SURFACE WARFARE OFFICER DEPARTMENT HEAD RETENTION BONUS

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NAVADMIN 206/16

MSGID/GENADMIN/CNO WASHINGTON DC/N1/SEP//

SUBJ/SURFACE WARFARE OFFICER DEPARTMENT HEAD RETENTION BONUS//



REF/A/DOC/U.S.C./3JAN12//
REF/B/DOC/DOD/11JUL16//
REF/C/DOC/ASN M&RA/13SEP16//
REF/D/DOC/DOD/JUL14//
NARR/ REF A IS TITLE 37, U.S. CODE, PAY AND ALLOWANCES OF THE UNIFORMED 
SERVICES.  REF B IS DEPARTMENT OF DEFENSE INSTRUCTION 1304.34, GENERAL BONUS 
AUTHORITY FOR OFFICERS.  REF C IS ASSISTANT SECRETARY OF THE NAVY (ASN) 
SURFACE WARFARE DEPARTMENT HEAD RETENTION BONUS AUTHORIZATION.  REF D 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 Surface Warfare Officer Department Head 
Retention Bonus (SWO DHRB) for eligible SWOs. Retaining quality SWOs and 
rewarding exceptional performance are top priorities for the Navy.

2.  Program Authority.  This program is authorized under section 332 of 
reference (a).  All applications for the bonuses contained within this 
program will be submitted to the Surface Warfare Officer Assignments (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) personnel and full time support (FTS) reserve component (RC) SWO 
personnel, except where otherwise noted.  The following general summary is 
provided:
    a.  Year group (YG)-12 and junior will be eligible for the full DHRB 
program.
    b.  Early selection at the SWO department head (DH) screen board will be 
rewarded with potentially larger compensation.
    c.  SWO lieutenant junior grades will have the opportunity to commit to a 
DHRB as early as their years of commissioned service (YCS)-3 anniversary 
date.  Service obligation incurred by the DHRB will begin no earlier than the 
officers minimum service requirement.
    d.  Reference (a) and reference (b) limit career retention bonus payments 
to $300K for AC and FTS officers.
    e.  In accordance with reference (b), officers in YG-11 and senior who 
are under contract prior to the release of this NAVADMIN will remain under 
the legacy Revised Junior Critical Skill Retention Bonus (RJCSRB) construct.  
Any officer in YG-11 and senior entering into a contract after the release of 
this NAVADMIN will do so under the DHRB construct.  Officers in YG-11 and 
senior can receive a maximum of $75K, and are not eligible for DHRB incentive 
payments.

4.  Program Eligibility
    a.  Must meet all four of the following requirements:
        (1) Qualified and serving as an active-duty SWO (designator 
1110/1117).
        (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.
    b.  Sea duty assignable as defined by BUMEDINST 1300.2. Additionally:
        (1) An officer under contract and evaluated as no longer fit for sea 
duty by a medical evaluation board, convened by the medical treatment 
facility following a period of temporary limited duty (TLD), will have a Stop 
Payment placed on their account and receive no further SWO DHRB 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 after the Navy physical evaluation board (PEB) has convened.
        (2) An officer found unfit for continued naval service by a
Navy PEB will have a Stop Payment placed on their account and receive no 
further SWO DHRB payments.
        (3) Should a previously ineligible officer later become fit for sea 
duty, payments will resume at normal intervals for the remainder of the 
contract relative to current YCS.  Retroactive pay is not authorized for any 
bonus payments that were scheduled during the period the officer was 
ineligible.
    c.  Operational deferment for medical reasons.  An officer in an 
operational deferment status for medical reasons will remain eligible to 
receive DHRB payments while in an operational deferment status as long as it 
does not coincide with an operational milestone per the SWO career path, or 
delay the first DH tour report date past the YCS-8 mark.  After the YCS-8 
anniversary, an officer disqualified from sea duty is ineligible to receive 
any further DHRB payments until a competent authority (medical or otherwise) 
clears the individual to return to sea duty.  In those cases, official 
notification must be submitted to PERS-41 clearing the individual to return 
to sea duty.  PERS-41 has final approval to restore bonus eligibility.
    d. Career Intermission Program (CIP).  An officer participating in CIP 
will be ineligible to receive DHRB payments during the intermission period.  
Payments will resume upon return to service and IAW the payment scheme.

5.  Program Execution
    a.  The annual SWO DH screen 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 per applicable 
Laws, DoD Directives/Instructions, and this NAVADMIN.
    c.  PERS-41 receives applications submitted in the format referenced in 
paragraph 8 and is delegated the authority to:
        (1) Evaluate eligibility of SWO applying for 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 applicants 
commander or commanding officer.
    e.  Officers selected for DH must submit a contract prior to the 
convening of the next DH screen board in order to receive maximum 
compensation.  For example:  An officer selected for DH on their first look 
must submit a contract prior to the start of the next DH board to potentially 
receive the maximum $105K.  Failure to submit a contract prior to the next DH 
screen board will forfeit the first payment.
    f.  Submissions after the no later than date will not be accepted or 
approved unless the delays were caused by factors outside the officers 
control.  In those cases, the application submission must include a COs 
endorsement explaining the cause of the delay and why the situation was 
beyond the officers control.  In all cases, 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 dates in accordance with the payment structure.
h.  Officers under a DHRB agreement are not eligible to apply for the Junior 
Permanent Military Professor (JPMP) program, or any redesignation programs 
that result in a designator change to any designator other than 1110/1117.  
An officer under a DHRB agreement may submit an application for JPMP or any 
redesignation programs once the date of application is within 12 months of 
the final day of bonus obligation.
    i.  Targets
        (1) Starting with YG-12, program target is 290 officers under 
obligation in each year group.
        (2) Contracts from officers will be received and processed on a 
first-come, first-served basis.
        (3) Once the 290 officer target is met in a year group, community 
leadership approval is required to exceed the target.
    j.  Officers who fail to complete DH school and/or fail to report to 
their first DH tour will have all payments received recouped as unearned.

6.  Payment Structure.  As specified in reference (a) and reference (b), at 
no time can a member receive more than $300K for AC and RC/FTS officers in 
bonus payments over a career. FTS (1117) officers will retain bonus 
eligibility throughout their career in order to meet fleet requirements but 
will not receive more than the $300K statutory career cap.
    a.  DHRB
        (1) SWO (1110) officers in YG-12 and junior screened for DH on their 
first look may receive the DHRB in accordance with the following payment 
structure ($105K maximum).  YG-12 Officers see subsection (6) for application 
submission timing.
            (a) $10K after the YCS-3 anniversary, but prior to the convening 
of the next DH screening board at YCS-4;
            (b) $10K after the YCS-4 anniversary and contingent upon 
continued DH eligibility, but prior to the convening of the next DH screening 
board at YCS-5;
            (c) $10K after the YCS-5 anniversary and contingent upon 
continued DH eligibility.  Only officers who committed prior to their third 
DH Look will be eligible for the 3rd incentive payment;
            (d) $15K on the YCS-6 anniversary;
            (e) $15K on the YCS-7 anniversary;
            (f) $15K on the YCS-8 anniversary;
            (g) $15K on the YCS-9 anniversary;
            (h) $15K on the YCS-10 anniversary.
        (2) SWO (1110) officers in YG-12 and junior screened for
Department Head on their second look may receive the DHRB in accordance with 
the following payment structure ($95K maximum):
            (a) $10K after the YCS-4 anniversary, but prior to the convening 
of the next DH screening board at YCS 5;
            (b) $10K after the YCS-5 anniversary and contingent upon 
continued DH eligibility.  Only officers who committed prior to their third 
DH Look will be eligible for the 3rd incentive payment;
            (c) $15K on the YCS-6 anniversary;
            (d) $15K on the YCS-7 anniversary;
            (e) $15K on the YCS-8 anniversary;
            (f) $15K on the YCS-9 anniversary;
            (g) $15K on the YCS-10 anniversary.
        (3) SWO (1110) officers in YG-12 and junior screened for DH on their 
third look may receive the DHRB in accordance with the following payment 
structure ($75K maximum):
            (a) $15K after the YCS-5 anniversary, but prior to the YCS-6 
anniversary;
            (d) $15K on the YCS-7 anniversary;
            (e) $15K on the YCS-8 anniversary;
            (f) $15K on the YCS-9 anniversary;
            (g) $15K on the YCS-10 anniversary.
        (4) FTS SWO (1117) officers:  In accordance with reference (a), 
reserve component officers may only receive a maximum of $12K per year in 
bonuses, and only during the time of obligated service (beginning with 
YCS-6).  FTS SWO officers in YG-12 and junior screened for DH may receive the 
DHRB in accordance with the following payment structure ($60K maximum):
            (a) $12K after the YCS-5 anniversary, but prior to the YCS-6 
anniversary;
            (d) $12K on the YCS-7 anniversary;
            (e) $12K on the YCS-8 anniversary;
            (f) $12K on the YCS-9 anniversary;
            (g) $12K on the YCS-10 anniversary.
        (5) The three incentive payments are rewards for proven performance, 
early DH selection, and to encourage officers to commit to the DHRB earlier 
in their career.  Total compensation is reduced if the contract is not 
received prior to the next SWO DH screen board.  The incentive payments 
encourage officers to sign up before their 4th YCS date to receive the 
maximum amount of $105K before their 11th YCS date.
        (6)  YG-12 officers who screened for DH on their first look (FY-16 DH 
board) have until 30 Nov 2016 to submit DHRB contracts to their detailers in 
order to receive the first incentive payment and the maximum $105K bonus.  
YG-12 officers that submit contracts will receive both payments upon receipt 
by PERS-41.  Officers submitting contracts after 30 Nov 2016 are still 
eligible for the 2nd and 3rd incentive payments ($95K total) until the 
convening of the FY-18 DH
Board in June 2017.
        (7) In accordance with reference (b), officers who sign DHRB after 
YCS-6, but before YCS-8, are eligible for pro-rated bonus payments on a month 
by month basis.
        (8) In exceptional cases, the community may offer a three year 
contract at $15K annually to officers who are off nominal career timing but 
are willing to serve a three year at sea DH tour. The officer must complete 
the contract prior to the officer completing 11 years of commissioned 
service.
        (9) Obligated service resulting from the DHRB will extend through the 
YCS-11 anniversary.  In cases, where completion of two DH tours (or one 
fleet-up DH tour as assigned by PERS-41) extends beyond YCS-11, the officer 
may not be released until their projected rotation date.

7.  Transition to the SWO DHRB program.  The program will transition to the 
revised/new guidance as follows:
    a.  The DHRB modification is primarily targeted at officers in YG-12 and 
junior.  Officers in YG-11 and senior, not under contract, may still request 
DHRB contracts as detailed above.
    b.  All officers currently enrolled in revised junior CSRB and the legacy 
SWO Continuation Pay program will remain in that program until all payments 
have been completed.
    c.  Due to the multiple legacy bonus programs and the $12K FTS year bonus 
cap, FTS officers should contact their detailer and/or the Surface Warfare 
Officer Community Manager before submitting any DHRB program request.  The 
length of each FTS DHRB agreement will be based on the individual officers 
remaining eligibility.

8.  Application Process
    a.  Officers must mail the assigned original agreement and COs 
endorsement to:
        Commander, Navy Personnel Command (PERS 41)
        5720 Integrity Drive
        Millington, TN 38055
    b.  Additionally, a copy of the signed original contract and COs 
endorsement should be submitted by email to the applicable assignment officer 
and/or civilian assistant.
    c.  General Notes.
        (1) Application format can be found on the PERS-41 page of the NPC 
website:  http://www.public.navy.mil/bupers-
npc/officer/Detailing/surfacewarfare/pay/Pages/default.aspx
        (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.

9.  Recoupment and Repayment Policy.  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.  Situations requiring recoupment 
are in accordance with reference (a) section 373, references (b) and (d).  In 
most cases, contract termination prior to the successful completion of SWO DH 
School will result in the recoupment of all payments received to date.

10.  Additional guidance, information, and updates regarding the SWO DHRB are 
available at the BUPERS Website.

11.  Point of Contact:
    a.  Address all applications questions to the following points of 
contact:  for DHRB applications, contact Mrs. Beverly Heathman at (901)874-
3913/DSN 882-3913 or via e-mail at beverly.heathman@navy.mil.
    b.  LCDR Kevin Hagan, Surface Warfare Officer Community Manager, BUPERS-
311, at (901)874-3173/DSN 882 or via e-mail at kevin.r.hagan2(at)navy.mil.
    c.  FTS Head Placement Officer, PERS-46 at (901)874-3978/DSN 882.

12.  Released by Vice Admiral R. P. Burke, N1.//

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