CONTINUATION PAY
The National Defense Authorization Act of Fiscal Year 2016, includes a continuation pay provision as a way to encourage service members to continue serving in the Uniformed Services. Continuation pay is a direct cash payout, like a bonus. It is payable between the completion of eight years of service, but before completion of 12 years of service as determined by your Service. Members receive continuation pay in return for additional obligated service. Active component service members (including Active Guard Reserve (AGR) and Full Time Support (FTS)) enrolled in the BRS will be eligible for a cash incentive of 2.5 to 13 times their regular monthly basic pay. Reserve component members will be eligible for 0.5 to 6 times their monthly basic pay (as if serving on active duty). Each service will publish guidance related to continuation pay rates. Visit http://militarypay.defense.gov/BlendedRetirment for the latest published rates.