Department of Defense (DoD) Policy on Recruitment , Retention and Relocation Bonuses and Allowances

In accordance with AR 215-3, subject policy became effective February 16, 1996. As reflected in that policy, recruiting and relocation bonuses and retention allowances are not part of basic pay for any purpose, to include retirement.

The following provisions apply:

Recruiting, relocation and bonuses and retention allowances for regular full-time pay band employees are tools that assist managers in building and maintaining a quality workforce. Bonuses and allowances are designed to attract and retain quality personnel where there is strong competition in highly compensated private sector labor markets for employees with particular specialized skills. Payment of these bonuses and allowances should be used sparingly and only in selective recruiting or retention situations and should not be a matter of routine. They are not a substitute for Incentive Awards, pay adjustments, or foreign and non-foreign allowances. When a recruitment or relocation bonus is paid, a written service agreement must be completed by the employee covering a period of at least 6 months. Recovery of funds, on a pro-rata basis, must be sought when employees fail to complete their required period of service. Recruiting and relocation bonuses and retention allowances are not considered part of the basic pay of the employee for any purpose, including calculation of retirement annuity.

Content last reviewed: 5/9/2006-MF

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This page was last revised: 9/24/2013