Imminent Danger Pay changes

[Fuzz]

Well the going in position for CPTS is that when IDP for those locations goes away effective 1 June '14, so will the CZTE. So the question to OSD is to determine if there will be an exception granted to keep CZTE even though there is no IDP. So plan on IDP and CZTE going away on 1 Jun unless you hear otherwise. Rules would have to be changed to specifically authorize CZTE even though the area is not an IDP area. So Fuzz, if you continue to receive IDP and CZTE for one of those areas after 1 June consider yourself notified you will owe money.

Sorry FG my post was semi-sarcastic, in response to not asking with the hope that they'll continue to get payed. I appreciate the explanation about how they are all linked (and the warning).

[jazzdude]

On another note, I assume if you're flying out of one of those "non-combat" locations and fly to Afghanistan or another IDP location, you'd be eligible for both the IDP and CTZE, correct?

Welcome to the C-17 world of per diem and tax free. IDP is prorated for each day, CZTE is not (enter the combat zone for one day and the entire month is tax free)

[JarheadBoom]

Welcome to the C-17 heavy world of per diem and tax free. IDP is prorated for each day, CZTE is not (enter the combat zone for one day and the entire month is tax free)

Fixed it for ya...

[ThreeHoler]

Well the going in position for CPTS is that when IDP for those locations goes away effective 1 June '14, so will the CZTE. So the question to OSD is to determine if there will be an exception granted to keep CZTE even though there is no IDP. So plan on IDP and CZTE going away on 1 Jun unless you hear otherwise. Rules would have to be changed to specifically authorize CZTE even though the area is not an IDP area. So Fuzz, if you continue to receive IDP and CZTE for one of those areas after 1 June consider yourself notified you will owe money.

FG, the CZTE is determined by Presidential Executive Order, and not by OSD or the Services. CZTE and IDP have never been linked. The only exception is in the Kosovo region where a Public Law (Congressional action) has authorized CZTE for it being a qualified hazardous duty area.

https://www.irs.gov/uac/Combat-Zones

So, barring any new PEOs, the "Arabian Peninsula Areas, beginning Jan. 17, 1991 -- the Persian Gulf, Red Sea, Gulf of Oman, the part of the Arabian Sea north of 10° North latitude and west of 68° East longitude, the Gulf of Aden, and the countries of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates" will continue to provide CZTE status.

[Azimuth]

Welcome to the C-17 world of per diem and tax free. IDP is prorated for each day, CZTE is not (enter the combat zone for one day and the entire month is tax free)

Which was started due to C-5 guys.

[Finance_Guy]

On 1/11/2014 at 3:56 PM, ThreeHoler said:

FG, the CZTE is determined by Presidential Executive Order, and not by OSD or the Services. CZTE and IDP have never been linked. The only exception is in the Kosovo region where a Public Law (Congressional action) has authorized CZTE for it being a qualified hazardous duty area.

https://www.irs.gov/uac/Combat-Zones

So, barring any new PEOs, the "Arabian Peninsula Areas, beginning Jan. 17, 1991 -- the Persian Gulf, Red Sea, Gulf of Oman, the part of the Arabian Sea north of 10° North latitude and west of 68° East longitude, the Gulf of Aden, and the countries of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates" will continue to provide CZTE status.

That is correct after checking my facts, it is the qualified hazardous duty areas (QHDA ) that would not get CZTE if IDP/HFP goes away. But there could be a difference in designating a CZ and authorizing CZ benefits.

This is an interesting read: https://militarypay.defense.gov/Portals/3/Documents/Reports/11th_QRMC_Supporting_Research_Papers_(932pp)_Linked.pdf

A few highlights I got out of it:

#1. "HFP/IDP cost the Department of Defense $789 million in 2009 while the cost to the Treasury for CZTE was $3.6 billion—approximately 4.5 times the cost of HFP/IDP.

#2. "An option for administering combat zone benefits more efficiently could be a distinction drawn between termination of the combat zone and termination of combat zone benefits. CZTE and combat zone benefits could be made contingent on the receipt of HFP/IDP in a manner similar to QHDAs. Since receipt of HFP/IDP is subject to the authority of the Secretary of Defense, the DoD could terminate CZTE benefits without actually terminating the combat zone. By not relying on the issuance of an Executive Order, the termination of combat zone benefits could be more timely and coincident with combat conditions. Once combat zone benefits are terminated, the process of terminating the combat zone should be easier to accomplish (7.A pg. 33).

After noting those two, don't discount seeing a PEO or congressional action to remove CZTE for those areas that are no longer imminent danger areas according to OSD. The Obama administration needs to find more revenue to help distribute the income. I think the OSD action is only the first step. Sucks but I think we'll see the CZs be changed, but let's hope I'm wrong.

Edited August 1, 2023 by Finance_Guy