FINANCIAL MANAGEMENT POLICY MANUAL

nondisability retirement. The basis for retirement is:
(1) voluntarily on or after completion of the required length of
service;
(2) involuntarily because of attainment of statutory age or
completion of the maximum length of service authorized by law
for the several grades; and
(3) automatically upon completion of 30 years of combined active
service and service in the Fleet Reserve.
c. Temporary Disability.
The Temporary Disability budget activity provides for the retirement
pay of disabled Navy personnel, regular and non-regular officers and
enlisted, placed on the temporary disability rolls in accordance with
the provision of Chapter 61 of 10 U.S. Code. Persons on temporary
disability rolls are given periodic physical examinations at least once
every 18 months and may be:
(1) restored to active duty,
(2) separated from the Service with severance pay, or
(3) transferred to permanent disability retired list,
(4) continued on temporary list.
Final determination is required within five years of initial
classification and temporary disability retirement.
d. Permanent Disability.
The Permanent Disability budget activity provides for the retired pay
of Navy personnel, regular and non-regular officers and enlisted,
entitled to such pay as a result of permanent physical disability.
Personnel are placed on the permanent disability rolls when there is no
doubt as to the degree of permanency of the disability at time of initial
retirement, and by periodic examination of temporary disability and
Fleet Reserve rolls, it is determined that permanent disability exists.
e. Fleet Reserve.
The Fleet Reserve budget activity provides retainer pay for inactive
enlisted members of the Fleet Reserve as prescribed by 10 U.S. Code
6330 and 6331. Title 10 U.S. Code 6330 authorizes enlisted naval
reservist on active duty to transfer to the Fleet Reserve on the same
basis as members of the regular Navy. Retainer pay for Fleet
Reservists is fixed by law. Personnel remain in the Fleet Reserve until
their status is changed by reason of:
Financial Management Policy
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