Incentive and Special Pay

OVERSEAS TOUR EXTENSION INCENTIVE PROGRAM

The Overseas Tour Extension Incentive Program (OTEIP) is the new name for the Overseas Extension Incentive Program. The OTEIP is designed to improve personnel retention and enhance unit readiness by providing longer tour stabilization and turn-around time (TAT) in continental U.S. CONUS.

OTEIP provides incentives to soldiers in certain MOS/rank combinations to encourage foreign service tour extension outside the continental U.S. (OCONUS).

Entitlement to this Special Pay or Bonus is based on the following conditions and at the discretion of the Service Secretary::

• Entitlement to basic pay.
• Serving in a duty specialty.
• Completion of an overseas tour of duty at a location.
• Signing an agreement at the end of the tour of duty to extend for at least one additional year.

Officers are entitled to this special pay, effective February 3, 2004.

Termination of Overseas Extension Pay

• Voluntary termination of duty results in the day of the PCS departure as the last day of entitlement to monthly payments.
• Involuntary departure has no effect on monthly special pay awarded.
• Voluntary or involuntary early termination of overseas duty negates further monthly bonus installments and requires recoupment of unearned installments paid in advance.

Rates Payable

• Special pay delivered in monthly installments in an amount designated by each service secretary, not to exceed $80.00 per month.
• A bonus payable in lump sum or monthly installments in an amount designated by each service secretary, not to exceed $2000.00 per year.

A member can elect to receive a period of special rest and recuperation (SR&R) rather than any cash payments. However, only one method can be selected, cash or SR&R