Stop-Loss Payments Continue, But Some No Longer Eligible

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The Defense Department put the new policy into effect today, modifying eligibility for retroactive special pay to comply with Section 8108 of the 2010 Defense Department Appropriations Act, which took effect Dec. 19.

Servicemembers affected by the new policy who already received Stop Loss payments will not be required to repay them, defense officials said. However, all outstanding applications from affected servicemembers will be returned, along with an explanation of the change in law that makes them no longer eligible to receive the payments, officials said.

Department officials announced in March their intention to eliminate the Stop Loss policy, which kept servicemembers on active duty beyond their contracted end-of?service date.

While the services work to phase out the policy, officials authorized a special pay of $500 a month for anyone retained on active duty due to Stop Loss. Retroactive payments applied for anyone who served on active duty between Sept. 11, 2001, and Sept. 30, 2009, and the fiscal 2010 defense budget extended that authority through September 2010.

Servicemembers were able to begin submitting their claims for retroactive Stop Loss special pay on Oct. 21.