Expert: Cynthia Bedell - 7/18/2008

Question
QUESTION: I have been enlisted in the US Army for almost two years.  I was promised a
bonus, of which is in my contract, the addendum was verified by my UA and my
paperwork was sent in twice to receive the bonus.  Needless to say I have not
received the bonus.  I met all the requirements in my contract to receive this
bonus, I graduated from my BCT and AIT on time, never had a single disciplinary
action, graduated as the honors graduate, never failed an Army physical fitness
test (APFT) (in fact I received PT incentive b/c my score was high enough, so I
no longer had to do PT with the company), I was never even late for any
formations.  I have contacted my chain of command repeatedly and I should have
received the bonus 30 days from Feb. 7 2008.  I still have not received any
payment, and I did not breach the contract.  What would be in my best interest
to do?  Can I use the "discharge through breach of contract" as leverage to make
them take me seriously?  Thank you for any assistance in the matter.


ANSWER: Dear Matt --

Depending on the terms of your bonus, you should usually receive your first bonus payment at the anniversary of graduating from AIT.  If that date has passed, you must make a notarized copy of your signed enlistment contract (the JAG office should have a notary) and then take that notarized copy to your finance office, and fill out a pay inquiry form.  Finance should do an audit of your pay and allowances, and then arrange for your bonus payment, if you have never received it.

Bonuses are paid out on the anniversary date of completing the requirements (usually graduation from AIT).  You can receive no more that $10,000 of your bonus in a year, and all bonus payments are taxable.  So if you enlisted for 6 years and a $40,000 bonus, you should receive your first payment a year after you graduated from AIT.  The amount shown on your leave and earnings statement (LES) would be $10,000, but you would receive only about $6,667 in your pay, because you would suddenly bump into a higher tax bracket for that year.

There are other bonus payment timetables, depending on your contract stipulation.  Please read your enlistment contract closely to determine your particular payout schedule.

Please write back, if you have additional questions or you have already submitted a "pay inquiry" at your finance office, and received no satisfaction.

Thank you for your service; good luck to you.



---------- FOLLOW-UP ----------

QUESTION: Thank you Ma'am for your quick response.  Unfortunately I my UA and my CO have both submitted pay inquiries.  My bonus in my addendum in my contract is for $14,000, &7,000 (gross before taxes) paid within 30 days of graduation from AIT.  The other two quarters will be paid upon anniversary of graduation from AIT for two years at $3,500 (gross before taxes) each time.  This is very troubling to me and it is hard to get good advice, but I would assume that you would be an excellent source of experience in these matters.  Thank you very much for your assistance.

Answer
Dear Matt --

I tried to answer you last night but my network connection failed.  I hope today I fare better.

I am concerned because the amounts you describe as your approved bonus payout for the first year, exceed the legal allowable amount.  You are only allowed to receive a bonus of $10,000 per year by law (Congressional statute).  Finance could be throwing out your pay inquiry because they know that they cannot pay you more than $10,000 per year, so they believe your addendum to be fraudulent, and they are not required to act on it.

You have two options if your enlisted contract really allows for $14,000 pay out 30 days after AIT graduation.  The first is to contact recruiting command, and have them revise your addendum to allow $10,000 this year, and the remainder paid in two more equal amounts on the anniversary of your graduation from AIT.  The other is to appeal to the Military Board of Corrections to get your contract revised to legal yearly payouts.

If I misread your question, and your total pay out is $14,000 with three installments of $7,000, $3,500 and $3,500, and your commander has already tried to assist you with a pay inquiry, the you need to elevate the issue to any of the following:

1.  The first general officer in your chain of command,
2.  The commanding general of recruiting command,
3.  Your local Judge Advocate General (JAG)
4.  The Military Board of Corrections.

I recommend discussing with your commander which course you pursue next, as you will need command support to make your appeal work whichever direction you take.

Personally I would start with the first or second option, and leave the fourth option as my last resort.

Usually when a general officer calls another general officer, problems get fixed.  It shouldn't have to be that way, but sometimes it is.  If finance isn't helping you, getting your GO to call the head of finance will go a long way to getting attention paid to your problem.

Good luck to you.  Please write back, if you continue to have issues, or if other questions arise.  Thank you for your service.