united states coast guard

ALCOAST COMMANDANT NOTICE                                                    CANCEL DATE 05 SEP 2020

R 061500 SEP 19
UNCLAS //N07220//
ACN 103/19
A. 37 U.S.C – Pay and Allowances of the Uniformed Services
B. Military Bonus Programs, COMDTINST M7220.2 (series)
C. Naval Engineer Personnel Qualification Standard, COMDTINST M3502.11 (series)
D. Coast Guard Medical Manual, COMDTINST M6000.1 (series)
E. Coast Guard Weight and Body Fat Standards Program Manual, COMDTINST M1020.8 (series)
F. 10 U.S.C. – Armed Forces
G. Coast Guard Pay Manual, COMDTINST M7220.29 (series)
1. OVERVIEW: This ACN announces a bonus offer not to exceed $40,000 under Section 332 of REF (A) for
eligible active duty officers to remain as designated Naval Engineers (CG-ENG-12). Officers must
execute a contractual agreement to obligate four-years of active duty commissioned service in
return. This retention offer is exclusive to the career field of Naval Engineering (CG-ENG-12) and
forms the basis for this incentive. Bonus pay is supplemental to any other pay and allowances to which a
Service member is entitled.
    a. This ACN authorizes an intervention as recommended by the FY20 Officer Workforce Planning
Team (OWPT) as an incentive to retain active duty Naval Engineers filling essential underway and
ashore NAVENG assignments. This offer is for designated Naval Engineers (CG-ENG-12) LT/O-3 (not
on continuation orders) or LCDR/O-4 (not in and/or above zone for CDR/O-5) to obligate four years of
service and accept assignment to a NAVENG billet. This is necessary to support Coast Guard missions
to fill critical assignments and optimize Naval Engineering workforce readiness.
    b. The bonus is authorized for eligible active duty officers (see 4.a-e) who submit completed
written agreements of four years of newly obligated service during FY20 as defined in Chapter 3.A.2.f.
of REF (B). The new four-year active duty service commitment (ADSC) is the number of years a Service
member agrees to obligate service on the Bonus Agreement.
    c. 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.
2. BACKGROUND: This bonus is a special incentive pay to retain active duty Naval Engineers filling
essential underway and ashore NAVENG assignments. Qualified officers must be eligible for AY2020,
or AY2021 assignment rotation per OPM shopping list guidance and shall agree to be assigned to a
Naval Engineering (CG-ENG-12) billet. These will primarily be assignments as Engineer Officer
Afloat, SFLC Product Line, and other critical Naval Engineering positions. IAW REFs (A) and (B), the
$40,000 bonus applies exclusively to the following fully qualified active duty, officer personnel:
    a. LT/O-3 (not on continuation orders) or LCDR/O-4 (not in and/or above zone for CDR/O-5) who agree
to be assigned to a CG-ENG-12 Naval Engineering billet. Eligible officers must be designated as Naval
Engineering (CG-ENG-12) by NLT 30 September 2020 as defined in REF (C).
    b. Commands must verify all qualifying eligibility requirements listed within Naval Engineer
Certificate CG-3500. This document must be signed by the Service member's Commanding Officer (CO);
"By Direction" signature authority is prohibited.
    a. ACTIVE DUTY SERVICE COMMITMENT (ADSC): The ADSC is the number of years (four in
this offering) an officer agrees to obligate commissioned service under a Bonus Agreement. The ADSC
is calculated by adding the number of years obligated to the effective date of the Bonus Agreement or
the date after the officer completes any current obligated service period and has met all other eligibility
requirements, whichever is later.
    b. BONUS AGREEMENT, Naval Engineer Officer (CG-ENG-12) Bonus: A written contractual
agreement between a Service member and the Coast Guard in which the Service member agrees to
remain on active duty for a specific period of time. In return, the Service member receives the bonus
contingent upon abiding by all eligibility and retention conditions of the agreement throughout the entire
contractual term. The only approved Bonus Agreement to be used per this ACN is the "Naval Engineer Officer
(CG-ENG-12) Bonus" form found on the COMDT (CG-612) Directives and Publications, CG Authorized Forms Portal
site <>.
    c. BONUS AGREEMENT SUBMISSION DATE: For management, assignment and oversight
purposes, Bonus Agreements must be submitted to COs no later than 01 Oct 2019 for AY2020 officers
and 30 Jun 2020 for AY2021 officers. Extension of the application deadline will not normally be
allowed. Officers with exceptional circumstances may request a waiver for submission of their
agreements past the due date from COMDT (CG-133) thru CG PSC-OPM-2.
    d. CURRENT OBLIGATED ACTIVE DUTY SERVICE: Current obligated active service period
        (1) All service obligations for initial entry into the Coast Guard (Academy, OCS, DCE, etc.).
        (2) Obligated service under an existing agreement, and obligated service for receipt of training and
education (non-Naval Engineering specific graduate education).
        (3) Current obligated service does not include obligated service for permanent change of station
(PCS), promotion, Naval Engineering specific graduate education, tuition assistance, or
Post 9/11 GI Bill benefits transfer.
    e. EFFECTIVE DATE OF BONUS AGREEMENT: The Bonus Agreement will be effective the date a
fully qualified Service member’s CO approves the agreement or, for those officers not fully qualified by
the CO’s Approval date, the date the officer meets all eligibility requirements after the Approval date,
whichever is later, but not later than 30 Sep 2020 and executes orders as part of the AY2020, or
AY2021 process.
4. POLICY: To receive the bonus, Service members must abide by and continuously maintain the
eligibility criteria of this ACN for the entirety of the obligated ADSC in the designated career field.
    a. A Service member paid a bonus under this offer during the period of ADSC covered by the signed
Bonus Agreement and who fails any of the following eligibility criteria shall be subject to repayment for
any and all unearned portion of the bonus under provisions of Section 373 of REF (A). General
eligibility criteria are:
        (1) Remain qualified as a Naval Engineer (CG-ENG-12) for which this bonus is paid;
        (2) Remain assigned to a Naval Engineering position under the Bonus Agreement;
        (3) Maintain physical and medical standards for continuous retention IAW REF (D) and;
        (4) Maintain weight and body fat standards IAW REF (E).
    b. If an officer loses qualification, or is no longer qualified for those assignments in
subparagraph 2 of this ACN due to any individual fault, any unearned portion of the bonus payment shall
be repaid as of the date of removal.
        (1) Entitlement to this bonus will not be restored when loss of qualification was due to personal
fault and the member later re-qualifies during the original ADSC.
        (2) The Bonus Agreement does not guarantee a member will remain on active duty for the entirety of
the ADSC if earlier administrative separation, retirement or, involuntary separation for cause is awarded,
or appropriate.
    c. Years of total combined commissioned active duty and combined active duty commissioned service
in a reserve component cannot exceed 21 years, 00 Months and, 00 Days as of the effective date of the
bonus contract.
    d. Eligible officers serving in pay grades LT/O-3 (not on continuation orders) or LCDR/O-4 (not in
and/or above zone for O-5/CDR) may apply for bonus if:
        (1) Their current obligated active duty service commitment expires on or before 30 Sep 2020;
        (2) They are eligible for AY2020, or AY2021 assignment rotation per OPM shopping list guidance;
        (3) They apply for the bonus by completing and submitting the Bonus Agreement by the date in
subparagraph 3.c. above.
    e. Determining eligibility.
        (1) Have no current obligated active commissioned service, as defined in Paragraph 3.d. of this
ACN, beyond 30 Sep 2020.
        (2) Be designated as Naval Engineer (CG-ENG-12) or achieve designation by 30 Sep 2020 (Note:
Failure to obtain Naval Engineer (CG-ENG-12) designation by 30 Sep 2020 will result in termination of
the Bonus Agreement and repayment of all unearned bonus funds paid).
        (3) Accept assignment to a Naval Engineering (CG-ENG-12) billet during the AY2020, or AY2021
        (4) Have no more than 25 years, 00 months, and 00 days total active duty service at the completion
of the bonus contract term.
        (5) May not have an existing continuation contract agreement.
        (6) The effective date of Bonus Agreement will be in compliance with Paragraph 3.e. For those
officers failing to meet the eligibility requirements before 30 Sep 2020, the bonus agreement will not
become effective.
        (7) Officers serving in a retired recall status are ineligible to apply.
    f. Bonus Agreement limits and payment of bonus. The bonus will be paid in lump sum IAW
REF (A) subject to 22% federal, and applicable state income tax withholdings that are not contributed to
a tax-deferred Thrift Savings Plan (TSP) account. Officers desiring to contribute bonus monies to a TSP
account must consider the TSP Elective Deferral limit and confirm election not less than 30 days prior to
receipt of bonus.
        (1) The lump sum will normally be paid on next pay cycle after the effective date of the Bonus
Agreement or, if the officer has not met all eligibility requirements as of the Bonus 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.
        (2) Once a Bonus 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 a bonus is
being offered and the officers meet the eligibility requirements of the bonus program then in effect.
        (3) IAW Section 371 of REF (A), an officer is prohibited from receiving a bonus payment pursuant
to Subchapters I and II of Title 37, U.S.C., for the same activity, skill, or period of service.
        (4) It is prohibited for an officer to receive multiple bonus payments for the same period of
service, unless specifically authorized by the Assistant Commandant for Human Resources (CG-1).
    g. ADSC Adjustments and Bonus Agreement non-compliance.
        (1) When a bonus for an officer is suspended or terminated as described in this ACN,
CG PSC-OPM will not automatically adjust the ADSC for the officer. A Naval Engineer whose bonus
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.
        (2) An ADSC does not guarantee a member will remain on active duty indefinitely if earlier
administrative separation is appropriate.
        (3) The Coast Guard can initiate involuntary separation under Military Separations, COMDTINST
M1000.4 (series), earlier than the ADSC date.
    h. Repayment of Unearned Bonus Amounts. Per Section 373 of REF (A), unearned bonuses shall be
repaid, unless collection is excepted under authorized conditions.
        (1) Except under conditions described in Paragraph 4.i., the Coast Guard will demand repayment of
any unearned bonus 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 the Bonus Agreement.
        (2) CG PSC-OPM will include a statement on the separation authorization for any officer with
remaining obligated service from a bonus agreement that any unearned bonus must be repaid by the
officer. These separation authorization statements must include the reason for demanding repayment and
advise the officer of the opportunity to apply for an exception to repayment along with the procedures
on how to submit the request.
    i. Authorized exceptions to repayment of unearned bonuses 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 bonus 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 (F) and
further described in Section 16.D.6. of REF (G).
             (b) Combat-relatedness determinations will be made by CG PSC-PSD-MED.
             (c) In cases where an officer with a current Bonus 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 bonus installment amount previously paid shall not be repaid. Further,
the full amount of the Bonus 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 repayment by Coast Guard personnel policy.
        (4) All other requests for exceptions to repayment of unearned bonus 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 Section 11.G.5. of REF (G).
        (5) Unearned bonus calculations will be based on the Defense Finance and Accounting Services
accounting method described in REF (B).
    a. Applicant Responsibilities. Review the contents of this ACN prior to signing a Bonus
        (1) Complete, sign, date and forward the Bonus 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 bonus
eligible Naval Engineers 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 a bonus fits into the overall Naval Engineer retention effort, and the Service
member’s eligibility. The command shall:
        (1) Ensure eligible Naval Engineers are aware of the bonus offering submission deadline of
01 Oct 2019, eligibility window, payment authorization, and the ADSC associated with accepting
the bonus offer.
        (2) Ensure each Naval Engineer fully understands the implications of the agreement and meets all
eligibility requirements.
        (3) Explain that any unearned portions of bonus will be recouped on a pro-rata basis for all
conditions listed in this ACN.
        (4) Explain that eligible Naval Engineers with an approved date of separation (DOS) must request
withdrawal of the DOS prior to or upon submission of their bonus application. Naval Engineers will not
receive bonus 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 Oct 2019.
    c. SPO Responsibilities to process the bonus contract.
        (1) Ensure the Bonus Agreement has been properly completed.
        (2) Ensure the applicant and his/her CO sign, initial and date the Bonus
Agreement as appropriate. Incomplete forms cannot be processed by PPC-MAS bonus payment.
        (3) Place a copy of the Bonus Agreement in the officer’s PDR. Submit a copy to PPC-MAS via a
PPC Customer Care Trouble Ticket for processing within five working days after receipt of the agreement
from the eligible officer’s CO and after any current obligated active duty service commitment is
        (4) Send a copy of initial contracts and changes to existing agreements to CG PSC-OPM-2
Engineering, C4IT, Logistics and Intel Assignment Officers within five working days after receipt
of the agreement from the officer’s CO.
    d. Eligible Naval Engineers in TDY or PCS Status: There will be some instances when eligible
Naval Engineers may not be available for bonus 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 Service member by whatever
means available, and forward the Bonus Agreement and a copy of this ACN to the deployed supervisor
of the applicant so he/she can document bonus 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 CO approval and distribution.
        (2) PCS: Departing commands should make every effort to contact eligible Naval Engineers 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 CO will normally approve or disapprove the Bonus Agreement based on the
previous CO recommendation. The receiving command is responsible for distributing the Bonus
Agreement per Paragraph 5.b.
    a. COs shall disapprove Bonus Agreements for Naval Engineers who:
        (1) Are awaiting a Naval Engineer disqualification resulting from an 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 a Bonus Agreement;
        (5) Have a documented record of Naval Engineer skills and officer performance that makes them
ineffective for rated duty; or
        (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 before the Bonus Agreement submission date in
subparagraph 3.c. above, the Naval Engineer may reapply for the bonus within the explicit time
limits of this ACN.
    a. The bonus payments shall terminate when a Naval Engineer:
        (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 Naval Engineer service;
        (5) Fails to obtain Naval Engineer (CG-ENG-12) designation by 30 Sep 2020 or;
        (6) Separates after being passed over for promotion or selected by a reduction in force (RIF) board.
    b. Suspend bonus payments when a Naval Engineer under a Bonus Agreement:
        (1) Is suspended from Naval Engineer service;
        (2) Is medically disqualified for Naval Engineer service; or
        (3) Loses eligibility for Naval Engineer assignment.
8. These changes will be implemented into the next revision of REF (B), which will be released
within the next year.
9. Questions regarding the Naval Engineering program should be addressed to the COMDT (CG-452)
Workforce and Policy Manager LCDR Jeffrey S. Zamarin at: or (202) 475
5719, or the COMDT (CG-452) Workforce and Policy Management Portal site:
10. Questions regarding the assignment process should be directed to OPM-2 and the Engineering,
Logistics, C4IT, Intel Assignment Officer LCDR Jeremy Kime at: or
(202) 795-6452.
11. Questions from individual officers concerning the execution of this policy should be addressed
to their designated command representatives. Questions from designated command representatives for
policies regarding bonuses or other human resource management matters may be directed to Office of
Military Personnel (CG-133) at:
12. Released by RADM J. M. Nunan, Assistant Commandant for Human Resources.
13. Internet release is authorized.