Posted on Nov 6, 2021
Will I have to pay back a bonus with an involuntary separation?
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I’ve been in the Army for just under 10 years. My spouse and I are due to PCS soon. However due to a severe illness, our long term care provider is no longer able to provide care for our two children should the need arise. I do not believe I will be able to produce a working FCP in the next 30 days.
3 years ago I re enlisted on a 6 year contract for an MOS reclassification, and received a rather large bonus.
Will I have to pay back a portion of the bonus for the three years of my contract that will be unfulfilled?
I understand I may be eligible for half separation pay due to the nature of separation. Will I be able to receive that if I in fact do not have to repay the bonus?
OR will they cancel each other out as my math says they equate to about the same amount?
Thanks in advance!
3 years ago I re enlisted on a 6 year contract for an MOS reclassification, and received a rather large bonus.
Will I have to pay back a portion of the bonus for the three years of my contract that will be unfulfilled?
I understand I may be eligible for half separation pay due to the nature of separation. Will I be able to receive that if I in fact do not have to repay the bonus?
OR will they cancel each other out as my math says they equate to about the same amount?
Thanks in advance!
Posted in these groups: 
Military Family
Military Family
Posted 3 y ago
Responses: 4
If you received the lump sum, you will be required to pay back the remaining amount for the time you will not complete. So if you have 3 years left, you should take the entire bonus before taxes, divide by 6 and add 3 years together and that will be the amount you will be required to pay back.
Involuntary separations 99% of the time require you to pay back the portion of the bonus you haven’t technically earned.
Involuntary separations 99% of the time require you to pay back the portion of the bonus you haven’t technically earned.
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Also, family care plan does not qualify for separation pay. You can look up Sep pay reasons in AR 637-2
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Hell yes, you'll pay back your bonus. You will pay back the pre tax amount, not the post tax amount. So, if the bonus was $40k and you received $32k after the 22% tax was taken, you'll be paying back $40k.
The amount you'll pay back is prorated. The amount is calculated from your old ETS to your new ETS. So, if you had one year to your old ETS when you reenlisted, and you reenlisted five years, you added four years. $40k divided by 4 years is $10k a year or $833 dollars per month left till the ETS date you reenlisted out to
The amount you'll pay back is prorated. The amount is calculated from your old ETS to your new ETS. So, if you had one year to your old ETS when you reenlisted, and you reenlisted five years, you added four years. $40k divided by 4 years is $10k a year or $833 dollars per month left till the ETS date you reenlisted out to
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