FINANCIAL MANAGEMENT POLICY MANUAL

(1) completion of 30 years of service,
(2) transfer to disability retired rolls as the result of lack of
physical fitness,
(3) recall to active duty,
(4) death.
f. Survivors' Benefits.
The Survivors' Benefits budget activity covers payment of annuities to
survivors of retired personnel who elected a reduction in retired pay in
order to provide one or more annuities to their survivors as specified in
the Survivor Benefit Plan (SBP) (Chapter 73 of 10 U.S. Code). The
basic options include the choice of annuities to provide for:
(1) surviving spouse only,
(2) surviving children only,
(3 surviving spouse and children,
(4) persons designated to have an insurable interest.
3. ADMINISTRATION.
The apportionment request for the Navy portion of Retired Pay, Defense is
prepared by the Chief of Naval Operations (CNO) (Fiscal Management
Division), which is designated as the administering office. The Office of
the Under Secretary of Defense (Comptroller) (OUSD (C)) and the Office
of Management and Budget (OMB) conduct an informal apportionment
hearing. Upon approval of OMB, OUSD (C) allocates the apportioned
funds to the Comptroller, who then further allocates to CNO by means of a
Program/Fund Allocation (NAVCOMPT Form 2058). The appropriation
is not controlled by quarters or activities. The CNO administers the
program costs of the appropriation by an Intra-Bureau Classification
Account. The Defense Finance and Accounting Service (DFAS),
Cleveland, is the only activity authorized to charge against the
appropriation. Funding responsibilities are subject to the provisions of 31
U.S. Code 1517. Monthly obligations are prepared on an activity and
subactivity basis derived from reports received from the DFAS, Cleveland
which provide the number of retirees paid each month, gains and losses by
type of action for each retirement category, and expenditures. Obligations
and the number of retirees for the remainder of the fiscal year are
projected monthly as a part of the obligation report.
(Change 45)
Financial Management Policy
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