Entitlement to Readjustment Pay

A former Navy Reserve officer requested reconsideration of a decision in which GAO held that he was not entitled to readjustment pay, even though he had served more than 5 years of continuous active duty. After being on active duty for more than 4 years, the claimant received orders to complete processing for separation from active duty. The claimant requested and was granted a limited extension of active duty for the express purpose of receiving maternity benefits for his wife, which resulted in his completion of more than 5 years of continuous duty. In his request for reconsideration, the claimant cited new Navy regulations which state that requests for extension of duty to cover maternity benefits will not be approved if the granting of such a request would entitle the officer to readjustment pay to which he would not be eligible without the extension. Although the new policy of the Navy is not to authorize maternity extensions in certain circumstances, these directives do not automatically provide a basis for payment of readjustment pay. Readjustment pay is payable when a member of a reserve component is released from active duty involuntarily or because he was not accepted for an additional tour of active duty for which he volunteered, and when he has served at least 5 years of continuous active duty. The claimant's release upon completion of the maternity extension was considered voluntary in accordance with his agreement to leave the service upon the date specified by the Navy in authorizing the maternity extension. Accordingly, his release did not entitle him to readjustment pay, and the previous decision was sustained.