Department of Defense (DoD) Policy on Recruitment, Retention and Relocation Incentives for NAF Employees

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

The following provisions apply:

Recruitment, relocation, and retention incentives are authorized for certain categories of employees as described in AR 215-3 as tools to assist managers in building and maintaining a quality workforce. These incentives 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 incentives 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 area allowances. When a recruitment or relocation incentive 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. Recruitment, relocation and retention incentives are not considered part of the basic pay of the employee for any purpose, including calculation of retirement annuity.

Content last reviewed: 8/25/2015-MF

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