4/30/2021 By: Janet A. Aker, MHS Communications

Military families may face financial challenges for a variety of reasons, and without assistance these issues could affect the health and well-being of children of those families.

But help is readily available. Military families have access to financial counselors and other Department of Defense personnel – for free.

“Service members and families have access to free financial counseling and education services through Military and Family Support Centers and Military OneSource,” said Beth Darius, a program analyst and an accredited financial counselor in the Department of Defense Office of Financial Readiness. “With the assistance of a financial counselor, service members and families proactively create realistic spending plans to meet financial challenges and goals such as planning for retirement, paying down debt, and making major purchases.”

For families experiencing shortfalls, “the best place to start is to examine your spending plan. Determine your food expenses, your monthly bill expenses and any additional expenses. Help is available to walk families through this process and provide referrals to additional resources as needed,” she said. “Additionally, you can include your children in meal planning, shopping and determining total food costs, which is a great way to build their financial literacy skills and nutrition habits.”

“There are many places to go online to get free, unbiased financial information,” she noted. These no-cost resources include the Office of Financial Readiness website, and the Milspouse Money Mission website, which has a section on raising financially fit children. Additionally, there is the Military OneSource website, the “Developing Your Spending Plan” course on the MilLife Learning portal, and the ‘Sen$e’ mobile application.

Military members also receive financial information and how to use these services when making a permanent change of station.

Establishing and following a spending plan is good to “ensure debts are paid, food is on the table, and financial goals are met,” Darius said. “If there is a financial issue that’s causing stress in the military family, reviewing the spending plan can help them gain some control and decrease stress.”

Steve Harris, a personal financial manager and accredited financial counselor at the Navy’s Fleet and Family Support Center in Washington, D.C., said: “A good financial plan represents both the needs and the wants of a military family.” This could include items such as saving for a college fund for their children.

Military families that have appointments with the center for free financial planning should bring their pay stubs, leave and earnings statements, a list of bills and their bank statements for review.

“Basically, we have a confidential conversation about income coming in and expenses going out. ‘What did you think you spent and what did you actually spend?'” Harris said. “We are looking at needs first and goals second. We like to nudge them back on the right track.”

Echoing Darius, Harris said: “If there are stressors about finances, coming to see a personal financial manager can make a military family leave with less stress. A service member shouldn’t have to be distracted about finances while supporting the mission.”

For children, the Navy has a curriculum that addresses ages 3 to 19 called “Raising Financially Fit Kids.” The other services have similar programs.

“Lessons include how parents can approach children about finances, introducing kids to money, costs, and allowances, how to set goals through saving – such as for the purchase of a new toy or electronic device – and an introduction to debit and credit cards and how to use them wisely,” Harris said.

“Prioritizing is up the individual client, he said. “If there is a surplus of money or a shortfall, what are the two or three most important, often competing, goals? We want to address all of them.”

*This article originally appeared on Health.mil, the official website of the Military Health System. To read the original article click here. Appearance of this article does not constitute endorsement by the Military Health System or the federal government.

Communication is key. We have heard this at just about every military family event – communication about expectations for work, deployments, exercises, and work-ups helps build appropriate expectations. The hard part about communication with military family members is sometimes the difficulty of actually talking. When the military family member is in the field, on a ship, or deployed overseas, they will likely not have the cellular service we are all used to having available to us. Or if they do have a cell phone overseas, they will need an internet connection to connect with family. What about email, or connecting with friends and family through email? How do you maintain communication across the miles when it is not as easy as picking up the phone or having a predictable internet connection to write an email?

Enter Sapphire Portable HotSpots. TravelWifi, formerly DHI Telecom, has been serving the U.S. Armed Forces, NATO coalition forces and government contractors for over a decade.

Their recent addition of Sapphire is an International mobile hotspot. The devices are available at select Navy Exchanges and online. Once the device is purchased, all you do is create an account using the Sapphire app or by logging on to Sapphire’s website. From there, any mobile phone or other Wif-Fi enabled device can connect to Sapphire just like you connect to Wi-Fi.

There are two portable hot spot options. One has the additional feature of a touchscreen, making it easy to use. A touchscreen makes connecting a device that much simpler.

Sapphire 2 Features:

• Portable Wi-Fi Hotspot That Works in 130+ countries
• 4G LTE Speeds
• 1GB Global Data Included
• CloudSIM Technology Connects you to the Strongest Signal
• Connect up to 5 devices
• 12 Hour Battery Life
• Flexible, Prepaid Data Plans
• Manage and View Data Usage through the Sapphire app
• Simple & Easy to Use

Sapphire T2 Features:

• Portable Wi-Fi Hotspot That Works in 130+ countries
• 5-Inch HD Touchscreen to Manage and View Data Usage
• Preloaded Sapphire app and Google Maps app
• Built-in Powerbank 
• 2GB Global Data Included
• 4G LTE Speeds
• CloudSIM Technology Connects you to the Strongest Signal
• Connect up to 5 devices
• 12 Hour Battery Life
• Flexible, Prepaid Data Plans
• Simple & Easy to Use

The private network provided by this hotspot is password-protected, allowing for more security.

Multiple data plans are available ranging from a single country, regional or global coverage with a variety of data plans within each group. There are over 130 countries to choose from for the single country plan and 10 regions for the regional plan.  

In addition to active duty service members, when families are PCSing across the world and now have the additional hurdle of restricted movement as part of COVID, this device allows for connectivity without the need for a local phone. Sapphire Customer Service is available 24/7/365 by phone, email, and WhatsApp.

Whether deploying on a ship, or in the field; PCSing, or on restricted movement, the Sapphire portable hot spot will keep you connected to friends, family and the outside world.

For more information on data plans and Sapphire devices,  look for the Sapphire device banner on https://www.mynavyexchange.com/CellServices

You got that phone call from your military spouse – “Hey, we have orders.” Excitedly you ask where.

“Overseas”

Panic mode.

Take a breath.

And start a checklist of all the things you need.

And peruse this article for answers to some of your questions.

What does it mean to move overseas with an OCONUS (Outside of the Continental United States)?

Paperwork upon paperwork upon paperwork.

It is true; there is a lot more paperwork with an OCONUS move. Get a binder or a large folder with tabs and keep track of everything you can in one place. While there a lot more xx required for a move overseas, it is no different than any other move in that once you get it all done, you will be on your way overseas.

What happens to my Privately Owned Vehicle (POV)?

Most locations overseas do not allow shipping a POV as the vehicles overseas have the steering wheel and driving are on the opposite of the road. Most of the time, shipping of one vehicle is covered for OCONUS moves to Hawaii. Check your orders to see if shipping of a vehicle is covered.

In cases where shipping is not allowed or covered as part of the military orders, storing your POV may be covered. In most cases, a service member is eligible to have one POV stored at a storage facility in a government-procured storage facility. There are limitations on vehicle sizes that are covered, so make sure to read the updated TRANSCOM guidelines for storing a vehicle.

What is medical clearance?

Before moving overseas, medical clearance is required. Why? Many of the overseas locations have limited availability of specialized medical services. A medical screening is completed by your medical provider and the paperwork is provided to the military-specific medical group that will be overseeing medical care for you or your family overseas. The screening identifies if there are medications or conditions that cannot be filled while your family is living overseas, and identify any vaccinations that may be required. If a condition is identified that prevents a military move to that location, the service member will be notified. Once medical clearance is provided, your family will be provided area clearance which begins the process for the military to book flights for everyone on the military orders.

How many passports do I need for an OCONUS PCS?

When on a government-ordered move, federal passports are provided. This official passport is also called a “no fee” passport and can be used when on travel orders from the government. It is not to be used for leisure travel outside of the government move.  The “no fee” passport will be arranged for through the Human Resources or Travel Office arranging the travel for the move and be required for military dependents as well as the active duty service member. If leisure travel is desired while overseas, a tourist passport is required which can be obtained through the state department.

Will I need a Visa?

Each overseas location has requirements for military stationed overseas. The Travel Office will provide the required paperwork if a visa is required as part of your orders. The visa should be used with the “no fee” passport.

What about scheduling the move?

While most CONUS moves have one move – from door to door or door to a storage facility in one move, OCONUS moves require different moves. An advanced shipment called an unaccompanied shipment, typically smaller in weight allowance, will arrive quicker than a household goods shipment. A second shipment of the most household goods holds furniture and mattresses, etc., and will typically take several months to arrive at the OCONUS location. If there is a weight restriction for the OCONUS move, a third shipment that goes to storage with the other items can be arranged. In some cases, like moving to Okinawa, there may not be a weight limit, but some service branches still cover a storage shipment due to the smaller size of homes and lack of storage. If your OCONUS move has multiple shipments allowed, it will be in the military orders and loaded in the Defense Personal Property System for arranging.

A note about items to bring overseas – many overseas housing locations do not have a garage, basement, or deck, and housing choices are not known until the move has been accomplished.  It is best to store larger tool items or outdoor equipment.

Are pets allowed?

This is base dependent. If pets are allowed, they will be required to have a veterinary screening. The screening may include rabies shots, FAVN screening, and vaccinations based on the area moving to.

There may be limitations to flying pets during the summer months due to the heat with commercial airlines but may be allowed on the Patriot Express.

Upon arrival at the duty station, there will likely be a mandatory pet quarantine period for which some of the fees are reimbursable.

Moving overseas is a stressful move, yes, and there is a lot to do. Take each step slowly, and mark off each item as you accomplish it. Many military families had moved overseas before and survived, despite how you may feel after interacting with the military travel office.

Tax time can be a confusing time. There are many numbers, acronyms (we have so many of those in the military community), and those ever-important dates for filing. After the paperwork is gathered, numbers are entered, and the filing is done, the wait begins for the tax rebate to show up in the mail or bank accounts. What to do with the rebate once it arrives? It is tempting to splurge on something new and exciting. There are wise and useful ways to spend the rebate.

1. Pay off orthodontic bills. While the military’s dental insurance does cover a little of orthodontic care, it does not cover it all. Especially as military families move across the country while a child, or yourself, is under orthodontic care, this leads to bills for care. Then there is a phase I and II of orthodontic treatment, and that can add up quickly. Use your rebate to pay for the remaining amount. If you pay the bill in full, ask if the orthodontist will provide a percentage off to cover this payment in full. It may not seem like a splurge, but using the rebate money is a splurge on a pretty smile!
2. Pay off or put a payment toward a high-interest loan. Have a credit card debt? What about a high-interest car loan? Maybe you are paying off school debt. Use the rebate to pay it down or off. Interest adds up, especially when it is above 10%. Depending on the risk, most investments can earn 7-10%, so any interest rate higher than that is worth paying down faster. This allows your money to be yours at a quicker pace to have available to invest in the future if you desire.
3. Put payment on the principal of your home payment. Putting a payment on the home mortgage will lower the principal amount and save some of that interest added to the larger principal amount. If you want to pay off your house sooner, consider adjusting the paycheck deduction, so you do not get a rebate at the end of tax season and instead receive the higher paycheck monthly and use that extra money to pay off the mortgage with bigger payments monthly.
4. Invest in a Financial Planner. Some fee-for-service financial planners can help determine the best investments for your family. From a Simple IRA to a 529 or education savings accounts, financial advisors can guide types of financial accounts that best suit your family’s financial abilities.
5. Boost Your Emergency Savings. Financial emergencies happen. The car engine stops working, you need to pay for an emergency dental bill, or the HVAC in your home stops working in the dead of winter.  If you don’t already have an emergency fund, put aside your tax rebate for it. Set an attainable goal – be it $500 or $1000 and go up from there as you are able. The age-old saying is to have three months’ expenses as an emergency fund. If funding is less predictable, have a larger emergency fund.
6. Build up your PCS fund. Moving is not cheap. While the government pays for the physical move of the household goods, and there is reimbursement for hotel stays when moving to the new location, there are still extra costs associated with replacing missing and broken items and pantry items. Put the tax rebate aside in an interest-bearing account ready to pay for the upcoming PCS costs.
7. Build a Savings Goal. If you have paid off debt and built up an emergency fund, start saving for a savings goal. If you want to own a home, consider building up savings for payment on the principal of a home, even if you use the VA Loan for the purchase of a home. Are you looking to purchase a car in the future? Consider saving for that. Maybe your goal is to buy new furniture during your twilight tour that you don’t worry have to worry about the weight with. Or perhaps your family wants to buy a Recreational Vehicle in the future to explore after retirement, consider the rebate as a boost to saving towards it. Decide on a savings goal for yourself or your family, and put the tax rebate toward that.
8. Consider purchasing life insurance. While in the military, SGLI provides wonderful life insurance coverage to the active duty member, but life insurance is not available after retirement. Life insurance provides coverage of funeral expenses and any living expenses needed for the family left behind.
9. Invest in education. Whether it is education for yourself or your spouse, using the rebate to pay for college courses can be an investment that pays dividends later. Maybe you wanted to take photography courses or get a certificate in a computer program. These skills can help build business or skill levels to help with future employment. If you have been looking at going back to school, using your rebate may be a smart way to do it.
10.  Save it. While this sounds like the simplest of all of the above, if you already have the debt paid off and an emergency fund in a separate account, maybe all you need to do is save the amount. Let the interest in your savings or checking account grow a little more, and you will be ready for whatever you need when you need it.

The National Defense Authorization Act for Fiscal Year 2021 was passed January 1, 2021, and secured a 3.0% military pay raise for 2021.

Base Pay

Monthly base pay is based on rank and years of service. For instance, if you are an E5 with over 4 years of service, the base pay is $2,798.10. An O3E, a commissioned office with over 4 years of enlisted service, with over 8 years of total service has a base pay of $6,628.20.  A breakdown of active duty pay for Enlisted, Warrant Officers, Commissions Officers with over 4 years of Enlisted Service and Commissioned Officers can be found here.

Basic Allowance for Housing Pay

In addition to monthly pay, depending on rank/pay grade, number of dependents and geographic location, a service member collect Basic Allowance for Housing (BAH).

BAH rates are assessed annually to determine if there is a need for housing allowance to change to better align with current housing costs based on location.  The new BAH rate are effective beginning 1 January 2021 and overall have an average increase of 2.9%. Check your local area by inputting military rank and the zip code of the military base or city associated with your or your family’s military orders to determine the 2021 BAH rates here.

If you are living on base, the military housing agency will take the BAH at the previously agreed to rate.  For instance, if you moved into your home and the BAH rate is decreased, your BAH rate is grandfathered in and will not decrease so they will continue to collect the previously agreed rate.  If you are living off base and your rate goes up, you will keep the difference.  And if it goes down, your rate will not decrease.

Additional Pays

Basic Allowance for Subsistence (BAS): BAS is meant to offset the cost of meals to service members and comes from the historic origins of when pay in the military included room and board. Beginning in 2002, Enlisted service members received a full BAS ration per month. When rations are provided in the field, these meals are then paid for from the BAS paid to the service member. BAS increases annually based on the USDA food cost index. If a service member is on unaccompanied orders and living in government quarts, they receive BAS II. The 2021 BAS rates for Officers and Enlisted Service Members as well as BAS II can be found on the DFAS page here.

Hardship Duty Pay (HDP): HDP is divided into two categories: HDP-Location and HDP-Mission. HDP-Location is compensation provided to service members assigned to locations that have been determined to have living conditions below the conditions provided within the Continental U.S., or CONUS. The amount provided to the service member is dependent on the location area. HDP-Mission is provided to service members that are assigned to designated hardship missions as listed here.

Hostile Fire/Imminent Danger Pay (HFP/IDP): This is also referred to as combat pay. Any service member assigned to a designated IDP area is paid per month, so if you enter a designated IDP for one day, the service member is paid for the entire month. The HFP is pro-rated based on hostile fire. Service members cannot receive both IDP and HFP. Further details can be found on DFAS here. Currently qualified hazardous duty areas are listed on DFAS here. Imminent Danger Pay as of January 2021 is listed here.

Hazardous Duty Incentive Pay (HDIP): HDIP designates special duty pay based on hazardous duty. There many duty options including but not limited to Parachute Duty, Flight Deck Duty and Polar Region Flight Operations Duty.

Family Separation Allowance (FSA): This pay is extended to service members when dependents are unable to accompany the service member. This is often extended to service members when on temporary duty on ship, deployed overseas, or on unaccompanied orders. FSA is pro-rated per day after 30 continuous days away for your permanent duty station.

Assignment Incentive Pay (AIP): AIP is extended to service members that involuntarily extend in unusual assignments.

Depending on occupation, special pays for aviation, submarine, diving and foreign language proficiency pays may also be offered.  

Entitlements are listed in block 10 of the Leave and Earning Statement (LES).

By Marguerite Cleveland

The Department of Defense (DoD) recently announced the 2021 Basic Allowance for Housing (BAH) rates. The new BAH rates go into effect on January 1, 2021 and will increase an average of 2.9 percent. If you are receiving the GI Bill Monthly Housing Allowance (MHA) which is the same as BAH for an E-5 with dependents and based on the school zip code your rate will increase on August 1, 2021, the start of the academic year.

This is part of a robust military compensation package, but service members will incur out-of-pocket expenses at five percent of the national average housing cost by pay grade. For 2021 that amount should range from $70 to $158 a month based on grade and dependency status. The DoD considers the overall military pay and benefits package to be competitive even with out-of-pocket expenses.

Depending on your area your BAH will either go up or down. A question many people have is what happens if my BAH goes down? Basically, nothing due to the individual rate protection provision which is an important part of the BAH program. If you maintain uninterrupted BAH eligibility at a set location, you will not see your rate decrease. If you have a lease or long-term commitment you aren’t penalized if housing costs decrease in your area. If you PCS and then return to the area later, you will receive the BAH in effect at that time.

So how does the DoD determine BAH rates. Each year they collect housing cost data for 300 military housing areas in the United States including Alaska and Hawaii. The branches of the military as well as local housing offices assisted in the data collection effort. In addition, local commands provide information on which neighborhoods provide adequate and safe apartments and houses available for rent.

Then it gets more complex as the median current market rent and averages for electricity, heat, and water/sewer are factored in to make up the total housing cost for an area. Then there are six different housing profiles which are based on the type of home and number of bedrooms for each military housing area. Then the BAH rates are calculated for each pay grade with and without dependents.

What are the highest and lowest BAH rates around the country? Check out this chart from Military Benefits.

2021 BAH Rates by The Numbers

Areas with 10 Highest BAH Rates*

1. San Francisco, CA (MHA: CA019)
2. Santa Clara County, CA (MHA: CA044)
3. Westchester County, NY (MHA: NY349)
4. Long Island, NY (MHA: NY218)
5. Nantucket, MA (MHA: MA119)
6. New York City, NY (MHA: NY219)
7. Marin/Sonoma, CA (MHA: CA027)
8. Boston, MA (MHA: MA120)
9. Oakland, CA (MHA: CA018)
10. Florida Keys, FL (MHA: FL069)

Areas with 10 Lowest BAH Rates*

1. Terre Haute, IN (MHA: IN338)
2. Fort Leonard Wood, MO (MHA: MO163)
3. Youngstown, OH (MHA: OH233)
4. Anniston/Fort McClelland, AL (MHA: AL001)
5. Charleston, WV (MHA: WV323)
6. Sault Ste Marie, MI (MHA: MI145)
7. Saginaw, MI (MHA: MI156)
8. Fort Chaffee/Fort Smith, AR (MHA: AR012)
9. Saint Joseph, MO (MHA: MO344)
10. Fort Still/Lawton, OK (MHA: OK237)

*Average across pay grades. Individual pay grades by area may rank lower or higher.

To determine your BAH rate for 2020 try this BAH Calculator. For more information on BAH.

2021 – a much-anticipated bright new year. Want a new start with this new year…especially after 2020? Start off with a bright financial future by committing to these financial resolutions in 2021.

1. Create a budget
2. Make a savings buffer.
3. Start saving for PCS now.  
4. Make the most of credit cards.
5. Pay bills when you get them.
6. Stick to the planned budget.
7. Get the kids involved!

Create a Budget

This isn’t easy. You need to know what you need to spend on things like groceries versus what you want to spend. There a bounty of budget sheets on Pinterest. Check your base resources to see if there is a financial Military Family Life Counselor (MFLC) as he/she may also have free resources and information, inclusive of a budget book. Don’t have a MFLC on base, check out Military One Source to talk to a financial counselor.  A financial MFLC can even sit down and review personal goals. Living on a Navy or Marine Corps base? If you are having a baby, check out the Navy Marine Corps Relief Society who provide services to complete one-on-one budget counseling through the Budget for Baby classes. There are many free resources including monthly spending sheets, bill trackers and expense lists to help build a budget.  

Make a Savings Buffer

This can be done in small increments, and doesn’t have to be a big chunk all at once. If you can save just $10 a week, that will add up in the long term to $2,600 in 5 years, and that’s not counting interest! An emergency fund of 3-6 months of expenses is recommended as a buffer in case there is a job loss, or any other type of emergency. Thankfully, in the military, there isn’t a usual loss of job immediately, but starting the habit now of having that savings buffer will create lifelong healthy financial habits.

Start Saving for Your PCS Now

PCS – Permanent Change of Stations or Permanent Change of Sanity level – you choose. Moving is not easy emotionally or financially. According to the Military Times, military families lost about $5,000 out of pocket each move. Normal “costs” associated with moving are outlined further by Military.com and that doesn’t include all the wild expenses of loss during a move.

Make the Most of Credit Cards

If you have a card you love, make sure you are using all the benefits. There have been credit card changes over the last year – cards that typically favor travel have been offering credit on TV streaming services or exercise apps. Use these benefits to save money! If your card gives you cash back, consider using the bonus to pay off your bill if you have a big ticket item like a new appliance. Credit cards can be useful if you are paying off your bill monthly and can utilize the benefits.

Pay bills when you get them.

Going off the previous paragraph – in order to use the benefits of credit cards, you often have to not carry a balance. When you get the bill, pay it off if you are able to. APR, the annual percentage rate, that credit card companies charge for any amount not paid off by the due date. There is also a late fee! That $100 amount not paid off may then add up to $149, and that’s only in one-month period. There are some cards that have a 0% APR offering for a year, and these can be helpful in purchasing big items like a new fridge or freezer so you can pay off a little at a time monthly. But make sure to put a calendar alert to know when the APR will begin to avoid those charges.

Stick to the planned budget.

This can be hard. It will require planning and understanding of your budget. If next month you know you need to pay for movers for that PCS and didn’t have time to build up a PCS buffer, consider cutting out a few things so you can stick within the budget for the next month. Maybe stop the $5 daily coffee habit for that month. As most military families know, unexpected things happen, but beginning the habit of sticking to that budget will get easier over time.

Get the kids involved!

It’s never too early to start learning about saving. In as early as second grade, children in U.S. schools are learning about the economy in basic terms of imports and exports and the “costs” and “savings” associated with them. Getting children involved early helps build financial attitudes of understanding. The Mint offers free resources for kids and teens to learn about earning, saving, spending, giving, investing, tracking money and more.

Military One Source is a great resource for anyone – CONUS to OCONUS.  Free online financial resources are available at MilSpouse Money Mission and popular tools from Dave Ramsey can be requested here.

What is your favorite financial tool?

The Service Members Civil Relief Act (SCRA) enacted in 2003 expanded on the 1940 Soldiers’ and Sailor’s Civil Relief Act. At its core, the law was written to alleviate financial stress on active duty military, with some benefits extending the military dependents. The SCRA may be most well-known by military families as providing protection with terminating a residential lease for a permanent change of station (PCS) or deployment. When a military member receives PCS orders, they can tell their landlord and break their lease without financial penalty. If their next rent is due on October 1^st, and the military member tells their landlord and provides military orders on September 20^th, then they pay for September and October’s rent but do not pay a penalty for breaking a lease early.

The SCRA has undergone multiple amendments since its original writing. In May of 2020, an amendment was introduced allowing for the extensions of the “lease protections for servicemembers under stop movement orders in response to a local, national, or global emergency, and for other purposes” (Congress.gov). When the pandemic hit the United States in the spring of 2020, many families across the world were gearing up for a PCS. That came to a stop. Several families had already handed in their notice to terminate their lease, and were left negotiating with landlords who may or may not have been understanding of the situation. Some families had two leases signed, one in the location they lived in, and one in the location they would be moving to as they anticipated the move. The Senate passed the amendment on 8/14/2020.

This amendment to SCRA is retroactive, meaning families can request reimbursement for rental payments that were paid during the stop movement order when they or their family was not living in the home.

The final adopted language of the amendment further states that the bill applies to service members who execute a lease upon receipt of PCS orders “for a period of no less than 90 days and thereafter receives a stop movement order issued by the Secretary of Defense in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, which prevents the servicemember or the service member’s dependents from occupying the lease for a residential, professional, business, agricultural, or similar purpose.” Layman’s terms – if the servicemember already signed a lease but cannot reside in it due to the stop order for at least 30 days, the service member can terminate the lease with a copy of the military orders and providing that termination lease to the landlord.

To Terminate a Lease Due to Stop Move Order:

• A written notice of termination and a copy of the military orders must be provided to the landlord
• The delivery of the notice must be done in one of three ways:
  • Hand delivery
  • By Private Business Carrier
  • Mailing the written notice in an envelope with appropriate postage with return receipt requested and addressed to the landlord or the landlord’s agent

The termination of the lease is effective on the date that all of the above is completed. READ: No 30-day notice needed if the stop movement order was the reason for the move, or lack of move.

If you or a military family you know was affected by the stop-move order, make sure they know about the new changes to SCRA.

Social Security Payroll Tax Deferral Begins

On August 8, 2020, a Presidential Memorandum was issued to provide relief during the COVID-19 pandemic by temporarily deferring the withholding of Social Security taxes from September 1, 2020 through December 31, 2020. The Old Age, Survivors, and Disability Insurance (OASDI) tax (Social Security taxes) rate is 6.2%. So, service members and Department of Defense (DoD) civilians will see a temporary increase in their paychecks of that amount. At this time, based on Internal Revenue Service (IRS) guidance all deferrals will be repaid between January 1, 2021 through April 30, 2021 in addition to the amount normally withheld from their monthly pay.

As an example, if the monthly basic pay is $3,306.30 the service member would see an increase of $204.99 in their monthly net take home pay through December 31, 2020. In January, their monthly net take home pay would decrease $204.99, the deferred tax amount through April 2021 until the full amount is recouped.

A military service member or civilian employee should think about whether they should spend this money or put it aside in savings for when it will be recouped next year. Things you should consider is your household income down due to COVID-19? Will it increase in January due to a military pay raise and is that increase enough to offset the money that will be recouped? Each situation is different so you must decide what makes the most sense for your household.

Application of the tax deferral process will be different for Active Duty, National Guard and Reserves as well as DoD Civilians. Service members and families can contact Financial Readiness staff at their installation Military and Family Support Center, or Military OneSource at 1-800-342-9647, if they need assistance in reviewing their Leave and Earnings Statements (LES) or have questions in planning for changes to their net take home pay.

Service members may view the Defense Finance and Accounting Service page for more information, Https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site.

For more information, civilian employees may view the Defense Finance and Accounting Service page, https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site.  For civilian employees with concerns regarding withholding of the deferred OASDI tax, please consult with an Employee Assistance Program financial counselor.

President Trump has stated that if he is reelected, he will forgive the amounts owed but he only has the authority to defer collection of the tax in a national emergency. Congress has the authority to forgive the deferred amounts. The president has directed the Secretary of the Treasury Steven Mnuchin to work with Congress to pass legislation that would forgive the deferred amounts and pay back the Social Security Trust Fund.

Marguerite Cleveland is a freelance writer who specializes in human interest and travel stories. She is a military brat, a veteran and now a military spouse.  Her military experience is vast as the daughter of a Navy man who served as an enlisted sailor and then Naval Officer. She served as an enlisted soldier in the reserves and on active duty, then as an Army Officer. She currently serves as a military spouse. She lives in the Pacific Northwest with her husband and two sons. Visit her website www.PeggyWhereShouldIGo.com

Should I go back to school?  Homeschool my children? Live off base at our next PCS?   

The Answer:  What’s the real value of all the things you do for your family each year?

Both Investopedia and Mint.com independently calculate the value of basic “Family CEO” services—child care, housekeeping, food shopping, laundry services, playing chauffeur and fulfilling the role of family chef—at around $96,000 per annum.  By the way, that figure doesn’t include pet care, day care, tutoring, and any income you’re contributing to family finances. More than one-third of 524,000 military spouses living in the U.S. who are not in the military themselves, also work outside the home, according to a White House Report from the Council of Economic Advisors. 

It begs the question; how would your service member be able to replace or handle all these responsibilities if something happens to you?

FSGLI—Does It Go Far Enough?

Most military families expect to rely on their FSGLI—Family Servicemembers’ Group Life Insurance. Spouses can easily get affordable and cost-effective coverage up to $100,000, provided their insurance doesn’t exceed the servicemember’s coverage.  It’s a great program to cover the immediate need. 

Did you know, though, FSGLI ends shortly after a servicemember leaves active duty, separates, gets divorced, or discharged? After that, finding life insurance coverage for a spouse, without the protective umbrella of military service, becomes a more expensive proposition.  

Military families can prepare for both the unexpected, and the expected—by that I mean the day when your service member leaves military service. Once you have carefully measured the financial value of your total contribution to your family, you will want that amount of coverage to take with you into the civilian world.

Will You Do What Smart Spouses Do?

I’ll admit it.  Life insurance is not only unexciting, it also feels confusing and a bit overwhelming. But it doesn’t have to be. Answer three questions for yourself, and you will know what to do:

Who should benefit from your insurance policy?

Most military families buy spousal insurance to be sure their children are well-cared for. With FSGLI, the surviving servicemember, who assumes sole responsibility for raising the children, is always the beneficiary. The insurance benefit helps provide the means to purchase helping hands when they’re needed.  

Unlike FSGLI, other military-focused insurance providers don’t limit the payout amount to $100,000 or restrict who you can name as your beneficiary.  Buying a small supplemental policy that covers the first two or three years until the family can get re-adjusted, won’t break the bank.

You might be surprised to learn that for as little as $2.50 per month, Military Benefit Association sells $50,000 of term coverage. For less than the price of one specialty cup of coffee each month, you can be sure your child would inherit the means to travel, take piano lessons or pay some school tuition when the time comes.  What’s more you will never have to worry about losing coverage or your insurance getting cancelled when your spouse is no longer in service.

What kind of insurance should I get?

Whole Life, Universal Life, Variable Life Insurance…put all those terms aside unless you are looking for insurance as part of a long-term, strategic investment.  

Term insurance is the right solution to a relatively short-term need. It gives the most coverage at the least cost for a fixed period of time and is easy to start. Often you can complete the entire transaction online.  Most people, not just military families, want coverage while their children are still dependent on them.  Professionals note that once kids are no longer dependent on their parents, there is little need to pay for life insurance, unless there are already large, on-going financial obligations.[1]  

How much term insurance do I need?

Tally up all the expenses your loved ones will face—some Family CEO services, child care that must be paid for, plus any outstanding personal debts you still may have such as school tuition loans. Now add $10,000 for final expenses. If your family also depends on your income to balance the monthly budget you probably will want to add in an amount covering the rest of the year.

From that total subtract your own personal savings/investments and any FSGLI life insurance benefits. The net amount is a good estimate of what you need in term life coverage. The cost of term life insurance is relatively inexpensive and a decision a family can comfortably make; but if you have any doubts, you always have the option to seek assistance from a financial advisor.

That’s all there is to it.  Why not do what most smart spouses do?  Recognize your family may need insurance, determine how much, make the decision to get covered, then go online and sign up today. 

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^[1]  https://www.thesimpledollar.com/insurance/life/when-should-you-stop-paying-for-life-insurance/

https://www.nerdwallet.com/blog/insurance/how-long-term-life-insurance-policy-should-last/

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