A member, who enters into a written agreement with specified service
conditions for receipt of a bonus, special pay, educational benefits or
stipend, is entitled to the full amount of the pay or benefit if the
member fulfills the conditions for that pay or benefit. Any failure to
fulfill the service requirements specified in the agreement may result
in termination of the agreement and the member's repayment of an
unearned portion of the pay or benefit. Current Deputy Secretary of
Defense (DSD) policy memorandum, Repayment of Unearned Portions of Bonuses, Special Pay, and Educational Benefits or Stipends,
dated February 6, 2009, recognized that, at the time, members were
subject to statutory repayment authorities with varied requirements, and
that repayment would be aggressively pursued for any unearned portion
of a pay or benefit, as appropriate. However, it was also understood
there may be circumstances that support the need to refrain from taking
such action. For example, if a member is unable to fulfill the
conditions of the agreement due to the member's death not the result of
the member's own misconduct, repayment is not sought and any unpaid
portion of a pay is included in a deceased member's final pay. The DSD
authorized the USD(P&R) to establish additional exceptions if
repayment would be contrary to a personnel policy or management
objective, would be against equity and good conscience, or would be
contrary to the best interests of the United States.
When the conditions of a written agreement are not fulfilled and
repayment is determined appropriate, the member will be required to
repay the United States the unearned portion of the pay or benefit. In
cases other than death of a member, the Secretary of the Military
Department concerned (or designee) will advise the Defense Finance and
Accounting Service of the disposition of any unearned portion of a pay
or benefit.