the new duty station. Under this change, overseas members now have the same option that state-side members have if they make a PCS move of 50 miles or less. This new provision is effective January 1, 2003.

Consecutive Overseas Tour Travel
(Section 621)

Military members who serve consecutive overseas tours (back-to-back overseas tours) are allowed government paid leave travel back to the states (and other destinations) as an incentive. Under previous law, in order to qualify, the leave had to be taken within one year of reporting to the new assignment. Congress has now changed that. COT Leave can now be taken at any time during the second overseas tour. This new benefit is effective when the bill is signed into law.

Tour Extension Travel
(Section 574)

Under previous legislation, military members who voluntarily extend their overseas tours by one year or more, could elect to receive government-paid travel back to the states for leave. Congress has amended this to also allow government paid travel to foreign destinations, as long as the cost of transportation doesn't exceed the cost of transportation back to the states. This new provision is effective when the bill is signed by the President.

Concurrent Receipt
(Section 636)

Under threat of the President vetoing the Authorization Act, Congress backed off of its promise to disabled veterans to eliminate "concurrent receipt" restrictions. Most disabled veterans who are also retirement eligible got the shaft. Congress began the year promising veterans that this would be the year to overturn "concurrent receipt." Under the current concurrent receipt laws, a veteran must give up one dollar in military retirement pay for each dollar received in VA disability compensation.

Concurrent receipt provisions stay, but Congress is going to give an extra payment (equal to the concurrent receipt forfeitures) to *SOME* disabled veterans. These few veterans will receive an extra payment that is equal to what they now must give up in retirement pay (which, for all practical purposes, eliminates "concurrent receipt" penalties).

To be eligible, a Veteran must fall into one of two categories:

• Must be disabled due to a combat wound for which they received the Purple Heart, or
• Must be rated at least 60 percent disabled, and the disability must be directly attributed to combat or combat-type training

This will affect only 1.5 to 5 percent of disabled veterans who are currently forfeiting retirement pay.

Last year, Congress authorized a special pay of $300 per month to retirees who were certified as 60 (or more) percent disabled, if the rating was received within four years of leaving the military. Those retirees have the choice of receiving the $300 per month, or applying for the new program, based upon the criteria above.

This new program will not be automatic. Retirees will have to apply for the pay. The law requires DOD to set up an application program and begin the payments within six months after the bill is signed by the President.

Undesirable Assignment Pay
(Section 616)

This is a three year test program. Effective on January 1, 2003, the services can offer a special pay (maximum monthly rate of $1,500) to military members who agree to service in "unpopular assignments." It's up to the individual services to decide whether or not to implement the program, and to decide which assignment locations qualify, and what the tour-lengths will be to qualify for the new payment. This is a temporary "test" program, scheduled to run until December 31, 2005.

Prior Enlisted Bonus for the Reserves
(Section 617)

Congress has raised the cap for Reserve enlistment bonus for those who join the Reserves with prior service. The maximum that the Reserves can now offer is increased from $5,000 to $8,000 for a six year enlistment, $2,500 to $4,000 for a three year enlistment, and from $2,000 to $3,500 for someone who enlists on a three year enlistment, and then extends their enlistment for three additional years.

Time Limit for Reserve GI Bill
(Section 641)

Previously, members of the Guard and Reserve had 10 years, following completion of basic training and technical school to use their GI Bill benefits. Congress has now changed this time-limit to 14 years.

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