Army Compensation and Entitlements Policy

1 UNCLASSIFIED Army Regulation 637 1 Military Personnel Pay, Allowances, and Incentives Army Compensation and Entitlements Policy Headquarters Department of the Army Washington, DC 26 July 2021 SUMMARY AR 637 1 Army Compensation and Entitlements Policy This new Department of the Army regulation, dated 26 July 2021 o Adds responsibilities for Soldiers regarding personal financial affairs (para 1 4k). o Outlines twice-a-month pay Policy (para 1 7). o Prescribes the use of SF 1199A (Direct Deposit Sign-Up Form) (para 1 7a). o Establishes and prescribes DA Form 1506 1 (Statement of Service for Computation and Length of Service for Pay Purposes (Continuation Sheet)) (para 2 6a). o Establishes and prescribes DA Form 7895 (Military Payroll System Substantiating Document Worksheet) (para 2 6c). o Establishes and prescribes DA Form 7894 (Declaration of Retired Pay Benefits Received and Waivers) (para 5 2).

2 O Updates the title of DA Form 4730 (Certificate for Non-Performance of Hazardous Duty) (para 10 6k and app A). o Updates Policy for diver skill incentive pay (chap 11). o Updates Policy for payment of death gratuity (chap 16). o Updates Policy for pay and allowance continuation program (chap 17). o Updates policies for savings programs (chap 18). o Incorporates relevant policies of AR 37 104 4, dated 8 June 2005, hereby rescinded (throughout). o Defines Army-unique military pay Policy for Entitlements , allotments, and deductions outlined in the DoD Financial Management Regulation (throughout). o Updates Policy for special pay sea duty (throughout). o Removes references to and cancels DA Form 3685 (JUMPS JSS Pay Elections) (throughout). *This regulation supersedes AR 37-104-4, dated 8 June 2005. AR 637 1 26 July 2021 UNCLASSIFIED i Headquarters Department of the Army Washington, DC *Army Regulation 637 1 26 July 2021 Effective 26 August 2021 Military Personnel Pay, Allowances, and Incentives Army Compensation and Entitlements Policy History.

3 This publication is a new De-partment of the Army regulation. Summary. This regulation prescribes Policy for unique Army pay and allow-ances for the payment of Soldiers using Department of Defense Joint Military Pay System Active Component. Applicability. This regulation applies to the Regular Army, the Army National Guard/Army National Guard of the United States, and the Army Re-serve, unless otherwise noted. It also ap-plies to all activities of the Army involved in providing pay support to Active Com-ponent Soldiers and Reserve Component Soldiers being paid by the Defense Joint Military Pay System Active Component, formerly Joint Service Software. This reg-ulation is applicable during full mobiliza-tion. Proponent and exception authority. The proponent for this regulation is the Deputy Chief of Staff, G 1.

4 The propo-nent has the authority to approve excep-tions or waivers to this regulation that are consistent with controlling law and regu-lations. The proponent may delegate this approval authority, in writing, to a divi-sion chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the ci-vilian equivalent. Activities may request a waiver to this regulation by providing jus-tification that includes a full analysis of the expected benefits and must include formal review by the activity s senior le-gal officer. All waiver requests will be en-dorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the Policy proponent. Refer to AR 25 30 for specific guidance. Army internal control process.

5 This regulation contains internal control provisions in accordance with AR 11 2 and identifies key internal control that must be evaluated (see app C). Supplementation. Supplementation of this regulation and establishment of command and local forms are prohibited without prior approval from the Deputy Chief of Staff, G 1 (DAPE PRC), 300 Army Pentagon, Washington, DC 20130 0300. Suggested improvements. Users are invited to send comments and sug-gested improvements on DA Form 2028 (Recommended Changes to Publications and Blank Forms) to the Deputy Chief of Staff, G 1 (DAPE PRC), 300 Army Pen-tagon, Washington, DC 20130 0300 or via email to Distribution. This publication is avail-able in electronic media only and is in-tended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the Army Re-serve.

6 Contents (Listed by paragraph and page number) Chapter 1 Introduction, page 1 Purpose 1 1, page 1 References and forms 1 2, page 1 Explanation of abbreviations and terms 1 3, page 1 Responsibilities 1 4, page 1 Records management (recordkeeping) requirements 1 5, page 2 Payment to Soldiers 1 6, page 3 Payment options 1 7, page 3 Chapter 2 Creditable Service, page 3 Policy provisions 2 1, page 3 Establishing creditable service 2 2, page 3 Service that is creditable 2 3, page 4 Service not creditable 2 4, page 5 Computing creditable service 2 5, page 6 Contents Continued AR 637 1 26 July 2021 ii Administrative changes to pay entry basic date or basic active service date 2 6, page 7 Chapter 3 Basic Pay, page 7 Authority 3 1, page 7 Establishing a pay account 3 2, page 8 Advancements/promotions/reductions 3 3, page 8 Special rates of basic pay and executive schedule basic pay caps 3 4, page 8 Saved pay and allowances 3 5, page 8 Basic pay upon transition and final pay 3 6.

7 Page 8 Chapter 4 Absence from Duty, page 9 Authority 4 1, page 9 Leave record 4 2, page 9 Unauthorized absences 4 3, page 9 Returned to military control 4 4, page 9 Processing requirements 4 5, page 9 Substantiating documents 4 6, page 9 Chapter 5 Waiver of Pay and Allowances, page 10 Entitlement 5 1, page 10 Identification 5 2, page 10 Waiver of benefits 5 3, page 10 Effective period of waiver 5 4, page 10 Commander s annual review of retired pay waiver 5 5, page 10 Disposition 5 6, page 10 Chapter 6 subsistence Allowances, page 10 General 6 1, page 10 Basic allowance for subsistence Policy provisions 6 2, page 11 Basic allowance for subsistence II 6 3, page 12 Basic allowance for subsistence supplemental 6 4, page 12 Family subsistence supplemental assistance 6 5, page 13 Chapter 7 Housing Allowances, page 14 Section I Basic allowance for Housing, page 14 Policy provisions 7 1, page 14 General provisions 7 2, page 14 Dependents 7 3, page 15 Soldier married to another Servicemember 7 4, page 15 Child living with Soldier s former or estranged spouse 7 5, page 16 Dependent custody effects on housing allowances 7 6, page 16 Rate protection 7 7, page 17 Partial housing allowance 7 8, page 17 Basic allowance for housing differential 7 9, page 17 Unaccompanied tours 7 10, page 17 Section II Overseas Housing allowance , page 17 Overseas housing allowance 7 11, page 17 Overseas housing allowance rent 7 12.

8 Page 17 Contents Continued AR 637 1 26 July 2021 iii Overseas housing allowance utility and recurring maintenance 7 13, page 18 Noncustodial parents with no additional dependent 7 14, page 18 Section III Family Separation Housing allowance , page 18 Eligibility 7 15, page 18 Family separation housing B 7 16, page 18 Family separation housing O 7 17, page 18 Annual basic allowance for housing recertification and supporting documents 7 18, page 18 Housing allowance location rate 7 19, page 19 Secretarial waiver process 7 20, page 20 Secretarial waiver authority delegation of authority 7 21, page 21 Chapter 8 Station Allowances, page 22 Section I Continental United States Cost of Living allowance , page 22 Eligibility 8 1, page 22 Continental United States cost of living allowance rates 8 2, page 22 Dependent circumstances 8 3, page 22 Unusual circumstances 8 4, page 22 Situations requiring Secretarial waiver process 8 5, page 22 Section II Other than Continental United States Cost of Living allowance , page 23 Purpose and definitions 8 6, page 23 Eligibility 8 7, page 23 Other than continental United States cost of living allowance without a dependent 8 8, page 23 Calculations for other than Continental United States cost of living allowance 8 9, page 23 Travel and cost of living allowance 8 10, page 23 Section III Dislocation allowance , page 24 General provisions 8 11, page 24 With or without dependent 8 12, page 24 Secondary dislocation allowance 8 13.

9 Page 25 Partial dislocation allowance 8 14, page 25 Dislocation allowance is not authorized 8 15, page 25 Section IV Continental United States and Other than Continental United States Permanent Change of Station Allow-ances, page 26 Continental United States temporary lodging expense 8 16, page 26 Other than continental United States temporary lodging allowance 8 17, page 27 Authority 8 18, page 27 Applicable situations for temporary lodging allowance 8 19, page 28 Beginning and ending of temporary lodging allowance 8 20, page 28 Temporary lodging allowance for initial assignment 8 21, page 28 Temporary lodging allowance upon departure 8 22, page 29 Arrival or departure at a different time than a dependent 8 23, page 29 General payment conditions 8 24, page 29 Special temporary lodging allowance requests 8 25, page 29 Other situations for temporary lodging allowance 8 26, page 30 Move-in housing allowance 8 27, page 31 Contents Continued AR 637 1 26 July 2021 iv Chapter 9 Assignment and Special Duty Pays, page 32 Entitlement provisions 9 1, page 32 Required documentation 9 2, page 32 Payment 9 3, page 33 Quadrennial special pay review 9 4, page 33 Quadrennial special pay review board 9 5, page 34 Assignment incentive pay 9 6, page 34 Special duty assignment pay 9 7, page 36 Hardship duty pay 9 8, page 37 Chapter 10 Hazard Pay Program, page 38 Policy provisions 10 1, page 38 General Entitlements 10 2, page 38 General entitlement provisions and restrictions 10 3, page 38 Hostile fire pay 10 4.

10 Page 38 Imminent danger pay 10 5, page 39 Hazardous duty incentive pay general provisions 10 6, page 40 Parachute duty hazardous duty incentive pay 10 7, page 41 Demolition duty hazardous duty incentive pay 10 8, page 42 Experimental stress duty hazardous duty incentive pay 10 9, page 42 Hazardous duty incentive pay for duty involving exposure to highly toxic pesticides 10 10, page 43 Hazardous duty incentive pay for laboratory duty utilizing live dangerous viruses or bacteria 10 11, page 43 Hazardous duty incentive pay for duty involving toxic fuels and propellants 10 12, page 44 Hazardous duty incentive pay for duty involving handling chemical munitions 10 13, page 44 Weapons of mass destruction civil support team hazardous duty incentive pay 10 14, page 45 Diving duty hazardous duty incentive pay 10 15, page 45 Chapter 11 Diver Skill Incentive Pay, page 46 Policy provisions 11 1, page 46 Eligibility 11 2, page 46 Payment 11 3, page 46 Chapter 12 Family Separation allowance , page 47 Policy provisions 12 1, page 47 General eligibility 12 2, page 47 Restrictions 12 3, page 48 Soldier married to another Servicemember 12 4, page 48 Dependent separation requirements 12 5, page 48 Temporary social visits 12 6, page 49 Chapter 13 Garnishments and Allotments, page 50 Authority and provisions 13 1, page 50 Garnishments and other involuntary allotments 13 2, page 50 General provisions governing the allotment of pay (other than for spousal and child support)