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§ 308. —  Special pay: reenlistment bonus.



[Laws in effect as of January 24, 2002]
[Document affected by Public Law 6 Section )]
[CITE: 37USC308]

 
         TITLE 37--PAY AND ALLOWANCES OF THE UNIFORMED SERVICES
 
                  CHAPTER 5--SPECIAL AND INCENTIVE PAYS
 
Sec. 308. Special pay: reenlistment bonus

    (a)(1) A member of a uniformed service who--
        (A) has completed at least 17 months of continuous active duty 
    (other than for training) but not more than fourteen years of active 
    duty;
        (B) is qualified in a military skill designated as critical by 
    the Secretary of Defense, or by the Secretary of Homeland Security 
    with respect to the Coast Guard when it is not operating as service 
    in the Navy;
        (C) is not receiving special pay under section 312a of this 
    title; and
        (D) reenlists or voluntarily extends the member's enlistment for 
    a period of at least three years--
            (i) in a regular component of the service concerned; or
            (ii) in a reserve component of the service concerned, if the 
        member is performing active Guard and Reserve duty (as defined 
        in section 101(d)(6) of title 10).\1\
---------------------------------------------------------------------------
    \1\ So in original. The period probably should be a semicolon.

may be paid a bonus as provided in paragraph (2).
    (2) The bonus to be paid under paragraph (1) may not exceed the 
lesser of the following amounts:
        (A) The amount equal to the product of--
            (i) 15 times the monthly rate of basic pay to which the 
        member was entitled at the time of the discharge or release of 
        the member; and
            (ii) the number of years (or the monthly fractions thereof) 
        of the term of reenlistment or extension of enlistment, not to 
        exceed six.

        (B) $60,000.

    (3) Any portion of a term of reenlistment or extension of enlistment 
of a member that, when added to the total years of service of the member 
at the time of discharge or release, exceeds 16 years may not be used in 
computing a bonus under paragraph (2)(A).
    (4) Notwithstanding paragraph (1)(B), a member who agrees to train 
and reenlist for service in a military skill which, at the time of that 
agreement, is designated as critical, may be paid the bonus approved for 
that skill, at the rate in effect at the time of agreement, upon 
completion of training and qualification in that skill, if otherwise 
qualified under this subsection and even if that skill is no longer 
designated as critical at the time the member becomes eligible for 
payment of the bonus.
    (b) Bonus payments authorized under this section may be paid in 
either a lump sum or in installments. If the bonus is paid in 
installments, the initial payment shall be not less than 50 percent of 
the total bonus amount.
    (c) For the purpose of computing the reenlistment bonus in the case 
of an officer with prior enlisted service who may be entitled to a bonus 
under subsection (a), the monthly basic pay of the grade in which he is 
enlisted, computed in accordance with his years of service computed 
under section 205 of this title, shall be used instead of the monthly 
basic pay to which he was entitled at the time of his release from 
active duty as an officer.
    (d)(1) A member who voluntarily, or because of his misconduct, does 
not complete the term of enlistment for which a bonus was paid to him 
under this section or a member who is not technically qualified in the 
skill for which a bonus was paid to him under this section (other than a 
member who is not qualified because of injury, illness, or other 
impairment not the result of his own misconduct) shall refund that 
percentage of the bonus that the unexpired part of his additional 
obligated service is of the total reenlistment or extension period for 
which the bonus was paid.
    (2) If a refund is not required under paragraph (1) in the case of a 
member who fails to complete a term of enlistment, the Secretary of 
Defense with respect to the armed forces under the Secretary's 
jurisdiction, and the Secretary of Homeland Security with respect to the 
Coast Guard when it is not operating as a service in the Navy, may 
decline to make any payment of a bonus installment under this section 
that is due to be paid to the member after the date on which the member 
fails to complete the term of enlistment for which the bonus is being 
paid. The Secretary of Defense and the Secretary of Homeland Security 
may prescribe the circumstances under which bonus installments may be 
terminated under this paragraph.
    (e) For the purposes of determining the eligibility of a member for 
a bonus under this section and of computing the amount of that bonus--
        (1) any period of enlistment (including any extension of an 
    enlistment) (A) that is incurred by the member for the purpose of 
    continuing to qualify for continuous submarine duty incentive pay 
    under section 301c of this title, and (B) for which no bonus is 
    otherwise payable; or
        (2) any unserved period of two years or less of an extension of 
    an enlistment for which no bonus has been paid or for which no bonus 
    is otherwise payable under this section,

may, under regulations prescribed by the Secretary concerned, be 
considered as part of an immediately subsequent term of reenlistment (or 
as part of an immediately subsequent voluntary extension of an 
enlistment).
    (f) This section shall be administered under regulations prescribed 
by the Secretary of Defense for the armed forces under his jurisdiction, 
and by the Secretary of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy.
    (g) No bonus shall be paid under this section with respect to any 
reenlistment, or voluntary extension of an active-duty enlistment, in 
the armed forces entered into after December 31, 2003.

(Pub. L. 87-649, Sept. 7, 1962, 76 Stat. 467; Pub. L. 89-132, Sec. 3, 
Aug. 21, 1965, 79 Stat. 547; Pub. L. 90-623, Sec. 3(1), Oct. 22, 1968, 
82 Stat. 1314; Pub. L. 93-277, Sec. 2(1), May 10, 1974, 88 Stat. 119; 
Pub. L. 95-57, Sec. 1, June 29, 1977, 91 Stat. 253; Pub. L. 95-485, 
title VIII, Sec. 802(a)(1), (b), Oct. 20, 1978, 92 Stat. 1619; Pub. L. 
96-342, title VIII, Sec. 804(a), Sept. 8, 1980, 94 Stat. 1092; Pub. L. 
96-579, Sec. 3(f), Dec. 23, 1980, 94 Stat. 3364; Pub. L. 97-60, title I, 
Sec. 117(a), Oct. 14, 1981, 95 Stat. 996; Pub. L. 97-276, title I, 
Sec. 131, Oct. 2, 1982, 96 Stat. 1197; Pub. L. 97-377, title I, 
Sec. 101(c) [title VII, Sec. 798], Dec. 21, 1982, 96 Stat. 1833, 1865; 
Pub. L. 98-14, Sec. 1, Mar. 30, 1983, 97 Stat. 55; Pub. L. 98-525, title 
VI, Sec. 621, Oct. 19, 1984, 98 Stat. 2540; Pub. L. 99-145, title VI, 
Sec. 631(a), Nov. 8, 1985, 99 Stat. 643; Pub. L. 100-180, div. A, title 
VI, Secs. 625(a), 626(a), Dec. 4, 1987, 101 Stat. 1104; Pub. L. 101-189, 
div. A, title VI, Sec. 611(a), Nov. 29, 1989, 103 Stat. 1445; Pub. L. 
101-510, div. A, title VI, Sec. 615(a), Nov. 5, 1990, 104 Stat. 1578; 
Pub. L. 102-25, title VII, Sec. 702(b)(1), (c), Apr. 6, 1991, 105 Stat. 
117; Pub. L. 102-484, div. A, title VI, Sec. 612(a), Oct. 23, 1992, 106 
Stat. 2421; Pub. L. 103-160, div. A, title VI, Sec. 613(b), Nov. 30, 
1993, 107 Stat. 1681; Pub. L. 103-337, div. A, title VI, Sec. 613(b), 
Oct. 5, 1994, 108 Stat. 2783; Pub. L. 104-106, div. A, title VI, 
Sec. 613(b), Feb. 10, 1996, 110 Stat. 359; Pub. L. 104-201, div. A, 
title VI, Sec. 613(b), Sept. 23, 1996, 110 Stat. 2544; Pub. L. 105-85, 
div. A, title VI, Sec. 613(b), Nov. 18, 1997, 111 Stat. 1786; Pub. L. 
105-261, div. A, title VI, Secs. 613(b), 618, 619, Oct. 17, 1998, 112 
Stat. 2039, 2042; Pub. L. 106-65, div. A, title VI, Secs. 613(b), 
618(a), (b), Oct. 5, 1999, 113 Stat. 650, 652; Pub. L. 106-398, Sec. 1 
[[div. A], title VI, Sec. 623(b)], Oct. 30, 2000, 114 Stat. 1654, 1654A-
152; Pub. L. 107-107, div. A, title VI, Sec. 614(b), Dec. 28, 2001, 115 
Stat. 1136; Pub. L. 107-296, title XVII, Sec. 1704(c), Nov. 25, 2002, 
116 Stat. 2314; Pub. L. 107-314, div. A, title VI, Sec. 614(b), Dec. 2, 
2002, 116 Stat. 2568.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
            Revised section                      Source (U.S. Code)               Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
308(a)................................  37:239(a).                           Oct. 12, 1949, ch. 681, Sec.  208;
                                        37:239(e).                            added July 16, 1954, ch. 535, Sec.
308(b)................................  37:239(b).                             2, 68 Stat. 488; July 25, 1961,
308(c)................................  37:239(c).                            Pub. L. 87-103, Sec.  1 (as
308(d)................................  37:239(d).                            applicable to Sec.  208), 75 Stat.
308(e)................................  37:239(f).                            219.
308(f)................................  37:239(g).
----------------------------------------------------------------------------------------------------------------

    In subsection (a), the words ``reenlists . . . after . . . 
compulsory or voluntary active duty or who voluntarily extends his 
enlistment for at least two years'' are substituted for the words 
``reenlists . . . after . . . active duty'' and section 239(e) of 
existing title 37. The words ``(other than for training)'' are inserted, 
since the source statute has been consistently interpreted to exclude 
that kind of duty. The words ``or release'' are inserted in column 1 of 
the table and in footnotes 2, 4, and 5 to conform to the introductory 
language preceding the tables.
    In subsection (b), the words ``a total of'' are omitted as 
surplusage.


                               Amendments

    2002--Subsecs. (a)(1)(B), (d)(2), (f). Pub. L. 107-296 substituted 
``of Homeland Security'' for ``of Transportation'' wherever appearing.
    Subsec. (g). Pub. L. 107-314 substituted ``December 31, 2003'' for 
``December 31, 2002''.
    2001--Subsec. (g). Pub. L. 107-107 substituted ``December 31, 2002'' 
for ``December 31, 2001''.
    2000--Subsec. (g). Pub. L. 106-398 substituted ``December 31, 2001'' 
for ``December 31, 2000''.
    1999--Subsec. (a)(1)(A). Pub. L. 106-65, Sec. 618(a), substituted 
``17 months'' for ``twenty-one months''.
    Subsec. (a)(2)(A)(i). Pub. L. 106-65, Sec. 618(b)(1), substituted 
``15'' for ``ten''.
    Subsec. (a)(2)(B). Pub. L. 106-65, Sec. 618(b)(2), substituted 
``$60,000'' for ``$45,000''.
    Subsec. (g). Pub. L. 106-65, Sec. 613(b), substituted ``December 31, 
2000'' for ``December 31, 1999''.
    1998--Subsec. (a)(1)(D). Pub. L. 105-261, Sec. 618, amended subpar. 
(D) generally. Prior to amendment, subpar. (D) read as follows: 
``reenlists or voluntarily extends his enlistment in a regular component 
of the service concerned for a period of at least three years;''.
    Subsec. (b). Pub. L. 105-261, Sec. 619, designated par. (1) as 
entire subsec. and struck out par. (2) which read as follows: ``Of the 
bonuses paid under this section to members of a uniformed service during 
a fiscal year, not more than 10 percent may exceed $20,000.''
    Subsec. (g). Pub. L. 105-261, Sec. 613(b), substituted ``December 
31, 1999'' for ``September 30, 1999''.
    1997--Subsec. (g). Pub. L. 105-85 substituted ``September 30, 1999'' 
for ``September 30, 1998''.
    1996--Subsec. (g). Pub. L. 104-201 substituted ``September 30, 
1998'' for ``September 30, 1997''.
    Pub. L. 104-106 substituted ``September 30, 1997'' for ``September 
30, 1996''.
    1994--Subsec. (g). Pub. L. 103-337 substituted ``September 30, 
1996'' for ``September 30, 1995''.
    1993--Subsec. (g). Pub. L. 103-160 substituted ``September 30, 
1995'' for ``September 30, 1993''.
    1992--Subsec. (g). Pub. L. 102-484 substituted ``September 30, 
1993'' for ``September 30, 1992''.
    1991--Subsec. (c). Pub. L. 102-25 struck out ``of this section'' 
after ``subsection (a)''.
    1990--Subsec. (d). Pub. L. 101-510 designated existing provisions as 
par. (1) and added par. (2).
    1989--Subsec. (a)(1). Pub. L. 101-189, Sec. 611(a)(1), substituted 
``may be paid a bonus as provided in paragraph (2)'' for ``may be paid a 
bonus, not to exceed six months of the basic pay to which he was 
entitled at the time of his discharge or release, multiplied by the 
number of years, or the monthly fractions thereof, of additional 
obligated service, not to exceed six years, or $30,000, whichever is the 
lesser amount. Obligated service in excess of sixteen years will not be 
used for bonus computation''.
    Subsec. (a)(2), (3). Pub. L. 101-189, Sec. 611(a)(3), added pars. 
(2) and (3). Former par. (2) redesignated (4).
    Subsec. (a)(4). Pub. L. 101-189, Sec. 611(a)(2), redesignated former 
par. (2) as (4) and struck out ``of this subsection'' after ``paragraph 
(1)(B)''.
    1987--Subsec. (b)(1). Pub. L. 100-180, Sec. 625(a), amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``Not less than 
75 percent of the amount of a bonus under this section shall be paid in 
a lump sum at the beginning of the period for which the bonus is paid, 
with any remaining amount paid in equal annual installments.''
    Subsec. (g). Pub. L. 100-180, Sec. 626(a), substituted ``September 
30, 1992'' for ``September 30, 1987''.
    1985--Subsec. (b)(1). Pub. L. 99-145 amended par. (1) generally. 
Prior to amendment, par. (1) read as follows: ``Bonus payments 
authorized under this section may be paid in either a lump sum or in 
installments.''
    1984--Subsec. (a)(1). Pub. L. 98-525, Sec. 621(b)(1), substituted 
``$30,000'' for ``$20,000'' in provisions following subpar. (D).
    Subsec. (b). Pub. L. 98-525, Sec. 621(b)(2), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (g). Pub. L. 98-525, Sec. 621(a), substituted ``September 
30, 1987'' for ``September 30, 1984''.
    1983--Subsec. (g). Pub. L. 98-14 substituted ``September 30, 1984'' 
for ``March 31, 1983''.
    1982--Subsec. (g). Pub. L. 97-377 substituted ``March 31, 1983'' for 
``December 17, 1982''.
    Pub. L. 97-276 substituted ``December 17, 1982'' for ``September 30, 
1982''. Notwithstanding directory language that amendment be made to 
section 308(g) of ``title 35, United States Code'', amendment was 
executed to this section as the probable intent of Congress.
    1981--Subsec. (e). Pub. L. 97-60 inserted provision that any 
unserved period of two years or less of an extension of an enlistment 
for which no bonus has been paid or for which no bonus is otherwise 
payable under this section may be considered as part of an immediately 
subsequent term of reenlistment (or as part of an immediately subsequent 
voluntary extension of an enlistment) and substituted ``Secretary 
concerned'' for ``Secretary of the Navy'' as authority authorized to 
prescribe regulations.
    1980--Subsec. (a)(1). Pub. L. 96-342, Sec. 804(a)(1), substituted 
``fourteen years'' for ``ten years'' in subpar. (A) and, in provisions 
following subpar. (D), substituted ``$20,000'' for ``$15,000'' and 
``sixteen years'' for ``twelve years''.
    Subsec. (e). Pub. L. 96-579 added subsec. (e). Former subsec. (e) 
redesignated (f).
    Subsec. (f). Pub. L. 96-579 redesignated former subsec. (e) as (f). 
Former subsec. (f) redesignated (g).
    Pub. L. 96-342, Sec. 804(a)(2), substituted ``September 30, 1982'' 
for ``September 30, 1980''.
    Subsec. (g). Pub. L. 96-579 redesignated former subsec. (f) as (g).
    1978--Subsec. (a). Pub. L. 95-485, Sec. 802(a)(1), designated 
existing provision as par. (1) and existing pars. (1) to (4) thereof as 
subpars. (A) to (D), in subpar. (B) as so redesignated, substituted 
``qualified in a military skill designated as critical'' for 
``designated as having a critical military skill'', and added par. (2).
    Subsec. (f). Pub. L. 95-485, Sec. 802(b), substituted ``September 
30, 1980'' for ``September 30, 1978''.
    1977--Subsec. (d). Pub. L. 95-57, Sec. 1(a), substituted ``or a 
member who is not technically qualified in the skill for which a bonus 
was paid to him under this section (other than a member who is not 
qualified because of injury, illness, or other impairment not the result 
of his own misconduct) shall refund that percentage of the bonus, that 
the unexpired part of his additional obligated service is of the total 
reenlistment or extension period for which the bonus was paid'' for 
``shall refund that percentage of the bonus that the unexpired part of 
his enlistment is of the total enlistment period for which the bonus was 
paid''.
    Subsec. (f). Pub. L. 95-57, Sec. 1(b), substituted ``September 30, 
1978'' for ``June 30, 1977''.
    1974--Pub. L. 93-277 amended section generally.
    1968--Subsecs. (e), (g). Pub. L. 90-623 substituted ``Secretary of 
Transportation'' for ``Secretary of the Treasury''.
    1965--Subsec. (g). Pub. L. 89-132 added subsec. (g).


                    Effective Date of 2002 Amendment

    Amendment by Pub. L. 107-296 effective on the date of transfer of 
the Coast Guard to the Department of Homeland Security, see section 
1704(g) of Pub. L. 107-296, set out as a note under section 101 of Title 
10, Armed Forces.


                    Effective Date of 1999 Amendment

    Pub. L. 106-65, div. A, title VI, Sec. 618(c), Oct. 5, 1999, 113 
Stat. 652, provided that: ``The amendments made by subsections (a) and 
(b) [amending this section] shall take effect on October 1, 1999, and 
shall apply with respect to reenlistments and extensions of enlistments 
taking effect on or after that date.''


                    Effective Date of 1993 Amendment

    Section 613(h)(1) of Pub. L. 103-160 provided that: ``The amendments 
made by subsections (b) and (c) [amending this section and section 308a 
of this title] shall take effect as of September 30, 1993, and shall 
apply with respect to an enlistment, reenlistment, or extension of an 
enlistment described in section 308 or 308a of title 37, United States 
Code, occurring on or after that date.''


                    Effective Date of 1990 Amendment

    Section 615(b) of Pub. L. 101-510 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to any bonus paid under section 308 of title 37, United States Code, to 
a person in connection with the reenlistment or extension of the term of 
enlistment of the person in the Armed Forces on or after the date of the 
enactment of this Act [Nov. 5, 1990].''


                    Effective Date of 1989 Amendment

    Section 611(b) of Pub. L. 101-189 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
reenlistment and extension of enlistment agreements entered into under 
section 308(a) of title 37, United States Code, after September 30, 
1989.''


                    Effective Date of 1987 Amendment

    Section 625(b) of Pub. L. 100-180 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to bonuses paid for reenlistment or extension of enlistment agreements 
entered into after September 30, 1987.''


                    Effective Date of 1985 Amendment

    Section 631(b) of Pub. L. 99-145 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
bonuses paid for reenlistments or extensions of enlistment effective 
after September 30, 1986.''


                    Effective Date of 1981 Amendment

    Section 117(d) of Pub. L. 97-60 provided that: ``The amendments made 
by this section [enacting section 308f of this title and amending this 
section and section 308a of this title] shall apply to enlistments and 
reenlistments after the date of enactment of this Act [Oct. 14, 1981].''


                    Effective Date of 1980 Amendments

    Section 804(c) of Pub. L. 96-342 provided that: ``The amendments 
made by this section [amending this section and section 308a of this 
title] shall only apply to enlistments, reenlistments, and extensions of 
enlistments made after September 30, 1980.''
    Amendment by Pub. L. 96-579 effective Jan. 1, 1981, see section 3(g) 
of Pub. L. 96-579, set out as an Effective Date note under section 301c 
of this title.


                    Effective Date of 1978 Amendment

    Section 802(a)(2) of Pub. L. 95-485 provided that: ``The amendments 
made by paragraph (12) [amending this section] shall take effect on 
October 1, 1978.''


                    Effective Date of 1977 Amendment

    Section 3 of Pub. L. 95-57 provided that: ``The amendments made by 
this Act [amending this section and section 308a of this title] shall 
become effective on July 1, 1977.''


                    Effective Date of 1974 Amendment

    Section 4 of Pub. L. 93-277 provided that: ``The amendments made by 
this Act [amending this section and section 308a of this title and 
enacting provisions set out below] become effective on the first day of 
the month following the date of enactment [May 10, 1974].''


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-623 intended to restate without substantive 
change the law in effect on Oct. 22, 1968, see section 6 of Pub. L. 90-
623, set out as a note under section 5334 of Title 5, Government 
Organization and Employees.


                    Effective Date of 1965 Amendment

    Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section 10 
of Pub. L. 89-132, set out as a note under section 203 of this title.


                 Coverage of Period of Lapsed Authority

    For provisions relating to coverage of period of lapsed authority 
from Oct. 1, 1992, to Oct. 23, 1992, for payment of bonuses or other 
special pay under this section, see section 612(j)(2) of Pub. L. 102-
484, set out as a note under section 301b of this title.
    Section 626(c) of Pub. L. 100-180 provided that:
    ``(1) The Secretary concerned, in the case of any person who during 
the period beginning on October 1, 1987, and ending on the date of the 
enactment of this Act [Dec. 4, 1987] would have qualified for an 
agreement with the Secretary described in paragraph (2) but for the fact 
that the authority for the payment of bonuses provided by that section 
had lapsed, shall pay to that person a bonus under the terms of the 
appropriate section specified in that paragraph (and related 
regulations) as in effect on September 30, 1987.
    ``(2) An agreement referred to in paragraph (1) is an agreement with 
the Secretary for the payment of a bonus under section 308, 308a, 308b, 
308c, 308e, 308f, 308g, 308h, or 308i of title 37, United States Code.''


   Cost Reductions for Fiscal Year 1987; Selective Reimbursement Bonus

    Pub. L. 99-661, div. A, title VI, Sec. 663(a), Nov. 14, 1986, 100 
Stat. 3894, provided that: ``During fiscal year 1987, the Secretary 
concerned may not pay more than 50 percent of an amount paid to any 
person under section 308 of title 37, United States Code, in a lump 
sum.''.


                  Optional Choice of Reenlistment Bonus

    Section 3 of Pub. L. 93-277 provided that: ``Notwithstanding section 
308 of title 37, United States Code, as amended by this Act, a member of 
a uniformed service on active duty on the effective date of this Act, 
who would have been eligible, at the end of his current or subsequent 
enlistment, for the reenlistment bonus prescribed in section 308(a) or 
(d) of that title, as it existed on the day before the effective date of 
this Act, shall continue to be eligible for the reenlistment bonus under 
that section as it existed on the day before the effective date of this 
act. If a member is also eligible for the reenlistment bonus prescribed 
in that section as amended by this Act, he may elect to receive either 
one of those reenlistment bonuses. However, a member's eligibility under 
section 308(a) or (d) of that title, as it existed on the day before the 
effective date of this Act, terminates when he has received a total of 
$2,000 in reenlistment bonus payments, received under either section 
308(a) or (d) of that title as it existed on the day before the 
effective date of this Act, or under section 308 of that title, as 
amended by this Act, or from a combination of both.''

                  Section Referred to in Other Sections

    This section is referred to in section 312a of this title.



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