Military Benefits Other Than Retirement & Miscellaneous Practice Issues

1. Military Benefits Other Than Retirement & Miscellaneous Practice Issues • Background and Practice Profile • Support to Dependents • Former Spouse Benefits from the Military

2. You can’t practice military dissolution without knowing… • How to read the LES • How to get your Income Deduction Orders into effect • Military compensation – what is counted and how it is taxed • Temporary relief without a court order • Insurance & Privileges -- who can keep them after dissolution

3. Key Components of a Leave and Earnings Statement (LES)(see handout for a sample LES) • Entitlements: lists each type of pay and the amounts • Deductions: taxes, SGLI (life insurance), mid-month pay • Allotments: discretionary deductions including dental insurance, non-IDO support, IRA and investment contributions, or any contribution going to an account other than the primary account

4. Key Components of LES (Cont.) • Grade: the member’s rank • Yrs Svc: pay is based on rank + years in service, so you need to know both • BAQ Type & VHA Zip: identifies type of housing allowance the member receives and the area for which he receives it • Thrift Savings Plan: Military investment plan, should be divided as an asset

5. How to get an IDO into effect • Income Deduction Orders for child support and alimony both go through the Defense Finance and Accounting Service (DFAS) • Mail a certified copy with a cover letter containing the member’s name and social security number to: Defense Finance and Accounting Service Cleveland DFAS-DGG/CL PO Box 998002 Cleveland Ohio 44199-8002 • Or, you can fax the IDO with a cover sheet indicating the member’s name and social security number to: (216) 522-6960 • It is always a good idea to call and follow up: 1-888-332-7411 • http://www.dod.mil/dfas/militarypay/garnishment/ childsupportandalimony.html

6. Support to Dependents • Military Pay • Types of pay included for support purposes & how it is taxed • Service Regulations – support to dependents without a court order

7. Military Pay: Types and Rationale • Base Pay: uniform in each branch of service • Basic Allowance for Sustenance (BAS): allowance for food, officers receive $192.74 and enlisted members receive $279.88 regardless of branch or rank • Basic Allowance for Housing (BAH): based on rank, location and dependents • Cost of Living Adjustment (COLA): Paid to members who (1) serve in an area where the cost of living exceeds the national average by 8% or (2) live overseas. The amount varies by location and it is intended to offset the increased expenses the member will incur. • Incentive Pay: paid to certain occupation groups or to people with skills sought by the military. Examples include aviation pay, sea pay, medical, dental, foreign language, etc.

8. Fla. Stat. 61.08(2): In determining a proper award of alimony or maintenance, the court shall consider all relevant economic factors, including but not limited to: (a) The standard of living established during the marriage. (b) The duration of the marriage. (c) The age and the physical and emotional condition of each party. (d) The financial resources of each party, the nonmarital and the marital assets and liabilities distributed to each. (e) When applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate employment. (f) The contribution of each party to the marriage, including, but not limited to, services rendered in homemaking, child care, education, and career building of the other party. (g)All sources of income available to either party. Fla. Stat. 61.30(2): Income shall be determined on a monthly basis for the obligor and for the obligee as follows: (a) Gross income shall include, but is not limited to, the following items: 1.Salary or wages. 2. Bonuses, commissions, allowances, overtime, tips, and other similar payments. 3. Business income 4. Disability benefits 5. All workers' compensation benefits and settlements. 6. Unemployment compensation. 7. Pension, retirement, or annuity payments. 8. Social security benefits. 9. Spousal support 10. Interest and dividends. 11. Rental income 12. Income from royalties, trusts, or estates. 13. Reimbursed expenses or in kind payments to the extent that they reduce living expenses. 14. Gains derived from dealings in property, unless the gain is nonrecurring. Which types of pay are included? Fla. Stats. 61.08(2) and 61.30(2)

9. Is it income? Is it taxed?

10. Service Regulations: Support to Dependents Without a Court Order • Each branch has their own regulations that dictate what type of support the member must provide • Army and Marine regulations criminalize the failure to pay support at a level generally equivalent to a member's authorized BAH. All other services have established "guidelines" for use by the commander where there is no court order or support agreement to enforce these regulations, contact the member’s superior officer • Navy and Marine Corps -- 32 CFR 733 • Army – 32 CFR 584 • Air Force – 32 CFR 818.12

11. Former Spouse BenefitsFrom the Military • Overview • 10 U.S.C. Secs. 1062 and 1072 • Classifications • Benefits • Practice Pointers

12. Health Insurance and Benefits – are they available after dissolution and who gets them? • Governed by 10 U.S.C. §§ 1062 and 1072 • Provides benefits to former spouses in some (not all!) situations • The member spouse must have completed 20 years of creditable service in order for a former spouse to receive any benefits • The parties must have been married for 20 years and the member must have served 20 years in order to trigger long-term benefits

13. 10 USC 1062 The Secretary of Defense shall prescribe such regulations as may be necessary to provide that an un-remarried former spouse described in subparagraph (F)(i) of section 1072(2) of this title is entitled to commissary and exchange privileges to the same extent and on the same basis as the surviving spouse of a retired member of the uniformed services.

14. 10 USC 1072(2)(F)-(G)  (2) The term ''dependent'', with respect to a member or former member of a uniformed service, means:       (F) the unremarried former spouse of a member or former member who (i) on the date of the final decree of divorce, dissolution, or annulment, had been married to the member or former member for a period of at least 20 years during which period the member or former member performed at least 20 years of service which is creditable in determining that member's or former member's eligibility for retired or retainer pay, or equivalent pay, and (ii) does not have medical coverage under an employer-sponsored health plan;       (G) a person who (i) is the unremarried former spouse of a member or former member who performed at least 20 years of service which is creditable in determining the member or former member's eligibility for retired or retainer pay, or equivalent pay, and on the date of the final decree of divorce, dissolution, or annulment before April 1, 1985, had been married to the member or former member for a period of at least 20 years, at least 15 of which, but less than 20 of which, were during the period the member or former member performed service creditable in determining the member or former member's eligibility for retired or retainer pay, and (ii) does not have medical coverage under an employer-sponsored health plan;

15. Classifications of Spouses Based on three components: (1) Years in service (2) Years of marriage (3) Years that marriage overlaps creditable service Example: 20/20/20 20 years of service 20 years of marriage 20 years of overlap

16. 20/20/20 Spouse Benefits • Commissary – tax free and lower cost groceries • Base Exchange – tax free and lower cost, like Target or WalMart • Health Care – through TriCare, very low deductibles for visits and prescriptions • Dental Care

17. Benefit Table

18. Practice Pointers • Benefits are a statutory right • Government official has no right to expand privileges – if the time requirements are not met, no benefits are granted • The military member has no discretion to grant or deny, expand or reduce, the benefits – not a point for negotiation • Privileges are granted whether or not they are specifically mentioned in the MSA or final judgment, however, a recitation of the dates of marriage and service will help facilitate the application process

19. Practice Pointers (Continued) • The member’s cooperation is not required for the former spouse to receive benefits • Carefully advise non-member clients about the effect of remarriage on medical, commissary and base exchange benefits • If the parties are close to meeting a higher level of benefits, consider delaying the final judgment since the years of marriage is counted from wedding date until dissolution date

20. Practice Pointers (Continued) • Value the medical benefits and include it in the alimony package • Consider supplemental insurance if your client does not live near a military medical facility or provider • Calculate years very carefully for National Guard and reserve members – not every year is a “creditable” year

21. Summary and Questions Donald P. DeCort, Esquire (813) 254-0156 don@decortlaw.com