united states coast guard

ALCOAST COMMANDANT NOTICE                                   CANCEL DATE 05 SEP 2020

R 061439 SEP 19
UNCLAS //N07220//
ACN 101/19
A. Aviation Incentive Pay (AVIP) and Bonus (AVB) Program, COMDTINST M7220.20 (series)
B. Military Separations Manual, COMDTINST M1000.4 (series)
C. 37 U.S.C. – Pay and Allowances of the Uniformed Services
D. Coast Guard Pay Manual, COMDTINST M7220.29 (series)
E. 10 U.S.C. – Armed Forces
F. Military Bonus Programs, COMDTINST M7220.2 (series)
    a. This ACN implements one of the FY20 Officer Workforce Planning Team (OWPT) recommendations
regarding retention incentives for the Coast Guard’s aviator workforce 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. The bonus offerings in this ACN begin in FY20
(01 Oct 2019 and not before) and are anticipated to remain in effect until the end of FY20
(30 Sep 2020 and not after) contingent upon Congress extending the authority to make payments.
Monetary interventions may be adjusted or terminated not less than 30 days in advance.
    b. The FY20 Aviation Bonus (AvB) program is an intervention necessary to support Coast Guard
missions and maintain aviation workforce readiness. The FY20 AvB Program targets fixed wing and
rotary wing aircraft commanders with critical skill-sets for retention.
2. BACKGROUND. AvB is implemented on an annual basis per REF (A). Prior to the beginning of each
calendar year, COMDT (CG-1) determines 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 time period. In return, the pilot receives
AvB contingent upon meeting all conditions of the agreement. The only approved Bonus Agreement to
be used per this ACN is the “Aviation Officer Bonus Agreement” form found on the CG-612 Directives
and Publications, CG Authorized Forms Portal site <>.
    b. ACTIVE DUTY SERVICE COMMITMENT (ADSC). The ADSC is the number of whole years (ranging from two to
five) 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 or the date all eligibility requirements are met, whichever is later
and not later than 30 Sep 2020.
    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 or AvB agreement, and obligated service for receipt of training and
education (other than aviation-related postgraduate school specified herein), initial flight
training (including rotary-to-fixed-wing flight training), etc.). For the purposes of AvB
eligibility, current obligated service does not include obligated service for permanent change of
station (PCS), promotion, Aviation Engineering post-graduate school, Aviation Safety post-graduate
school, tuition assistance, or Post 9/11 GI Bill benefits transfer.
        (1) For management, assignment and oversight purposes, AvB agreements must be submitted to
Commanding Officers no later than 01 Oct 2019.
        (2) AvB applications may not be accepted by COs after 01 Oct 2019 without written approval
from COMDT (CG-133).
        (3) Although extensions for the application deadline will not normally be granted, officers
with unique and compelling circumstances may request an extension for submission of their
agreements past the due date from Commandant (CG-133) thru CG PSC-OPM-2. Submission deadline
extension requests must fully explain the circumstances that prevented timely submission and be
substantially endorsed by the officer’s administrative chain. Assertions of administrative error
as the basis for granting an extension of AvB submission deadline must clearly document fault on
the part of the applicant’s administrative chain – the burden of proof is on the applicant.
    a. Eligibility. Pilots serving in pay grades O4/LCDR and below and not in or above the PY20
O5/CDR promotion zone are eligible for an AvB if:
        (1) They are and remain eligible for AvIP;
        (2) They meet REF (A). eligibility criteria and limitations;
        (3) Their current obligated active duty service commitment, as defined in subparagraph 3.d.
of this ACN, expires on or before 30 Sep 2020; and
        (4) They apply for AvB by completing and submitting the AvB agreement by the date in
subparagraph 3.e. of this ACN; also
        (5) They are not serving in a retired recall status.
        (6) They have been or will be an aircraft commander of a Coast Guard aircraft on or before
30 Sep 2020 for the airframe they submit a bonus request;
        (7) They have no current obligated active duty service, as defined in paragraph 3.d., beyond
30 Sep 2020;
        (8) They are qualified in all respects to perform operational flying duty;
        (9) They have no more than 25 years, 00 months, and 00 days total active duty service at the
completion of the AvB contract term; and
        (10) Unless selected for promotion to O4/LCDR in PY20, may not have an existing continuation
agreement as of 01 Jan 2020.
    b. The effective date of AvB agreements will be in compliance with subparagraph 3.c. of this ACN.
For those officers failing to meet the eligibility requirements before 30 Sep 2020, the AvB
agreement will not become effective.
    c. AvB Agreement Limits and Payment.
        (1) All AvB agreements must be for two to five whole years unless the 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 two years and will
not include monthly fractions of a year. See NOTE 2 for examples.
             (a) Fixed-Wing aviators - $35,000 per year for the length of the agreement (two to five years).
             (b) Rotary-Wing aviators - $15,000 per year for the length of the agreement (two to five years).
        (2) 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 30 Sep 2020), 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 effect 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 six months of active duty will only qualify for a maximum AvB agreement of four years. A pilot
with 23 years, 00 Months, 01 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 two 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.
    d. ADSC Adjustments and AvB Agreement Non-compliance.
        (1) In general, upon determination by CG PSC-OPM or a pilot’s Commanding Officer that the
officer is no longer in compliance with the terms of their AvB agreement (see Par. 7 of this ACN),
future AvB payment installments will be suspended and, as appropriate, repayment of unearned AvB
amounts initiated per subparagraph 4.f. of this ACN.
        (2) Aviators whose AvB eligibility is suspended or terminated may submit a request and
supporting documentation to CG PSC-OPM through their administrative chain to change their ADSC.
CG PSC-OPM will consider the request and supporting material in making a determination as whether
or not to change the ADSC.
        (3) An ADSC does not guarantee a pilot will remain on active duty indefinitely if earlier
administrative separation is appropriate.
        (4) The Coast Guard can also initiate involuntary separation under REF (B) earlier than
the ADSC date.
        (5) AvB installment payments will be suspended when an officer is separated from active
duty for any reason or if their Commanding Officer or 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.
    e. Repayment of Unearned AvB Amounts. Per Section 373 of REF (C), unearned bonuses must be
repaid, unless repayment is excepted under authorized conditions.
        (1) Except under conditions described in subparagraph 3.f.(3) below, the Coast Guard Pay &
Personnel Center (PPC) will demand repayment of the unearned portion of the most recent AvB
payment in accordance with Chapter 11 of REF (D) 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.
        (2) 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 unearned AvB repayment on the affected officer’s separation
authorization, as appropriate. Separation authorizations must contain an explanation of the
indebtedness incurred due to the requirement for repayment of unearned AvB and advise officers
that they may apply for an exception to repayment 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 subparagraph 4.e.(3) below, all exceptions to repayment
of unearned AvB amounts must be requested by the affected officer or former officer.
        (3) Authorized exceptions to repayment of unearned AvBs are limited to the situations listed
below and shall be cited by CG PSC-OPM in separation authorizations or other documentation:
             (a) Separated, retired, or loss of AvIP eligibility by reason of combat-related physical
disability, combat-related illness, or combat-related injury, and not due to misconduct.
                   i. The term “combat-related” has the same meaning as in Section 1413a of REF (E) and
further described in Section 16.D.6 of REF (D).
                   ii. Combat-relatedness determinations will be made by CG PSC-PSD-MED.
             (b) 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, repayment of any AvB installment amount previously paid shall not be
required. 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 disbursed not later than 90 days following the officer’s death,
retirement, or separation.
             (c) Sole survivorship discharge.
             (d) When explicitly excepted from repayment to support a Coast Guard personnel policy
directive objective (example: a reduction in force (RIF) or solicitation for early separation or
        (4) All other requests for exceptions to repayment of unearned AvB amounts must be approved
by COMDT (CG-8C). Consideration for exception to repayment determinations will generally follow
the standards for remission of indebtedness as described in subsection 11.G.5. of REF (D).
        (5) Unearned bonus repayment calculations will be based on the Defense Finance and
Accounting Services accounting method described in REF (F).
    a. Applicant Responsibilities.
        (1) Review the contents of this ACN prior to signing an AvB agreement.
        (2) Complete, sign, date and forward the AvB agreement to the designated command representative
not later than 01 Oct 2019.
        (3) Take appropriate follow-up steps to ensure that the their AvB application is timely
processed by the submission deadline to the SPO.
        (4) Keep copies of their processing follow-up actions and the signed agreement for record
    b. Command Responsibilities. The Commanding Officer shall:
        (1) Designate a command representative who is responsible for:
             (a) Identification and counseling all AvB-eligible pilots assigned to the unit.
             (b) 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.
             (c) Ensure eligible pilots are aware of the FY20 AvB agreement submission deadline
(01 Oct 2019), eligibility window, payment authorization, and the ADSC associated with accepting
the desired AvB option.
             (d) Ensure each pilot fully understands the implications of the agreement and meets all
eligibility requirements.
             (e) Explain that any unearned portions of AvB will be recouped on a pro-rata basis for
all conditions listed in this ACN.
             (f) 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.
        (2) Submit original signed/endorsed AvB agreements to the unit’s Servicing Personnel
Office (SPO) not later than 7 Oct 2019.
        (3) Maintain a file of all signed/endorsed AvB agreement copies.
    c. SPO Responsibilities to process approved AvB agreements.
        (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 five
working days after receipt of the agreement from the officer’s Commanding Officer.
        (4) Send original AvB agreements to CG PSC-OPM-2 Aviation Assignment Officers within five
working days after receipt of the agreement from the officer’s Commanding Officer.
    d. Eligible Pilots in TDY or PCS In-transit 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 01 Oct 2019,
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 deployment 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 the
old PDS area 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 subparagraph 5.b. of this ACN.
    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;
        (7) That are otherwise not qualified for continued aviation service for physical or other
conditions that are unlikely to be resolved prior to 30 Sep 2020.
    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 so long as the
application is made prior to 30 Sep 2020. Exceptional circumstances will be handled per
subparagraph 3.e. of this ACN.
    a. Terminate AvB payments when a pilot:
        (1) Is discharged or dismissed as a result of a court-martial, or is administratively separated;
        (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 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. A list of Frequently Asked Questions and other pertinent information are on the COMDT (CG-711)
Portal page:
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 Marc McDonnell, 202-372-2212.
10. Released by RADM J. M. Nunan, Assistant Commandant for Human Resources.
11. Internet release is authorized.