united states coast guard

ALCOAST COMMANDANT NOTICE                                             CANCEL DATE 09 SEP 2021

R 101345 SEP 20
UNCLAS //N07220//
ACN 105/20
A. 37 U.S. Code – Pay and Allowances of the Uniformed Services
B. Military Bonus Programs, COMDTINST M7220.2 (series)
C. Cutter Training and Qualification Manual, COMDTINST M3502.4 (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. Code – Armed Forces
G. Coast Guard Pay Manual, COMDTINST M7220.29 (series)
1. OVERVIEW: This ACN announces two bonus offers under Section 332 of REF (A)
for eligible active duty officers to fulfill a full tour critical afloat billet
outlined in Paragraph 2.a. on a commissioned ship during Assignment Year 2021 (AY21).
This retention offer is exclusive to the afloat community and eligible officers
assigned to an afloat billet in AY21. Officers must execute a contractual
agreement to obligate active duty commissioned service. Bonus pay is supplemental
to any other pay and allowances to which a Service member is entitled.
    a. This ACN authorizes two interventions recommended by the FY21 Officer
Workforce Planning Team (OWPT). This is necessary to support Coast Guard missions
to fill critical afloat assignments onboard commissioned ships. Non-commissioned or
commission-special ships are not applicable.
    b. The bonus is authorized for eligible active duty officers who submit completed
written agreements of four (4) years of newly obligated service during FY21 as defined
in Chapter 3.A.2.f. of REF (B). The new four (4) year active duty service commitment
ADSC) is the number of years a Service member agrees to obligate service on the Bonus
    c. The bonus offerings in this ACN begin in FY21 (01 Oct 2020 and not before) and
are anticipated to remain in effect until the end of FY21 (30 Sep 2021 and not after)
contingent upon Congress extending the authority to make payments. Monetary
interventions may be adjusted or terminated not less than 30 days of advance official
notice by ALCOAST.
    d. Authorization and signature of the Bonus Agreement does not necessarily
constitute bonus eligibility; only after selection and execution of orders in the
positions outlined in paragraph 2.a. will the bonus eligibility be paid.See 3.e below.
2. ELIGIBILITY: This $40,000 bonus is a special incentive bonus pay to retain active
duty officers filling essential underway assignments. Officers holding the applicable
Officer Specialty Code (OSC) must be eligible for AY21 rotation per Officer Personnel
Management (OPM-2) shopping list guidance and must agree to be assigned, and
subsequently issued orders, to an afloat billet. The bonus applies exclusively to the
following fully qualified active duty officers:
    a. O3 and O4 officers eligible for assignment to an afloat unit in AY21 in the
following positions:
        (1) Must be assigned as an Executive Officer (XO) of an afloat unit; or
        (2) Must be assigned as a Department Head (DH) in one of the following capacities:
an Operations Officer (OPS) or a Combat Systems Officer (CSO) on an afloat unit.
    b. LT/O3s must hold an OAF-10 Apprentice OSC.
    c. LCDR/O4s must hold an OAF-10 Journeyman OSC.
    d. General eligibility criteria are:
        (1) Serving in pay grades LT/O3 (not on continuation orders) or LCDR/O4 (not
in or above zone for CDR/O5);
        (2) Agree to accept and execute assignment orders to an afloat unit as
outlined in paragraph 2.a.
        (3) Maintain physical and medical standards for continuous
retention IAW REF (D);
        (4) Maintain compliance with weight and body fat standards IAW REF (E);
        (5) Years of total combined commissioned active duty or 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 agreement.
        (6) Current obligated ADSC expires on or before 30 Sep 2021;
        (7) Eligible for AY21 rotation per OPM shopping list guidance;
        (8) Have no current obligated active commissioned service, as defined in
Paragraph 3.d. of this ACN, beyond 30 Sep 2021.
        (9) Have no more than 25 years, 00 months, and 00 days total active duty
service at the completion of the bonus agreement term.
        (10) May not have an existing continuation contract agreement.
        (11) The effective date of Bonus Agreement will be in compliance with paragraph 3.e.
        (12) Not in a retired recall status.
    a. ACTIVE DUTY SERVICE COMMITMENT (ADSC): The ADSC is the number of years an officer
agrees to obligate commissioned service under a Bonus Agreement. The ADSC commences on
the date after the officer completes any currently obligated service period or has met
all eligibility requirements, whichever is later.
    b. BONUS AGREEMENT: 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 “Afloat OFFICER Bonus Agreement.” Once developed and approved the
Bonus Agreement form will be announced and posted on a subsequent ALCOAST.
    c. BONUS AGREEMENT SUBMISSION DATE: For management, assignment, and oversight
purposes, Bonus Agreements must be signed by the member’s Commanding Officer (CO)
no later than 01 Oct 2020 and submitted to PSC-OPM-2 and Program POC listed below
by 08 Oct 2020. 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 includes:
        (1) Any service obligations for initial entry into the Coast Guard
(Academy, OCS, DCO, etc.).
        (2) Obligated service under an existing agreement and obligated service
for receipt of training and education.
        (3) Current obligated service does not include obligated service for
promotion, permanent change of station (PCS), tuition assistance, Post 9/11 GI Bill
benefits transfer, or specific graduate education in the officer’s primary
field of study.
        (1) The Effective date of the Bonus Agreement is the date upon which the
member signs and the Commanding Officer approves/signs the agreement.
        (2) Members signing this bonus agreement will not be paid any portion
of the bonus until they meet the eligibility/qualification criteria contained in
paragraph 2 of this ACN and report to the assigned Afloat Officer billet .
4. POLICY. 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 who is paid a bonus under this offer during the period of
ADSC covered by the signed Bonus Agreement and who fails any of the eligibility
criteria will be required to repay any and all unearned portions of the bonus
under the provisions of Section 373 of REF (A).
    b. If an officer loses qualification, or is no longer qualified for those assignments
in paragraph 2.a of this ACN due to the fault of the individual, any unearned portion of
the bonus payment as of the date of removal from eligibility will be repaid.
        (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. Bonus Agreement limits and payment of bonus. The bonus will be paid in a 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 the bonus.
        (1) The lump sum will normally be paid on the next pay cycle the day after
the member meets all eligibility requirements, reports to the assigned Afloat
Officer billet, and a PPC Customer Care ticket has been submitted. If the member
does not meet the eligibility requirements by 30 Sept 2021, member is ineligible
for the bonus payment.
        (2) Once a Bonus 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 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).
    d. 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 an officer.
A officer 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 that a member will remain on active
duty indefinitely if earlier administrative separation is appropriate.
        (3) 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.
        (4) The Coast Guard can initiate involuntary separation under
Military Separations, COMDTINST M1000.4 (series), earlier than the ADSC date.
    e. Repayment of Unearned Bonus Amounts. Per Section 373 of REF (A),
unearned bonuses will be repaid, unless collection is accepted under
authorized conditions.
        (1) Except under conditions described in paragraph 4.f., 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.
    f. 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 lost bonus eligibility by reason
of combat-related physical disability, illness, or injury, and not
due to misconduct.
       (2) 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).
       (3) Combat-relatedness determinations will be made by CG PSC-PSD-MED.
       (4) 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.
       (5) Sole survivorship discharge.
       (6) When explicitly excepted from repayment by Coast Guard
personnel policy.
       (7) 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).
       (8) 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 Agreement.
        (1) Complete, sign, date, and forward the Bonus Agreement to the
designated command representative for signature of the CO by 01 Oct 2020.
        (2) Keep a copy of the signed agreement for record purposes.
    b. Command Responsibilities. Designate a command representative
who will counsel all bonus eligible applicants 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 afloat community retention effort, and the Service member’s
eligibility. The command must:
        (1) Ensure eligible applicants are aware of the bonus offering
submission deadline (i.e. 01 Oct 2020), eligibility window, payment
authorization, and the ADSC associated with accepting the bonus offer.
        (2) Ensure each applicant fully understands the implications of
the agreement and meets 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 applicants with an approved date
of separation (DOS) must request withdrawal of the DOS prior to or upon
submission of their bonus application. Members 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), program manager and CG PSC-OPM-2 POCs listed
below not later than 08 Oct 2020.
        (6) Commands that are not staffed to effectively conduct this
counseling session should coordinate counseling with COMDT (CG-751).
    c. SPO Responsibilities to process the bonus agreement.
        (1) Ensure the Bonus Agreement has been properly completed.
        (2) Ensure the applicant and their 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 (5) working days after receipt of the agreement
from the eligible officer’s CO and after any current obligated active
duty service commitment is completed. Submit a copy to PSC-OPM-2
and Program Manager POCs listed below.
    d. Eligible candidates in TDY or PCS Status: There will be some
instances when eligible candidates 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 2020, 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 afloat candidates 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 applicants who:
        (1) Are awaiting a disposition from a 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) Received a Mark of three (3) on any OER metric or lower
and/or received less than a "Promote" rating on the most recent OER;
        (6) Have a documented record of skills and/or officer
performance that makes them ineffective for rated duty;
        (7) Have an approved separation on file; or
        (8) Not in compliance with weight and body fat standards IAW REF (E).
    b. Notification of disapprovals will be made to CG PSC-OPM POC below.
    c. If any of the above listed conditions change before the Bonus Agreement
submission date in subparagraph 3.c. above, the applicant may reapply for the
bonus within the explicit time limits of this ACN.
    a. The bonus payments shall terminate when an officer:
        (1) Is dismissed or discharged for cause or loss of confidence;
        (2) Is separated from service as a result of a court-martial,
or is administratively separated;
        (3) Is relieved for cause;
        (4) Fails to maintain qualification IAW Cutter Organization Manual
for the entirety of the assignment.
        (5) Separates after declining selective continuation;
        (6) Voluntarily retires or separates before finishing the ADSC;
        (7) Is disqualified for afloat service;
        (8) Fails to qualify IAW REF (C);
        (9) Separates after being passed over for promotion or selected
by a reduction in force (RIF) board; or
        (10) Fails to maintain weight and body fat standards IAW REF (E).
    b. Suspend bonus payments when an officer under a Bonus Agreement:
        (1) Is suspended from afloat service;
        (2) Is the subject of an investigation; or
        (3) Is medically disqualified for afloat service.
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 Afloat program should be addressed to:
LCDR K. A. Blevins or LCDR P. A. Ledbetter at
10. Questions regarding the assignment process should be directed to
OPM-2; the Afloat Assignment Officers: LCDR N. R. Hartmann at:
Nicholas R. or LT A. R. Derby at
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 the
Office of Military Personnel and Policy (CG-133) at:
12. Released by RADM J. M. Nunan, Assistant Commandant for Human Resources.
13. Internet release is authorized.