Owner's & Operator's Manual

Pay and Benefitsequitable housing compensation basedon housing costs in local civilian housingmarkets where they are stationed. For2008 housing allowance go to: https://secureapp2.hqda.pentagon.mil/perdiem/.Photo by Paul EngstromPhoto by MC1 James E. FoehlIncentivesSea Duty Incentive PaySea Duty Incentive Pay (SDIP) offersextra pay of up to $750 per monthfor extensions and early return to sea,targeting certain pay grades and rates. Formore information on SDIP, visit www.npc.navy.mil.Assignment Incentive PayAssignment Incentive Pay (AIP) isa personnel distribution tool designedto incentivize traditionally hard-to-fillassignments with a market-based incentive.AIP Policy Decision Memorandum dated 7December 2006 outlines the specific policyand processes governing AIP. For moreinformation on AIP, visit www.npc.navy.mil/CareerInfo/PayAndBenefits/AIP.htm.▲ Family members of SHC Rustico Gatchalian, assigned to Naval Station Pearl Harbor, has chiefpetty officer anchors pinned onto his uniform during a pinning ceremony.Career Sea Pay andCareer Sea Pay PremiumCareer Sea Pay (CSP) and Career SeaPay Premium (CSPP) were establishedby Congress in December 1980 asentitlements to compensate servicemembers for the inherent dangers of seaduty and to provide a retention incentivefor longevity and consecutive sea servicegreater than 36 months. CSP and CSPPare detailed in Military Personnel Manualarticle 7220-060.Critical Skills Enlistment andReenlistment BonusesThe military has established checks andbalances to ensure a complement of skillsremain in military service. When anycritical skill becomes scarce, DOD offersfinancial incentives in the form of bonuses,some upwards of $20,000. Check out theSelective Reenlistment Bonus Calculatoron the Career Tools Web site at www.npc.navy.mil/CareerInfo/StayNavyTools/CareerTools.Career Status BonusService members who entered service onor after Aug. 1, 1986, can elect to receivea $30,000 Career Status Bonus (CSB) attheir 15th year of service. If they choosethe bonus, they will retire under theCSB/REDUX retirement system instead ofthe High-3 system. Think through all theoptions. More information and points of▲ MM3 Class Dylan Young assigned toUSS Boxer (LHD 4) holds his selectivereenlistment bonus check.contact can be found at www.npc.navy.mil/AboutUs/NPC/ITIM/DataManagement/CareerStatusBonus.Allowances and otherCompensationsBasic Allowance for Housing (BAH)BAH is based on geographic dutyloacation, pay grade and dependencystatus. The intent of BAH is to provideuniformed service members accurate andPhoto by MC3 James SewardOverseas Housing AllowanceThe Overseas Housing Allowance, orOHA, is paid to service members who livein private housing at their overseas dutystation. OHA helps offset housing costs,like rent, utility and recurring maintenanceexpenses, along with move-in housingallowance. Get current housing allowancesfor members stationed overseas at thePer Diem, Travel and TransportationAllowance Committee Web site at https://secureapp2.hqda.pentagon.mil/perdiem.Clothing AllowancesEnlisted personnel are issued a completeuniform wardrobe when they begin activeduty. On each enlistment anniversary,a lump sum replacement/maintenanceallowance is paid. Also, those eligibleto promote to chief petty officer receivea special allowance to offset the initialexpense of purchasing a new set ofuniforms. Thereafter, they receive a setannual replacement allowance.Tax AdvantagesServing in the military has a hugeadvantage. When you look at your pay,add into the equation the “invisible” taxadvantages. Housing, on-base shoppingand special pays are tax free. Also,depending on legally declared residency,service members may not have to pay stateincome tax. Additional tax relief is givenwhen you make purchases at the militaryExchange, Commissary, package stores,▲ The family of MM1 Matthew Hardman is welcomed to their new home in Forrestal Village during a ribbon cutting ceremony marking theofficial opening of Naval Station Great Lakes’ public-private venture housing.and the veterinarian. Build your nest eggwith untaxed money into the Thrift SavingsPlan. These tax advantages may be difficultto quantify, but any time you do notpay or defer tax because of your militaryaffiliation, it is cash back in your wallet.Thrift Savings PlanThe Thrift Savings Plan (TSP) is aretirement savings and investment planfor Federal employees including activeduty military. The purpose of TSP is toprovide retirement income. TSP offersthe uniformed services the same typeof savings and tax benefits that manyprivate corporations offer their employeesunder 401(k) plans. TSP regulations arepublished in title 5 of the Code of FederalRegulations, Parts 1600–1690, and areperiodically supplemented and amendedin the Federal Register. Go to www.tsp.govfor more information on the Thrift SavingsPlan. It’s another perk to help Sailors maptheir future financial security.Navy HousingAt the Navy Housing Web site, www.housing.navy.mil, you can search for localNavy housing offices by installations eitheralphabetically, by state, or by region. TheNavy Housing site also provides links toother official military and public Web sitesfor housing searches. You can even accesshousing applications online, enter yourinformation, and print it to take to thehousing office.Navy ExchangeThe Navy Exchange Service Command(NEXCOM) provides authorized customersquality goods and services at a savings. Aportion of NEX profits support qualityof life programs for active duty military,retirees, reservists and their families.In addition to retail stores, the NavyExchange enterprise offers gas stations,food outlets, phone service needs, flowershops as well as Navy Lodges, NavyUniforms, ship’s stores and supportincluding household goods moves, foodservice afloat and ashore, postal and ATMsat sea. For more information, visit www.navy-nex.com. A L L H A N D S • w w w . n a v y . m i l 2 0 0 8 o w n e r ’ s & O p e r a t o r ’ s m a n u a l • A L L H A N D S