NEWS | Dec. 27, 2013

Voluntary Separation Pay Q&A

By Joint Base Charleston Public Affairs

Read below for frequently asked questions about the Voluntary Separation Pay program.

Q.
Who is eligible for Voluntary Separation Pay (VSP)?

A. Eligible Airmen who elect to voluntary separate in lieu of meeting the Retention Board will receive VSP. Airmen with six or more, but less than 18 years of Total Active Federal Military Service by 29 Sep 14, may apply for separation effective no later than 29 Sep 14, under the Voluntary Separation Pay (VSP) program IAW Title 10 U.S.C. Section 1175a. Airmen eligible for the Enlisted Retention Board who reach 6 years of service between 30 Sep 14 through 31 Jan 15 may request a separation date equal to the date they complete six years of service to qualify for VSP.

Q. Is there a Reserve Commitment with Voluntary Separation Pay (VSP)?

A. Yes. Airmen who are approved for VSP will sign a written agreement to serve in the Individual Ready Reserve for three years. If the Airman has not completed their military service obligation (MSO) at the time of their separation from active duty, the 3-year period they agree to serve in the Ready Reserve will begin on the date after they complete their MSO. The IRR is a non-active component of the Reserve and does not require participation, except to notify the Reserve if your address changes. This is inactive duty and members will be subject to recall, as are all individuals serving in the IRR. Generally, IRR members are not required to perform duty or meet annual training requirements. There are no restrictions against receiving VSP and being accepted for employment in the civil service. Airmen with an existing military service obligation at the time of their date of separation will fulfill this obligation in the IRR in order to receive VSP. Airmen must sign and submit a written agreement to serve in the IRR along with their VSP application.

Q. Do I have to repay the Voluntary Separation Pay payment if I return to active duty at a later date?

A. If an individual voluntarily returns to active duty for 180 consecutive days or more, they must repay their VSP. If they are involuntarily recalled from the Individual Ready Reserve, they will not be required to repay the VSP. USC Title 10, Section 1175(a) offers more specific information regarding repayment for members who return to active duty.

Q. Will I be subject to recall while serving in the Individual Ready Reserve?

A. Yes. This is inactive duty and members will be subject to recall, as are all individuals serving in the IRR. Generally, IRR members are not required to perform duty or meet annual training requirements.

Q. If approved to separate under VSP, am I eligible for an inter-service transfer?

A. You may apply for inter-service transfer; however, Airmen volunteering to return to active duty, Guard, Reserve or another service will have to repay their VSP.

Q. Can I receive Voluntary Separation Pay and apply for a Palace Chase separation?

A. No. Palace Chase is a program that allows separation from active duty before active-duty service commitments are complete. In return, the member agrees to serve three times the number of years remaining on the Active Duty Service Commitment in a traditional selected Reserve or Guard position. If desired, Airmen may apply for Palace Front if approved to separate under VSP. Please contact an in-service recruiter for more information concerning Palace Front. If the officer later qualifies for retirement pay through Reserve or Guard service, the VSP payment would be repaid from their Reserve or Guard retirement pay.

Q. If approved to separate under Voluntary Separation Pay, how soon can I expect to receive my pay following separation?

A. Airmen approved for VSP can expect to receive payment approximately 25 days following their date of separation from the Air Force. Personnel officials will inform the Defense Finance and Accounting Service of the separation and eligibility to process the lump sum payment, subject to applicable federal and state income tax rates. Airmen who have not received payment after approximately 25 days may inquire about payment by calling Total Force Service Center at (800) 525-0102.

Q. If approved to separate under Voluntary Separation Pay, and I later become eligible for retired pay, do I have to repay my VSP?

A. If you later become eligible for retired or retainer pay under Title 10 or Title 14, U.S.C., based on active duty service for which you received separation pay, you will have an amount deducted from each payment of that retired or retainer pay until the amount deducted equals the total amount of our VSP.