Army Bonus Recoupment: My Experience with my Critical Skills Retention Bonus

Today, I want to share a personal story about my Army Bonus Recoupment for the Critical Skill Retention Bonus (CSRB) that I received in 2008. This is going to be a long post, but I want to share all the details, in case you have a similar experience and need some guidance.

Just thinking about this entire situation brings back a lot of stress and bad memories, but my hope today is that my experience will help you avoid the same situation I went through. To be straightforward with you, I am not mad or angry at anyone, nor am I here to badmouth anyone. I just want to share what I went through and what I did to remedy it.

What Happened to Me

When I joined the Maryland Army National Guard as a First Lieutenant in 2005, I received a $6,000 bonus for a three year commitment. I served that time honorably without issue. In 2008, I was informed by my Battalion S1 of my eligibility for the Critical Skill Retention Bonus. Apparently, the Army was short on officers in my rank and year group and they were offering a bonus to retain us in the Army.

At this point in my career, I had just returned from a LONG deployment in Kosovo and had just taken Company Command. I was on the verge of resigning, but this large bonus influenced me to continue my service for another three years. I signed the bonus paperwork and extended my commitment to the Army National Guard for another three years. I received a $10,000 payment right away and was promised the second payment at the end of the three years.

During those three years (from 2008 to 2011) I was never AWOL, never FLAGGED, never in trouble, I had my military education done, and I was busy with Company Command. I was a damn good Officer and committed to fulfilling my obligation honorably. From 2008 to 2011 I served my time honorably and resigned my commission in April 2011, when my contract expired. I was then transferred into the IRR and spent one year in the IRR before resigning for good.

After I resigned my commission, I was still waiting for my second $10,000 bonus payment. I was wondering what took so long, so I made some inquiries through my former chain of command.  No one could give me a direct answer, but I later found out that my bonus was DENIED.

The Dreaded Letter in the Mail

Around 9 June 2011, I received a Certified Letter in the Mail from the Fifth Regiment Armory, Maryland Army National Guard. The letter stated:

“You are hereby notified that you have been terminated from Critical Skill Retention Bonus participation effective 24 April 2008 due to the following reason: Officer signed for $20,000 Critical Skill Retention Bonus (CSRB) Addendum while still serving on a 3 year Officer Affiliation Bonus. Paragraph 6a. of the CSRB Policy stipulates that Service Members must have completed any contractual obligation as a result of participation in the Officer Accession of the Affiliation Bonus.

You are in debt to the U.S. Government for the amount of $10,000. You are requested to submit a cash repayment. Please make Cashier’s Check or Money Order Payable to U.S. Treasury.”

~ End letter

My Reaction and Response

Needless to say, when I received this official letter, I was livid. I wasn’t sure how the Army could not pay me AFTER I had already served my three year obligation honorably. Prior to this date, I was never notified that there was an issue with my contract or bonus. No one every told me the contract was voided. No one ever told me that something was wrong, nor was I given an opportunity to fix it.

After receiving the Certified Letter, I made a few calls to the Headquarters Office and didn’t get much help. As a result, I decided to contact a civilian attorney just for advice.

I later discovered that the state had done an Exception to Policy Request for me that was denied by the National Guard Bureau. Here is what the G1 wrote to the NGB for my Exception to Policy.

“I would like to request an exception to policy to authorize second and final payment of MAJ Charles Holmes for his Critical Skills Retention Bonus signed on 24 April 2008. Due to administrative error the bonus was processed 30 days prior to eligibility and the Officer was paid the first installment of the bonus. Further precautions are being taken to prevent future discrepancies.”

Even with good supporting documentation, my request for Exception to Policy was DENIED.

At this point, I was angry. I just didn’t know how they could overturn a bonus payment AFTER you served your time honorably, and that the mistake that happened was an administrative error made by someone else.

army bonus recoupment

My Appeal to the Army Board of Correction of Military Records

My next alternative was to appeal to the Army Board of Correction of Military Records (ABCMR). This would be my last and final hope. I figured that if I could get before a panel of people, the decision would be reversed. It was just common sense.

I prepared my packet for the ABCMR. I filled out the DA Form 149 and also prepared a letter. This is the exact wording my letter said:

“My name is Charles Holmes. The purpose of this letter is to address the facts in my Critical Skill Retention Bonus case and to appeal the findings by the National Guard Bureau. I hope you will review the information below and consider my case.

On 24 April 2008, I signed the Critical Skills Retention Bonus contract, extending my obligation to the Maryland Army National Guard for three years. My contract was filled out by my Battalion S1 section and submitted to the MDARNG Education Office for processing. My contract was approved, and I received my first payment of $10,000 shortly thereafter. According to the contract, I would receive the second half of the bonus upon completing the additional three years.

After finishing my three year contract (two of those years in Company Command), I separated from the MDARNG on 24 April 2011 and transitioned to the Individual Ready Reserve (IRR). At that point in time, I had already completed my three year contract with the MDARNG and was awaiting my second payment of $10,000.

I expected to receive the payment on or about 24 April 2011. After waiting a few weeks, I called the Maryland ARNG Education Office (in early May 2011) to verify the status of my payment. At this point, I was informed by the Education Office that my payment was delayed because NGB was reviewing all contracts, prior to releasing funds. Apparently, my payment was initially denied and the MDARNG had to submit a request for Exception to Policy to NGB for my contract.

On 28 April 2011, the MDARNG Education Services Officer submitted a Request for Exception to Policy stating that MAJ Holmes signed for the CSRB one month prior to being eligible. He had an Officer Affiliate Bonus obligation that did not end until 24 May 2008, therefore his CSRB should have not been initiated until 24 May 2008, at which time MAJ Holmes was fully eligible. He goes on to say that due to an administrative error executed by the Maryland State Incentive Manager, the CSRB was approved on 24 April 2008 and the installment was paid. He closes by saying that the error was not on the part of the Soldier and he should not be penalized.

On 28 April 2011, the MDARNG G1 submitted an exception to policy to NGB for the final $10,000 payment of my $20,000 CSRB bonus. In his letter, he stated that due to an administrative error the bonus was processed 30 days prior to the eligibility date and the officer was paid the first installment of the bonus.

On 12 May 2011, the National Guard Bureau reviewed the Exception to Policy and denied the release of my second $10,000 payment and determined that I was ineligible to receive the CSRB to begin with.

On 14 June 2011, the MDARNG Education Services Officer mailed a certified letter to my Home of Record to tell me the results of the NGB decision. The next day, 15 June 2011, the US Postal Service delivered the Certified Letter from the Maryland Army National Guard Education Services Officer stating that my CSRB Bonus contract was terminated and that I am in debt to the U.S. Government for $10,000.

When I received the letter I was shocked. This was the first time I ever heard there was an issue with my contract. At no point during my three year contract did anyone tell me that there was a problem with my contract. If they would have, I would have addressed the issue immediately.

Had my CSRB Contract been rejected initially, I would have left the military to become a civilian and would not have spent the next three years in the Maryland Army National Guard. Those extra three years included many non-paid training days and personal sacrifices.

In my opinion, to tell me that a contract is invalid, after the contract is finished, is completely unacceptable. I fulfilled all required duties of my contract. The reason for denial was due to an administrative error on the part of the processing officers. I believe I should receive my final $10,000 payment, because I fulfilled my obligations honorably. I ask the Army National Guard to do the same thing and fulfill their end of the contract.

After reading my case, I ask you to overturn the National Guard Bureau’s decision and to grant approval for my appeal. I’m asking you to approve my appeal and release the second $10,000 payment of my bonus. If you were in a similar situation, I’m sure you would feel exactly as I do. Thanks for reading my request.”  ~ END LETTER

The Final Results

The entire Review Board Process lasted another six to ten months, before I received any documentation back. Fortunately, the Army Review Board overturned the decision and voted in my favor. However, it did take TWO YEARS to get that second payment and it was a constant battle.

Once again, this experience left a NEGATIVE impression in my mind about the military. It cemented my decision to resign and remain a civilian.

Army Bonus Recoupment: Lessons Learned

I learned a few KEY lessons from my experience with my Army bonus recoupment that I would like to share with you.

1) Keep good documentation – Always keep records of your important documents. Even if your document is accurate, you never know what will happen.

2) Know your rights – Educate yourself about the rules and procedures, so you know what you can and cannot do.

3) When you need to fight, fight – If you know you are right, fight for yourself. Make sure you fight for your Soldiers, too.

4) Get some help when you need it – Consult with your chain of command, JAG, a trusted peer and even a civilian attorney if needed

It helped me that I was a Major, and had a strong writing background. It helped that I was persistent and mentally tough. I feel for the young Soldiers who don’t know the rules, don’t have the persistence, and don’t have the writing skills to challenge their ruling. It would have been much easier just to give in, pay back the money, and move on, than to fight.

Once again, I am by no means mad or disgruntled at anyone. I don’t hold a grudge either. My only intent is to help other people avoid the same situation I went through.

Final Thoughts

In conclusion, the experience of going through an Army Bonus Recoupment is miserable. I don’t wish it upon anyone. If you ever find yourself in this situation, I hope you will follow the lessons learned I shared above and advocate for yourself. Also, if your soldiers are going through this, I hope you will help coach them and guide them through the appeals process.

On a side note, if you’ve ever had bonus money recouped by the Army, I would love to hear about your experience. Please leave a comment below to share your thoughts. Thank you.

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chuck holmes

Chuck Holmes
Former Army Major (resigned)

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21 thoughts on “Army Bonus Recoupment: My Experience with my Critical Skills Retention Bonus”

  1. Hello there,
    Thank you for sharing your experience. I definitely understand your frustration. I am in a similar boat but not as gracious as your situation. I was on my 4th contract and served majority of that contract except for the final couple months. I was discharged OTH, and now 2 years later just received my certified letter stating the recoupment of my last bonus. I was under the impression the bonus is supposed to be pro-rated, but recently have heard that is not the case for my discharge. Would you happen to know or have any clarification on this matter? I’m waiting for copies of my discharge paperwork, my 4th contract Re-enlistment paperwork, and my drill attendance during that contract. If you could give me any further insights or knowledge, that would be greatly appreciated. Thanks in advance.

  2. Thank you for sharing your story. As a lower enlisted I served 6 years in the Army National Guard. I was told that I would get a $20,000k bonus, broken up into two $10,000 payments – one upon completing basic training and another one 3 years later. I did receive my money like promised in both instances. I did transfer to a different state, from NY to FL prior to the second half of the bonus, however, the state incentive manager told me I would still be entitled to the bonus if I changed to a critical MOS in that unit with a 12 month period which I did. I finally served my 6 years and got out. One day I opened the mail and was shocked that they told me that I owed them about 15k (because they only counted for the MOS that I signed up with) and suggesting because I moved to Florida and changed my MOS that I was not eligible for that bonus. I was so fortunite that I still had the email from the state incentive manager stating I was eligable for that bonus. However, it is 2019 now, just a few months ago after three freaking years, I got a response back from the Army Board of Corrections that I no longer owe that money, but still in the process of having DFAS process that paperwork because I still had to pay DFAS $50.00 a month over the course of these years other wise it would go to collections and would ruin my credit. Before submitting to the Army Board of Corrections I had to jump through other hoops like reach out to local congressman and senate, it really was insane. Thankfully they have to pay me back all that money, but this journey was really loooooonnng. Like you, I was incentived by the money and I learned in life when we chase the money, it usually comes to bite you in the ass :) This process has taught me to have patience, faith and during this process really connected with others who were angels helping me along this fight.

  3. Im almost in the same situation. I signed up for the CA Guard in 2007 for 3 yrs 15k. I was prior service. I re-enlisted for 2 more years so i did a total of 5 yrs. I got 2012 and just last year in december i got a letter stating that i wasnt eligible for the 15k for prior service, i was only suppose to get 7500k. I needed to pay back the 15k. i had till trhe ned of december to do an appeal and i did. Of course it was denied. Now i have to make payments while i find a way to fight this. Fulfilled my contract obligations and it was of no fault of mine my recruiter messed up. Now im trying to see how i can fight this.

  4. I am experiencing this same thing right now. I have a slightly different story but I am formulating my letter the ABCMR right now. Your insight was very helpful; thank you!

  5. I can’t believe that the US Government could be so terribly disorganized in this case… It’s obvious that you weren’t at fault, and that administrative errors were made. Furthermore, asking a Soldier to pay back money after all they’ve done is simply unacceptable. I’m truly sorry this occurred.

    1. I can believe it! I’m currently preparing an ABCMR appeal of the NYARNG and NGB’s denial of my SLRP benefit. Like Chuck’s situation, an administrative error was made, which I had no knowledge of, not reason to know about, until two years after the fact. Also like Chuck’s situation, the ETP request was denied without cause (the reply said that “the SLRP was not being offered” which was a ridiculous falsehood). It was clearly a canned response from an Army Major too lazy to even consider the case. It’s unbelievable how the Army screws its Soldiers, just because it can. If a civilian went into court and said he wasn’t going to honor a contract because he made a mistake on his own ledger, that the other party knew nothing about, and he waited until after the other party had performed her side of the bargain. . .he’d be laughed out of court. But the Army does it all the time. Enlistee beware.

  6. A pretty interesting and frightening story. Sadly, it's not the only time I've seen something like this happen. First, I'll just say for anyone in this situation, know your rights and stand up for yourself. Get help from JAG, your first sergeant and whoever else you need, but always keep your chain of command in informed of the problem and the status of the resolution.

    I came back from a tour one time and I continued to be paid like I was still deployed. (combat pay, tax free etc.) I contacted pay again and again; always keeping records of who I met with and what they said. I also informed my supervision at each step. So when I was called into the commanders office months later and he began to call me on the carpet I had all the documentation, all the steps I'd taken to resolve it, and every person I'd talked to. Even after my commander got personally involved it still was another pay period or two before it was resolved.

    Just like most things in the military documentation is your shield against problems.

  7. Hi Chuck, I had a similarly dreadful experience with the CA ARNG with my student loan repayments. I was a prior service NCO from the reserves. I had attained the rank of SFC. Then in 2008 I gave the Guard a try and they convinced me to enlist for the OCS option. I asked the recruiter since I would be giving up the $15k enlistment bonus what else would I get, and he said either a $10k commissioning bonus or SLRP. So I took SLRP because I had $15k in student loans. I signed in Feb 2008. I completed OCS, BOLC, have served as a company commander twice, never missed a drill, never flagged, received outstanding OERs, etc. I was supposed to receive a $3,000 payment each year for my loans for each year I completed on the contract. I completed my 6 year enlistment 4 months ago and still haven’t been paid my SLRP. I have submitted two ETP memos and the state has submitted another on my behalf. Even JAG got involved. I have contacted my state representative, congressional representative, and still nothing. Then I heard the people in Sacramento went to prison over the incentive scandals of 2006-2011. For information on that go to It’s a huge mess and I’m sure sorry I ever asked for that SLRP. I still value the service and enjoyed my new role as an officer and leader, but it pains me that we peons at the local level who bust our tails without pay don’t get anything while those at the very top enrich themselves with all the ill gotten gains. We have had several generals relieved year after year and still nothing has changed. It’s really sad. I am transferring to the USAR. Good riddance.

    1. Thanks for sharing your story, Chris. I’m sorry you had to go through all of that. I agree that it sucks. I was really stressed out during my situation and never understood how I could get screwed AFTER I finished my time. I hope you end up getting your SLRP. Thanks for your service. And by the way, I do know about the California Scandal. That’s what triggered an audit in our state and led to so many Soldiers getting screwed over.

  8. Thanks for sharing your story. It will cause me to be very cautious. Several month ago, I was commissioned into a mission critical position during wartime. I signed a 3 year contract to receive $60,000 in special pay. I have already received my first year’s special pay.

  9. Like any business, documentation is necessary and vital. Here are 3 letters to remember: CYA (cover your ass). I know you’ve had a few posts that mentioned the importance of writing – and this is a perfect case study! Being succinct, direct and organized goes a long way when you are up against a group with immeasurable resources. It must have felt like a David & Goliath fight, Chuck. I don’t envy you but where most people would have given up (or not even started to defend themselves) you stayed the course and I am glad that you were finally compensated. Not to open a can of worms but too bad you couldn’t get interest on the delayed payment, huh? The government sure doesn’t have a problem tacking on interest and penalties when you owe them!

    1. It was a fight worth fighting: a fight of principle. I’m glad I stuck it out, even though it caused a lot of stress and sleepless nights. Some things are worth fighting for.

  10. Wow! I have to say that while reading your letter to the ABCMR, I was so sure that you were not going to see a penny of the second half of your bonus money. Of course, you deserved it, but I could not see the ABCMR backing down. How right that they did. As you said, it does make you think: how many younger, less experienced soldiers received the same initial denial letter and felt that they had to go along with it. I hope that your post and your willingness to share your letters is of help to them. Thank you for sharing.

    1. I always believed I would get my money back, especially if the case would go before a group of people or a group of Soldiers. I served the time honorably, and was never notified there was an issue until AFTER the three years was up. That’s why I stuck with my guns and fought it out. Had they told me there was an issue a month into the three year obligation, I would have resigned and left the service.

      Thanks for the comment.

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