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R 121653Z JAN 07 ZUI ASN-A00012000027 ZYB FM COMDT COGARD WASHINGTON DC//CG-12// TO ALCOAST BT UNCLAS //N07220// ALCOAST 023/07 COMDTNOTE 7220 SUBJ: FY2007 MILITARY PAY AND BENEFITS A. NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007 (PUBLIC LAW 109-364) B. JOINT FEDERAL TRAVEL REGULATIONS (JFTR) C. U.S. COAST GUARD PAY MANUAL, COMDTINST M7220.29A 1. THIS ALCOAST CONCERNS THE CHANGES TO MILITARY BASIC PAY IN REF A, WHICH THE PRESIDENT SIGNED INTO LAW ON 17 OCT 2006. THE FOLLOWING ITEMS IN REF A IMPACT MILITARY COMPENSATION. 2. PAY AND ALLOWANCES. A. BASIC PAY CHANGES. (1) JANUARY MILITARY PAY RAISE - THE 1 JAN 2007 PAY RAISE WILL BE 2.2 PERCENT ACROSS-THE-BOARD (SEC. 601(A) AND 601(B) OF REF A). (2) TARGETED PAY RAISES - ADDITIONAL TARGETED BASIC PAY RAISES ARE EFFECTIVE 1 APR 2007 FOR HIGHER RANKING ENLISTED (E5, E6, E7) AND WARRANT OFFICERS, AND THE PAY TABLE IS EXTENDED OUT TO 40 YEARS OF SERVICE. (SEC 601(C) OF REF A). (3) GENERAL AND FLAG OFFICER PAY CAP - THE CAP ON BASIC PAY FOR GENERAL AND FLAG OFFICERS (O7-O10) IS INCREASED FROM LEVEL III TO LEVEL II OF THE EXECUTIVE SCHEDULE (MATCHING MAXIMUM SES PAY), EFFECTIVE 1 JAN 2007. (SEC. 602 OF REF A). B. BASIC ALLOWANCE FOR HOUSING (BAH). (1) IN 2007 BAH RATES REFLECT A NATIONAL AVERAGE INCREASE OF 3.5 PERCENT OVERALL, HOWEVER, ACTUAL BAH RATES WITHIN EACH MILITARY HOUSING AREA (MHA) AND COUNTY COST GROUPS VARY ACCORDING TO LOCAL RENTAL MARKET CONDITIONS. DOD POLICY CHANGES THAT ELIMINATED GEOGRAPHIC BAH RATE PROTECTION IN 2006 RESULTED IN RATE INCREASES OR REDUCTIONS AS VALIDATED BY THE ANNUAL RENTAL HOUSING COST DATA SURVEY. INDIVIDUAL RATE PROTECTION PREVENTS THE DECREASE OF AN INDIVIDUAL MEMBER'S BAH RATE AS A RESULT OF CHANGES IN HOUSING COSTS IN AN MHA, CHANGES IN THE NATIONAL MONTHLY HOUSING COST, OR A MEMBER'S PROMOTION. SERVICE MEMBERS WILL RECEIVE ANY PUBLISHED BAH INCREASES, BUT NO DECREASES. RATE PROTECTION ASSURES THAT THE SERVICE MEMBERS TYPICAL OUT-OF-POCKET COSTS MAY BE LESS, BUT NEVER MORE, THAN UPON THEIR REPORTING DATE. INDIVIDUAL 2007 BAH RATES FOR EACH MILITARY HOUSING AREA AND PAY GRADE MAY BE VIEWED AT: HTTPS://SECUREAPP2.HQDA.PENTAGON.MIL/PERDIEM/BAH.HTML. (2) CERTAIN RESERVE COMPONENT OR RECALLED RETIRED MEMBERS MAY BE AUTHORIZED A SECOND BAH PAYMENT AT THE WITHOUT DEPENDENTS RATE (IN LIEU OF THE LODGING PORTION OF PER DIEM) FOR SERVING IN SUPPORT OF A CONTINGENCY OPERATION. PROVIDES FOR PAYMENTS OF BAH AT HOME LOCATION AND AT TDY LOCATION (AT THE WITHOUT DEPENDENTS RATE) IF MORE ADVANTAGEOUS THAN HOUSING PER DIEM. WE ARE AWAITING IMPLEMENTATION POLICY FROM DOD; ONCE RECEIVED, A SEPARATE ALCOAST WILL BE ISSUED ADDRESSING THIS ITEM. (SEC. 604 OF REF A). (3) CONTINUATION OF BAH OR QUARTERS-IN-KIND FOR ONE YEAR UPON DEATH OF A SERVICE MEMBER WHEN THE SPOUSE IS ALSO A SERVICE MEMBER IS AUTHORIZED. PRIOR TO 1 OCT 2005 BENEFIT WAS PAYABLE ONLY WHEN THE SURVIVING SPOUSE WAS NOT A MILITARY MEMBER. EFFECTIVE DATE IS 1 OCT 2006. (TRANSITIONAL RULE COVERS DEATHS SINCE 1 OCT 2005, BUT PAYMENTS MAY NOT EXCEED 365 DAYS). (SEC. 605 OF REF A) (4) EFFECTIVE 1 OCT 2006, BAH REGULATIONS FOR THE UNIFORMED SERVICES WERE TRANSFERRED TO CHAPTER 10 OF REF B. C. BASIC ALLOWANCE FOR SUBSISTENCE (BAS): (1) EFFECTIVE 1 JAN 2007, BAS WILL INCREASE TO THE FOLLOWING MONTHLY RATES: (A) OFFICERS: 194.74 DOLLARS. (B) ENLISTED: 279.88 DOLLARS. (2) THE PROVISION EXEMPTING MEMBERS FROM THE REQUIREMENT TO PAY FOR MEALS WHILE AT THE HOSPITAL ON AN OUT-PATIENT BASIS FOR MEDICAL RECUPERATION OR THERAPY DUE TO AN INJURY INCURRED WHILE IN OPERATION ENDURING FREEDOM (OEF), OPERATION IRAQI FREEDOM (OIF) OR OPERATIONS AND AREAS DESIGNATED BY DOD AS COMBAT OPERATIONS OR ZONES IS EXTENDED THROUGH 31 DEC 2007. (SEC. 603 OF REF A) D. RETIRED PAY: (1) EFFECTIVE 1 JAN 2007, THE 75 PERCENT MAXIMUM FOR COMPUTATION OF MILITARY RETIRED PAY HAS BEEN REMOVED FOR MEMBERS WHO RETIRE ON OR AFTER THAT DATE. MEMBERS WITH SERVICE BEYOND 30 YEARS MAY CONTINUE TO ACCUMULATE MULTIPLIER CREDIT FOR THE PURPOSES OF COMPUTING MILITARY RETIRED PAY AT THE RATE OF TWO AND ONE-HALF PERCENT PER YEAR . (SEC. 642 OF REF A) (2) THE RETIRED PAY BASE FOR CALCULATING RETIRED PAY FOR GENERAL AND FLAG OFFICERS SHALL BE THE PAY THAT WOULD HAVE BEEN PAID IF NOT SUBJECT TO THE EXECUTIVE LEVEL PAY CAP, EFFECTIVE 1 OCT 2006. (SEC. 641 OF REF A) E. BENEFITS: (1) THE ALLOWANCE TO COVER SGLI PREMIUMS FOR ALL MEMBERS SERVING IN OEF OR OIF FOR THE FIRST 150,000 DOLLARS OF COVERAGE HAS BEEN INCREASED TO COVER THE FULL AMOUNT.(SEC. 606 OF REF A) (2) THE NAMING OF A NEW INSURABLE INTEREST BENEFICIARY IS ALLOWED UNDER THE SURVIVOR BENEFIT PLAN (SBP) ON THE DEATH OF THE ORIGINAL INSURABLE INTEREST. (SEC. 643 OF REF A) (3) THRIFT SAVING PLAN (TSP) ENROLLMENT CHANGES. EFFECTIVE 1 JAN 2007, MILITARY PERSONNEL MAY CONTRIBUTE THE FULL AMOUNT ALLOWED BY THE INTERNAL REVENUE SERVICE ANNUAL ELECTIVE DEFERRAL LIMIT, WHICH IS 15,500 DOLLARS FOR 2007. MEMBERS MAY START, CHANGE, STOP OR RESUME THEIR TSP CONTRIBUTIONS AT ANY TIME. MEMBERS MAY ALSO INVEST ALL OR PART OF THEIR BONUSES, SPECIAL PAY OR INCENTIVE PAY, AS LONG AS THE MEMBER ALSO CONTRIBUTES FROM BASIC PAY. THOSE SERVING IN TAX-FREE COMBAT ZONES ARE ALLOWED UP TO 45,000 DOLLARS IN ANNUAL CONTRIBUTIONS. MEMBERS CAN ENROLL IN TSP BY FILLING OUT A FORM TSP- U-1 AND MAIL IT TO PSC (MAS-TSP) OR CHANGE THEIR CONTRIBUTION AMOUNT ONLINE VIA THE PSC WEB SITE AT: HTTP://WWW.USCG.MIL/HQ/PSC/PS/SELF_SERVICE/MEMBERS/THRIFT_SAVINGS_ PLAN.HTM. MORE INFORMATION ABOUT THE THRIFT SAVINGS PLAN CAN BE FOUND IN THE BOOKLET "SUMMARY OF THE THRIFT SAVINGS PLAN" ON THE TSP HOME PAGE AT HTTP://WWW.TSP.GOV/ UNDER UNIFORMED SERVICES TSP FORMS AND PUBLICATIONS. 3. TRAVEL AND TRANSPORTATION: EXPANDED TRAVEL AND TRANSPORTATION AUTHORITY FOR FAMILIES OF HOSPITALIZED SERVICE MEMBERS, WHO ARE ALSO SERVICE MEMBERS, OF SERVICE MEMBERS INJURED IN AN AREA DESIGNATED BY DOD AS A COMBAT OPERATION OR COMBAT ZONE AND IS HOSPITALIZED IN A MEDICAL FACILITY IN THE UNITED STATES. (SEC. 631 OF REF A) 4. THE ABOVE ITEMS WILL BE INCORPORATED INTO FORTHCOMING CHANGES TO REFS B AND C. 5. QUESTIONS AND CONCERNS MAY BE SUBMITTED VIA E-MAIL TO: COMPENSATION (AT) COMDT.USCG.MIL. 6. INTERNET RELEASE AUTHORIZED. 7. CAPT M. C. COSENZA, ACTING DIRECTOR FOR PERSONNEL MANAGEMENT, SENDS. BT NNNN