Expert: Rod Powers - 4/6/2006

Question
I found a list of entitlements and benefits for the Military. I need to know which are ones entitlements and which are benefits. I.e, I know basic pay is an entitlement, while Space A travel is a benefits but what about the others? Could you help?

Answer
Hi Bobbie,

It really can't be categorized that way, because all pay and benefits in the military are "entitlements," in that Congress has to pass federal laws in order to authorize them.  In other words, military members and family receive medical care, "a benefit," because Congress passed a law saying they are "entitled" to it.  Members (and family members in some cases) can travel on military aircraft space available, because Congress passed a law saying they can, making it an "entitlement."

The military classifies pay and benefits into three categories:  There is "pay," and "allowances," and "benefits."  All are "entitlements," because Congress has passed laws saying that military members and military family members are "entitled" to them.

The difference between "pay" and "allowances" is that (except in combat zones), "pay" is subject to income tax, where -- in most cases, "allowances" are not.  Examples of "pay" are basic pay, enlistment bonus pay, reenlistment bonus pay, flight pay, sea pay, diving pay, submarine duty pay, hazardous duty pay, jump pay, etc.  Pretty much, if it says "pay" in the title, it's subject to taxes (except in designated combat zones).

"Allowances," on the other hand, are not normally subject to income tax.  Examples of allowances are basic allowance for housing (BAH), basic allowance for subsistance (BAS), family separation allowance, travel allowances(for PCS/TDY travel), etc.

"Benefits" are entitlements which don't result in direct money-transfer, such as the G.I. Bill, medical, dental, shopping in the commissary/BX, Tuition Assistance, base gyms, recreation centers, youth centers, child care centers, etc.

Hope this helps!

Rod Powers
http://usmilitary.about.com