What is Army Regulation AR 637-2?
Army Regulation AR 637-2 is a regulation that provides guidance on separation pay for non-disability separations from the United States Army.

Who is eligible for separation pay under AR 637-2?
Soldiers who have completed at least six years of service and are involuntarily separated or discharged from the Army due to specified reasons may be eligible for separation pay.

What are the specified reasons for eligibility under AR 637-2?
Specified reasons for eligibility include separation due to force reductions, selected involuntary separations, and certain voluntary separations based on the needs of the Army.

How is separation pay calculated under AR 637-2?
Separation pay is calculated based on 10 percent of the product of the years and months of active service multiplied by the basic pay rate in effect at the time of separation.

Is separation pay taxable?
Yes, separation pay is subject to federal and state taxes.

Are there any limitations on the maximum amount of separation pay under AR 637-2?
Yes, the maximum amount of separation pay cannot exceed 10 years of basic pay.

Can a Soldier receive separation pay if they are voluntarily discharged?
Yes, Soldiers who are voluntarily discharged to serve as a commissioned officer can receive separation pay, provided they meet the eligibility criteria outlined in AR 637-2.

Will separation pay affect the Soldier's entitlement to other benefits?
No, separation pay does not affect a Soldier's entitlement to other benefits, such as retirement benefits or veterans' benefits.

How is separation pay disbursed?
Separation pay is typically paid in a lump sum directly to the Soldier upon separation.