If you are medically retired before 20 years, do you have to pay back your REDUX bonus?

SSG Robert Burns — Fri, 11 Jul 2014 13:24:29 -0400

Response by MSG Wade Huffman made Jul 11 at 2014 1:44 PM

MSG Wade Huffman — Fri, 11 Jul 2014 13:44:58 -0400

Here is the best info I could find:
"Suppose a soldier elects CSB/REDUX and accepts the $30,000 CSB but
later retires for disability. Which formula will be used to calculate the
soldier’s retired pay? If High-3, will the soldier have to pay back the CSB?
Will this soldier receive COLAs based on the High-3 or CSB/REDUX retired
pay formula?
The High-3 formula would be used. The soldier would not have
to pay back the $30,000 CSB. Because this soldier originally elected REDUX, the
soldier will receive the reduced CSB/REDUX COLAs even though the disability
retired pay will be calculated under the High-3 formula. "

Extracted from:

http://www.garrison.hawaii.army.mil/dhr/rso/CAREER%20STATUS%20BONUS%20(CSB%20REDUX)/10%20CSB%20REDUX%20FAQS.pdf

Response by SSgt Gregory Guina made Jul 11 at 2014 1:59 PM

SSgt Gregory Guina — Fri, 11 Jul 2014 13:59:27 -0400

I found this

IF A MEMBER FAILS TO SERVE CONTINUOUSLY ON ACTIVE DUTY UNTIL
HIS 20TH ANNIVERSARY, THE LAW STIPULATES THAT A PROPORTIONATE SHARE OF THE CSB MUST BE REPAID. SECDEF HAS WAIVED BONUS REPAYMENT IF A MEMBER DIES ON ACTIVE DUTY, IS SEPARATED OR RETIRED AS A RESULT OF A PHYSICAL DISABILITY UNDER CHAPTER 61 OF TITLE 10 U.S. CODE, OR
SEPARATED UNDER A SERVICE OFFER FOR EARLY RETIREMENT (SUCH AS TERA)
OR SEPARATION PROGRAM. THIS WAIVER IS NOT AVAILABLE IF A MEMBER IS
SEPARATED DUE TO MISCONDUCT OR IF THE WAIVER WOULD BE INCONSISTENT
WITH OTHER PRESCRIBED LAW, REGULATION, OR POLICY

Response by SGM Matthew Quick made Jul 12 at 2014 8:21 AM

SGM Matthew Quick — Sat, 12 Jul 2014 08:21:44 -0400

SSgt Gregory Guina is correct. Also includes force-shaping retirements like TERA.

IAW DoD Financial Management Regulation
DOD 7000.14-R, VOLUME 7A, CHAPTER 66
“CAREER STATUS BONUS/REDUX ELECTION OPTION”

Waiver of Career Status Bonus (CSB) Recoupment. The Secretary of the Military Department concerned may waive, in whole or in part, the required CSB refund if the Secretary determines that recovery would be against equity and good conscience or contrary to the best interests of the United States.

A. The Secretary of the Military Department shall waive the required refund
if the member:

1. Dies, or

2. Is separated or retired as a result of a physical disability under 10 U.S.C., Chapter 61, or

3. Is separated under a Service offer for early retirement (such as
TERA (Temporary Early Retirement Authority)) or separation program.

Here's the link:
http://comptroller.defense.gov/Portals/45/documents/fmr/archive/07aarch/07a_66_May05.pdf

Response by 1SG DeyShuan Shepherd made Jul 12 at 2014 11:53 AM

1SG DeyShuan Shepherd — Sat, 12 Jul 2014 11:53:04 -0400

Response by SFC Private RallyPoint Member made Dec 5 at 2015 7:10 AM

SFC Private RallyPoint Member — Sat, 05 Dec 2015 07:10:31 -0500

When I did my first re-enlistment, I was eligible for a bonus of 4,500, and I received all 3,300 (after taxes) together as one lump sum.

Now that I am doing my second re-enlistment, I am eligible for a bonus of 11,100 (tier 5, 60 months, 35F Airborne Position), and just received approximately 4100. I am not sure why, as 8,250 should have been the approximate bonus after a 25% tax.

This is the first I have heard of the "you will receive half your bonus now and the other half annually". Can anyone provide me the regulation to verify that statement, as I didn't receive my bonus in the past like this, or provide me any further information regarding my situation? Thanks!

Response by LTC Charles T Dalbec made Dec 28 at 2017 11:52 AM

LTC Charles T Dalbec — Thu, 28 Dec 2017 11:52:29 -0500

Why as a medical is not self imposed

Response by MSG Private RallyPoint Member made Dec 25 at 2020 4:57 PM

MSG Private RallyPoint Member — Fri, 25 Dec 2020 16:57:28 -0500

I believe I may have found the "In Writing" proof that states the DFAS will utilize the High3 while computing retirement for a SM who is Medically retired/separated and elected the CBS/Redux. Please see attached files that are highlighted.