The effective date of entitlement is determined by the Retention Branch at Human Resources Command. It is based on all known service obligations already in effect for the member. The effective date is specified in paragraph one of the approval memorandum. It is also the effective date of the payment. Rules governing this payment are announced in applicable MIL PER Messages.
Application can normally be made at 18 years 6 months of active duty, with the additional service obligation starting on or after the 19th year anniversary of active duty. Entitlement/additional service obligation can extend to the 25th anniversary date of active duty.
Payment amount is based on pay grade/rank, military occupational skill (click here to view the Critical Skills Retention Bonuses) and service obligation. Grades currently authorized to apply and receive entitlement to a critical skills retention bonus are staff sergeant (E-6) through command sergeant major (E-9). The current maximum entitlement is $150,000. Payment is made lump-sum based on effective date specified in paragraph one of the approval memorandum.
Bonus is subject to combat zone tax exclusion. If effective date specified in paragraph one of the approval memorandum occurs in a month that member is entitled to combat zone tax exclusion, the payment is tax exempt. If the effective date specified in paragraph one of the approval memorandum occurs in a normal month, the payment is taxed.
In cases of a renegotiated CSRB, the effective date of payment will be the date the renegotiated approval memorandum is published. This is also the date that CZTE will be based on, NOT the date of the original approval.
Officers may or may not receive a portion of the bonus tax exempt. If the officer's current month wages use up the monthly tax exemption for officers (for calendar year 2006, currently $6,724.50 with hostile fire pay/imminent danger pay, $6,499.50 without these entitlements), the bonus will be taxed. If current month wages do not use up the entire tax exemption, then a portion of the bonus will be tax exempt, up to the established I.R.S. limits.
The documentation needed to authorize and pay the critical skills retention bonus are: 1) two page request memorandum from the member; and 2) one page approval memorandum from Retention Branch, Human Resource Command.
Because of the high dollar amounts involved, DFAS does not accept CSRB documentation from the field or the soldier. The approvals all come over directly from the particular authorization offices within Human Resource Command. The Special Forces CSRB’s all come directly from USASOC Headquarters at Ft Bragg.
Recoupment occurs if member fails to complete entire additional service obligation period. Recoupment is made on a pro-rata basis. Under certain specific instances, no recoupment is required (death, combat disability, needs of the service, etc.).
