Information About Your Final Separation Pay
The Separations Branch (PPC-SEP) works with Servicing Personnel Offices (SPOs) to ensure that separating members receive correct final pay. Once the separation transaction as been approved by the SPO in Direct Access (DA), the Separations System Review Team (SRT) validates computed final pay and makes manual adjustments to account for any additional funds due and/or debts owed to the government.
SPOs must approve the separation transaction before the SPO cutoff date for the pay period in which the separation falls to ensure payment of final pay on the last regular pay period. Late approval of the separations transaction will result in delayed delivery of final pay.
SPOs must update the member's final mailing address in DA to ensure accurate delivery of the W2 following separation and provide accurate contact information for the PPC-SEP.
Precedence of Collections from Final Pay:
When the amounts due are not enough to cover authorized deductions or collections, amounts are collected in the following sequence in accordance with Coast Guard Pay Manual, COMDTINST M7220.29 (series), Figure 11-7.
This is a quick reference for most common debts at time of separation:
- Forfeitures and MGIB
- Federal Income Tax Withholding (FITW), Social Security/Medicare (FICA), Dental, Service members Group Life Insurance (SGLI)
- State Income Tax Withholding (SITW)
- Government debt to the U. S. Coast Guard (ie. Bad checks to CG, travel, household goods, damage to quarters)
- Government debt - Department of Defense, VA
- Garnishments for child support and alimony
- CG Exchange, NEX, AAFES, and various MWR debts
- CG Mutual Assistance
- Involuntary Commercial Debts
- Tax Levies
- Court Martial Fines
Out of Service Debt Collection:
When the amounts owed exceed the amount due, PPC-SEP Accounts Resolution Team (ART) will process an out of service debt. For members who are discharged, RELAD to the IRR or transferred to a RET-2 status, the amount to be collected will be forwarded to the Coast Guard Finance Center for collection action and a debt letter with a summary of overpayment will be sent to the mailing address in DA. For members who are retired with pay, the amount to be collected will be forwarded to PPC-RAS for collection from retired pay. PPC-RAS will issue the debt letter with summary of overpayment.
Please contact PPC Customer Care at mailto:PPC-DG-CustomerCare@uscg.mil or by calling (785) 339-2200 or (866)-772-8724