CLASSIFICATION: UNCLASSIFIED// ROUTINE R 162130Z FEB 23 MID200080744645U FM CNO WASHINGTON DC TO NAVADMIN INFO CNO WASHINGTON DC BT UNCLAS NAVADMIN 045/23 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 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 In line with reference (a), the SWO LRB is effective through 30 September 2025 unless otherwise rescinded or superseded.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(at)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(at)us.navy.mil. c. CDR Mark MacNamara, TAR Community Manager, BUPERS-351, (901) 874-4346/DSN 882 or via e-mail at mark.macnamara(at)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//