DODFMR Vol. 7B - Wheels Down, Wallets Ready - The Strategy of Military Pensions

Department of Defense Financial Management Regulation (DoD FMR) Volume 7B, titled “Military Pay Policy - Retired Pay,” establishes the comprehensive policies and procedures governing the compensation of military retirees, former members, and their beneficiaries. It details the requirements for initial entitlements, including voluntary, mandatory, non-regular, and disability retirements, as well as transfers to the Fleet Reserve and Fleet Marine Corps Reserve,,. The volume prescribes the methods for gross pay computation based on various retirement systems (e.g., Final Pay, High-3, REDUX, and the Blended Retirement System) and governs the application of cost-of-living adjustments (COLA),,. Furthermore, the regulation provides extensive guidance on post-retirement circumstances that affect pay, such as active or reserve duty after retirement, foreign citizenship or government employment, physical or mental incapacitation, and convictions or misconduct,,,,. It mandates the specific rules for administering deductions, withholdings, and allotments, covering areas like Federal and State Income Tax Withholding, garnishments for child support and alimony, bankruptcies, and the recoupment of separation pay,,,,,,. A significant portion of the volume is dedicated to survivor and dependent programs, detailing elections, beneficiary eligibility, premiums, and annuity calculations for the Survivor Benefit Plan (SBP) and the Reserve Component Survivor Benefit Plan (RCSBP),,,,,. Finally, it governs specialized payment programs, such as Combat-Related Special Compensation (CRSC), Concurrent Military Retirement Pay and Department of Veterans Affairs (DVA) Disability Compensation, and the division of retired pay for former spouses under the Uniformed Services Former Spouses’ Protection Act