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SUBJ/SURFACE WARFARE OFFICER LIEUTENANT COMMANDER RETENTION BONUS//
REF/A/DOC/ASN/20DEC22//
REF/B/DOC/U.S.C.//
REF/C/DOC/DOD/11JUL16//
REF/D/DOC/BUMED/27JUL16//
REF/E/DOC/DOD/MAY20//
NARR/REF A IS THE ASSISTANT SECRETARY OF THE NAVY (MANPOWER AND RESERVE
AFFAIRS) MEMORANDUM, SURFACE WARFARE OFFICER LIEUTENANT COMMANDER RETENTION
BONUS AUTHORIZATION.
REF B IS TITLE 37 U.S. CODE, PAY AND ALLOWANCES OF THE UNIFORMED SERVICES.
REF C IS THE DEPARTMENT OF DEFENSE INSTRUCTION 1304.34, GENERAL BONUS
AUTHORITY FOR OFFICERS.
REF D IS THE BUREAU OF MEDICINE AND SURGERY INSTRUCTION 1300.2B, SUITABILITY
SCREENING, MEDICAL ASSIGNMENT SCREENING, AND EXCEPTIONAL FAMILY MEMBER
PROGRAM IDENTIFICATION AND ENROLLMENT.
REF E IS THE DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT REGULATION 7000.14,
VOLUME 7A, CHAPTER 2, REPAYMENT OF UNEARNED PORTION OF BONUSES AND OTHER
BENEFITS.//
RMKS/1. This NAVADMIN announces the continuation of the Surface
Warfare Officer (SWO) Lieutenant Commander (LCDR) Retention Bonus
(LRB) for eligible SWOs.
2. Program Authority. In line with reference (a), the SWO LRB is
effective through 30 September 2025 unless otherwise rescinded or
superseded. This program is authorized in line with section 332 of
reference (b). All applications for the bonus contained within this
program will be submitted to the SWO Assignments Division (PERS-41)
for approval, payment processing, and tracking.
3. Program Overview. This NAVADMIN summarizes the provisions of
the SWO LRB. All information provided herein is applicable to both
Active Component (AC) SWO personnel and Training and Administration
of the Reserve (TAR) SWO personnel, except where otherwise noted.
The following general summary is provided:
a. SWOs promoted to LCDR will have the opportunity to commit to
the SWO LRB. The Navy will pay qualified officers for 3 years of
obligated service from their 12th year of commissioned service (YCS)
through the completion of their 15th YCS. LCDRs with at least 11
YCS, but not more than 12 YCS, are eligible for the SWO LRB. AC
SWOs will receive $22K on the second anniversary, $12K on the third
anniversary, and $12K on the fourth anniversary of their promotion
to LCDR. In line with references (a) and (b), TAR SWOs will receive
$12K on the second, third, and fourth anniversaries of their
promotion to LCDR.
b. References (b) and (c) limit career retention bonus amounts.
While officers may receive multiple retention bonuses under section
332 of reference (b) over a career, total bonus payments under this
authority may not exceed $300K for AC officers and $150K for TAR
officers.
4. Program Eligibility:
a. Must meet all four of the following requirements:
(1) Qualified and serving as an Active Duty SWO (designator
1110 or 1117).
(2) Permanently appointed LCDR.
(3) Have at least 11 YCS, but no more than 12 YCS.
(4) Completed two afloat department head tours or a single
longer tour in line with the department head sequencing plan as
assigned by PERS-41.
b. If assigned to an at-sea tour by PERS-41, eligible officers
must be sea duty assignable as defined by reference (d).
Additionally:
(1) An officer under contract assigned to an at-sea tour and
evaluated as no longer fit for sea duty by an appropriate medical
authority, following a period of temporary limited duty (TLD), will
have a stop payment placed on their account and receive no further
SWO LRB payments. However, an officer on TLD who is reasonably
expected by the assigned medical officer to make a full recovery and
be found fit for sea duty will continue to receive scheduled
payments. This determination will be completed by PERS-41 in line
with the appropriate medical authority's findings.
(2) An officer found unfit for continued naval service by an
appropriate medical authority will have a stop payment placed on
their account and receive no further SWO LRB payments.
(3) Should a previously ineligible officer later become fit
for sea duty, payments will resume at normal intervals for the
remainder of the anniversary payment(s). Retroactive pay is not
authorized for any bonus payments that were scheduled during the
period the officer was ineligible.
c. Career Intermission Program (CIP). An officer participating
in CIP will be ineligible to receive LRB payments during their time
in the program. Payments will resume upon return to service and in
line with the payment scheme.
d. An officer is not eligible to receive both the SWO
Department Head Retention Bonus and LRB concurrently.
5. Program Execution:
a. The SWO community manager is assigned as the program manager
and is delegated the authority to administer the SWO LRB program in
line with applicable laws, Department of Defense directives, and
this NAVADMIN.
b. PERS-41 receives applications submitted in the format
referenced in paragraph 7. PERS-41 is delegated the authority to:
(1) Evaluate the eligibility of SWOs applying for the SWO
LRB program.
(2) Approve SWO contracts to remain on Active Duty for the
stated period in exchange for a SWO LRB.
(3) Administer LRB payments.
c. All applications require written endorsement from their
commander, commanding officer (CO), or equivalent superior in
charge.
d. Officers under a LRB agreement are not eligible to apply for
the permanent military instructor (PMI) program, or any
redesignation programs resulting in a designator change to any
designator other than 1110 or 1117. An officer under a LRB
agreement may submit an application for PMI or any redesignation
programs once the date of application is within 12 months of the
final day of bonus obligation.
6. LRB Payment Structure:
a. Applications for LRB must be submitted between the 11th and
12th YCS. Approved applicants will receive payments on the second,
third, and fourth anniversary of their promotion to LCDR. For
example, an officer who elects not to apply (or is not eligible) for
LRB bonus before their second anniversary of promotion to LCDR, but
between their second and third-anniversary elects (or becomes
eligible) to apply, will receive a payment for their third
anniversary and will have forgone their second-anniversary payment
altogether. The same logic also applies to officers deemed
ineligible for the LRB bonus during one payment period, but who
subsequently become eligible during another period. The following
table describes the schedule:
LCDR promotion anniversary Payment
Second $22K for AC
$12K for TAR
Third $12K for AC and TAR
Fourth $12K for AC and TAR
b. In the case of officers who promote to LCDR below zone,
PERS-41 may alter the payment schedule to ensure high performing-
officers are eligible to receive the full bonus amount.
7. Application Process:
a. General Notes:
(1) Application format can be found on the PERS-41 page of
the Navy Personnel Command website at https://www.mynavyhr.navy.mil/Career-
Management/Detailing/Officer/Pers-41-SWO/Pay-Incentives/.
(2) Applications will be binding upon the date of approval
by PERS-41.
(3) Applications received in the incorrect format or not
meeting eligibility requirements defined in this NAVADMIN will be
rejected.
b. Officers must mail the signed original agreement and COs
endorsement to:
Commander, Navy Personnel Command (PERS-41)
PERS-411/SWO LRB
5720 Integrity Drive
Millington, TN 38055
c. Additionally, a copy of the signed original contract and COs
endorsement should be submitted by e-mail to the applicable
assignment officer and/or civilian assistant.
8. Recoupment and Repayment Policy. Repayment policy is governed
by section 373 of reference (b) and reference (e). A Service Member
of the uniformed services who enters into a written agreement with
specified service conditions for receipt of a bonus is entitled to
the full amount of the bonus if the Service Member fulfills the
conditions of the written agreement. If the Service Member fails to
fulfill the service conditions specified in the written agreement
for the pay, then the pay may be terminated and the Service Member
may be required to repay an amount equal to the unearned portion of
the pay. SWO LRB payments will be stopped for officers who become
ineligible for this incentive or fail to complete the full period of
additional obligated service.
a. For officers who die while serving under a SWO LRB service
agreement, the remaining SWO LRB balance will be paid as a lump sum
as part of the settlement of the final military pay account of the
officer. If death is determined to be the result of the misconduct
of the member, future payments will be stopped and unearned portions
of the bonus will be recouped, as applicable, in line with
procedures established for members whose inability to complete a
contracted period of service is voluntary or the result of
misconduct.
b. Recoupment exception to policy determinations will be made
by Director, Military Personnel Plans and Policy (OPNAV N13).
9. Additional guidance, information, and updates regarding the SWO
LRB are available at the MyNavy HR website,
https://www.mynavyhr.navy.mil/Career-Management/Detailing/Officer/Pers-41-
SWO/Pay-Incentives/.
10. Points of contact:
a. CDR Bralyn Cathey, Surfare Warfare Officer Assignments,
PERS-41, (901) 874-3504/DSN 882 or via e-mail at
bralyn.e.cathey.mil@us.navy.mil.
b. CDR Wil Fensterer, Surface Warfare Officer Community
Manager, BUPERS-311, (901) 874-3173/DSN 882 or via e-mail at
william.a.fensterer.mil@us.navy.mil.
c. CDR Mark MacNamara, TAR Community Manager, BUPERS-351,
(901) 874-4346/DSN 882 or via e-mail at mark.macnamara@navy.mil.
11. This NAVADMIN will remain in effect until superseded or canceled,
whichever occurs first.
12. Released by Vice Admiral Richard J. Cheeseman, Jr., N1.//
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