SURFACE WARFARE OFFICER DEPARTMENT HEAD RETENTION BONUS:
CLASSIFICATION: UNCLASSIFIED// ROUTINE R 162146Z FEB 23 MID200080744692U FM CNO WASHINGTON DC TO NAVADMIN INFO CNO WASHINGTON DC BT UNCLAS NAVADMIN 046/23 PASS TO OFFICE CODES: FM CNO WASHINGTON DC//N1// INFO CNO WASHINGTON DC//N1// MSGID/GENADMIN/CNO WASHINGTON DC/N1/FEB// SUBJ/SURFACE WARFARE OFFICER DEPARTMENT HEAD 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 ASSISTANT SECRETARY OF THE NAVY (MANPOWER AND RESERVE AFFAIRS) MEMORANDUM, SURFACE WARFARE OFFICER DEPARTMENT HEAD RETENTION BONUS AUTHORIZATION. REF B IS TITLE 37 U.S. CODE, PAY AND ALLOWANCES OF THE UNIFORMED SERVICES. REF C IS DEPARTMENT OF DEFENSE INSTRUCTION 1304.34, GENERAL BONUS AUTHORITY FOR OFFICERS. REF D IS BUREAU OF MEDICINE AND SURGERY INSTRUCTION 1300.2B, SUITABILITY SCREENING, MEDICAL ASSIGNMENT SCREENING, AND EXCEPTIONAL FAMILY MEMBER PROGRAM IDENTIFICATION AND ENROLLMENT. REF E IS 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) Department Head Retention Bonus (DHRB) for eligible SWOs. 2. Program Authority. In line with reference (a), the SWO DHRB is effective through 30 September 2025 unless rescinded or superseded. This program is authorized under section 332 of reference (b). All applications for the bonuses contained within this program will be submitted to the SWO Assignments Division (PERS-41) for approval, payment processing, and tracking. 3. Program Overview. This message summarizes the provisions of the SWO DHRB. 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. Year group 2012 and junior are eligible for the DHRB program. b. Early selection at the SWO department head (DH) screening board will be rewarded with potentially larger compensation. c. SWO lieutenant junior grades will have the opportunity to commit to DHRB as early as their 3rd year of commissioned service (YCS-3) anniversary date if screened on their first look for DH. The service obligation incurred by DHRB will begin no earlier than the officer's minimum service requirement. d. 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) Completed at least one division officer tour or be assigned to a fleet-up or single longer tour billet as approved by PERS-41. (3) Administratively screened for DH afloat by the surface DH screening board. (4) Agree to complete two afloat DH tours or a single longer DH tour as assigned by PERS-41, or complete commissioned service through YCS-10, whichever is later. b. Eligible officers must be sea duty assignable as defined by reference (d). Additionally: (1) An officer under contract evaluated as no longer fit for sea duty by an appropriate medical authority and placed on temporary limited duty will have a stop payment placed on their account and receive no further SWO DHRB payments. (2) Should a previously ineligible officer later become fit for sea duty, PERS-41, in line with the appropriate medical authority's findings, will determine if retroactive pay is authorized and resume payments at normal intervals for the remainder of the contract relative to the current YCS. (3) 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 DHRB payments. c. Operational deferment for medical reasons. An officer in an operational deferment status for medical reasons will remain eligible to receive DHRB payments. d. Career Intermission Program (CIP). An officer participating in CIP will be ineligible to receive DHRB payments during the intermission period. Scheduled payments will resume upon return to service and in line with the payment scheme. 5. Program Execution: a. The annual SWO DH screening board will determine eligibility by the selection of proven performers and conduct a performance validation of officers already receiving DHRB payments. b. The SWO community manager is assigned as the program manager and is delegated the authority to administer the SWO DHRB program in line with applicable laws, Department of Defense directives, and this NAVADMIN. c. PERS-41 receives applications submitted in the format referenced in paragraph 7. PERS-41 is delegated the authority to: (1) Evaluate the eligibility of officers applying for the SWO DHRB program. (2) Approve SWO contracts to remain on Active Duty for the stated period in exchange for a SWO DHRB. (3) Administer DHRB payments. d. All applications require written endorsement from the applicant's commander or commanding officer (CO). e. Officers selected for DH must submit a contract prior to the designated time in paragraph 6.a. to receive maximum compensation. f. Submissions after YCS-9 will not be accepted or approved unless the delays were caused by factors outside the officer's control. In those cases, the application submission must include a CO's endorsement explaining the cause of the delay and why the situation was beyond the officer's control. In all cases, a final determination will be on a case-by-case basis and approved by PERS-41. g. Officers approved for a DHRB will receive anniversary payments on their YCS anniversary date in line with the payment structure. h. Officers under a DHRB 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 DHRB agreement may submit an application for PMI or any redesignation program once the date of application is within 12 months of the final day of bonus obligation. 6. DHRB Payment Structure: a. Total compensation is reduced if the DHRB contract is not signed prior to YCS-6 for first-look screeners, YCS-7 for second- look screeners, and YCS-8 for third-look screeners. b. SWO AC officers (1110) screened for DH on their first look will receive the DHRB in line with the following payment structure ($105K maximum) if signed between YCS-3 and YCS-8: YCS payment installments YCS-4 YCS-5 YCS-6 YCS-7 YCS-8 YCS-4 $20K YCS-5 $10K $10K YCS-6 $15K $25K $25K YCS-7 $15K $25K $25K $25K YCS-8 $15K $15K $25K $25K $25K YCS-9 $15K $15K $15K $25K $25K YCS-10 $15K $15K $15K $25K $25K Total $105K $105K $105K $100K $75K c. SWO AC officers (1110) screened for DH on their second look will receive the DHRB in line with the following payment structure ($95K maximum) if signed between YCS-4 and YCS-8. YCS payment installments YCS-4 YCS-5 YCS-6 YCS-7 YCS-8 YCS-4 $10K YCS-5 $10K $10K YCS-6 $15K $25K $25K YCS-7 $15K $15K $25K $20K YCS-8 $15K $15K $15K $25K $25K YCS-9 $15K $15K $15K $25K $25K YCS-10 $15K $15K $15K $25K $25K Total $95K $95K $95K $95K $75K d. SWO AC officers (1110) screened for DH on their third look will receive the DHRB in line with the following payment structure ($75K maximum) if signed between YCS-5 and YCS-8: YCS payment installments YCS-6 YCS-7 YCS-8 YCS-6 $15K YCS-7 $15K $15K YCS-8 $15K $20K $25K YCS-9 $15K $20K $25K YCS-10 $15K $20K $25K Total $75K $75K $75K e. In line with references (a) through (c), RC officers may only receive a maximum of $12K per year in bonuses, and only during the time of obligated service (beginning with YCS-6). SWO TAR officers (1117) screened for DH will receive the DHRB in line with the following payment structure ($60K maximum): (a) $12K on the YCS-6 anniversary; (b) $12K on the YCS-7 anniversary; (c) $12K on the YCS-8 anniversary; (d) $12K on the YCS-9 anniversary; (e) $12K on the YCS-10 anniversary. f. Officers enrolled in the revised junior critical skills retention bonus and legacy SWO continuation pay program will remain in those programs until all payments are completed. 7. Application Process: a. General Notes: (1) Application format can be found on the PERS-41 page of the NPC 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 returned. b. Officers must mail the signed original agreement and COs endorsement to: Commander, Navy Personnel Command (PERS-41) PERS-412/SWO DHRB 5720 Integrity Drive Millington, TN 38055 c. Additionally, a copy of the signed original contract and CO's endorsement should be submitted by e-mail to the applicable assignment officer 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 member fulfills the conditions of the written agreement. If the 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 DHRB payments will be stopped for officers who become ineligible for this incentive or fail to complete the full period of additional obligated service. a. Officers who fail to complete DH school or fail to report to their first DH tour are subject to recoupment of all payments received to date in line with reference (e). b. Officers processed for detachment for cause (DFC) during either DH tour will have a stop payment placed on their account. If the DFC is approved, recoupment will be calculated to begin on the date of DFC acknowledgment included in the DFC package. If the DFC is overturned, the stop payment will be cleared after final adjudication is received by PERS-41 and the officer will continue to receive future scheduled payments. Retroactive pay for any missed payments will be considered on a case-by-case basis in line with references (c) and (e). c. For officers who die while serving under a SWO DHRB service agreement, the remaining SWO DHRB 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. d. 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 DHRB 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. Ms. Robbie Richard, PERS-41, (901) 874-3913/DSN 882 or via e- mail at roberta.j.richard.civ@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.// BT #0001 NNNN CLASSIFICATION: UNCLASSIFIED//