The purpose of this website is to provide information on determining qualification for O1E pay for officers who were prior enlisted in the Reserves who believe that they have been wrongfully denied O1E pay.
This page is specifically for you if you were or are enlisted and are now or will commission as an active duty officer. If you’re in the above situation you may have been or will be incorrectly denied O1E pay.
They will wrongfully deny O1E pay even if you have the required 1460 points, telling you that only “Active Duty Time Counts”. This is not accurate, but most don’t know the regulation that outlines how to determine if someone qualifies for O1E pay.
To determine of you qualify for O1E pay the only thing you need to is to go to the Army HRC website:
1. Click on “My Records
3. Click on “Reserve Record”,
4. “CHR statement of retirement points” it has a PDF icon next to it.
5. Add the “Inactive Duty” column with the “Active Duty” column.
6. if you have 1460 points or more from those 2 columns you qualify. Even if you have already been told that you don’t qualify.
Most finance personnel will tell you that only the active duty column counts. This is wrong and here is the Defense Finance Regulation that says that inactive duty time counts also. (DoD 7000.14-R Volume 7A) See page 1-11, paragraph A.”
Most finance personnel don’t actually know the regulation on O1E pay. They generally just follow a set of guidelines or SOP set by their internal office that don’t actually reflect the guidance in the regulation. Many times they have not even read the regulation and treat their SOP as the regulation.
What is Inactive Duty?
Technically speaking reserve time doesn’t count towards O1E pay, that is, your overall years in the Reserves. However, the time that does count towards O1E pay while serving in the Reserves is called “inactive duty” and “active duty for training”. This is clearly stated in the regulation. The main category to pay attention to is the “Inactive Duty” category. Don’t confuse inactive duty with Inactive Regular Reserve (IRR), those are two different things. Inactive duty refers to days at Drill, Annual Training, and training classes that you received orders for and probably did not receive a DD214.
You won’t receive a DD214 for “Inactive Duty”, but the time is recorded on your Statement of retirement Points, formerly called the DD 249E and the DD 5016. This document shows all calculated points and time by the category it was completed in. This document can be used to determine if you meat the 1460 point cutoff for O1E. There is another regulation (I’ll post it later) that states that any “centrally sourced document” can be used to determine or calculate points or time on the 1506. The DD 1506 is what finance uses to show all your time in the military for pay purposes and for O1E. The finance regulation that this information can be found in is “DoD 7000.14”, page 1-11, paragraph A.
The following is a direct quote from the regulation:
“Such prior service includes all active service, in either the Regular or Reserve Component or both (i.e., active duty for training in enlisted or warrant officer status, annual Reserve training duty, and full-time National Guard duty). Service on active duty or active and inactive duty for training for at least 4 years and 1 day satisfies the over 4 years of service requirement under this section.”
Study and know the regulation. Even though the regulation clearly states that “Inactive Duty” time counts, there are finance personnel that will try to tell you that it doesn’t. They will also say that that time does count but since you are switching to active duty it doesn’t count. That is a false and is not stated anywhere in the regulation. They may also try to say that time on active duty must have been paid with “reserve appropriated funds”, that is false, and is specifically stated in the reg.
Here is an example of a Retirement Points Statement, 14 years in the Reserves.
I recently ran into an active duty CPT who was prior enlisted in the reserves. After showing him the regulation he was able to get 9 years of O1-3E back pay.
One mistake that finance or your S1 might make is that they will try to recalculate your Pay Entry Base Date (PEBD). If your cutting things close with points or time this calculation be not be accurate in determining O1E, as also in the correct action to take. The correct action is to simply add and active duty time from a DD214 plus all inactive duty time in order to reach the 4 years and 1 day.
Click on the link for comments and questions: http://o1epay.com/forums/forum/questions-and-comments/
I’m just a guy who is tired of seeing finance and DFAS personnel screw over soldiers who don’t know any better, so I made a website to help out. If you found this website help or have any questions leave a comment or click on the forums link. I would really like to know if anyone found this helpful so I can determine weather or not to maintain this site.