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Fact or Fiction: Military Money Matters
by Staff
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.

Many factors can increase military pay.

  • fact
  • fiction
  • almost fact: Base pay can change due to inflation, an act of Congress or a promotion.

There are 12 pay grades for enlisted members of the military.

  • fact
  • fiction
  • almost fact: There are 11 pay grades.

The military offers cost of living allowances for certain areas in the United States.

  • fact
  • fiction
  • almost fact: The military does offer cost of living allowances, but only to service members stationed overseas.

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.

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.

Most Navy personnel who serve aboard submarines are eligible for special pay.

  • fact
  • fiction
  • almost fact: Only Navy service members who are nuclear power officers are eligible.

Members of the U.S. military receive their pay once a month.

  • fact
  • fiction
  • almost fact: Service members are paid in six-month installments.

Under the SCRA, interest from credit services is capped at 6 percent for all deployed military personnel.

  • fact
  • fiction
  • almost fact: The SCRA caps the interest at 8 percent.

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.