Pay, pay raises, pay allowances, pay charts - Air Force Times

Guard and Reserve 2010: Pay and benefits

Depending on their status, reservists can qualify for many types of pay. While in drill status, they receive drill pay, also known as inactive-duty training pay. With few exceptions, those on drill status get only drill pay.

Reservists receive basic pay and some allowances whenever they serve on full-time active duty, including annual training. Pay is prorated for the number of days served in a given month. The type and amount of special pays and allowances are based on the number of days spent on active duty as well as location, type of orders (contingency operations) and career field.

Basic Pay and Allowances: Basic Pay

Basic pay increases each year. In 2009, all service members received a pay raise of 3.9 percent effective Jan. 1. Under that raise, basic pay starts at $1,399.50 per month for enlisted members with less than four years of service.

Pay theoretically tops out at $18,061.50 per month for four-star officers with more than 38 years of service. But by law, officer pay is limited to Level II of the federal Executive Schedule. In 2009, the cap limits maximum monthly military pay to $14,750.10.

For 2010, the Obama administration proposed a 2.9 percent pay raise effective Jan. 1, which would match the average rise in private-sector wages. But as it has done for more than 10 years, Congress has indicated it will approve a slightly higher raise of 3.4 percent.

Drill pay for National Guard and reserve members performing inactive-duty training or drills is calculated as 1/30th of the active-duty basic monthly pay for each drill period.

The law allows for payment of two drills in any 24-hour period, even if the reservist is on duty for the full 24 hours. So a traditional weekend of Guard or reserve duty usually totals four drills. But an increasing number of reservists drill:

• Individually, for one drill period at a time at different points throughout the year.

• Incrementally (for reservists other than members of the Army National Guard), in one-hour chunks leading to a total of a four-hour drill or several months’ worth of drills at the same time in conjunction with annual training. For example, reservists might perform 12 drills over a six-day period to maximize time at a gaining command. Drill pay for a specific period may cover one to multiple drills.

All service members are paid based on their paygrades and total time in service. This time counts as active duty, as well as active reserve and inactive reserve time. Members of the Retired Reserve also accrue longevity pay increases.

The only difference between pay for National Guard and other reserve component members is the number of days they serve for their annual active-duty training period — Guard members do 15 days of training; reservists, 14 days.

Benefit formula. To calculate how much drill pay is earned for a given month, divide monthly base pay by 30 to establish the daily rate of pay. Multiply the daily rate by the number of drill periods served that month. That is the gross monthly pay before taxes and other withholdings.

To see the current basic pay and drill pay charts, visit www.militarytimes.com/money and click on “Pay Charts.”

Basic Allowance For Housing

BAH is the modern version of a military program dating from 1878 under which service members are provided government quarters or a cash substitute when quarters are unavailable. The allowance is not taxable.

BAH rates, which vary by rank, location and whether a service member has dependents, are based on surveys of local rental costs for various types of housing in hundreds of locations across the United States.

As of 2006, BAH rates can decrease as well as increase from year to year in a given location based on the latest survey data. However, under a Pentagon policy known as “individual rate protection,” allowance rates do not decrease for anyone in a given location as long as that person remains assigned there; the lower rates apply only to members reassigned to that area in that particular year.

Basic Allowance for Housing Reserve Component/Transient, formerly known as BAH Type II, is an allowance for members in particular circumstances, such as those serving on active duty for less than 30 days. Unlike regular BAH, it does not vary by location, but it does vary based on paygrade and family status.

For 2009, average BAH RC/T rates increased about 6.9 percent, the same as the average increase in regular BAH. For members without dependents, the monthly allowance ranges from $453.30 for E-1s to $1,379.40 for O-10s. For those with dependents, rates range from $604.50 for E-1s to $1,696.80 for O-10s.

Eligibility. The type of BAH for which a reservist is eligible is based on length of active duty in one location, the type of active duty and whether the member is living in government quarters. It breaks down like this:

• Active duty under 30 consecutive days — BAH RC/T. This includes annual training and any active-duty training or special work under the 30-day threshold.

However, serving 31 days — the minimum time required to receive full BAH — does not automatically entitle a reservist to the higher payments. For example, if a reservist is called up for 14 days and receives a 17-day extension, he receives only BAH RC/T unless the call-up or extension was for a national emergency or contingency operation.

For periods of duty less than 31 days, BAH RC/T payments are prorated for the actual number of days served.

• Active duty over 30 consecutive days in one location. This allowance is based on the type of duty reservists are involved in, their family status and whether government quarters are assigned. Reservists mobilized in a time of national emergency or for a contingency operation automatically qualify for full BAH. Reservists who volunteer or are called up for 31 days or more and reservists called up for noncontingencies also qualify for the higher BAH payments.

For current BAH and BAH RC/T rates, visit www.militarytimes.com/money and click on “Pay Charts.”

Basic Allowance For Subsistence

BAS is a tax-free monthly allowance to defray a portion of the cost of a service member’s subsistence — essentially, food. Rates increase each year to match changes in the Agriculture Department’s food-cost index. All active-duty and reserve component members entitled to basic pay also receive BAS, with the exception of initial accessions (personnel in recruit training).

Reservists qualify for BAS during periods of active duty, with their payments prorated for the actual number of days served.

The increase in BAS for 2009 was about 10 percent. The monthly rate is $223.04 for officers and $323.87 for enlisted members.

Other Allowances: Clothing Allowance

All officers receive an initial payment of $400 after commissioning to buy uniforms and insignia. Enlisted members are provided the uniforms, shoes, boots and insignia they need at no charge when they enter a reserve component, unless they enlist directly from active duty. As a result, enlisted members usually are not eligible for clothing replacement allowances unless they are called to extended active duty for a statutory tour.

If they do become eligible for replacement allowances, the subsidy is prorated for their time on active duty. The allowances vary by service and gender.

National Guard members discharged after an enlistment are required to turn in certain uniform items. Check with unit administrators for details.

ConUS Cola

Reservists ordered to active duty in the continental U.S. may be eligible for a cost-of-living allowance, depending on where they live.

The ConUS COLA is paid to personnel assigned to high-cost locations in the continental U.S. (Alaska and Hawaii are considered “overseas” locations for the purposes of COLA payments.)

In 2009, the allowance is paid in 49 locations in 11 states. A list of qualifying locations and allowance rates is online at www.militarytimes.com/money. Click on “Pay Charts.”

Family Separation Allowance

Reservists deployed for more than 30 days qualify for Family Separation Allowance at the rate of $250 per month, tax-free. Payments are prorated for any partial months deployed.

Per Diem

Per diem is a daily allotment to cover the cost of food, incidental expenses and lodging while members are on government business or temporary duty away from their home stations.

The allowance is as low as a few dollars a day in Egypt’s Sinai region to $515 per day for the Holy See at the Vatican. But per diem rates generally run between $100 and $200 per day in the U.S. and $100 to $300 overseas.

Per diem rates, also known as Lodging-Plus, are based on food and lodging costs gathered annually and reviewed monthly. For each area, there is one rate for lodging and one for meals. The combined amount is the total per diem allowed.

Lodging costs are reimbursed with a maximum amount set for each area. Personnel traveling in areas for which no specific rates are set receive the standard maximum of $109 per day.

For per diem travel rates in both the U.S. and abroad, see www.defensetravel.dod.mil/perdiem/perdiemrates.html.

If lodging expenses are less than the standard per diem rates, personnel are reimbursed only for actual costs. If the expenses exceed the standard rate, service members are not reimbursed for the difference without specific approval of the expense.

The services can authorize up to 300 percent of the maximum per diem in unusual cases, as when a member must travel to an area where no lodging is affordable at the normal maximum per diem.

When lodged on base and fed in a dining hall, members are reimbursed for the cost of the government meal rate, which is $10.80 in 2009. Within the continental U.S., members also receive $3.50 a day for incidental expenses.

Travel

The government pays for official travel on airplanes, trains, cars and ships, with some restrictions. In general, the type of transportation used must be the least expensive option that is timely and appropriate.

Government travelers can make personal use of frequent-flier miles accrued during government travel.

A provision of the 2008 Defense Authorization Act authorizes the service secretaries to reimburse certain members of the Selected Reserve for travel expenses incurred while performing inactive-duty training (drills) outside the normal commuting limits of their home stations.

The maximum reimbursement is $300. To qualify, Selected Reserve members must meet one of three criteria: be qualified in a skill designated as “critically short”; be assigned to a Selected Reserve unit, or be in a paygrade, that has a critical manpower shortage; or be assigned to a unit or position that is disestablished or relocated under base-closure or force-restructuring actions.

Other Pay

There are many other types of extra pay for active-duty and reserve personnel. Most are for duties carrying unusual responsibilities or in critical specialties.

Monthly special pays are prorated for reservists for the number of days served on active duty. Special pays are not paid for drills. Unless otherwise noted, to calculate benefits, divide the monthly benefit by 30 to get a per-day rate and multiply that by the number of days served. As service members enter or leave these jobs, the extra pay is added to or subtracted from regular pay.

Listed below are some of the major special pays.

Assignment Incentive Pay

As a retention tool, AIP is designed to compensate service members for certain unusual assignment circumstances tied to duty in the Iraq or Afghanistan war zones.

Service members may earn an additional $50 to $3,000 per month, depending on the circumstances, although no service currently pays anywhere close to the maximum.

Eligible reservists receive AIP prorated in accordance with the 1/30th rule, the pay rate for each day of active duty or active duty for training.

Bonus Payments

The National Guard and reserve components give extra money for enlistment and re-enlistment of members in critical units and with critical skills. Each service has its own bonus programs, but all are covered under the Selected Reserve Incentive Program.

All services use bonuses to attract people in the medical fields. In addition, the Navy, Air Force and Coast Guard use bonuses to attract skilled people for technical jobs or to fill jobs for which there is a shortage of qualified people.

The Army and Marine Corps use their bonuses to fill critical skills and critical units.

Enlistment bonuses. These taxable bonuses are paid to new recruits as an incentive to join a reserve component and agree to stay in the Selected Reserve for six years. They also must agree to remain in the Inactive Reserve for two more years — a total obligation of at least eight years.

To qualify, they must:

• Have no prior service in any component of the armed forces.

• Have qualified on the Armed Forces Qualification Test in Score Category I, II or III.

• Be a high school graduate or have completed an equivalency examination.

• Not be enlisting to qualify for a civilian job for which membership in a reserve component is a condition of employment, such as a National Guard technician.

• Not be enlisting for an active-duty position.

• Be enlisting as a member of a unit and/or in a military career field designated for bonuses.

No payments of enlistment bonuses are made until the reservist has completed initial active duty for training, career field qualification or training, and has been determined deployable. Enlistment bonus amounts vary by specialty and service.

Initial payment of the bonus is made upon satisfactory completion of initial active-duty training, including specialty training or sufficient training to be deployable. Initial and anniversary payments are made according to schedules set by the service secretaries. The maximum enlistment bonus for 2009 is $40,000, being paid by the Navy.

Recruits without prior service who enlist in a new three-year reserve component option may also be eligible for bonuses of up to $20,000, depending on the reserve unit vacancy and how quickly the individual can report to training. Reservists must agree to remain in the Inactive Reserve for the remainder of their eight-year military obligation.

Prior-service enlistment bonus. Honorably discharged service members who enlist in a critical skill position for six years are eligible for a bonus of $15,000. Those who enlist for three years are eligible for a $7,500 bonus. This bonus may be combined with other incentives.

Payments may be made in a lump sum or installments. Installments include an initial payment of 50 percent of the bonus at the time of enlistment, and subsequent payments made according to schedules set by the service secretaries.

Anyone who takes a bonus and fails to attend drills or annual training may be required to pay back all or part of the bonus received during the time they were absent.

Individual services can use all or part of these programs to meet their recruiting goals. Current programs can be found on the services’ reserve recruiting sites.

Diving Duty

All the services have divers, but the Navy has the largest number and the most types.

The maximum extra pay of $340 a month goes to enlisted master divers in the Army and Navy — the highest enlisted diving qualification. There are eight other skill levels based on degree of difficulty and hazard, with the lowest payment at $110 a month. Top diving pay for officers is $240.

Divers in the Navy serve in special warfare and explosive ordnance disposal roles and as fleet divers doing salvage and underwater work.

The Army’s divers include underwater salvage workers. The Air Force has pararescue teams and aircraft combat control teams, and the Coast Guard has divers assigned to buoy tenders.

Flight Pay

There are several kinds of flight pay, each chiefly intended to keep pilots, navigators and other aviators in the military.

Aviation Career Incentive Pay. This pay goes to officers and warrant officers with at least six years of active aviation service and ranges from $125 to $840 a month. The highest rate is for officers with more than 14 but less than 22 years of aviation service.

Aviation Continuation Pay. This is a targeted, force-shaping tool to retain aviators in specified year groups and at critical departure points. Generally, officer aviators who remain on active duty after their initial service commitment expires are eligible. The services tweak these programs each year, depending on their needs, so the bonuses can change. For 2009, the maximum annual bonuses by service are:

• Air Force: $15,000 to $25,000.

• Navy: $15,000 to $25,000.

• Marine Corps: $2,500 to $20,000.

• Army: (for certain warrant officer pilots only) $12,000 to $25,000.

Career Enlisted Flight Pay. Enlisted members in the Air Force and Navy receive Career Enlisted Flight Pay, also known as career enlisted flier incentive pay, at a rate of $150 per month for less than four years of aviation service, to $400 per month for more than 14 years of aviation service.

Hazardous Duty Incentive Pay for Flying. Nonpilots who are required to fly a minimum of four hours per month while serving as crew members performing duties essential to the operation of an aircraft, or duties required for a mission that can be accomplished only with an in-flight aircraft, are eligible for this pay if they are not already drawing career enlisted flier incentive pay.

Monthly payment levels are based on rank. For enlisted members, the pay starts at $150 for E-3s and below, and tops out at $240 for E-7s and above. For warrant officers, it ranges from $150 for W-1s and W-2s to $250 for W-5s. For officers, it ranges from $150 for O-1s and O-2s to $250 for O-5s and O-6s. For flag and general officers, the payment rate drops back to $150.

Flight pays are taxable except for service in designated combat zones.

For details on flight pay, visit www.militarytimes.com/money and click on “Pay Charts.”

Foreign Language Proficiency

In an effort to expand language capabilities, the services offer up to $12,000 per year for active-duty members and up to $6,000 a year for reservists with needed language skills. The highest rates of pay go to those with proficiency in the most critically needed languages, such as Arabic, Pashtu, Persian-Afghan (Dari) and Mandarin.

The amount of pay also varies according to the level of proficiency in speaking, reading and writing the foreign language.

Foreign language proficiency pay is taxable except in combat zones.

Hardship Duty

There are two types of hardship duty pay: HDP-L for serving in a hardship duty location and HDP-M for serving on a hardship duty mission.

The maximum hardship duty pay allowed by law increased to $1,500 per month under the 2008 Defense Authorization Act, up from the old limit of $750 per month. The 2008 law also allows the services to pay the amount that a service member earns or is expected to earn for a specific hardship duty assignment in a lump sum, rather than in monthly payments. No service currently pays anywhere close to the maximum hardship duty pay allowed by law.

HDP-L. This is for officers and enlisted personnel serving in more than 150 locations around the world deemed austere and/or arduous. Members who serve 30 or more days in a designated hardship area get $50, $100 or $150 per month, depending on the area’s level of austerity.

The danger level of a particular location also factors into hardship duty pay. As such, locations like Iraq and Afghanistan, which qualify for both hardship duty and imminent danger pay, are rated at just $100 per month for HDP-L. Thus, service members can draw up to $325 per month in a location that qualifies for both imminent danger pay and hardship duty pay.

HDP-M. This is for U.S. troops assigned to, on temporary duty to, or under operational control of Joint Task Force Full Accounting or the Central Identification Lab Hawaii. The pay is $150 a month during the time members perform investigations and excavations of crash sites in countries such as Laos, Cambodia, Vietnam and North Korea to recover remains of U.S. service members. Service members can qualify for HDP-L and HDP-M, for a maximum of $300 per month, if they spend 30 or more days in Laos, Vietnam or North Korea.

Iraq and Afghanistan. In a special situation, the Pentagon has authorized an additional $200 in monthly hardship duty pay — for a total of $300 — for troops who involuntarily spend more than 12 months of continuous duty in the Iraq and Afghanistan combat zones.

Hardship duty pay is taxable unless received in a designated combat zone.

For areas that qualify for hardship duty pay, visit www.militarytimes.com/money and click on “Pay Charts.”

Hazardous Duty

People in dangerous jobs, such as demolition, assignments on aircraft carrier flight decks, handling toxic chemicals and parachuting, are entitled to hazardous duty pay of an extra $150 a month.

An especially dangerous kind of parachuting — high-altitude, low-opening jumping — qualifies service members for $225 a month.

There are two kinds of hazardous flight pay awarded to air weapons controllers and enlisted aircrew members.

Reservists can collect up to two different types of hazardous duty pay, provided they serve in a unit whose mission requires the performance of both types of duty.

Imminent Danger/Hostile Fire Pay

When military personnel serve on land, aboard ship or in aircraft within an officially declared “imminent danger area,” they are entitled to be paid an extra $225 a month.

Troops do not have to be committed to combat to qualify for imminent danger pay; they just have to be on official duty in an officially designated area. The principal deputy undersecretary of defense for personnel and readiness designates the areas. Members who unexpectedly come under hostile fire in a foreign country are entitled to hostile fire pay, which also is $225 a month. However, a member may not receive both imminent danger pay and hostile fire pay in the same month.

The pay was $150 until Congress temporarily raised it in April 2003 to better compensate those fighting in Iraq, though the increase applies to danger zones worldwide. The increase was made permanent in 2005.

Imminent danger pay is tax-free if earned inside a designated combat zone or hazardous duty area.

Income Replacement

This special pay, created in 2006, is for involuntarily mobilized reserve component members who experience a monthly income differential of more than $50. Payments may not exceed $3,000 per month.

To be eligible for what is formally known as the Reserve Income Replacement Program, service members must:

• Be on active duty or in an involuntary status.

• Have completed 18 months of consecutive active duty or 24 months of active duty during the previous 60 months.

• Been involuntarily mobilized for 180 days or more within six months of the previous involuntary period of active duty of more than 180 days.

Unless Congress specifically extends the statutory authority for the RIRP program, it is due to expire Dec. 31, 2009.

RIRP contacts for each service are online at www.defenselink.mil/ra/html/rirp_poc.html.

Medical Special Pay

Special pay for medical personnel in the reserves is designed to entice those with critical skills to stay in. All medical pays are taxable.

Basic eligibility. Generally, any reservist who is a physician, dentist, optometrist, veterinary officer, certified nurse anesthetist or a health care provider who is not a physician or dentist but does hold a post-baccalaureate degree in a clinical specialty is eligible for most of these special pays, provided the reservist is:

• Called to active duty for a year or more or volunteers to stay on active duty for a year or more.

• Called to active duty for more than 30 days and less than one year. The pay is prorated monthly under this plan.

• Called to active duty for more than 30 days for duty other than training.

Medical officers are entitled to $450 per month while on annual training, additional duty for special work or active duty for training for less than one year. If on active duty for special work for more than one year, they are also eligible for variable special pay, additional special pay, board-certified pay and incentive special pay.

Dentists are entitled to special pay at $350 per month while on annual training, additional duty for special work or active duty for training.

The major medical pays include:

Board-certified pay. Paid monthly to eligible physicians, dentists and other health care providers who are board-certified in their specialties. Annual amounts range from $2,500 to $6,000, depending on field of expertise and years of creditable service.

Medical special pay. Medical and dental officers with critical specialties are eligible if they are in paygrades O-7 and below and have at least eight years of creditable service or no remaining active-duty service commitment for medical education and training. Creditable service is time spent in internship and residency, plus active-duty time spent as a medical or dental officer.

To be eligible, officers must have completed initial residency training and must sign a written agreement to remain on active duty for two, three or four years. The bonus amount varies by specialty and length of service agreement.

The current maximum is $60,000 annually for a four-year pledge for anesthesiologists, general surgeons, neurosurgeons and radiologists; the minimum is $12,000 annually for a two-year pledge for a variety of specialties.

Additional special pay. Medical officers who agree to serve one more year on active duty can get $15,000, provided they are not in an internship or residency. For dentists, the amount ranges from $4,000 to $15,000, depending on years of creditable service.

Variable special pay. This goes to medical and dental officers on active duty for at least one year and varies based on years of creditable service. Current annual payments range from $1,200 to $12,000 for medical officers and $3,000 to $12,000 for dental officers.

Incentive special pay. Physician specialists below the grade of O-7 who are not in internship or residency programs are eligible for annual bonuses of $20,000 to $36,000 a year if they agree to serve on active duty for at least one additional year.

Sea Pay

Sea pay is intended to offset the hardships of sea duty. Technically, all the services offer sea pay at different payment rates, but most service members who receive it are sailors, Marines or Coast Guardsmen. Amounts depend on length of time on sea duty and paygrade.

In the Army, monthly sea pay currently ranges from $50 to $646 for enlisted personnel; $182 to $730 for warrant officers; and $150 to $380 for commissioned officers.

In the Air Force, current monthly rates are $50 to $520 for enlisted members and $150 to $380 for officers.

In the Navy and Marine Corps, current monthly rates are $50 to $620 for enlisted members, $180 to $700 for warrant officers, and $100 to $535 for officers.

The Coast Guard has complex sea pay rates with three payment levels for each paygrade, based on the type of ship to which members are assigned. Monthly payments across all three levels range from $20 for E-1s to $750 for E-9s and O-6s.

Sea pay is governed by a host of regulations, but the main requirement generally is that the service member be assigned to a ship, ship-based staff or a ship-based aviation unit whose job is performed while underway.

By law, sea pay goes to all members of two-crew missile submarines, even though only one crew is at sea at a time. Sea pay also goes to personnel serving aboard submarine and destroyer tenders.

A change in law under the 2008 Defense Authorization Act makes “off-cycle” crew members of multicrewed ships eligible for career sea pay.

Sea pay is taxable unless earned in a designated combat zone.

For current sea pay rates, visit www.militarytimes.com/money and click on “Pay Charts.”

Sea Pay Premium

Enlisted members in grades E-4 through E-9 and officers who have served 36 consecutive months of sea duty are entitled to a Career Sea Pay Premium.

The premium is paid for the 37th consecutive month and each subsequent consecutive month of sea duty served, at a monthly rate of $100.

Selective Re-Enlistment Bonus

To keep some experienced, highly skilled people in uniform, the military can offer re-enlistment bonuses.

The Selective Re-enlistment Bonus, or SRB, is calculated based on length of re-enlistment, time in service and need of skills. The bonus may be paid in an up-front lump sum, or it may be paid in installments.

Currently, maximum active-duty SRBs are $40,000 in the Army and $90,000 in the Air Force, Marine Corps and Navy.

The Navy offers people in eight nuclear-qualified supervisor specialties up to $100,000 in “enlisted supervisor retention pay,” essentially a re-enlistment bonus by another name. The Army does something similar with its “critical skills retention bonus” for personnel in certain job fields; the top payment under that program is $150,000 for Special Forces personnel who agree to stay in for an additional six years.

A provision of the 2008 Defense Authorization Act gives the Pentagon more flexibility to administer re-enlistment bonuses for reservists. It eliminated the previous three- and six-year re-enlistment options and requires only that the re-enlistment period be for at least three years. In addition, the provision eliminated the previous tiered bonus structure and requires only that the bonus not exceed $15,000.

Submarine Duty

There is an incentive for submariners in addition to sea pay, based on rank and years of service.

Monthly rates are $75 to $425 for enlisted members; $285 to $425 for warrant officers; and $230 to $835 for officers.

Some officers and enlisted members are eligible for submarine duty pay even while stationed ashore. To qualify, they must meet specific criteria for time in the submarine service. Enlisted members may get submarine pay ashore if they agree to serve another tour on a sub after their shore assignment.

Sub pay is taxable unless earned in a designated combat zone.

To see submarine pay rates, visit www.militarytimes.com/money and click on “Pay Charts.”

Other Benefits: Commisaries

Commissaries are military supermarkets, with everything from diapers to lettuce, sold at reduced prices as part of the benefits package for military personnel. Their primary mission is to provide an economic benefit to military people through savings on food and household items.

The Defense Commissary Agency oversees 259 stores worldwide on Air Force, Army, Marine Corps and Navy installations. The larger facilities are relatively full-service grocery stores.

Customer satisfaction. Commissary products can be returned for an exchange or refund.

Eligibility. National Guard members, reservists and their families have unlimited shopping privileges in the commissaries, as do disabled veterans, surviving spouses, former spouses and their families.

Employees. Most employees in commissaries work for the Defense Commissary Agency. Their salaries are covered by federal civil service regulations and are paid from taxpayers’ dollars. Baggers, however, are not DeCA employees, and their only compensation comes from customer tips.

Military spouses may apply for jobs at commissaries, and there are provisions to help them continue their careers with the commissary system after permanent change-of-station moves.

Hours. Most stores have evening and weekend hours.

Locations. A store locator on the DeCA Web site has driving directions, phone numbers, floor plans and current information about savings at specific stores.

Online shopping. Click on “Virtual Commissary” at www.commissaries.com for a limited selection of items, such as gift baskets, coffees, cookies and other specialty fare. Officials hope to soon expand the number of manufacturers that participate in the online commissary store. Defense Department civilians stationed overseas who have commissary privileges can also shop online.

On-site sales. Since National Guard and reserve members and their families often don’t live near military installations, the Defense Commissary Agency has been taking its goods on the road to Guard and reserve sites under an initiative begun in late 2007. DeCA keeps a list of upcoming sales and locations online at www.commissaries.com/guard_reserve_sales.cfm.

Overseas. Overseas commissaries operate under unique restrictions. Limits typically are imposed on purchases of cigarettes, coffee and items favored by the illegal market.

The rules on who can use overseas commissaries are affected by the Status of Forces Agreement between the host country and the U.S. government. Service members on leave, retirees, National Guard and reserve members visiting nations overseas in an unofficial capacity do not have commissary privileges. Also, reservists in Germany do not have full commissary privileges there as they do in the U.S.

Sales restrictions. Federal law restricts what commissaries may sell. For example, they do not carry beer, wine and some other items carried by commercial grocery stores or base exchanges. State laws, military policy and installation commanders also restrict the availability of some products.

Savings. Shoppers enjoy average savings of 30 percent or more. There is no sales tax. A 5 percent surcharge on all items pays for construction and renovation of stores and equipment.

Information on monthly sales and promotions are available at www.commissaries.com, including bulk “case lot sales” generally held in May and September.

Contact: For more information and virtual commissary shopping, visit www.commissaries.com.

Exchanges

Exchanges are the military’s version of department stores. Soldiers call it a PX, for post exchange. Airmen say BX, for base exchange. Sailors call it a ship’s store when afloat and NEX when in port; Marines say MCX; to a Coast Guardsman, it’s CGX.

In addition to their brick-and-mortar stores, exchanges sell to authorized customers via retail stores, catalog and online at the Exchange Online Store.

Exchanges sell brand-name goods from civilian companies, as well as their own private-label items. There is no sales tax, and prices usually are lower than commercial retail prices.

There are four exchange systems:

• Some 305 stores of varying sizes at 105 Navy installations around the world are run by the Navy Exchange Service Command, based in Virginia Beach, Va.

• The Marine Corps Exchange system operates 17 Marine Corps exchanges with a total of 225 resale facilities. MCX reports to the Corps’ Personal and Family Readiness Division at Quantico, Va.

• Coast Guard stores are run by the Coast Guard Headquarters’ Exchange and Morale Division in Washington. In addition to land-based stores, the Navy and Coast Guard run ship’s stores.

• Army and Air Force stores are run by the Army and Air Force Exchange Service, based in Dallas. AAFES is the oldest and largest of the exchange systems, with more than 3,100 facilities, including 147 main stores, in more than 30 countries.

AAFES and the Marine Corps exchanges also support military personnel deployed to the Iraq and Afghanistan war zones and elsewhere through three increasing levels of Tactical Exchange Support: AAFES Imprest Fund Activities, Tactical Field Exchanges and Direct Operation Exchanges.

Active-duty Marines and Marine Corps civilian employees deploy to run the Marine exchanges in the war zones.

At any given time, hundreds of AAFES and MCX associates are voluntarily deployed in support of these contingency operations. The stock assortment found in these exchanges varies from location to location, but even the most basic operation provides access to toiletries, phone cards and cold drinks.

Exchanges not only support themselves almost completely through their sales income, but all earnings generated from sales are ultimately returned to the customer. For example, about three-fourths of NEX profits are paid to Navy Morale, Welfare and Recreation programs, while the remainder is used to build new stores or renovate existing NEX facilities at no expense to U.S. taxpayers.

Academic rewards. Exchanges offer rewards such as savings bonds and coupons for student achievement. See local exchanges for details.

BXMarts. Some installations have combined commissary and exchange stores called BXMarts, NEXMarts or CXMarts. Food is priced as commissary items — at cost plus a 5 percent surcharge added at the checkout counter. Other items carry exchange prices, with variable markups.

Eligibility. Eligible shoppers include all ranks of active-duty, retired, National Guard and reserve members and their families, some disabled veterans and their families, surviving spouses and former spouses. Limits or restrictions may apply. Check with local exchanges. Those eligible can shop at any exchange, regardless of service affiliation.

Employees. Exchange employees are paid from exchange revenue, not with taxpayer dollars. The exchanges also seek to hire military spouses, with hiring preference programs, and have programs to help them continue their careers with the exchange when they relocate.

The more than 10,000 active-duty military family members working for AAFES now account for nearly a quarter of all the military command’s employees, making it one of the largest employers of military family members.

Like other Defense Department employers, AAFES, MCX and NEX give employment preference to military spouses and family members. The exchanges’ reinstatement programs help military families when they move by allowing eligible associates to compete with current associates for in-house jobs.

Gift cards. The exchanges sell gift cards in their stores and through their online catalogs.

NEX-, AAFES- and MCX-specific gift cards now can be redeemed at any Army, Air Force, Navy or Marine Corps Exchange facility.

AAFES offers a program, “Gifts from the Homefront,” under which any American, even those who aren’t authorized customers, can buy gift cards for donation to deployed troops, who can use the cards to shop at exchanges in the theater of operation.

The lightweight, flexible gift cards make it easy for troops to pick up items normally included in a traditional care package at exchange stores throughout the Iraq and Afghanistan war zones.

Anyone can send a “Gift from the Homefront” by logging on to www.aafes.com. From there, the gift certificates may be sent to an individual service member designated by the purchaser or distributed to “any service member” through the Air Force Aid Society, American Red Cross, Coalition to Salute America’s Heroes, Fisher House, Navy-Marine Corps Relief Society, Operation Homefront, Operation Interdependence, Soldier & Family Assistance Center, USA Cares or USO.

Mail order. Exchange items can be purchased through the Exchange Catalog, available to all service members. The two “big book” catalogs, released in spring and fall, are $5, but include $30 in coupons. Individual exchanges also offer specialty catalogs for uniform items, furniture and other needs.

Orders can be placed by mail, fax or phone. Toll-free orders can be placed from the U.S., Puerto Rico or Guam at 800-527-2345. The Exchange Catalog center is open around-the-clock, seven days a week.

Authorized customers can also shop the Exchange Catalog online.

Contact: Exchange Catalog Sales, P.O. Box 660211, Dallas, TX 75266-0211; 800-527-2345; fax: 800-446-0163; www.usmc-mccs.org, www.aafes.com; www.navy-nex.com.

Malls. Many bases have shopping malls near their exchanges and commissaries. Services include uniform shops, barber shops, beauty parlors, dry cleaners, bookstores, florists and food courts.

MWR. After covering operating expenses, part of exchange earnings support on-base morale, welfare and recreation programs such as swimming pools and arts and crafts centers. For example, in the past 10 years, $2.4 billion has been contributed by AAFES to military MWR programs. Since 1946, over $2.2 billion has been given to MWR to support sailor quality of life.

Other services. AAFES operates a dental clinic for family members at Fort Hood, Texas, and the Marine Corps offers the same at Camp Pendleton, Calif., to help relieve a shortage of dental staff there. Fees are comparable to those under the Tricare Dental Program.

The exchange systems also run optometry and audiology clinics at several bases. Clinics are run by private contractors overseen by local military medical officials. Navy clinics are run by private contractors, with no military medical oversight.

Online shopping. The online stores offer more than 30,000 items via their main sites as well as thousands of items from virtual vendor partners and hundreds of thousands of items from Exchange Online Mall partners. The Internet extends the exchange benefit worldwide to an extremely mobile customer base.

The secure Web sites will verify your exchange privileges against the Defense Enrollment Eligibility Reporting System (DEERS) database. Eligible shoppers can create log-in names and passwords. Items ranging from curtains to children’s clothes to uniforms are available.

Other exchange facilities include gas stations, laundries and auto service centers. Some exchanges offer services such as one-hour photo shops, movie rental stores and more. The services operate their package, or liquor, stores as exchange operations.

Contact: www.aafes.com, www.usmc-mccs.org, www.navy-nex.com and www.cg-exchange.com.

On-site sales. Following the lead of the Defense Commissary Agency, the Army and Air Force Exchange Service in May began taking truckloads of goods to National Guard and reserve sites that are not close to military installations.

AAFES does not maintain a continually updated list of scheduled locations for such sales on its Web site, but the sales often are collaborative efforts with the Defense Commissary Agency, which has been doing on-site sales for Guard and reserve members since fall 2007.

Check www.commissaries.com/guard_reserve_sales.cfm to see if a commissary on-site sale is coming to a location near you. If so, AAFES officials suggest calling the nearest main exchange store to ask if it will be joining in. A list of AAFES stores is online at www.aafes.com.

Overseas. Overseas stores offer many U.S. products that may be difficult to find otherwise. Commands often impose shopping restrictions to limit the sale of U.S. goods on the illegal market. Items bought through an exchange or commissary cannot be resold, even at cost. Military police patrol larger exchange shopping areas for illegal marketers.

There also are restrictions on gifts bought in overseas exchanges. For example, cigarettes or alcohol bought in exchanges cannot be given to foreign nationals.

Payment. Stateside and overseas exchanges accept MasterCard, Visa, American Express and Discover credit cards. Exchanges also offer their own credit plan through the joint-exchange Military STAR Card. Exchanges cash personal checks at no charge with a military ID.

Prepaid phone cards. Exchanges carry phone cards with rates for specific geographic areas, including war zones.

Military Exchange Global Prepaid Calling Cards can be used to call from 200 countries and to call between 90 countries around the world, including any of dozens of AAFES phone centers throughout the Operation Iraqi Freedom and Operation Enduring Freedom war zones. The minutes on these exchange prepaid phone cards never expire. No additional charges or connection fees are ever added.

The AAFES Help Our Troops Call Home program, at www.aafes.com, lets anyone send Military Exchange Global Prepaid Calling Cards to individual service members or to “any service member” through the Air Force Aid Society, American Red Cross, Fisher House Foundation, Navy-Marine Corps Relief, United Service Organization (USO) and Soldier & Family Assistance Center (SFAC).

More details about AAFES and Help Our Troops Call Home are available at www.aafes.com or 800-527-2345.

NEXCOM offers calling aboard most Navy ships and some Coast Guard cutters for 45 cents per minute back to the U.S.

Price matching. Exchanges will match lower prices on identical items sold by local competitors. For example:

• Navy Exchange and Marine Corps Exchange shoppers who see a price difference at the store of less than $5 can tell the cashier, who will match it on the spot. AAFES shoppers who see a price difference of less than $10 can have the price matched on the spot.

• NEX and MCX customers who report a price difference of more than $5 need only bring a current local competitor’s ad to get the reduced price. For AAFES customers, the same policy applies, but the price difference must be more than $10.

If within 14 days of purchase, the identical item is offered at a lower price by the NEX or a local competitor, a refund will be given for the difference. Just bring in a copy of the advertisement and receipt to the NEX.

AAFES offers a 30-day price guarantee on any item originally purchased from AAFES if the identical item is subsequently sold at a lower price by AAFES or another local competitor, excluding unauthorized dealers.

Since the exchanges have a dual mission to provide quality merchandise and services at competitively low prices and generate earnings to supplement MWR programs, there are exceptions to the price-matching program.

Except for the Exchange Catalog and the exchange online stores, the exchanges cannot accept challenges from any catalog or Web site. Other exclusions include special offers or promotions, free-with-purchase offers, limited-quantity offers, bundled promotions, special financing, “gimmick” promotions, special-order automotive parts, gasoline, automotive labor/service, double and triple coupons, clearance items, flat-percentage-off items and vending items. Marine Corps exchanges do not match prices on alcohol and tobacco.

The price-matching policy applies to all AAFES and NEX retail stores, including main stores, Shoppettes, Class Six, Car Care and troop stores. Complete details are available online at www.aafes.com, www.navy-nex.com or www.usmc-mccs.org.

Sales restrictions. Congress restricts what can be sold at exchanges. Stateside exchanges cannot sell cars or fur coats, for example. The Armed Service Exchange Regulations also limit the size of diamonds and type of furniture sold in stateside stores. Exchanges can sell finished furniture, although any one piece cannot cost more than $900.

In addition, Congress banned the sale of sexually explicit materials in exchanges. Material is reviewed by a Defense Department board to determine whether or not the materials can be sold in the exchanges.

There are also some pricing restrictions. Defense Department policy mandates requirements for setting prices on gasoline, alcohol and tobacco.

Savings. Customer savings on exchange purchases average 17 percent to 20 percent compared with off-base retailers. That is over and above savings derived from exclusion of sales taxes. There is no surcharge on exchange purchases.

Store brands. Along with brand-name items, the exchanges carry private-label merchandise with the same quality as national brands, found exclusively in military exchanges, at significant savings. For example, the Exchange Select line offers military service members and their families high-quality, value-priced products. With 593 items in categories such as health and beauty care, household cleaning, laundry and single-use cameras, Exchange Select products provide a low-cost alternative to national brands and are made by reputable manufacturers.

Troops and their families can save an average of 50 percent over national-brand equivalents. Quality assurance representatives actively ensure the quality of Exchange Select merchandise by visiting suppliers’ plants to verify that “Good Manufacturing Practices,” as set by the Food and Drug Administration (FDA) and other governing agencies, are used. All over-the-counter medicines, such as ibuprofen and acetaminophen, meet FDA-established guidelines, which are the same for Exchange Select and national brand-equivalent products.

Death Benefits

Most military installations have casualty assistance officers to help families of service members who die on active duty. The officers are responsible for notifying the family of the death and circumstances surrounding it. In accordance with the family, they also can assist with burial arrangements.

Death gratuity. In most cases, survivors of service members who die on active duty are eligible to get a $100,000 “death gratuity,” regardless of whether the death occurred in the line of duty.

A provision of the 2008 Defense Authorization Act made a major change in the way this gratuity is paid. The order of survivors to receive the payment (surviving spouse, then children, then parents and siblings, and so on) is set by law. In 2007, temporary legislation allowed members to designate up to half the death gratuity to anyone they chose. The 2008 law permanently grants service members the right to designate the full $100,000 to anyone they choose, in 10 percent increments. If a service member does not make any designation, the money goes to survivors in the standard order set by law.

Burial/funeral allowances. The Defense Department also reimburses burial expenses up to $7,700. A family may be paid up to $4,850 for interment in a private cemetery after the remains have been consigned to a funeral home ($7,700 if the family arranges preparation and casket); up to $3,450 for burial in a government cemetery after the remains have been sent to a funeral home ($6,200 when the family arranges preparation and casket); and up to $850 when the remains are directly sent to a government cemetery.

The Pentagon also reimburses families for the money they spend to transport remains to the final destination.

Honor guards. Military regulations authorize honor guards for funerals of all active-duty members, as well as reservists and National Guard members who die on active duty. At least two uniformed service members will serve on honor details for each military funeral, as long as they are not needed for missions. At least one honor-detail member must be from the deceased member’s branch of service.

Veterans’ organizations will provide honor guards when uniformed service members are not available. An adjutant general’s office, duty officer or commander’s office at a local installation or reserve training center also can provide this service.

Death benefits generally are tax-free.

Dental Care

Active-duty dependents and members of the Selected Reserve and Individual Ready Reserve and their family members worldwide are eligible for Tricare Dental Program coverage. United Concordia Companies Inc. administers and underwrites the program for the Tricare Management Activity.

Participation is voluntary, and costs vary.

Benefits. The annual maximum benefit payment is $1,200. Certain preventive and diagnostic services do not count against the enrollee’s annual maximum. The program’s lifetime orthodontia maximum is $1,500.

Covered services include diagnostic and preventive care, sealants, fillings, endodontics, periodontics, prosthodontics (crowns, dentures and bridges), orthodontics and emergency services.

Under a change that took effect July 1, 2007, and was made retroactive to Oct. 17, 2006, Tricare covers dental anesthesia and associated costs for beneficiaries with developmental, physical or mental disabilities, as well as children age 5 and under.

If an active-duty, Selected Reserve or Individual Ready Reserve member dies, benefits continue for their enrolled survivors for three years.

Cost. Family members of active-duty, Selected Reserve and IRR (Special Mobilization Category) members and family members of reservists on active duty for more than 30 days have their premiums cost-shared. For these members, the enrollee pays 40 percent of the monthly premium and the government pays 60 percent. IRR members (other than Special Mobilization Category) and family members of IRR and Selected Reserve members not on active duty are responsible for 100 percent of the monthly premium.

There are four levels of monthly premiums for members of the Selected Reserve and IRR, depending on whether the sponsor, one family member excluding the sponsor, more than one family member excluding the sponsor, or the sponsor and his family enroll.

Through Jan. 31, 2010, monthly premiums range from $12.12 for an individual to $87.85 for full family coverage. From Feb. 1, 2010, through Jan. 31, 2011, monthly premiums will range from $12.69 for an individual to $91.98 for full family coverage.

A full list of the premiums is online at www.tricaredentalprogram.com/tdptws/enrollees/premiums/reserveguard_ premiums.jsp.

The program has a civilian provider network. Enrollees can seek care outside the network, but they may incur additional costs.

Contact: 800-866-8499; www.tricaredentalprogram.com.

Enrollment. Enrollment is voluntary and requires at least a 12-month service commitment (active duty, reserve or combination). Exceptions are made for reservists with fewer than 12 months left in service but called to active duty for certain contingencies.

Members who live within the continental U.S. and are transferred outside it do not have to re-enroll. Sponsors can enroll family members by completing an enrollment form.

Overseas. Family members are seen in most military clinics overseas regardless of their enrollment in Tricare. Those enrolled in the dental program outside the continental U.S. are eligible for the same benefits, but policies and procedures vary depending on location and service provided.

For care from host-nation dentists, dental plan members who do not live in a remote area must get a statement of nonavailability and a referral form and use dentists on the provider list. Those in remote areas outside the U.S. without a fixed dental facility may get routine dental care without the referral form but will need a form for orthodontic care. Contact the local overseas lead agent for information.

There are exceptions to the cost-share requirements for selected members in the service area. See the “Tricare Dental Program Benefit Booklet” online at www.tricaredentalprogram.com/tdptws/forms/TDP_Booklet_Lo_Res.pdf.

Health Care

Active duty for less than 30 days. Reservists are covered by military medical benefits while on active duty for less than 30 days, including annual training. This also covers inactive-duty training or drill.

Military medical and dental care is available if the member:

• Incurs or aggravates an injury, illness or disease in the line of duty.

• Incurs or aggravates an injury, illness or disease while traveling directly to or from the duty location.

• Incurs or aggravates an injury, illness or disease while remaining overnight immediately before the start of inactive-duty training, or while remaining overnight between successive periods of inactive-duty training.

In most cases, orders will be written or extended to keep the member on active duty until the specific injury, illness or disease is cured, or any resulting disability cannot be improved by further hospitalization or treatment.

Those on active duty for 30 days or less whose orders are modified or extended for medical treatment that results in active duty for a period of more than 30 days are entitled to the same medical and dental care as active-duty members. Benefits, however, can be denied if the injury, illness or disease, or aggravation of an injury, illness or disease, is the result of gross negligence or misconduct.

Active duty more than 30 days. Once reservists are ordered to active duty for more than 30 days, the status of their health care benefits changes. Not only do they have benefits, but in most cases their families are also eligible.

Coverage can begin up to 90 days before a mobilization and last up to 180 days after demobilization.

The types of benefits are tied to the type of duty. Reservists activated in support of a contingency operation, such as the wars in Iraq and Afghanistan, are immediately eligible for benefits within the Defense Department health care system. Family members also are eligible if orders specify a call to duty for 31 days or more.

To ensure their families get care if they are activated, members should make sure each family member is enrolled in the Defense Enrollment Eligibility Reporting System (DEERS). Family members with military ID cards are automatically enrolled, but if a deployment is pending, it doesn’t hurt for service members to have units or administrators ensure their dependents are in the system.

Active-duty health care options include:

• Civilian insurance.

• Military space-available.

• Tricare Standard.

• Tricare Extra.

• Tricare Prime (available only for reservists ordered to 179 days or more of continuous active duty).

Tricare. Tricare is a combination of military medical services and civilian hospitals and health care workers. It offers managed care as well as a traditional fee-for-service plan and is available in the U.S. and abroad. For more information, visit http://www.tricare.mil.

Tricare Reserve Select. Members of the Selected Reserves can buy Tricare coverage when in a drilling status (not mobilized), provided they meet specific criteria under the Tricare Reserve Select program.

This program originally was designed to cover reservists called up in support of contingency operations for more than 30 days. It was later expanded to all drilling reservists.

A number of major changes were made to the TRS program effective Oct. 1, 2007. The biggest was the removal of the previous three-tiered premium pricing structure.

All eligible members now are offered the same level of benefits for one monthly premium rate, currently $47.51 for an individual and $180.17 for individual and full family coverage.

In addition, TRS no longer has defined enrollment periods; the program has continuous open enrollment. If a TRS Request Form (DD Form 2896-1) is received before the end of any given month, the member can choose the first of the next month or the first of the following month to start receiving coverage.

Coverage includes medical, behavioral and prescription drug benefits. For office visits, patients pay 15 percent of the allowable charge if the health care professional is in the network, and 20 percent for out-of-network services.

Premiums for Tricare Reserve Select dropped significantly on Jan. 1, 2009, by 44 percent for individual coverage and by 29 percent for family coverage.

The reduction is a result of the 2009 Defense Authorization Act, which required Tricare to analyze TRS costs from 2006 and 2007 and set new rates for 2009 after the Government Accountability Office reported that premiums initially had been set much higher than was necessary to support the program.

The law now requires annual premiums to be based on the Defense Department’s actual costs of providing benefits in the preceding calendar year.

More information on Tricare Reserve Select is online at www.tricare.mil/mybenefit/home/overview/Plans/ReserveSelect.

Civilian insurance. Reservists may choose to continue civilian health insurance coverage during periods of active duty. The military, however, will not pay the premiums. This option allows families to use their own doctors without military approval.

In this situation, Tricare would become the second payer for any civilian claims. In the event civilian insurance is not continued, the law guarantees immediate re-enrollment in a civilian insurance plan upon release from active duty.

Military space-available. Family members are eligible to receive health care from active-duty military medical facilities on a space-available basis — that is, if the facility has health providers in the right specialties and appointments are available. This availability varies, depending on size and capability of the local military medical facility.

Transitional health care. Reservists ordered to active duty or who volunteer to remain on active duty in support of a contingency operation, as well as dependents, are entitled to medical care for 180 days after release from active duty. There are no enrollment fees. Contact: www.humana-military.com/library/pdf/tamp.pdf.

Fitness Centers

For reservists who live near military facilities, fitness centers can save hundreds of dollars annually in health club fees.

Many are equipped with state-of-the-art treadmills, stationary bicycles and weight machines. Most offer aerobics and other exercise classes. Some offer co-op child-care facilities where spouses agree to help one or two days a month to receive the service.

Golf Courses

Facilities include courses for open play and tournaments, driving ranges and services such as instruction, pro shops, and food and beverages. Reservists need to call ahead for availability.

Libraries

Libraries support voluntary education, career transition, professional military education and family activities. They provide books, videotapes and other items for loan as well as Internet access.

Outdoor Centers

Activities vary from one location to another and can include archery, hunting, fishing, rappelling, hiking, backpacking, bicycling, mountain biking, boating, canoeing, camping jamborees, water skiing and snow skiing.

Many installations have parks and picnic areas with barbecue pits, pavilions, game fields, fitness trails, nature centers and playgrounds. Marina operations offer boats and water sports equipment for rent, private quarters, and food and beverage services.

Recreation Centers

Centers offer competitive indoor sports, classes and meeting spaces. Rooms also may be reserved on a space-available basis at official travel lodging facilities.

Servicemembers’ Group Life Insurance

Service members on active duty automatically are insured for $400,000 under the Servicemembers’ Group Life Insurance (SGLI) program.

SGLI is available in increments of $50,000, up to a maximum of $400,000. Premiums are 7 cents per month for $1,000 of coverage, or $28 per month for the maximum coverage of $400,000, plus an additional $1 per month for coverage of up to $100,000 for traumatic injuries.

Premiums are deducted from paychecks automatically. To refuse coverage or to choose coverage at less than the maximum coverage, a member must make a written request.

As of Oct. 17, 2006, the Pentagon also pays the premiums for coverage up to the maximum of $400,000 for personnel serving in Operation Iraqi Freedom or Operation Enduring Freedom, for as long as they are deployed in support of those operations.

Family SGLI. A service member can buy Family SGLI coverage of up to $100,000, in $10,000 increments, for a spouse. Monthly premiums for spouses are based on age. For the $100,000 maximum coverage, current monthly premiums range from $5.50 for spouses under age 35 to $52 per month for spouses aged 60 and over.

In addition, each dependent child of a service member is automatically insured for $10,000 of free Family SGLI coverage.

Traumatic injury insurance. A traumatic injury protection program that took effect Dec. 1, 2005, pays between $25,000 and $100,000 for severe injuries suffered by service members.

This insurance coverage applies to traumatic injuries regardless of where the injury occurs, on or off the job — even mowing the grass at home is included. Active-duty, National Guard and reserve members who have SGLI are insured automatically, for an additional premium cost of $1 per month. Because of its connection to the SGLI program, the traumatic injury insurance coverage is known as TSGLI.

Those who have SGLI cannot decline the injury coverage, nor can service members carry TSGLI without also carrying basic SGLI.

Examples of payment amounts include total loss of sight in both eyes, $100,000; loss of one foot at or above the ankle, $50,000.

The coverage is retroactive for service members who suffered qualifying losses between Oct. 7, 2001, and Dec. 1, 2005, that directly resulted from a traumatic event in Operation Iraqi Freedom or Operation Enduring Freedom.

Retroactive payments will be made regardless of whether service members had SGLI coverage at the time of their injury.

If troops die of their wounds, their families also may qualify for TSGLI payments, in addition to other death benefits, if the member survives for at least seven days after the traumatic event. This is also retroactive for those who served in Operation Iraqi Freedom or Operation Enduring Freedom.

Troops still on active duty, as well as those who have left the service, can qualify for the payment, which is paid on top of any other Department of Veterans Affairs disability or pension benefits. But to qualify, the injury must have been incurred before the service member separated from the military.

SGLI and reservists. National Guard and reserve members assigned to units in which they are scheduled to perform at least 12 periods of inactive duty that is creditable for retirement purposes have full-time SGLI coverage 365 days a year. They are also covered for 120 days following separation or release from duty.

Guard or reserve members who choose less than the maximum $400,000 in coverage while in drilling status have their coverage automatically increased to the maximum whenever their duty status changes, such as being mobilized for active duty, as of the effective date of their orders. If they do not want the maximum coverage while in the new duty status, they must complete form SGLV 8286 and give it to their servicing personnel office.

Similarly, reservists who have Family SGLI at less than the maximum $100,000 also have their coverage increased to the limit with a change in duty status, and they must complete form SGLV 8286A and give it to their servicing personnel office if they do not want to carry the maximum Family SGLI coverage.

When reservists demobilize from active duty and return to drilling status, their SGLI and Family SGLI coverage again reverts to the maximum amount, and they must take proactive steps to reduce it again if they so desire.

Forms SGLV 8286 and 8286A are available online at www.insurance.va.gov/sglisite/forms/forms.htm.

More information on SGLI for mobilizing and demobilizing reservists is at www.insurance.va.gov/sglisite/SGLI/deployFAQ.htm.

Contact: Servicemembers’ Group Life Insurance, 800-419-1473; www.insurance.va.gov.

Veterans and retirees can buy insurance similar to SGLI after they leave service, but the premiums increase substantially as the person gets older. That plan is known as Veterans’ Group Life Insurance, or VGLI.

SGLI, TSGLI and VGLI payments are tax-free.

Travel/Recreation Lodging

Located on many installations, travel lodges are for personnel moving on permanent change-of-station orders. However, they are available on a space-available basis to anyone in the military community, including active-duty and reserve personnel on vacation. Rates vary by room size.

Recreational cabins and campgrounds are another option. Located on many installations, these facilities consist of cabins, cottages, trailers or recreational vehicle parks with hook-ups and campgrounds.

Reservists receive a lower priority than active-duty members or families on orders, but once they have a reservation, which can be made 24 hours in advance, they cannot be bumped.

Contact: For locations, visit the following Web sites:

• Army, http://www.armymwr.com.

• Navy, http://www.mwr.navy.mil.

• Air Force, http://www.afsv.af.mil.

• Marine Corps, http://www.usmc-mccs.org.

Travel/Space-Available

Reservists have very different rights for space-available travel on military aircraft than their active-duty counterparts. Their families are not eligible for travel unless the reservist has been ordered to active duty. In those cases, the reservists and their immediate family members have the same eligibility as active-duty members.

There are six levels of priority for using space-A flights. Reservists are in category six, the lowest, so their chances of getting bumped off a flight are high. This can make traveling via space-A difficult, especially during holiday periods and weekends, when competition for seats is usually intense.

Many passengers awaiting space-A travel during the summer and holiday seasons find they pay premium rates for unexpected lodging, dining and commercial airline tickets when no space-A flight is available.

Withholdings and Taxes: Automatic Withholdings

Automatic withholding may be requested by military members on extended active duty.

Automatic deductions to buy U.S. Savings Bonds, make bank deposits or pay car loans, mortgages or other debts, for example, can be arranged through base disbursing offices.

Earned Income Tax Credit

The EITC helps offset Social Security and Medicare contributions from the lowest-income wage earners. The size of the credit and qualifying income thresholds changes each year.

Lower-ranking and midlevel military parents may qualify for this tax credit, and even singles who spend most of a year in combat deployments could qualify.

The credit is worth several hundred to several thousand dollars, depending on the size of the applicant’s family.

Because most service members do not pay taxes on their income while deployed in combat zones, their taxable income may be low enough for a given tax year to qualify them for this credit.

However, taxpayers must have a certain minimum level of taxable income to qualify for the EITC. Service members who spend most or all of a tax year deployed in a combat zone — and thus have little or no taxable income — may fall below these thresholds. A change to tax law made several years ago allows service members to treat tax-free pay earned in a combat zone as taxable income solely for the purpose of qualifying for the Earned Income Tax Credit.

The IRS Web site has a page devoted specifically to EITC information at www.irs.gov/eitc.

Service members apply for the credit by filing an IRS Form W-5 with the Defense Finance and Accounting Service.

Federal Income Tax

Reservists must pay federal income taxes on basic pay, bonuses and most special pays. Allowances generally are tax-exempt; reservists pay state income taxes on those earnings, but any new allowance designated by law is taxable.

Generally, when service members receive taxable pays, the military automatically withholds the appropriate amount from their paychecks. But the military does not withhold taxes on student loan repayments, and military members who benefit from this program may need to make estimated tax payments.

Legal assistance offices can provide details on taxes, and base disbursing offices have details on what pay is taxable. If reservists have been activated and sent to a combat zone or contingency operation, they may be eligible for tax-exempt status. In general, military members will find tax relief from the following:

Combat zones. Executive order or public law authorizes Combat Zone Tax Exclusion or Qualified Hazardous Duty Areas. Military personnel who served in the Arabian Peninsula, Afghanistan, the Balkans, parts of Africa and Central Asia and some other locations have earned certain tax exemptions.

The combat zones also include, but are not limited to Afghanistan, Saudi Arabia, Kuwait, Iraq, Oman, Bahrain, Qatar, the United Arab Emirates, Djibouti, the Philippines, Serbia, Montenegro, Albania, Adriatic Sea, Ionian Sea, Persian Gulf, Red Sea, Gulf of Oman, Gulf of Aden and a portion of the Arabian Sea.

Troops serving in designated direct support areas under operations Enduring Freedom, Noble Eagle and Iraqi Freedom are also entitled to the exemption.

All basic pay received by enlisted personnel serving in the combat zone is exempt from federal tax. Officers pay taxes only on monthly pay above the highest enlisted pay rate plus $225 in monthly imminent danger pay. For 2009, that figure is $7,368.30. This affects only senior W-5s and most O-5s and above.

Bonuses earned in a combat zone also are not taxed. Troops who re-enlist in a combat zone, for example, do not have federal taxes deducted from their re-enlistment bonus or installments received after returning home. Bonuses not earned in combat zones, such as an installment from a previous re-enlistment, remain taxable.

Service members serving in danger areas associated with Operations Enduring Freedom, Noble Eagle and Iraqi Freedom are eligible for the exemption, which also applies to troops serving in Bosnia and Herzegovina.

Those in Croatia, Macedonia, Serbia and Montenegro receive the exemption as well if they are serving in direct support of an operation and are receiving imminent danger pay.

In some circumstances, tax exemptions extend past the time spent in combat. People hospitalized with wounds, disease or injuries sustained while serving in a combat zone are not subject to tax on military pay for any months beginning less than two years after the date of the termination of activities in the combat zone or qualified hazardous duty area.

Servicemembers’ Civil Relief Act. Formerly the Soldiers’ and Sailors’ Civil Relief Act, passed in 1940, this act prevents states from taxing service members in the following situations:

• Service members do not have to pay personal property taxes, such as those assessed for automobiles, except to their state of legal residence. This applies only to property that is titled solely in the military person’s name.

• Property owned jointly by a service member and a civilian is subject to taxes. Service members are subject to local taxes on real property, such as homes.

• Family members are not protected by the Servicemembers’ Civil Relief Act. They can be taxed by more than one state on personal property. Military legal assistance offices found on most bases can answer questions about individual states.

• Reservists can get temporary interest rate breaks on credit cards and other nonsecured forms of credit under this act when they are activated in support of contingency operations or national emergencies.

Garnishment

Up to 25 percent of a service member’s paycheck can be attached by private creditors to pay overdue debts incurred while on active duty. Creditors also can lay claim to service members’ bank accounts or personal property. To take part of a service member’s pay, a creditor must have a court judgment and pay all processing costs.

Military exchanges can take up to 67 percent of service members’ pay for debts owed. Exchanges must notify customers when accounts are overdue and make other efforts to contact delinquent customers. After 90 days, exchanges may submit requests for involuntary pay deductions.

Basic pay, enlistment and re-enlistment bonuses, incentive pay and pay for reservists on active duty for more than 30 days can be attached. Exempt are housing and subsistence allowances and retired and separation pay.

In four states — North Carolina, South Carolina, Pennsylvania and Texas — pay cannot be seized to satisfy bad debts.

The Defense Finance and Accounting Service must give members at least 30 days’ notice before reducing paychecks. The process may be delayed if a member is deployed, assigned overseas or hospitalized.

A service member can head off the deduction by proving that the debt has been paid, the creditor’s claim is false or illegal, or there is a legal obstacle to collecting the money.

Debt counseling. Military financial and legal counselors can help service members negotiate with creditors to manage their debt. Members can use the Consumer Credit Counseling Service to work out repayment plans.

Contact. The National Foundation for Credit Counseling, 800-388-2227; www.nfcc.org.

Social Security

Social Security and Medicare taxes are paid by troops and the federal government. Both pay a tax equal to 7.65 percent of the service member’s pay.