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Additional qualifying military separation reason for ex-servicemember benefits

Summary ETA added Force Shaping–Voluntary Separation Payment to the list of military separation reasons accepted for certain Unemployment Compensation for Ex-servicemembers claims when the person had not completed a first full service term. The letter explains that associated payments generally should not affect UCX eligibility unless state law says otherwise. UIPL 25-08 later rescinded this change.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 03-95, Change 4
Date issued
April 10, 2007
Status
Rescinded
UIPL 25-08 expressly rescinded UIPL 3-95, Changes 1–4 and replaced their separation-reason list. ETA also lists this change Canceled as of 2026-10-24.
Status last verified October 26, 2026

Is this still the rule?

This document has been rescinded. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.

This document has been rescinded
UIPL 25-08 expressly rescinded UIPL 3-95, Changes 1–4 and replaced their separation-reason list. ETA also lists this change Canceled as of 2026-10-24. It no longer reflects the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
UIPL03-95_Ch4_Acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/UIPL03-95_Ch4_Acc.pdf)

                                                              CLASSIFICATION

                U. S. Department of Labor                     Unemployment Insurance
   Employment and Training Administration Advisory System     CORRESPONDENCE SYMBOL
                  Washington, D.C. 20210                      OWS/Division Symbol
                                                              DATE
                                                              April 10, 2007

ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 03-95,
                   CHANGE 4

TO:                STATE WORKFORCE AGENCIES

FROM:              EMILY STOVER DeROCCO /s/
                   Assistant Secretary

SUBJECT:           Acceptable Narrative Reasons for Separation for the Unemployment
                   Compensation for Ex-service members (UCX) Program

1. Purpose. To amend the consolidated list of "acceptable" narrative reasons for separation
   transmitted in Unemployment Insurance Program Letter (UIPL) No. 3-95 and UIPL No. 3-
   95, Changes 1, 2, and 3 to include Force Shaping-Voluntary Separation Payment (VSP) as an
   acceptable narrative reason for separation.

2. References. ET Handbook 384; UIPL No. 3-95, Changes 1, 2, and 3; 5 U.S.C. 8521; 20 CFR
   Part 614; and 10 U.S.C. 1175 (a).

3. Background. Since the issuance of UIPL No. 3-95 on December 6, 1994, several changes
   have been made to the list of acceptable narrative reasons for separation used by State
   Workforce Agencies (SWAs) in the UCX eligibility determination process (refer to UIPL
   No. 3-95, changes 1, 2, and 3). The list of acceptable narrative reasons is only used for ex-
   service members who did not complete their first full term of service. Effective
   October 1, 2006, upon receipt of information from the Department of Defense concerning
   Force Shaping-VSP, an addition was made by the U.S. Department of Labor to the list of
   UCX acceptable narrative reasons for separation.

4. New Acceptable Narrative Reason. The new acceptable narrative reason is Force Shaping—
   VSP. This narrative reason is used solely for officers discharged from military service for
   the convenience of the government under an early release program. This new acceptable
   narrative reason was created because some former military officers believed the narrative
   reason of “reduction in force” had a negative influence on potential employers. This new
   reason is another way of stating the discharge was due to a “reduction in force.”

   Some of the discharged officers may receive a VSP after discharge. The VSP program is
   authorized by Title 10, U.S.C. section 1175a. A VSP may also be listed as Separation Pay
   Incentive or as Voluntary Separation Incentive on the service member’s DD-214 form.




 RESCISSIONS                                                         EXPIRATION DATE
 None                                                                April 10, 2008



   These forms of payments are considered to be bonuses by the Department of Defense and
   generally should not affect eligibility to receive UCX benefits unless state law dictates
   otherwise. SWAs must use the new acceptable narrative reason, when appropriate, in
   making UCX eligibility determinations.

5. Action Required. SWAs are requested to distribute this directive and the attachment to
   appropriate staff members.

6. Inquiries. Direct inquiries to the appropriate Regional Office.

7. Attachment. Revised List of Acceptable Narrative Reasons for Separation Meeting the
   Requirements of 5 U.S.C. 8521 (a) (1) (B) (ii) (I)-(IV)

UIPL03-95_Ch4_Att1.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/UIPL03-95_Ch4_Att1.pdf)

                                                                           Attachment to UIPL No. 03-95, Change 4


ACCEPTABLE NARRATIVE REASONS FOR SEPARATION FOR UCX PURPOSES


The following are "Acceptable" Narrative Reasons for Separation Meeting the Requirements of 5 U.S.C.
8521(a)(1)(B)(ii)(I)-(IV). The categories of acceptable reasons are underlined; specific reasons are listed
below each category.


For the convenience of the government under an early release program (5 U.S.C. 8521(a)(1)(B)(ii)(I))


Medal of Honor Recipient
Completion of Required Active Service
Insufficient Retainability (Economic Reasons)
Reduction in Force
Force Shaping-VSP (new)
To Attend School
Holiday Early Release Program
Defective Enlistment Agreement
Erroneous Entry (Other)
Intradepartmental Transfer
Miscellaneous/General Reasons. Note: This pertains only to Army Lieutenants' separations under the
Army National Guard Combat Reform Initiative (ANGCRI) program occurring May 1, 1998 through
September 30, 1998 and May 1, 1999 through September 30, 1999, and every year thereafter for the May 1
through September 30 period. Also requires "Orders to Report" and "Orders of Release" or "Orders to
Report" containing an endorsement of release to be presented to the SWA indicating the servicemember
was discharged under the ANGCRI program.


Because of medical disqualification, pregnancy, parenthood, or Service-incurred injury or disability (5
U.S.C. 8521(a)(1)(B)(ii)(II))


Pregnancy or Childbirth
Parenthood or Custody of Minor Children
Conditions, not Disability
Disability, Severance Pay
Disability, Permanent
Disability, Temporary
Disability, Existed Prior to Service, PEB
Disability, Existed Prior to Service, Med BD
Disability, Aggravated
Disability, Other
Because of hardship (5 U.S.C. 8521(a)(1)(B)(ii)(III))




Surviving Member
Hardship


Because of personality disorders or inaptitude, but only if the service was continuous for 365 days or more
(5 U.S.C. 8521(a)(1)(B)(ii)(IV))


Personality Disorder


The following are narrative reasons for separation that USDOL has determined constitute "inaptitude"
within the meaning of 5 U.S.C. 8521(a)(1)(B)(ii)(IV)


Conscientious Objector
Weight Control Failure
Ecclesiastical Endorsement
Secretarial Authority
Physical Standard
Erroneous Entry, Alcohol Abuse
Erroneous Entry, Drug Abuse
Non-selection, Permanent Promotion
Non-selection, Temporary Promotion
Failure to Complete a Commission or Warrant Program
Failure to Complete a Course of Instruction
Unsatisfactory Performance
Substandard Performance
Personal Alcohol Abuse
Alcohol Rehabilitation Failure
Drug Rehabilitation Failure
Military Personnel Security Program
Homosexual Admission
Homosexual Act
Non-retention on Active Duty

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