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MSGID/GENADMIN/CNO WASHINGTON DC/N1/DEC//
SUBJ/SURFACE WARFARE OFFICER LIEUTENANT COMMANDER RETENTION BONUS//
REF/A/DOC/ASN/26SEP2024//
REF/B/DOC/U.S.C.//
REF/C/DOC/DOD/11JUL16//
REF/D/DOC/BUMED/27JUL16//
REF/E/DOC/DOD/FEB24//
NARR/REF A IS ASSISTANT SECRETARY OF THE NAVY (MANPOWER AND RESERVE
AFFAIRS) 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 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 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 renewal and modification of the Surface
Warfare Officer (SWO) Lieutenant Commander (LCDR) Retention Bonus (LRB) for
eligible SWOs.
2. Program Authority. This program is authorized under section 332, Title
37 U.S. Code. In line with reference (a), the SWO LRB is effective through
30 September 2027 unless otherwise rescinded or superseded. All applications
for the bonuses contained within this program will be submitted to the Navy
Personnel Command SWO Assignments (PERS-41) for approval, payment processing,
and tracking.
3. Program Overview. This message summarizes the provisions of the SWO LRB.
All information provided herein is applicable to both Active Component (AC)
and Training and Administration of the Reserves (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 the completion of the 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 a $22K bonus on the anniversaries of their
12th, 13th, and 14th YCS. In line with references (a) and (b), TAR SWOs will
receive $12K on the anniversaries of their 12th, 13th, and 14th YCS.
b. Officers currently under SWO LRB contract are not eligible for the
new payment structure and renegotiation of the current SWO LRB contracts.
c. 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 (designators
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 (DH) tours, a single longer
tour, or be within 12 months of periodic rotation date for late DH options on
the flexible career path according to the DH 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 and 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 the intermission period.
Scheduled payments will resume upon return to service and in line with the
payment structure.
d. Operational Deferment. An officer in an operational deferment status
will remain eligible to receive LRB payments.
e. An officer is not eligible to receive both the SWO Department Head
Retention Bonus (DHRB) and LRB concurrently.
f. Bonuses will be paid in line with the payment structure in paragraph
6.
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 according to
applicable laws, Department of Defense directives/instructions 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 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 the applicant's
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
that result in a change to any designator other than 1110 or 1117. An
officer under a LRB 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. LRB Payment Structure
a. Applications for LRB must be submitted between the 11th and 12th YCS.
Approved applicants will receive payments on the anniversary of their 12th,
13th, and 14th YCS. In the case of SWO LCDRs approved for the late DH career
path who complete their SWO DHRB obligated service after the completion of 12
YCS, the 3 years of obligated service for the SWO LRB may begin immediately
after the completion of SWO DHRB obligated service. For example, officers
who elect for a late DH tour start would normally conclude their DHRB
obligated service at 12 YCS and would be eligible to apply for LRB bonus in
line with the prescribed application window described in paragraph 4.a(3).
If approved, those officers will still receive LRB bonuses in line with the
pay schedule.
b. SWO AC officers (1110) will receive the LRB in line with the following
payment structure ($66K maximum):
(1) $22K on the YCS-12 anniversary;
(2) $22K on the YCS-13 anniversary;
(3) $22K on the YCS-14 anniversary;
c. In line with reference (a) through (c), TAR officers may only receive
a maximum of $12K per year in bonuses. SWO TAR officers
(1117) will receive the LRB in line with the following payment structure
($36K maximum):
(1) $12K on the YCS-12 anniversary;
(2) $12K on the YCS-13 anniversary;
(3) $12K on the YCS-14 anniversary;
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 rejected.
b. Officers must submit a copy of the signed original contract and CO's
endorsement 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 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 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 Division (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. LCDR Aaron A. Jochimsen, PERS-411B, (901)874-3373/DSN 882 or
aaron.a.jochimsen.mil@us.navy.mil.
b. CDR Eric Winn, SWO community manager, BUPERS-311, (901)874- 3173/DSN
882 or eric.winn2.mil@us.navy.mil.
c. CDR Kirk Morris, TAR community manager, BUPERS-351, (901)874-4346/DSN
882 or kirk.n.morris.mil@us.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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