united states coast guard

ALCOAST COMMANDANT NOTICE                                             CANCEL DATE 29 AUG 2019

R 300943 AUG 18
UNCLAS //N07220//
ACN 089/18
A. Title 37 U.S. Code – Pay and Allowances of the Uniformed Services
B. Aviation Incentive Pay (AvIP) and Bonus (AvB) Program, COMDTINST 7220.20 (series)
C. Title 10 U.S. Code – Armed Forces.
D. Coast Guard Pay Manual, COMDTINST M7220.29 (series)
E. Military Bonus Programs, COMDTINST M7220.2 (series)
    A. This ACN announces preliminary results of the Officer Workforce Planning Team (OWPT).
The OWPT convened from 14-15 June 2018 to deliberate and recommend workforce policy interventions
to the Assistant Commandant for Human Resources (CG-1). The OWPT reviewed all program input and
identified critical officer specialties that will require varied strategies in the future
recruitment and present retention of highly skilled officers that greatly affect all mission
execution areas. Deliberations considered factors from a broad spectrum of organizational needs.
Both monetary and non-monetary policy interventions were and continue to be reviewed.
    B. This SITREP introduces two interventions recommended by the OWPT that are necessary to
support Coast Guard missions and maintain aviation workforce readiness.
        (1) Rate increases to Aviation Incentive Pay (AvIP), formerly Aviation Career Incentive Pay
(ACIP), which will go into effect on 01 OCT 2018.
        (2) The CY2019 Aviation Bonus (AvB) Program, rates and criteria as authorized under Section
334 of REF (A). Previously called Aviation Career Continuation Pay (ACCP), the CY19 AvB targets
retention of Fixed Wing and Rotary Wing aircraft commanders with critical skill sets.
    A. AvIP is a special pay for the regular and frequent performance of operational or proficiency
flying duty authorized under Section 334 of REF (A) and intended to attract and retain officers in
a military aviation career.
    B. AvB is implemented on an annual basis per REF (B). Prior to the beginning of each calendar
year, COMDT (CG-1) will determine whether new AvB agreements will be accepted during that year.
    A. AvB AGREEMENT. A written contractual agreement between a pilot and the Coast Guard in which
the pilot agrees to remain on active duty for a specific period of time. In return, the pilot
receives AvB contingent upon meeting all conditions of the agreement.
    B. ACTIVE DUTY SERVICE COMMITMENT (ADSC). The ADSC is the number of years (ranging from 2 to 5)
an officer agrees to obligate service under an AvB agreement. The ADSC is calculated by adding
the number of years obligated to the effective date of the AvB agreement or the date after the
officer completes his or her current obligated service period and has met all other eligibility
requirements, whichever is later.
    C. EFFECTIVE DATE OF AvB AGREEMENT. The AvB agreement will be effective the date the Commanding
Officer approves the agreement.
    D. CURRENT OBLIGATED ACTIVE DUTY SERVICE. Current obligated active service period. Includes
all service obligations for initial entry into the Coast Guard (Academy, OCS, DCA, etc.),
obligated service under an existing ACCP agreement, and obligated service for receipt of training
and education (non-aviation specific postgraduate school, initial flight training (including
rotary-to-fixed-wing flight training), etc.). For the purposes of AvB, current obligated service
does not include obligated service for permanent change of station (PCS), promotion, aviation
specific postgraduate school, tuition assistance, or GI Bill benefits transfer.
    E. AvB AGREEMENT SUBMISSION DATE. For management, assignment and oversight purposes, AvB
agreements must be submitted to Commanding Officers no later than 31 OCT 2018. Although waivers
to the application deadline will not normally be accepted, officers with unique circumstances may
request a justified waiver for submission of their agreements past the due date from COMDT (CG-133)
thru CG PSC-OPM-2.
    A. AvIP.
        (1) Effective 01 OCT 2018, Table 1 of REF (B) is hereby amended. The monthly AvIP rates for
aviators assigned to Duty Involving Operational Flying or Training (DIFOPS), Duty Involving Flying
Proficiency (DIFPRO), and Duty Involving Flying – Denied (DIFDEN) billets, based on years of
aviation service (YAS), will be as follows:
            (a) YAS Monthly Amount
                 2 or less $150
                 Over 2 $250
                 Over 6 $800
                 Over 10 $1,000
                 Over 22 $700
                 Over 24 $450
            (b) All other provisions of REF (B) remain in effect.
            (c) These changes will be reflected in the next revision of REF (B), which will be
released within the next year.
    B. AvB.
       (1) Pilots serving in pay grades O4 and below and not in or above the PY19 O5 promotion zone
may apply for AvB if:
            (a) They meet REF (B) eligibility criteria and limitations. 
            (b) Their current obligated active duty service commitment, as defined in Paragraph 3.D,
expires on or before 31 DEC 2019.
            (c) They apply for AvB by completing and submitting the AvB agreement by the date in
Paragraph 3.E.
       (2) Determining eligibility.
            (a) Have been an aircraft commander of a Coast Guard aircraft on or before 31 DEC 2019.
            (b) Have no current obligated active duty service, as defined in Paragraph 3.D., beyond
31 DEC 2019,
            (c) Be qualified to perform operational flying duty,
            (d) Have no more than 25 years, 00 months, and 00 days total active duty service at the
completion of the AvB contract term,
            (e) Be and remain eligible for AvIP,
            (f) Unless selected for promotion to O4 in PY19, may not have an existing continuation
agreement as of 01 JAN 2019.
        (3) The effective date of AvB agreements will be in compliance with Paragraph 3.C. For those
officers failing to meet the eligibility requirements before 31 DEC 2019, the AvB agreement will
not become effective.
        (4) Officers serving in a retired recall status are not eligible to apply for AvB.
        (5) AvB agreement limits and payment of AvB.
            (a) All AvB agreements must be for 5 whole years unless this number of years will result
in an ADSC that exceeds 25 years of active duty service, in which case an agreement for the number
of whole years for an ADSC date ending within one year of the officer’s 25th active duty service
anniversary may be accepted. AvB agreements may not be less than 2 years and will not include
monthly fractions of a year. See NOTE 2 for examples.
                [1] Fixed-Wing aviators - $35,000/year for the length of the agreement (2 to 5 years).
                [2] Rotary-Wing aviators - $15,000/year for the length of the agreement (2 to 5 years).
            (b) AvB payments are paid in annual installments beginning on the effective date of the
AvB agreement or, if the officer has not met all eligibility requirements as of the AvB agreement
effective date, the date the officer meets all eligibility requirements after the effective date,
whichever is later (but not later than 31 DEC 2019), and on each AvB agreement effective date
anniversary for the duration of the agreement. See NOTE 3.
NOTE 1: Once an AvB agreement is signed, it will remain in force until the agreement expires.
Officers may request a new agreement upon expiration of their existing agreement provided AvB is
being offered and the officers meet the eligibility requirements of the AvB program in effect.
NOTE 2: AvB payments will not be obligated in monthly increments. For example, a pilot with 20
years and 6 months of active duty will only approved for a maximum AvB agreement of 4 years. A
pilot with more than 23 years, 00 Months, 00 days active duty as of the date the pilot's
Commanding Officer approves the AvB agreement, is not eligible to receive AvB as the minimum AvB
agreement is for 2 years and cannot exceed 25 years, 00 months, and 00 days of active duty service
during the agreement.
NOTE 3: AvB anniversary installments will not be paid before an officer qualifies for and is paid
an initial AvB payment. First year AvB anniversary installment payments may be paid concurrently
with the initial AvB payment if the officer qualifies for the AvB initial payment after the first
AvB effective date anniversary.
        (6) ADSC Adjustments and AvB Agreement Non-compliance.
            (a) When AvIP for an officer is suspended or terminated as described in this ACN,
CG PSC-OPM will not automatically adjust the ADSC for the officer. An aviator whose AvB
eligibility ends may submit a request, with supporting material, to change the ADSC to CG PSC-OPM,
who will consider the request and supporting material in making a determination as to whether or
not to change the ADSC.
            (b) An ADSC does not guarantee a pilot will remain on active duty indefinitely if earlier
administrative separation is appropriate.
            (c) The Coast Guard can also initiate involuntary separation under the Military
Separations Manual, COMDTINST M1000.4 (series), earlier than the ADSC date.
            (d) AvB installment payments will be suspended when an officer is separated from active
duty for any reason or if CG PSC-OPM determines that the officer is not in compliance with the AvB
agreement at the time the installment is payable. Installment payments may resume when CG PSC-OPM
determines that the officer is in compliance with their AvB agreement.
         (7) Recoupment of Unearned AvB Amounts. Per Section 373 of REF (A), unearned bonuses must
be recouped, unless collection is excepted under authorized conditions.
            (a) Except under conditions described in Paragraph 4.B.(7)(c) below, the Coast Guard
will recoup the unearned portion of the most recent AvB payment commensurate with time remaining
on the officer’s active duty obligation when discharged, released from active duty, or the date
the officer has been determined to no longer be in compliance with their AvB agreement.
            (b) CG PSC-OPM will ensure that officers with obligated service accruing from an AvB
agreement being separated or who otherwise did not meet the contractual terms of their agreements
indicate the requirement for recoupment on the affected officer’s separation authorization, as
appropriate. Separation authorizations must contain an explanation of the indebtedness incurred
due to recoupment of unearned AvB and advise officers that they may apply for an exception to
recoupment along with information on the procedure for requesting such exception. Unless an
officer’s separation or pre-authorized exception is covered by one of the conditions listed in
Paragraph 4.B.(7)(c) below, all exceptions to recoupment of unearned AvB amounts must be requested
by the affected officer or former officer.
            (c) Authorized exceptions to recoupment of unearned AvBs include the situations listed
below and shall be cited by CG PSC-OPM in separation authorizations or other documentation:
                [1] Separated, retired, or loss of AvIP eligibility by reason of combat-related
physical disability, illness, or injury, and not due to misconduct.
                     [a] The term “combat-related” has the same meaning as in Section 1413a of REF (C)
and further described in Section 16.D.6 of REF (D).
                     [b] Combat-relatedness determinations will be made by CG PSC-PSD-MED.
                     [c] In cases where an officer with a current AvB agreement in effect 1) dies or 2) is retired or separated with a combat-related disability, and the death or disability is not the result of the officer’s misconduct, any AvB installment amount previously paid shall not be recouped. Further, the full amount of the AvB agreement amount not yet paid prior to the date of 1) death or 2) retirement or separation due to combat-related disability but to which the officer
was eligible immediately before the death, retirement, or separation and would otherwise be paid
if not for the death, retirement, or separation shall be included as a lump sum in the officer’s
final settlement of pay and allowances. The lump sum shall be equal to the full remaining amount
specified in the agreement as if the officer continued to be eligible for the remaining bonus payments. This payment must be paid not later than 90 days following the officer’s death, retirement, or separation.
                [2] Sole survivorship discharge.
                [3] When explicitly excepted from recoupment by Coast Guard personnel policy.
            (d) All other requests for exceptions to recoupment of unearned AvB amounts must be
approved by COMDT (CG-8C). Consideration for exception to recoupment determinations will generally
follow the standards for remission of indebtedness as described in Section 11.G.5 of REF (D).
            (e) Recoupment calculations will be determined based on the Defense Finance and Accounting
Services accounting method described in REF (E).
    A. Applicant Responsibilities. Review the contents of this ACN prior to signing an AvB agreement.
       (1) Complete, sign, date and forward the AvB agreement to the designated command representative
in a timely manner.
       (2) Keep a copy of the signed agreement for record purposes.
    B. Command Responsibilities. Designate a command representative who will counsel all AvB-eligible
pilots assigned to the unit. The initial counseling session should be a one-on-one meeting between
each eligible officer and the designated command representative that outlines the needs of the Coast
Guard, how AvB fits into the overall pilot retention effort, and the individual member’s eligibility.
The command shall:
       (1) Ensure eligible pilots are aware of the AvB agreement submission deadline
(i.e. 31 OCT 2018), eligibility window, payment authorization, and the ADSC associated with accepting
the desired AvB option.
       (2) Ensure each pilot fully understands the implications of the agreement and meets all
eligibility requirements.
       (3) Explain that any unearned portions of AvB will be recouped on a pro-rata basis for all
conditions listed in this ACN.
       (4) Explain that eligible pilots with an approved date of separation (DOS) must request
withdrawal of the DOS prior to or upon submission of his or her AvB application. Pilots will not
receive AvB payments if the DOS withdrawal request is disapproved.
       (5) Submit signed/endorsed agreements to the unit’s Servicing Personnel Office (SPO) not later
than 07 NOV 2018.
    C. SPO Responsibilities to process the AvB contract.
       (1) Ensure the AvB agreement has been properly completed.
       (2) Ensure the applicant and his/her commanding officer sign the AvB agreement.
       (3) Place a copy in the officer’s PDR and submit a copy to PPC-MAS for processing within
5 working days after receipt of the agreement from the officer’s Commanding Officer.
       (4) Send a copy of initial contracts and changes to existing agreements to CG PSC-OPM-2
Aviation Assignment Officers within 5 working days after receipt of the agreement from the officer’s
Commanding Officer.
    D. Eligible Pilots in TDY or PCS Status: There will be some instances when eligible pilots may
not be available for AvB counseling due to TDY or PCS. The length of the absence should determine
the action.
       (1) TDY: if the expected TDY length will prevent completion of the agreement by 31 OCT 2018,
then the designated command representative should counsel the member by whatever means available,
and forward the AvB agreement and a copy of this ACN to the deployed supervisor of the applicant so
he/she can document AvB acceptance/declination. The agreement should be signed by the applicant and
witnessed by the deployed supervisor and then returned to the permanent duty station for Commanding
Officer approval and distribution.
       (2) PCS: Departing commands should make every effort to contact eligible pilots if they have
not left the immediate area and provide the necessary counseling. If the officer has departed and
was not counseled, notify the receiving command of the departing command's recommendation for
approval or disapproval. The receiving designated command representative will complete the
counseling process and the receiving Commanding Officer will normally approve or disapprove the AvB
agreement based on the previous Commanding Officer recommendation. The receiving command is
responsible for distributing the AvB agreement per Paragraph 5.B.
    E. An approved agreement form to be used for AvB application/approval will be available on the
CG PSC-OPM-2 website.
    A. Commanding Officers shall disapprove AvB agreements for pilots who:
       (1) Are awaiting an operational flying disqualification resulting from an Aviator Evaluation Board.
       (2) Are awaiting involuntary separation.
       (3) Are awaiting or undergoing investigation into military or civilian offenses which could
result in a documented record of substantiated misconduct or substandard duty performance.
       (4) Have a documented record of substandard performance or conduct which render them poor
candidates for retention under the terms of an AvB agreement.
       (5) Have a documented record of aviator skills and officer performance that makes them
ineffective for rated duty.
       (6) Have an approved separation on file.
    B. Notification of disapprovals will be made to CG PSC-OPM.
    C. If any of the above listed conditions change, the pilot may reapply for AvB.
    A. Terminate AvB payments when a pilot:
       (1) Is dismissed or discharged for cause.
       (2) Separates after declining selective continuation.
       (3) Voluntarily retires or separates before finishing the ADSC.
       (4) Is disqualified for aviation service.
       (5) Separates after being passed over for promotion or selected by a reduction in force
(RIF) board.
    B. Suspend AvB payments when a pilot under AvB agreement:
       (1) Is suspended from aviation service.
       (2) Is medically disqualified for aviation service.
       (3) Loses eligibility for Aviation Incentive Pay (AvIP).
8. CG PSC-OPM-2 will update Aviation AO portal Frequently Asked Questions site:
9. Questions from individual officers concerning the execution of this policy should be addressed
to their designated command representatives. Questions from designated command representatives
should be directed to COMDT (CG-711), LCDR Mike Baird, 202-372-2212.
10. Released by RADM W. G. Kelly, Assistant Commandant for Human Resources.
11. Internet release authorized.