Reenlistment bonus cost forecast at $1.3 billion for 2007, 2008

Above: Soldiers of the 10th Mountain Division are administered the oath in a mass re-enlistment ceremony at Camp Liberty, Iraq in August.

Pressed to not only recruit but also retain quality soldiers, the Army will enter a new fiscal year with the largest and most diverse menu of retention incentives in the history of the all-volunteer force.

The incentives range from a few thousand dollars to $150,000...

Bonus outlays for the fiscal year that ends Sept. 30 have not been totaled yet, but officials expect they will come in at nearly $660 million. A similar total is forecast for fiscal 2008.

Bonuses are paid lump-sum, and are tax-free if paid in a combat zone.

The incentives are aimed at select categories of officers and enlisted soldiers. And, in a major change from the Cold War era, are available to a broad swath of the active-component population — first-term, mid-career and career soldiers, including some senior NCOs and warrant officers who are eligible for retirement.

Read the rest at Army Times

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