R 271925Z FEB 98 ZYB
FM CMC WASHINGTON DC//RA//
TO ALMAR
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UNCLAS //N01900//                
ALMAR 082/98
MSGID/GENADMIN//
SUBJ/TEMPORARY EARLY RETIREMENT AUTHORITY (TERA) FOR THE ACTIVE
/RESERVE (AR) PROGRAM//
REF/A/CONGRESS/23OCT92/-/-/-//
AMPN/REF IS THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FY93
(P.L. 102-484).  SECTION 4403 PROVIDES THE STATUTORY AUTHORITY
FOR THE USE OF TERA.//
POC/LTCOL PLATO, K.S./-/PRIPHN:(703)614-1948/-/-/SECPHN:DSN 224-1948
/-//
RMKS/1.  THE MARINE CORPS HAS BEGUN IMPLEMENTATION OF ITS STRATEGY TO
MEET QUADRENNIAL DEFENSE REVIEW (QDR) MANDATED FORCE REDUCTION GOALS.
IN PARTICULAR, AS WE DOWN SIZE THE ACTIVE RESERVE (AR) PROGRAM BY 22
PERCENT, SOME VERY DIFFICULT DECISIONS CONCERNING RETENTION OF AR
MARINES MUST BE FACED.  WHILE WE KNOW THE ELIMINATION OF 553 AR
BILLETS WILL REQUIRE SEPARATION OF AR MARINES FROM ACTIVE DUTY, IT IS
IMPERATIVE THAT WE MINIMIZE THE PAIN TO OUR MARINES, AS WE CONTINUE
TO SHAPE AND BALANCE THIS CAREER RESERVE FORCE TO MEET FUTURE
DEMANDS.
2.  TO THAT END, TEMPORARY EARLY RETIREMENT AUTHORITY (TERA) IS BEING
OFFERED ON A LIMITED BASIS TO A SPECIFIC PORTION OF THE AR COMMUNITY.
TERA OFFERS EARLY RETIREMENT AT A SOMEWHAT REDUCED MONTHLY STIPEND TO
ELIGIBLE MEMBERS PRIOR TO COMPLETING 20 YEARS ACTIVE DUTY SERVICE.
3.  AR MARINES WHO MEET THE ELIGIBILITY CRITERIA OUTLINED IN THIS
ALMAR MAY APPLY FOR TERA.  APPLICATIONS ARE DUE AT THIS HEADQUARTERS
BY 20 MAR 98.  APPLICANTS WHO ARE APPROVED FOR TERA WILL BE NOTIFIED
BY CMC (RA) NO LATER THAN 1 MAY 98.
4.  ALL ELIGIBLE MEMBERS WHO APPLY FOR TERA MAY NOT BE APPROVED.
TERA IS NOT AN ENTITLEMENT, BUT A FORCE SHAPING TOOL AUTHORIZED BY
CONGRESS FOR SERVICE USE TO FACILITATE DOWN SIZING EFFORTS.  NEEDS
OF THE MARINE CORPS AND THE AR PROGRAM WILL BE PARAMOUNT IN APPROVING
TERA REQUESTS.  ELIGIBILITY CRITERIA AS OUTLINED IN PARAGRAPH 5 IS
NOT WAIVERABLE.
5.  ELIGIBILITY CRITERIA:
   A.  OFFICER ELIGIBILITY CRITERIA.
       (1) TERA MAY BE AUTHORIZED FOR A LIMITED NUMBER OF COLONELS,
LIEUTENANT COLONELS, MAJORS, AND CHIEF WARRANT OFFICERS WHO ARE
CAREER DESIGNATED, WITH MORE THAN 15 BUT LESS THAN 20 YEARS ACTIVE
DUTY.
       (2) OFFICERS APPROVED FOR TERA WHO HAVE RECEIVED BONUS PAYS
ARE REQUIRED TO REPAY ANY UNEARNED PORTION OF PREPAID AMOUNTS ON A
PRO-RATA BASIS PRIOR TO RETIREMENT.
       (3) OFFICERS APPROVED FOR TERA WHO HAVE RECEIVED TUITION
ASSISTANCE (TA) FOR OFF-DUTY EDUCATION MUST REPAY ALL TA FUNDS
RECEIVED FOR COURSES TAKEN IN THE LAST TWO YEARS ON A PRO-RATA BASIS
BEFORE THE MEMBER IS SEPARATED FROM ACTIVE DUTY.
       (4)  OFFICERS APPROVED FOR TERA WHO HAVE PREVIOUSLY
ESTABLISHED A VOLUNTARY EDUCATIONAL ASSISTANCE PROGRAM (VEAP) ACCOUNT
MUST MAKE ALL PAYMENTS TO THE ACCOUNT BEFORE THE MEMBER IS SEPARATED
FROM ACTIVE DUTY.
       (5)  OFFICERS SEPARATED UNDER TERA ARE NOT ELIGIBLE TO ENROLL
IN THE MONTGOMERY GI BILL.
       (6) TO RETIRE IN GRADE, MEMBERS MUST MEET THE FOLLOWING
CRITERIA:
           (A) 0-5 AND 0-6: 3 YEARS TIME IN GRADE (TIG).  A ONE-YEAR
WAIVER TO THE 3 YEARS TIG REQUIREMENT MAY BE ENTERTAINED, AS
AUTHORIZED BY TITLE 10 USC, SECTION 1370.
           (B) 0-4: 6 MONTHS TIG.
           (C) CWO: 30 DAYS TIG.
   B.  OFFICER INELIGIBILITY CRITERIA.
       (1) CAREER DESIGNATED FOR LESS THAN 12 MONTHS.
       (2) LTCOLS WITH AN MOS OF 0602, 4402, 7202, 7523
       (3) MAJS WITH AN MOS OF 0202, 1302, 3404, 3502, 4302, 4402,
6602, 7202, 7523, 7566.
       (4) MAJS WITH A DATE OF RANK JUNIOR TO 951101.
       (5) WO'S WITH AN MOS OF 0170 (EXCEPT CWO-5'S), 6004, 6502.
       (6) COMPLETED LESS THAN EIGHT YEARS COMMISSIONED SERVICE AS
OF THE DATE OF RETIREMENT (DOES NOT APPLY TO CWO'S).
       (7) CURRENTLY ATTENDING A PME FULL LENGTH SCHOOL OR HAS NOT
FULFILLED THE 2 YEAR ADDITIONAL SERVICE OBLIGATION INCURRED AS A
RESULT OF ATTENDANCE AT SUCH A SCHOOL BY THE RETIREMENT DATE.
       (8) HAS TENDERED RESIGNATION OR REQUEST FOR SEPARATION PRIOR
TO THE DATE OF THIS ALMAR.
       (9) HAS BEEN NOTIFIED THAT HE OR SHE IS BEING INVOLUNTARILY
SEPARATED FOR CAUSE BY REASON OF SUBSTANDARD PERFORMANCE OF DUTY,
MISCONDUCT, OR MORAL OR PROFESSIONAL DERELICTION OR HAS BEEN NOTIFIED
IN WRITING TO SHOW CAUSE FOR RETENTION.
       (10) IS PENDING ANY LEGAL ACTION OR PROCEEDINGS.
       (11) IS SERVING ON THE AR FMF TOUR PROGRAM, OR HAS SERVED ON
THE AR FMF TOUR PROGRAM WITHIN THE PREVIOUS 2 YEARS OF THE DATE OF
RETIREMENT.
       (12) EFFECTS A PCS FOLLOWING THE DATE OF THIS ALMAR.
   C.  ENLISTED MARINE ELIGIBILITY CRITERIA.  TO QUALIFY FOR TERA,
AN ENLISTED MARINE MUST BE CAREER DESIGNATED FOR AT LEAST 12 MONTHS
AS OF THE DATE OF RETIREMENT, WITH AN ARMED FORCES ACTIVE DUTY BASE
DATE BETWEEN 790930 - 830901 IN THE FOLLOWING OCCUPATIONAL FIELD AND
GRADES:
           OCCFLD     GRADE
           01XX       E6 - E8
           03XX       E6 - E8
           04XX       E6 - E7
           11XX       E7
           13XX       E6 - E8
           21XX       E7
           25XX       E6 - E7
           28XX       E7
           30XX       E6 - E9
           34XX       E6 - E7
           35XX       E6 - E9
           40XX       E8
           57XX       E6 - E8
           60XX       E6 - E8
           61XX       E6 - E8
           63XX       E6 - E8
           66XX       E6 - E8
           70XX       E6 - E8
       (1) ENLISTED MARINES ACCEPTED FOR TERA MUST ALSO SATISFY THE
BASIC REENLISTMENT CRITERIA IN MCO P1040R.35B, PARA 5101.2(A) - (S).
       (2) ENLISTED MARINES DO NOT INCUR THE SAME PAYBACK
REQUIREMENT FOR USE OF TA AS OFFICERS.
       (3) ENLISTED MARINES APPROVED FOR TERA WHO HAVE PREVIOUSLY
ESTABLISHED A VOLUNTARY EDUCATIONAL ASSISTANCE PROGRAM (VEAP) ACCOUNT
MUST MAKE ALL PAYMENTS TO THE ACCOUNT BEFORE THE MEMBER IS SEPARATED
FROM ACTIVE DUKTY.
       (4) ENLISTED MARINES SEPARATED UNDER TERA ARE NOT ELIGIBLE TO
ENROLL IN THE MONTGOMERY GI BILL.
       (5) TO RETIRE IN GRADE, ENLISTED MEMBERS MUST MEET THE
FOLLOWING CRITERIA:
           (A) E-7 AND ABOVE: 2 YEARS TIG.  WAIVERS UP TO ONE YEAR
MAY BE ENTERTAINED.
           (B) E-6: TIME SERVED.
   D.  ENLISTED MARINE INELIGIBILITY CRITERIA.
       (1) HAS BEEN CAREER DESIGNATED FOR LESS THAN 12 MONTHS.
       (2) IS PENDING ADMINISTRATIVE ACTION WHICH COULD CULMINATE IN
VOLUNTARY OR INVOLUNTARY DISCHARGE PROCEEDINGS.
       (3) IS PENDING ANY LEGAL ACTION OR PROCEEDINGS.
       (4) HAS BEEN NOTIFIED THAT A REENLISTMENT REQUEST HAS BEEN
DENIED AND THE MARINE WILL BE INVOLUNTARILY SEPARATED.
       (5) EFFECTS A PCS FOLLOWING THE DATE OF THIS ALMAR.
6.  OFFICERS RETIRED PER THIS ALMAR WILL BE ASSIGNED A SEPARATION
PROGRAM DESIGNATOR (SPD) CODE OF "RBE 2"; ENLISTED MARINES WILL BE
ASSIGNED AN SPD CODE OF "NBE 1"; NARRATIVE REASON FOR BOTH TO
READ: "VOLUNTARY RETIREMENT/TRANSFER TO THE FMCR WITH LESS THAN 20
YEARS SERVICE, SUBJECT TO PL 102-484, EARLY RETIREMENT PROGRAM."
7.  COMPUTATION OF TERA RETIRED PAY.  BECAUSE TERA PERMITS RETIREMENT
BENEFITS TO START PRIOR TO THE STANDARD 20 YEAR RETIREMENT PLAN,
CONGRESS LEGISLATED A REDUCTION FACTOR TO BE ASSESSED AGAINST TERA
RETIRED PAY.  THE EFFECT OF THE REDUCTION FACTOR DEPENDS ON THE
NUMBER OF YEARS BEFORE 20 YEARS OF ACTIVE SERVICE (YOS) THAT A MEMBER
RETIRES.  THAT REDUCTION FACTOR IS 1/12TH PERCENT FOR EACH MONTH LESS
THAN 20 YOS.  FOLLOWING IS AN EXAMPLE FOR AN O-4 WITH 16 YOS:
   A.  FIRST FIGURE STANDARD RETIRED PAY FOR AN O-4 WITH 16 YOS, 6
MONTHS: $4,290.30 (MONTHLY BASE PAY) X 16.5 YOS X 2.5 PERCENT EQUALS
$1,769.75.  INACTIVE DUTY POINTS EARNED WHILE NOT IN AN ACTIVE DUTY
STATUS, TO A MAXIMUM OF 60 POINTS PER YEAR, WILL BE ADDED TO THE YOS
IN THIS FORMULA.  THIS ESTABLISHES THE RETIRED PAY MULTIPLIER FOR
RETIRING AR MARINES.
   B.  SECOND, COMPUTE THE REDUCTION FACTOR:
       (1) IN THIS EXAMPLE, 20 YOS - 16.5 YOS = 3.5 YOS (42 MONTHS)
       (2) 42 MONTHS X 1/12TH PERCENT = 3.5 PERCENT
       (3) SUBTRACT THIS FROM 100 PERCENT (100 - 3.5 = 96.5 PERCENT)
   C.  THIRD, MULTIPLY $1,769.75 (FROM STEP 9A, ABOVE) BY 96.5
PERCENT (THE REDUCTION FACTOR) TO ARRIVE AT THE MONTHLY RETIRED PAY
OF $1,707 (10 USC SEC. 1412 REQUIRES THAT RETIRED PAY WILL BE ROUNDED
TO THE NEXT LOWER DOLLAR.)
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NOTE: BY LAW (10 USC SEC. 1407) SERVICE MEMBERS WHO BECAME A MEMBER
OF ANY UNIFORMED SERVICE AFTER 7 SEP 80 WILL USE THE "HIGH-36 MONTH"
AVERAGE ANNUITY FORMULA.  REFER TO PREVIOUS LEAVE AND EARNINGS
STATEMENTS TO DETERMINE THIS AVERAGE AND PROJECT MONTHLY BASE PAY,
THEN SUM 36 MONTHS OF BASE PAY WORKING BACKWARDS FROM PROJECTED
RETIREMENT DATE AND DIVIDE BY 36.  INCLUDE ANNUAL PAY RAISE AND
LONGEVITY (FOGEY) PAY RAISE IN THE CALCULATION.  APPOINTMENT AS
MIDSHIPMAN USN (NAVAL ACADEMY) OR MIDSHIPMAN USNR (NROTC) CREATES
MILITARY STATUS FOR DETERMINATION OF WHEN INDIVIDUAL BECAME A MEMBER
OF A UNIFORMED SERVICE.
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8.  BENEFITS AND OBLIGATIONS FOR TERA RETIREES.  RETIREMENT BENEFITS
FOR 15 THROUGH 20 YEARS OF SERVICE ARE THE SAME AS 20 YEAR RETIREMENT
EXCEPT FOR THE PAY CALCULATION AND AS NOTED BELOW:
   A.  TRANSITION ASSISTANCE SERVICES AND BENEFITS.  ALL TERA
RETIREES WILL BE ELIGIBLE FOR TRANSITION SERVICES THAT INCLUDE
PRE-SEPARATION COUNSELING, EMPLOYMENT ASSISTANCE, RELOCATION
ASSISTANCE, RECEIPT OF SKILLS/TRAINING VERIFICATION DOCUMENT
(DD-2586), OVERSEAS RELOCATION ASSISTANCE AND PERMISSIVE TAD (20 DAYS
CONUS, 30 DAYS OCONUS) FOR JOB/HOUSE HUNTING.
   B.  PUBLIC AND COMMUNITY SERVICE REGISTRY (PACS).  ALL TERA
RETIREES ARE REQUIRED BY PUBLIC LAW TO REGISTER FOR PACS, BUT THEY
ARE NOT REQUIRED TO ACCEPT PACS EMPLOYMENT.  HOWEVER, A MARINE
SEPARATING PURSUANT TO TERA CAN INCREASE HIS OR HER RETIREMENT PAY TO
UP TO 50 PERCENT AT AGE 62 VIA PACS.  PACS REGISTRATION CAN BE DONE
AT THE NEAREST MILITARY TRANSITION SITE -- USUALLY, A MILITARY FAMILY
SERVICE CENTER (FSC).  MEMBERS CHOOSING TO ACCEPT PACS EMPLOYMENT
AFTER MILITARY RETIREMENT CAN EARN ADDITIONAL RETIREMENT ANNUITY
CREDIT UP TO 20 YEAR RETIREMENT PAY.  CREDIT IS EARNED FOR PACS
EMPLOYMENT ONLY BETWEEN THE SEPARATION DATE AND THE DATE THE MEMBER
WOULD HAVE NORMALLY REACHED 20 YEARS MILITARY SERVICE.  FOR EXAMPLE,
A MEMBER RETIRING AT THE 16 YEAR POINT HAS THE NEXT FOUR YEARS TO
EARN RETIREMENT CREDIT FROM PACS EMPLOYMENT.  MEMBERS WHO BEGIN PACS
EMPLOYMENT THE DAY FOLLOWING RETIREMENT DATE WILL OBTAIN MAXIMUM
RETIREMENT CREDIT IF THEY REMAIN IN PACS EMPLOYMENT UNTIL THEY REACH
THEIR 20 YEAR DATE.  PACS EMPLOYMENT RETIREMENT IS PAID BEGINNING AT
AGE 62.  THE NATIONAL REGISTRY WILL CONTAIN JOBS IN THE FOLLOWING
CATEGORIES: EDUCATION, LAW ENFORCEMENT, PUBLIC HOUSING, CONSERVATION
AND ENVIRONMENT.
   C.  SURVIVOR BENEFIT PROGRAM (SBP).  SBP IS A WAY FOR RETIREES TO
PROVIDE AN ANNUITY FOR THEIR FAMILY MEMBERS, BUT THE OPPORTUNITY TO
SIGN UP FOR THIS IMPORTANT BENEFIT COMES ONLY ONCE:  AT RETIREMENT.
FOR THAT REASON, MEMBERS ARE STRONGLY ENCOURAGED TO CONSULT THEIR
SITE ADMINISTRATIVE PERSONNEL FOR FULL INFORMATION ON SBP OPTIONS.
9.  APPLICATION PROCEDURES.
   A.  ALL AR MARINES WHO SATISFY THE CRITERIA FOR THE PROGRAM PER
THIS ALMAR MAY SUBMIT THEIR APPLICATIONS VIA:
       (1) THE "TERA REQUEST" LOTUS NOTES DATABASE LOCATED ON HQMC
SERVER, RA DIRECTORY "DC_HQMCRA_02/MARFORRES".  THIS DATABASE HAS THE
NECESSARY AA FORM AND CO'S ENDORSEMENT ALREADY PREPARED.  SIMPLY FILL
IN THE BLANKS. ALL APPLICANTS WITH ACCESS TO R-NET MUST SUBMIT THEIR
APPLICATIONS VIA THIS DATABASE.
       (2) BANYAN EMAIL, ORIGINATING FROM THE APPLICANT'S E-MAIL
ACCOUNT ONLY TO THE IMMEDIATE COMMANDING OFFICER, WHO WILL ENDORSE
AND FORWARD THE REQUEST TO THE NOTES OR BANYAN ACCOUNT OF SSGT
MICHAEL D NACK.
       (3) FAX'D TO (703)614-3099
       (4) LAND MAIL BY NAVAL CORRESPONDENCE WITH CO'S ENDORSEMENT
TO THIS HEADQUARTERS (RAMA).
   B.  THE APPLICATION WILL CONTAIN THE FOLLOWING INFORMATION:
       (1) A STATEMENT THAT ALL ELIGIBILITY CRITERIA HAVE BEEN
SATISFIED.  A TIME IN GRADE WAIVER MUST BE REQUESTED, IF REQUIRED.
       (2) THE DATE OF INTENDED RETIREMENT (DATE MUST BE 1 JUL,
1 AUG, OR 1 SEP FOR OFFICERS; 30 JUN, 31 JUL, 31 AUG, OR 30 SEP FOR
ENLISTED MARINES).
       (3) THE DATE OF LAST DAY OF DUTY WITH COMMAND, IN ORDER TO
TAKE ADVANTAGE OF PTAD AND TERMINAL LEAVE.
       (4) THE FOLLOWING STATEMENT:  I ACKNOWLEDGE THAT I WILL HAVE
COMPLETED AT LEAST 15 YEARS OF ACTIVE DUTY PRIOR TO MY REQUESTED DATE
OF RETIREMENT.  I HAVE PROVIDED A COPY OF THE COMPLETED DD FORM 2580
TO THE MILITARY TRANSITION ASSISTANCE OFFICE.  I AM AWARE OF THE
PROGRAM BENEFITS AND AM MAKING THIS DECISION TO RETIRE FROM THE
MARINE CORPS VOLUNTARILY BASED ON NO PROMISES OR INFORMATION OTHER
THAN THE PROGRAM BENEFITS APPROVED AS OF THIS DATE.
       (5) MAILING ADDRESS UPON RETIREMENT.
       (6) EACH REQUEST MUST CONTAIN AN ENDORSEMENT FROM THE
MARINE'S IMMEDIATE COMMANDING OFFICER CERTIFYING:
           (A) THAT THE COMMANDER HAS VERIFIED THAT THE APPLICANT
SATISFIES THE BASIC REENLISTMENT CRITERIA AS STATED IN MCO P1040R.35B
PAR 5101.2 (A) - (S) (ENLISTED MARINES ONLY).
           (B) THAT THE COMMANDER HAS VIEWED A PACS DD FORM 2580
(DOD OUT PLACEMENT REFERRAL SYSTEM/PUBLIC AND COMMUNITY SERVICE
INDIVIDUAL APPLICATION) COMPLETED BY THE APPLICANT.
           (C) THAT TAP CLASSES AND A PHYSICAL CAN BE COMPLETED
PRIOR TO THE REQUESTED RETIREMENT DATE.
           (D) THAT THE COMMANDER IS NOT AWARE OF ANY SEPARATION OR
DISCHARGE PROCEEDINGS BEING TAKEN ON THE MARINE.
NOTE: ONLY A FIRST ENDORSEMENT IS REQUIRED DUE TO TIME CONSTRAINTS.
10.  TO BE ABLE TO IMPLEMENT THIS PROGRAM IN AN ORDERLY MANNER, THE
DECISION TO APPLY FOR TERA IS A FINAL AND IRREVOCABLE DECISION TO
RETIRE FROM THE MARINE CORPS.  REQUESTS TO WITHDRAW, CANCEL, OR
MODIFY APPLICATIONS WILL NOT BE APPROVED.
11.  THE USE OF TERA WILL BE VERY SELECTIVE AND TEMPORARY.  TERA
PLANS FOR FY99 HAVE NOT BEEN DEVELOPED.  MARINES SHOULD NOT ASSUME
THAT THEY WILL HAVE FUTURE OPPORTUNITIES TO APPLY FOR TERRA.
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