military benefits other than retirement & miscellaneous practice issues background and practice...
TRANSCRIPT
Military Benefits Other Than Retirement & Miscellaneous Practice Issues
Background and Practice Profile Support to Dependents Former Spouse Benefits from the Military
You can’t practice military dissolution without knowing…
How to read the LES How to get your Income Deduction Orders
into effect Military compensation – what is counted
and how it is taxed Temporary relief without a court order Insurance & Privileges -- who can keep
them after dissolution
Key Components of a Leave and Earnings Statement (LES)
(see handout for a sample LES)
Entitlements: lists each type of pay and the amounts
Deductions: taxes, SGLI (life insurance), mid-month pay
Allotments: discretionary deductions including dental insurance, non-IDO support, IRA and investment contributions, or any contribution going to an account other than the primary account
Key Components of LES (Cont.)
Grade: the member’s rank Yrs Svc: pay is based on rank + years in
service, so you need to know both BAQ Type & VHA Zip: identifies type of
housing allowance the member receives and the area for which he receives it
Thrift Savings Plan: Military investment plan, should be divided as an asset
How to get an IDO into effect
Income Deduction Orders for child support and alimony both go through the Defense Finance and Accounting Service (DFAS)
Mail a certified copy with a cover letter containing the member’s name and social security number to:
Defense Finance and Accounting ServiceCleveland DFAS-DGG/CLPO Box 998002Cleveland Ohio 44199-8002
Or, you can fax the IDO with a cover sheet indicating the member’s name and social security number to: (216) 522-6960
It is always a good idea to call and follow up: 1-888-332-7411 http://www.dod.mil/dfas/militarypay/garnishment/
childsupportandalimony.html
Support to Dependents
Military Pay Types of pay included for support
purposes & how it is taxed Service Regulations – support to
dependents without a court order
Military Pay: Types and Rationale
Base Pay: uniform in each branch of service Basic Allowance for Sustenance (BAS): allowance for food, officers
receive $192.74 and enlisted members receive $279.88 regardless of branch or rank
Basic Allowance for Housing (BAH): based on rank, location and dependents
Cost of Living Adjustment (COLA): Paid to members who (1) serve in an area where the cost of living exceeds the national average by 8% or (2) live overseas. The amount varies by location and it is intended to offset the increased expenses the member will incur.
Incentive Pay: paid to certain occupation groups or to people with skills sought by the military. Examples include aviation pay, sea pay, medical, dental, foreign language, etc.
Which types of pay are included? Fla. Stats. 61.08(2) and 61.30(2)
Fla. Stat. 61.08(2): In determining a proper award of alimony or maintenance, the court shall consider all relevant economic factors, including but not limited to:
(a) The standard of living established during the marriage.
(b) The duration of the marriage.
(c) The age and the physical and emotional condition of each party.
(d) The financial resources of each party, the nonmarital and the marital assets and liabilities distributed to each.
(e) When applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate employment.
(f) The contribution of each party to the marriage, including, but not limited to, services rendered in homemaking, child care, education, and career building of the other party.
(g) All sources of income available to either party.
Fla. Stat. 61.30(2): Income shall be determined on a monthly basis for the obligor and for the obligee as follows: (a) Gross income shall include, but is not limited to, the following items:
1. Salary or wages.
2. Bonuses, commissions, allowances, overtime, tips, and other similar payments.
3. Business income
4. Disability benefits
5. All workers' compensation benefits and settlements.
6. Unemployment compensation.
7. Pension, retirement, or annuity payments.
8. Social security benefits.
9. Spousal support
10. Interest and dividends.
11. Rental income
12. Income from royalties, trusts, or estates.
13. Reimbursed expenses or in kind payments to the extent that they reduce living expenses.
14. Gains derived from dealings in property, unless the gain is nonrecurring.
Is it income? Is it taxed?
Type of Pay Income? Taxed?
Base Pay YES YES
BAS YES YES
BAH YES NO
Incentive Pay YES YES
COLA NO YES
Service Regulations: Support to Dependents Without a Court Order
Each branch has their own regulations that dictate what type of support the member must provide
Army and Marine regulations criminalize the failure to pay support at a level generally equivalent to a member's authorized BAH. All other services have established "guidelines" for use by the commander where there is no court order or support agreement to enforce these regulations, contact the member’s superior officer
Navy and Marine Corps -- 32 CFR 733 Army – 32 CFR 584 Air Force – 32 CFR 818.12
Former Spouse BenefitsFrom the Military
Overview 10 U.S.C. Secs. 1062 and 1072 Classifications Benefits Practice Pointers
Health Insurance and Benefits – are they available after dissolution and who gets them?
Governed by 10 U.S.C. §§ 1062 and 1072 Provides benefits to former spouses in some (not all!)
situations The member spouse must have completed 20 years of
creditable service in order for a former spouse to receive any benefits
The parties must have been married for 20 years and the member must have served 20 years in order to trigger long-term benefits
10 USC 1062
The Secretary of Defense shall prescribe such regulations as may be necessary to provide that an un-remarried former spouse described in subparagraph (F)(i) of section 1072(2) of this title is entitled to commissary and exchange privileges to the same extent and on the same basis as the surviving spouse of a retired member of the uniformed services.
10 USC 1072(2)(F)-(G)
(2) The term ''dependent'', with respect to a member or former member of a uniformed service, means:
(F) the unremarried former spouse of a member or former member who (i) on the date of the final decree of divorce, dissolution, or annulment, had been married to the member or former member for a period of at least 20 years during which period the member or former member performed at least 20 years of service which is creditable in determining that member's or former member's eligibility for retired or retainer pay, or equivalent pay, and (ii) does not have medical coverage under an employer-sponsored health plan;
(G) a person who (i) is the unremarried former spouse of a member or former member who performed at least 20 years of service which is creditable in determining the member or former member's eligibility for retired or retainer pay, or equivalent pay, and on the date of the final decree of divorce, dissolution, or annulment before April 1, 1985, had been married to the member or former member for a period of at least 20 years, at least 15 of which, but less than 20 of which, were during the period the member or former member performed service creditable in determining the member or former member's eligibility for retired or retainer pay, and (ii) does not have medical coverage under an employer-sponsored health plan;
Classifications of Spouses
Based on three components:
(1) Years in service
(2) Years of marriage
(3) Years that marriage overlaps creditable service
Example: 20/20/20
20 years of service
20 years of marriage
20 years of overlap
20/20/20 Spouse Benefits
Commissary – tax free and lower cost groceries Base Exchange – tax free and lower cost, like
Target or WalMart Health Care – through TriCare, very low
deductibles for visits and prescriptions Dental Care
Benefit Table
20/20/20 Commissary
Base Exchange
Terminate upon remarriage, but may be reinstated when subsequent marriage ends
Medical/Dental until covered by employer-sponsored health plan or remarriage, but can be reinstated when employment or subsequent marriage ends
20/20/15 None One (1) year of medical coverage After 1 yr, eligible for DOD-negotiated conversion policy Terminates upon remarriage or enrollment in employer-sponsored health insurance plan (but may be reinstated w/in the initial 1 year period)
Married less than 20 years or member has less than 20 years of service
None DOD Continued Health Care Benefit Program – premium based, 36 months, terminates on remarriage
Practice Pointers
Benefits are a statutory right Government official has no right to expand privileges – if
the time requirements are not met, no benefits are granted
The military member has no discretion to grant or deny, expand or reduce, the benefits – not a point for negotiation
Privileges are granted whether or not they are specifically mentioned in the MSA or final judgment, however, a recitation of the dates of marriage and service will help facilitate the application process
Practice Pointers (Continued)
The member’s cooperation is not required for the former spouse to receive benefits
Carefully advise non-member clients about the effect of remarriage on medical, commissary and base exchange benefits
If the parties are close to meeting a higher level of benefits, consider delaying the final judgment since the years of marriage is counted from wedding date until dissolution date
Practice Pointers (Continued)
Value the medical benefits and include it in the alimony package
Consider supplemental insurance if your client does not live near a military medical facility or provider
Calculate years very carefully for National Guard and reserve members – not every year is a “creditable” year
