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Defense Bill Affects Pay, Separation Bonuses, and More

By Karen Parrish
American Forces Press Service

WASHINGTON, Dec. 31, 2011 – President Barack Obama today signed the 2012 National Defense Authorization Act, which increases active-duty and reserve pay by 1.6 percent and governs Defense Department activities, from procurement to military personnel policy.

Several provisions in this year’s act will potentially affect active-duty and retired service members and their families.

Section 347 requires DOD to finance an independent assessment of overseas troop basing, advising retention, closure, realignment or establishment of U.S. military facilities outside the United States “in light of potential fiscal constraints on [DOD] and emerging national security requirements in coming years.”

Section 402 reduces authorized Army minimum end strength from 562,000 to 547,000. The other services’ authorized minimum strengths are unchanged, with 325,700 for the Navy, 202,100 for the Marine Corps and 332,800 for the Air Force.

Section 512 of the act creates a new member of the Joint Chiefs of Staff, which currently includes the Army and Air Force chiefs of staff, the chief of naval operations and the Marine Corps commandant. The new member will be the chief of the National Guard Bureau, who will have responsibility for “addressing matters involving non-federalized National Guard forces in support of homeland defense and civil support missions.”

Section 526 extends voluntary separation pay and benefits authority, formerly set to expire Dec. 31, to the end of 2018. Section 530 converts the high-deployment allowance from mandatory to authorized. The allowance currently pays $100 a day, in addition to all other pay and allowances, to a deployed service member who has been deployed 401 days or more out of the preceding 730 days.

Section 701 limits annual Tricare enrollment fee increases for retirees and their family members to an amount equal to the percentage by which retired pay increases that year.

Section 702 sets mental health assessment requirements for service members deployed for contingency operations. The act calls for a series of assessments: one within 120 days before deployment; another during the period between 90 days after a deployment begins and 180 days after it ends; a third within a year after the deployment ends; and a fourth between 18 months and 30 months of redeployment.

The act states assessments are intended to “identify post-traumatic stress disorder, suicidal tendencies, and other behavioral health conditions … in order to determine which such members are in need of additional care and treatment for such health conditions.”

Assessments are not required for service members “not subjected or exposed to operational risk factors during deployment in the contingency operation concerned,” the act states.

Section 954 affirms that DOD “has the capability, and upon direction by the president may conduct offensive operations in cyberspace to defend our nation, allies and interests,” subject to the law of armed conflict and the War Powers Resolution.

Signing the bill into law today, President Barack Obama acknowledging “serious reservations” about parts of the act, particularly provisions that regulate the detention, interrogation, and prosecution of suspected terrorists.

“I have signed the act chiefly because it authorizes funding for the defense of the United States and its interests abroad, crucial services for service members and their families and vital national security programs that must be renewed,” Obama said in a statement released today.

The act also contains critical initiatives to control spiraling health-care costs within the Defense Department, develop counter-terrorism initiatives abroad, build the security capacity of key partners, modernize the force and boost the efficiency and effectiveness of military operations worldwide, he noted.

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Filed Under: Air Force, Army, Benefits, Coast Guard, Marines, Money, National Guard, Navy, News, Resources

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U.S. Establishes New Cell in Qatar

JANUARY 14, 2026 – U.S. Central Command and regional partners opened a new coordination cell at Al Udeid Air Base in Qatar this week to enhance integrated air and missile defense. The new Middle Eastern Air Defense — Combined Defense Operations Cell is located in the Combined Air Operations Center on base and comprised of […]

Air National Guard Unveils New Bonus Program

MARCH 11, 2023 – On March 1st, the Air National Guard (ANG) launched a new bonus program to attract and retain personnel in critical specialties. The initiative offers significant financial rewards, with bonuses of up to $90,000 for eligible members, depending on their Air Force Specialty Codes (AFSCs). This strategic move aims to strengthen the […]

Military Students’ Tips to Balance Service and Studies

OCTOBER 10, 2025 – Studying in college while serving in the military can be highly rewarding but also extremely demanding in some respects. Military members, veterans, and their families typically balance demanding duty schedules, deployments, family responsibilities, and school schedules. It requires careful planning, flexibility, and being willing to seek and take advantage of available […]

Translating Military Experience to Civilian Employment

DECEMBER 23, 2025 – Transitioning out of uniform and adapting to civilian life can be hard. Some of the reintegration challenges include changes to career and lifestyle, loss of military identity, and need to develop new networks. Whether you are finishing one enlistment or retiring after 20 or more years, it is common to feel […]

Financial Preparation Guidance for New Parents

JANUARY 7, 2026 – The arrival of a new baby can be one of life’s most joyful milestones –and one that brings significant changes. While it is an exciting time, it also introduces new financial responsibilities and challenges. Proactive planning for the cost of parenthood can ease the transition and help lay a strong foundation […]

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