AR 637-2 — Separation Pay (nondisability) And Levels Of Payment

AR 637-2 governs processing, eligibility, computation, recoupment, and payment of nondisability separation pay.

Search AR 637-2

  • Publication number: AR 637-2
  • Title: SEPARATION PAY (NONDISABILITY) AND LEVELS OF PAYMENT
  • Date: 08/18/2022
  • Proponent: G-1
  • Status: ACTIVE

View AR 637-2 on armypubs.army.mil


AR 637-2 establishes standards, policies, tasks, rules, and required actions for processing eligible regular and Reserve Component Soldiers. It addresses Ready Reserve service agreements, payment levels, eligibility limitations, appeals, and funding sources.

Topics covered

  • Nondisability separation pay
  • Eligibility criteria
  • Ready Reserve service agreements
  • Separation pay computation
  • Payment recoupment
  • Retired pay coordination
  • Disability compensation coordination
  • Separation pay appeals

Questions and answers

How long must a Soldier serve in the Ready Reserve to receive separation pay?

As a condition of receiving separation pay, Soldiers (regardless of component) that are otherwise eligible for the pay will sign a service agreement to serve a minimum of not less than 3 years in the RR of a RC immediately following the discharge or release from AD. (paragraph 3-5)

What happens if a qualified Soldier declines to join the Ready Reserve?

Qualified Soldiers who decline to enlist or be appointed in the RR will not be entitled to separation pay. (paragraph 3-5)

What form is used for the Ready Reserve service agreement?

Officials authorized to contract Soldiers into the RR will use DA Form 7783 as the Armys written service agreement. (paragraph 1-5)

What service requirement applies when a Soldier has an unfinished military service obligation?

If the Soldier has a military service obligation under any provision of law that is not completed at the time the Soldier is separated, the minimum 3year obligation will begin on the day after the day on which the Soldier completes that military service obligation. (paragraph 3-5)

Is a sole survivorship discharge exempt from the Ready Reserve service requirement?

A Soldier who receives a sole survivorship discharge is exempt from the requirement to complete the service agreement and service in a RR. (paragraph 3-5)

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