All Branch Topic (ABT) Special Pay restructuring in 2017

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
Setih said:
I agree with above.

Speaking of, This IP, BCP, RB sudden change, made me realize all those additional special pays that kind of had been taken for granted, can "suddenly disappear" in one second. Have an uneasy feeling that ten of thousands of dollars of your salary can potentially be taken away at a whim.
Click to expand...

I worry about this too. Alternately, I wonder if this new pay system will make it easier for the services to lower the reimbursement rates with greater ease since we are no longer necessarily locked into contractual agreements.
Members don't see this ad.
 
If someone is getting out next summer (and thus not signing for the new consolidated special pay system that includes VSP and board certification pay), do they still get to keep their VSP and BCP (at the current levels), or will they lose them since they're not signing a new contract?
 
For tax purposes and TSP planning...what are the odds the backdated CSP pays are distributed prior to the end of the calendar year?
Low likelihood IMO.
 
Members don't see this ad :)
ActiveDutyNavy said:
For tax purposes and TSP planning...what are the odds the backdated CSP pays are distributed prior to the end of the calendar year?
Low likelihood IMO.
Click to expand...

In previous years when the NAVADMIN was super late, the money was actually released very quickly once the paperwork could be submitted.

I bet you get paid before Dec 31st. The rate limiting step is finally passed. Stay on top of it and follow up frequently with the people taking care of it.
 
my December LES shows the CSP pay (and back pay) distributed, but it has yet to hit the bank account. It will probably post in the typical bi-monthly pay time frame. Luckily, it looks correct. But they do come back for the VSP pay distributed during the back pay timeframe.
 
Just an FYI: (I called the special pay office to confirm this)

If you're already under contract under the old pay system, you should see no change until your current contract expires, at which point you will then apply under the new system. For instance, my current contract is July 1, 2016 to June 30, 2017. I'm getting paid as per the old system, was told that will not change. (I still see VS P on my LES)

When I apply again for the time July 1, 2017 to June 30, 2018, then I will do so under the new system.

Word to your mother .....


Sent from my iPhone using SDN mobile
 
DrMetal said:
Just an FYI: (I called the special pay office to confirm this)

If you're already under contract under the old pay system, you should see no change until your current contract expires, at which point you will then apply under the new system.
Click to expand...

I don't think that's correct.

I have a 4-year MSP contract effective 30 June 2016 - 29 June 2020, so I should get a $110K MSP/ISP lump payment on
- 30 June 2017
- 30 June 2018
- 30 June 2019
per my contract.

How they handle the ASP/VSP/BCP conversion to the new system should be their problem, not mine. But they assure me that Darth DFAS is going to "alter the deal" and force me to change over to monthly payments starting 2017.

It looks like my existing MSP/ISP contract is going to get involuntarily converted to a new RP contract for the remainder of the term, for the same dollar amount, but just trickled out monthly over the year, instead of up front like my contract says they must.
 
pgg said:
I don't think that's correct.

I have a 4-year MSP contract effective 30 June 2016 - 29 June 2020, so I should get a $110K MSP/ISP lump payment on
- 30 June 2017
- 30 June 2018
- 30 June 2019
per my contract.

How they handle the ASP/VSP/BCP conversion to the new system should be their problem, not mine. But they assure me that Darth DFAS is going to "alter the deal" and force me to change over to monthly payments starting 2017.

It looks like my existing MSP/ISP contract is going to get involuntarily converted to a new RP contract for the remainder of the term, for the same dollar amount, but just trickled out monthly over the year, instead of up front like my contract says they must.
Click to expand...

PGG is correct. Technically you could keep your old contract but you wouldn't be able to get your ASP next year. The catch is that the ASP used to be separate; however, since it's now in the CSP you have to convert at your next ASP/ISP anniversary date if you want that 15k if you are currently under an MSP.




Sent from my iPhone using SDN mobile app
 
I've already received my ASP for FY 17. I was told that they are not going to take it back and renegotiate under the new contract. I'll just wait for it to expire, then when I reapply for FY 18 it would be under the new contract

Sent from my iPhone using SDN mobile
 
Last edited:
ActiveDutyNavy said:
my December LES shows the CSP pay (and back pay) distributed, but it has yet to hit the bank account. It will probably post in the typical bi-monthly pay time frame. Luckily, it looks correct. But they do come back for the VSP pay distributed during the back pay timeframe.
Click to expand...

Interesting. My LES doesnt reflect my CSP.
 
Members don't see this ad :)
as long has you are on a one year ISP that mirrors your ASP contract (July-Jun), you are correct. you will be paid under the old system until you re-sign a new contract.
the rub comes if you have a MSP contract. if you have an old MSP contract you will be forced to enter the CSP when it's time to re-up your old ASP. Unless you choose to forgo $15k.
 
this CSP thing is above my head, been out the door on a bunch of tdys back to back and am not in the loop. If I signed the ASP Jul 2016, when do I need to start worrying about signing the CSP? What would happen if I sign it now? I'm curious because I'm due up for a deployment and its tax-free benefits in a month and wondering if that matters at all (would that tax exemption status even affect the CSP? or ASP for the matter?)
 
Any bonuses acquired during deployments are taxed just as if you were stateside. You will probably be able to get a lot of that tax money back, though, when you file your tax return because your income for the year will be less due to the deployment pay that isn't considered taxable.
 
River Rat said:
this CSP thing is above my head, been out the door on a bunch of tdys back to back and am not in the loop. If I signed the ASP Jul 2016, when do I need to start worrying about signing the CSP? What would happen if I sign it now? I'm curious because I'm due up for a deployment and its tax-free benefits in a month and wondering if that matters at all (would that tax exemption status even affect the CSP? or ASP for the matter?)
Click to expand...

Yes, if not under an MSP. If encompasses your ISP, BCP, VSP now distributed monthly. It'll be less your ASP since you received it in July.
 
I was told it should hit in the next few days except for Perrotfishes his will be diverted to the award for nurse corps officer of the minute.
 
  • Like
Reactions: 1 user
narcusprince said:
I was told it should hit in the next few days except for Perrotfishes his will be diverted to the award for nurse corps officer of the minute.
Click to expand...

3 years worth of bonuses to fund all three awards:
Senior Nurse Corps Officer of the Minute
Nurse Corps Officer of the Minute
Junior Nurse Corps Officer of the Minute
 
Have not seen it on a les. I imagine it will be paid then put on the les retroactively. My gut says by next Thursday it will hit!
 
I'm a resident doing FTOS. My understanding of the new structure was that residents would no longer get VSP and we would start getting IP at the resident rate ($8K/year). I just spoke with the pay person at Navy Special Pay office and they didn't really seem to know what was going on. After asking someone else in the office I was told that residents will stay on VSP until 2018. I read the instruction myself and it looks like I should switch starting now.

Can anyone confirm or deny that residents are staying on VSP for another 12 months? Can anyone provide guidance on how I should proceed as I only have an ROTC unit that doesn't have a pay office? Thanks!
 
lbgator said:
I'm a resident doing FTOS. My understanding of the new structure was that residents would no longer get VSP and we would start getting IP at the resident rate ($8K/year). I just spoke with the pay person at Navy Special Pay office and they didn't really seem to know what was going on. After asking someone else in the office I was told that residents will stay on VSP until 2018. I read the instruction myself and it looks like I should switch starting now.

Can anyone confirm or deny that residents are staying on VSP for another 12 months? Can anyone provide guidance on how I should proceed as I only have an ROTC unit that doesn't have a pay office? Thanks!
Click to expand...
I'm a pgy3 at an AF program. we were told to apply for the new pay structure (a 250 dollar/month increase) and we just routed the paperwork yesterday.
I don't get it because I'm separating for a fellowahip, so I miss out on 3k over the rest of the year
 
Hello everyone, I am a current AF physician in an AF fellowship (PGY4). For those of you in the AF you can review the details for the new Consolidated Special Pay (CSP) plan at the Air Force myPers website. You can download the webinar once logged in by choosing "compensation" from the menu on the left, then choosing "medical special pay" then "medical corps". At the bottom of the page there is a link to the webinar "FY17 Medical Corps Medical Special Pay Webinar". There is also a conversion guide and calculator "Consolidated Special Pay Conversion Calculator/Guide" to see what you will make under the new CSP pay plan and help you to determine when to convert over to the new plan.

The pay plans will begin on 01Jan2017 or you can continue under the current "legacy pay" until 28Jan2018. Anyone who has never signed an ASP or ISP contact will have to start under the new CSP. Those of us who have contacts from the previous year or are under a MISP/MSP can continue under the current contact until renegotiating in 2017. The calculator helps you to determine when to convert over to CSP from legacy pay to avoid the least a out of recoupment of previously paid bonuses.

CSP is designed to consolidate the current 32 legacy pay types down to 4 pay types. Special pay will be distributed monthly instead of in lump sum. It is my understanding that it will still be taxed at the 25% federal tax bracket rate. The new categories are AB, RB, BCP, and IP. One nice feature of the new CSP is that you will only have to submit your contact once and your pay will continue until you notify the pay section that your status has changed (no more annual contact submission).

AB is accession bonus, and has few details regarding who is eligible for AB. This most likely affects persons entering the military after already completing residency/fellowship not under the HPSP program. This will remain a lump sum payment.

RB is retention bonus and replaces MSP/DOMRB/POSP/ORB and NC MISP. Requires a multiyear contract which is served consecutively to HPLRP. Persons are eligible for RB after completing their initial pre-commissioning/commissioning program requirements (i.e. HPSP contract). This will remain a lump sum payment.

BCP is board certification pay and will become a flat amount of $6k/yr ($500/mo) and is no longer dependent on your time in service in the medical corp. To be eligible for BCP you must have passed board certification in one speciality (there is no active duty service commitment [ADSC] associated with board pay). Will be paid monthly and continue indefinitely until you notify pay office that you are no longer board certified. Do not need to resubmit annual contacts anymore.

IP is incentive pay and replaces ASP, VSP, MISP and ISP. This number will be variable depending on your speciality (i.e the prior ISP bonus). There has not been specific breakdown provided for what the individual components contribution, but it has been stated that all persons w/ less then 6 yrs AD time will go up by $3k/yr suggesting that the VSP component will be fixed at the 18-22 year rate of $666.66/mo for all persons in PGY2 or higher. ASP should continue to contribute $15k/yr and your ISP portion will remain dependent on speciality (i.e. EM, IM, Surgery, etc.). IP contracts will occur a one year ADSC which can be served concurrently w/ education/training ADSC. At the present time I do not believe you will need to resubmit your IP contact annually. Below are some examples of what IP pay should be depending on where you are in training.

Example 1 - PGY2 resident IP pay should be (VSP 8K) $666.66/mo
Example 2- Graduating internal medicine resident IP pay should be (ASP 15k, ISP 20k, VSP 8k) so monthly IP should be $3583.33/mo
Example 3 - Attending physician radiology (w/o MISP contract) IP pay should be (ASP 15K, ISP 36k, VSP 8k) so monthly IP should be $4916.67/mo


Anyway hope this helps some people to better understand the new CSP which we are entering into now. I would like to post the webinar slide deck pdf file here for everyone, but I am unsure if it is an FOUO document so I have chosen not to upload it. Those of you with CAC enabled access to the myPers website can follow the directions above to review the file. I am sure that the other branches have similar websites which will have the same materials.

v/r,

FireDoc
 
Last edited:
FireDoc said:
Hello everyone, I am a current AF physician in an AF fellowship (PGY4). For those of you in the AF you can review the details for the new Consolidated Special Pay (CSP) plan at the Air Force myPers website. You can download the webinar once logged in by choosing "compensation" from the menu on the left, then choosing "medical special pay" then "medical corps". At the bottom of the page there is a link to the webinar "FY17 Medical Corps Medical Special Pay Webinar". There is also a conversion guide and calculator "Consolidated Special Pay Conversion Calculator/Guide" to see what you will make under the new CSP pay plan and help you to determine when to convert over to the new plan.

The pay plans will begin on 01Jan2017 or you can continue under the current "legacy pay" until 28Jan2018. Anyone who has never signed an ASP or ISP contact will have to start under the new CSP. Those of us who have contacts from the previous year or are under a MISP/MSP can continue under the current contact until renegotiating in 2017. The calculator helps you to determine when to convert over to CSP from legacy pay to avoid the least a out of recoupment of previously paid bonuses.

CSP is designed to consolidate the current 32 legacy pay types down to 4 pay types. Special pay will be distributed monthly instead of in lump sum. It is my understanding that it will still be taxed at the 25% federal tax bracket rate. The new categories are AB, RB, BCP, and IP. One nice feature of the new CSP is that you will only have to submit your contact once and your pay will continue until you notify the pay section that your status has changed (no more annual contact submission).

AB is accession bonus, and has few details regarding who is eligible for AB. This most likely affects persons entering the military after already completing residency/fellowship not under the HPSP program. This will remain a lump sum payment.

RB is retention bonus and replaces MSP/DOMRB/POSP/ORB and NC MISP. Requires a multiyear contract which is served consecutively to HPLRP. Persons are eligible for RB after completing their initial pre-commissioning/commissioning program requirements (i.e. HPSP contract). This will remain a lump sum payment.

BCP is board certification pay and will become a flat amount of $6k/yr ($500/mo) and is no longer dependent on your time in service in the medical corp. To be eligible for BCP you must have passed board certification in one speciality (there is no active duty service commitment [ADSC] associated with board pay). Will be paid monthly and continue indefinitely until you notify pay office that you are no longer board certified. Do not need to resubmit annual contacts anymore.

IP is incentive pay and replaces ASP, VSP, MISP and ISP. This number will be variable depending on your speciality (i.e the prior ISP bonus). There has not been specific breakdown provided for what the individual components contribution, but it has been stated that all persons w/ less then 6 yrs AD time will go up by $3k/yr suggesting that the VSP component will be fixed at the 18-22 year rate of $666.66/mo for all persons in PGY2 or higher. ASP should continue to contribute $15k/yr and your ISP portion will remain dependent on speciality (i.e. EM, IM, Surgery, etc.). IP contracts will occur a one year ADSC which can be served concurrently w/ education/training ADSC. At the present time I do not believe you will need to resubmit your IP contact annually. Below are some examples of what IP pay should be depending on where you are in training.

Example 1 - PGY2 resident IP pay should be (VSP 8K) $666.66/mo
Example 2- Graduating internal medicine resident IP pay should be (ASP 15k, ISP 20k, VSP 8k) so monthly IP should be $3583.33/mo
Example 3 - Attending physician radiology (w/o MISP contract) IP pay should be (ASP 15K, ISP 36k, VSP 8k) so monthly IP should be $4916.67/mo


Anyway hope this helps some people to better understand the new CSP which we are entering into now. I would like to post the webinar slide deck pdf file here for everyone, but I am unsure if it is an FOUO document so I have chosen not to upload it. Those of you with CAC enabled access to the myPers website can follow the directions above to review the file. I am sure that the other branches have similar websites which will have the same materials.

v/r,

FireDoc
Click to expand...
Leave it to the air force to put together a concise document, a complete fiscal year earlier on how the pay will change. Versus the navy not paying their people and telling everyone after the fact!
 
Ok, so here's my question, I'll get the 4th and final MSP payment in July 2017 for a 4 year contract I signed running from 2014-2018. My worry is that I'll need to renegotiate before July 2018 and need to pay back part of the higher 4 year MSP rate in exchange for the lower rate my replacement 2 MSP year contract will pay. I'm only signing 2 years because I'll be at 20 after those 2.

Anyone raise this concern or gotten any clarification? The way I see it, I signed the 4 year contract in 2014 and shouldn't need to renegotiate at a lower when I'm not breaking my contract.
 
SeminoleFan3 said:
If we're being backpaid from 2016, though, is that going to matter? Or will it all just get filed on our 2017 taxes?
Click to expand...

If you haven't been paid yet, its 2017 income. Maybe a benefit to you if the Muppet in Chief changes the tax code as he claims he will.
 
  • Like
Reactions: 1 user
Perrotfish said:
So we have now officially pushed the taxes from this bonus into 2017. Happy New Year.
Click to expand...

:(


narcusprince said:
I got my wish! This will help my taxes!
Click to expand...

How's that?

It helps for 2016, sure.

But how is this going to be a net positive, given that next year you'll be filing a 2017 return ... with 100% of 2017's income and 25% of 2016's income too?

Are you getting out in 2017 and expecting a pay cut? Heading to fellowship maybe?


Gastrapathy said:
If you haven't been paid yet, its 2017 income. Maybe a benefit to you if the Muppet in Chief changes the tax code as he claims he will.
Click to expand...

I doubt any of his planned tax code changes would help military physicians, if they even happen.

The marginal federal rate for MFJ is going to be either 25% or 28% for the vast majority of military physicians. Their overall rate is likely to be 20% or less. Capital gains? I doubt 1 in 20 military physicians has a significant taxable brokerage account.

I don't believe a genuine middle-class tax cut is in the cards.
 
@pgg all good points. Maybe he will surprise you. Additionally For the non-homeowner, it's possible his proposed increase in the standard deduction may make a benefit. For folks with significant moonlighting income with state income tax, it's possible getting rid of AMT may help. Who the hell knows what he will do.
 
My moonlighting income has been significant. In 2017 it will increase however for 2017 I'm forming a llc. I expect my deductions to go up. And to gain as many deductions as possible through my llc.
 
Official policy was released to us today. I'm reading over it, which is painful. Anyone out there who has done it already who could summarize?

Edit: From a pure numbers perspective, looks like I will be making $500/yr LESS on the new system. Awesome.

However, it appears as though there are significantly more chances/ways for one to not get the bonus, but I don't feel like reading through all of it right now.
 
Last edited:
narcusprince said:
I am hearing February...... This is out of control. Some one needs to speak to the IG.
Click to expand...

I emailed back and forth with BUMED today, and found out that my stuff was sent to DFAS at the end of last month and they have 30 days to pay me, so I expect by the end of the month. I'm definitely fed up.
 
SeminoleFan3 said:
I emailed back and forth with BUMED today, and found out that my stuff was sent to DFAS at the end of last month and they have 30 days to pay me, so I expect by the end of the month. I'm definitely fed up.
Click to expand...

What annoys me the most is that they don't feel the need to even say anything about it. A series of f- ups I could deal with, but you'd think they'd at least bother to email an an apology.
 
Perrotfish said:
What annoys me the most is that they don't feel the need to even say anything about it. A series of f- ups I could deal with, but you'd think they'd at least bother to email an an apology.
Click to expand...

Agreed. I was livid this morning when they initially told me another 1-2 months. So basically he wanted to say almost half way through the fiscal year.
 
DFAS has 60 days from notification to incorporate a the pay. Not the news you want to hear, but it is what it is.
 
You must log in or register to reply here.
Next unread thread

Similar threads

N
Pay differential
Replies
5
Views
1K
Nexus5
N
T
Board Certification Pay - Air Force Reserve
Replies
3
Views
516
armytrainingsir
armytrainingsir
pgg
New Medical Corps Special Pay Guidance?
2
Replies
51
Views
6K
Trefoil
Trefoil
2
Pay during military residency
Replies
10
Views
3K
armytrainingsir
armytrainingsir
T
HPSP For Competitive Specialities
Replies
23
Views
607
DrMetal
DrMetal
Top