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FY19 AVIATION BONUS (AVB)

Date Signed: 7/6/2018
MARADMINS Number: 382/18

R 061820Z JUL 18
MARADMIN 382/18
MSGID/GENADMIN/CMC WASHINGTON DC MRA MP//
SUBJ/FY19 AVIATION BONUS (AVB)//
REF/A/MSGID: DOC/SECNAV/06FEB2018//
REF/B/MSGID: MSG/CMC WASHINGTON DC MRA MP/061432ZNOV17//
REF/C/MSGID: DOC/OMB CIRCULAR A-94/-//
REF/D/MSGID: DOC/DOD FMR 700.14-R/-//
NARR/ REF (A) IS SECRETARY OF THE NAVY INSTRUCTION 7220.88, AVIATION
INCENTIVE PAYS AND BONUS PROGRAM.  REF (B) IS MARADMIN 614/17, FY18
AVIATION BONUS (AVB).  REF (C) IS OFFICE OF MANAGEMENT AND BUDGET
CIRCULAR A-94 TRANSMITTAL MEMO NUMBER 64.  REF (D) IS THE DEPARTMENT
OF DEFENSE FINANCIAL MANAGEMENT REGULATION.//
POC/E. YANEZ/SGT/CMC MMOA-2/-/TEL: DSN 278-9267//
POC/C. RATEIKE/MAJ/CMC MPP-30/-/TEL: DSN 278-9366//
GENTEXT/REMARKS/
1. Purpose. The purpose of this MARADMIN is to provide information on the Marine Corps Aviation Bonus (AvB) Program for FY19. Reference (a) provides the legal authority for the AvB Program.
2. Background. The Aviation Bonus is an incentive pay used to increase the inventory stability of the aviation officer population. The program provides a proactive, short-term incentive for aviation officers in certain grades and communities with current or forecasted inventory shortfalls. Contract lengths and monetary amounts are established based on current and projected aviation officer inventories. The AvB is offered to Marine aviation officers who meet eligibility requirements defined in paragraph 3.
3. Eligibility Requirements. To receive the AvB, officers must meet the following non-waiverable criteria:
3.a. Be qualified to perform operational flying duty and maintain a current medical up-chit.
3.b. Be eligible for Aviation Incentive Pay (AvIP) at the time of application.
3.c. Be complete with, or will complete, their active duty service commitment (ADSC) incurred for undergraduate aviation training by the end of FY20 (30 Sep 2020). The ADSC for Naval Flight Officer to Naval Aviator transitions is based on their Aviator undergraduate aviation training.
3.d. Have no more than 14 years of commissioned service (YCS) on:
      Date of application package submission to MMOA-2, Date of ADSC completion, or 1 Oct 18, whichever is latest.  Start date for calculating YCS is date accepted first commission (DAFC).
3.e. Agree to remain on active duty as Marine Corps aviator or naval flight officer for the defined contract term.
3.f. Maintain one of the following primary Military Occupational Specialties (MOS):
                   7509 (AV-8 Pilot)
                   7518 (F-35 Pilot)
                   7523 (F/A-18 Pilot)
                   7525 (F/A-18 Weapons Systems Officer)
                   7532 (MV-22 Pilot)
                   7556 (KC-130 Co-Pilot)
                   7557 (KC-130 Pilot)
                   7563 (UH-1 Pilot)
                   7565 (AH-1 Pilot)
                   7566 (CH-53 Pilot)
3.g. Applicants must be recommended for AvB by an endorsement, as per paragraph 11, from their Commanding Officer (or the first O-5 in applicant’s chain of command) and receive final approval from Commandant of the Marine Corps (CMC) (MMOA-2).
3.h. Submit application to CMC (MMOA-2) no later than 1 Aug 2019 to allow processing time before the end of the fiscal year.
3.i. Captains who have previously failed selection to the rank of Major will be ineligible. They may reapply upon selection for promotion.
3.j. Captains in-zone on the CY18 FY20 Major Promotion Board shall not submit their FY19 AvB package until the promotion ALNAV is released.
3.k. Must be an officer in the Active Component.
3.l. Aviators under a current officer service obligation for inter-service transfer (IST) are not eligible for AvB and may not apply until completion of IST ADSC.
4. FY18 Aviation Bonus Takers. Those individuals under contract for the FY18 AvB, per reference (b), are eligible to opt in to the FY19 AvB if they meet the criteria in paragraph 3. Those individuals must apply at least one month prior to their 1-year anniversary date and will not receive a second FY18 AvB payment; rather they will start their new contract on the 1-year anniversary of the FY18 contract.
5. Aviation Transition/Conversion. Aviation personnel undergoing transition or conversion training are eligible for the AvB if they meet the requirements in paragraph 3 and after completion of the applicable Fleet Replacement Squadron Category II syllabus.
6. Payment Provisions: The FY19 AvB opportunities can be broken down into two categories (based on MOS and YCS on contract start date, as defined in paragraph 6.f.).
6.a. Category 1: (MOS: 7509, 7518, 7523, 7532, 7556, 7557)
  6.a.1. Less than 11 YCS: 72-Month Contract Length for 210,000 dollars (35,000 per year), or 48-Month Contract Length for 120,000 dollars (30,000 per year)
  6.a.2. Less than 13 YCS, but greater than 11 YCS: 48-Month Contract Length for 120,000 dollars (30,000 per year)
  6.a.3. Less than 14 YCS, but greater than or equal to 13 YCS: 24-Month Contract Length for 60,000 dollars (30,000 per year)
6.b. Category 2: (MOS: 7525, 7563, 7565, 7566)
  6.b.1. Less than 13 YCS: 48-Month Contract Length for 80,000 dollars (20,000 per year)
  6.b.2. Less than 14 YCS, but greater than or equal to 13 YCS: 24-Month Contract Length for 40,000 dollars (20,000 per year)
6.c. These amounts will be paid out in equal annuities over the length of the contract. For example, an individual with a 72-month contract will receive six equal payments of 35,000 dollars.
6.d. Those individuals eligible for, and electing, a 72-month contract can choose to receive the payments in lump sum form vice annuity payments. The lump sum amount is 178,500 dollars which uses the discount rate of seven percent, from the Office of Management and Budget per reference (c), to calculate the present value of the annuity.
6.e. Contract lengths will be 24, 48, and 72 months beginning on the contract start date.
6.f.  Contract start date is defined as:
        Date of application package submission to MMOA-2,
        Date of ADSC completion,
        or 1 Oct 18, whichever is latest.
6.g. Incomplete application package submission, packages requiring resubmission, or submission of excess information, beyond the requirements, may result in a processing delay and could result in a delay of contract start date.
7. Payment and Repayment Provisions
7.a. Officers shall be required to repay the unearned portion of prepaid amounts on a pro-rated basis in the following circumstances:
7.a.1. Separation from active duty or discharge within the related contract extension time.
7.a.2. Loss of designation as a naval aviator or naval flight officer (except as specified in para 7.b.).
7.a.3. Termination of AvIP entitlement (except as specified in paragraph 7.b.).
7.a.4. Medical incapacitation or physical disability resulting from misconduct, gross negligence, or incurred during a period of unauthorized absence.
7.a.5. Separation or dismissal for cause, resignation in lieu of court martial, or processing for administrative separation.
7.a.6. Involuntary separation from military service by operation of law, or involuntary separation by operation of military service or policy.
7.b. Officers will not be required to repay the unearned portion of prepaid amounts of AvB if eligibility is terminated in the following circumstances: Death or disability, including a suspension for medical reasons, which is not the result of misconduct or willful negligence, and which does not result from a period of unauthorized absence.
7.c. An officer may only be released from their service obligation upon approval by the CMC.
8. Provisions for re-application following termination of eligibility.  Officers whose eligibility for AvB is terminated may re-apply, prior to 1 Aug 19, once returned to a status that allows that individual to meet the eligibility requirements in paragraph 3. Officers re-applying under this circumstance will be approved only under the conditions of the previously terminated AvB contract, and will resume the terms of that contract.
9. Application Procedures
9.a. Applicants must submit their AvB application package via email correspondence to CMC (MMOA-2) by 1 Aug 2019 and need to include:
9.a.1. Part One: Application form (as defined in paragraph 10)
9.a.2. Part Two: Endorsement (as defined in paragraph 11)
9.a.3. Part Three: Copy of the officer’s initial obligation contract, which will identify the initial length of undergraduate training obligation incurred.  If an applicant’s service agreement is not present in their OMPF, and they are unable to produce a copy of their service agreement:
    Step One: Add “My aviation contract is not present in my OMPF, nor was I issued one for records. Per Title 10 section 653, I am  eligible for (6 or 8) years of obligated service as a 75__.” to the application form.
    Step Two: Print out and add as an enclosure the TMOS and ACIP screens from Marine Corps Total Force System (MCTFS).
9.b. The documentation needed for processing is a scanned electronic copy, with appropriate signatures, sent via email to SMB_officer_aviation@usmc.mil.
9.c. Applications will be reviewed for eligibility and approved by CMC (MMOA-2). Applicants can expect a confirmation of receipt of application via email from MMOA-2 within 10 business days. Processing, approval, and payment may take up to 8 weeks. If approved, the effective date of AvB contracts will be the contract start date, as defined in paragraph 6.f.
9.d. Upon confirmation of eligibility and AvB approval, MMOA-2 will send an official letter detailing the applicant’s service obligation and monetary amounts to the officer. Payments, to include lump sum if applicable, will start no earlier than an individual’s contract start date.
10. Application Form.  Applicants will submit a Standard Naval Letter in the following format:
From: (Applying Officer’s Grade, Name, EDIPI/MOS)
To: CMC (MMOA-2)
Via: (Commanding Officer or appropriate designee)
Subj: Request for FY19 Aviation Bonus
Ref: (Cite Subject MARADMIN)
1. Per the Reference, I hereby apply for the FY19 Aviation Bonus (AvB). Contingent on approval of my application for this special pay, I agree to accept an officer service obligation to complete ___ additional years of service beginning the effective date of my AvB contract, in exchange for ___ dollars annually for each full year of service (or a 178,500 dollar lump sum). I agree not to tender a resignation that would be effective during this AvB service obligation or voluntarily terminate my flight status. I understand that, upon receipt by MMOA-2, this application becomes a binding contract and an officer service obligation for the duration of the contract period.
2. I have read, understand, and agree to be bound by the provisions of the reference and MARADMIN, including all provisions relating to termination of payments to be made pursuant to this agreement, termination of the service obligation and the circumstances under which recoupment by the government of sums paid may be required.
3. I affirm that I meet the eligibility requirements and understand CMC (MMOA-2) must validate my eligibility for AvB. In the event it is determined I am not eligible for AvB, this application will be returned with no action taken and I may reapply at a later date if my eligibility changes.
4. I am/am not currently obligated under the FY18 Aviation Bonus program. [If obligated]I elect to end my FY18 AvB contract at the 1-year anniversary date, which is ___, in order to replace with a new contract listed in paragraph 1, and confirm this application will be submitted at least 1-month prior to that date. I understand I will not receive the second annuity payment for the FY18 Aviation Bonus.
5. The following information is provided and certified to be true and accurate:
     Date Accepted First Commission:
     Current Years of Commissioned Service:
     Date Designated Naval Aviator/Naval Flight Officer:
     Length of Aviation Contract:
     Work Phone Number:
     E-Mail Address:
     Pending Legal Action: (Yes/No, provide amplifying information)
     (Signature of Officer)
11. The endorsement from Commanding Officer or the first O-5 in applicant’s chain of command must contain
11.a. “Forward recommending approval” or “Forward not recommending approval.”
11.b. “I verify this officer is not under command or legal investigation or under FFPB/FFSB investigation, and this officer meets the eligibility criteria.”
11.c. “Applicant has fulfilled/will fulfill their active duty service obligation as of___”
11.d. “Applicant possesses a current medical up-chit.”
12. Selection for the AvB is not intended to be a career enhancement and shall not be annotated in a Marine’s fitness report.
13. AvB payments will be taxed as per Department of Defense Financial Management Regulation, except for those identified in Volume 7A, Chapter 44, Paragraph 440202, reference (d).
14. Financial Planning Consideration. Resources are available aboard each installation in order to discuss the significant financial decisions associated with the receipt of bonuses such as changing tax brackets, savings, investments, retirement planning, and comparison of lump sum vs annuity distributions.  Local resources available include Personal Financial Managers (PFM), contracted Personal Financial Counselors, and unit Command Financial Specialists.
15. All AvB correspondence shall be submitted to SMB_officer_aviation@usmc.mil.
16. AvB execution, application, processing, and administrative issues point of contact: Sgt E. E. Yanez, MMOA-2, 703-784-9267/8.
17. AvB policy point of contact: Maj C. N. Rateike, MPP-33, 703-784-9366.
18. This MARADMIN does not apply to the Marine Corps Reserve.
19. This MARADMIN cancels on 1 Oct 19.
20. Release authorized by Col W. H. Swan Director, Manpower Plans and Policy Division.//