UNCLASSIFIED ROUTINE R 151652Z SEP 16 FM CNO WASHINGTON DC TO NAVADMIN INFO CNO WASHINGTON DC BT UNCLAS PASS TO OFFICE CODES: FM CNO WASHINGTON DC//N1// INFO CNO WASHINGTON DC//N1// 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.// BT #0001 NNNN UNCLASSIFIED//