Army Bonus payments frozen

Bush veto halts $1 billion in accession and retention bonuses.

By Jim Tice - Staff writerPosted : Thursday Jan 3, 2008 7:47:39 ESTThe Army has temporarily halted bonus payments for more than 20 enlistment, re-enlistment and service extension programs pending enactment of authorizing legislation.
President Bush, to the surprise of Congress and the Defense Department, vetoed the fiscal 2008 Defense Authorization Act on Dec. 29 after months bargaining with House and Senate leaders.
In announcing the pocket veto, White House spokesman Scott Stanzel said the president objected to a single provision of the legislation that would delay the reconstruction of Iraq, and expose the Iraqi government to unwarranted law suits in U.S. courts.
If enacted as currently written, the legislation would authorize $696.3 billion in defense spending during 2008, including $1 billion for Army accession and retention bonuses.
Until a new version of the legislation is enacted, all new bonus agreements signed on, or after, Jan. 1 must include an addendum that stipulates the soldier’s eligibility for a future bonus.
However, the addendum also stipulates that the bonus is not guaranteed. Payments will not be made if the affected bonus program is not authorized in the final budget compromise.
If Congress fails to authorize a bonus, the soldier — officer or enlisted — still must meet the re-enlistment or service extension requirements of the contract.
Soldiers whose service contracts expire during the impasse have the option of extending month by month until the problem is worked out, or sign a service agreement on the assumption that a new authorization bill will be enacted.
Bonus programs affected by the impasse are targeted at officers and enlisted soldiers of the active and reserve components. Specifically they are:
LinkHere