Fact or Fiction: Military Money Matters

Fact or Fiction: Military Money Matters
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About This Quiz

You might know every detail of every major battle fought in the last century, but can you tell fact from fiction when it comes to military money matters?
Military base pay rates are dependent upon the Employment Cost Index.
fact
fiction
almost fact: While base pay usually depends on the ECI, Congress can vote to raise pay above the index.
Congress can vote to boost the military base pay rates above the Employment Cost Index, which measures civilian pay rates in the United States.

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Many factors can increase military pay.
fact
Several factors can change your base pay. Among them are promotions, annual pay raises, combat or hazard pay, acts of Congress and more.
fiction
almost fact: Base pay can change due to inflation, an act of Congress or a promotion.

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There are 12 pay grades for enlisted members of the military.
fact
fiction
There are nine pay grades ranging from E-1 to E-9 for enlisted members (though E-1 is subdivided into two pay grades).
almost fact: There are 11 pay grades.

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The military offers cost of living allowances for certain areas in the United States.
fact
The military does offer a cost of living allowance for areas within the United States where expenses are at least 8 percent greater than the average cost of living.
fiction
almost fact: The military does offer cost of living allowances, but only to service members stationed overseas.

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The Servicemember's Civil Relief Act (SCRA) provides financial protection to all military personnel.
fact
fiction
almost fact: It covers all active or deployed military personnel.
The SCRA protects military members who are deployed or otherwise on active duty. Protection begins the day the service member receives orders.

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Serving in a combat zone for a month will exclude your wages from federal income tax for that month.
fact
fiction
almost fact: Service for any part of a month is enough to exclude your military wages from federal income tax.
Even if you only serve half a day in a combat zone as part of your official duties, your military wages for the entire month are exempt from federal income tax.

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Most Navy personnel who serve aboard submarines are eligible for special pay.
fact
In order to encourage career sailors to stay aboard submarines, the Navy offers Continuous Submarine Duty Incentive Pay (CONSUBPAY).
fiction
almost fact: Only Navy service members who are nuclear power officers are eligible.

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Members of the U.S. military receive their pay once a month.
fact
fiction
The U.S. military pays service members twice a month, on the 1st and the 15th.
almost fact: Service members are paid in six-month installments.

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Under the SCRA, interest from credit services is capped at 6 percent for all deployed military personnel.
fact
The SCRA makes it illegal for any credit agency to charge more than 6 percent interest on all credit to deployed service members.
fiction
almost fact: The SCRA caps the interest at 8 percent.

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The Montgomery GI Bill provides tuition money for eligible veteran or active-duty members of the U.S. Army.
fact
fiction
almost fact: The bill extends tuition help to all branches of the military.
No matter what branch of the military you serve in, the Montgomery GI Bill can provide money to put toward college tuition, books and other educational expenses.

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