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Aviation Continuation Pay (ACP - The Bonus)


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Nah, the flexibility to leave if I want is worth more than $20k a year, even in the current jobs environment. That should tell the AF something about its climate. 

(Yeah, I know it won’t actually.)

Edited by SurelySerious
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7 minutes ago, SurelySerious said:

Nah, the flexibility to leave if I want is worth more than $20k a year, even in the current jobs environment. That should tell the AF something about its climate. 

The standard YMMV.  Three and four SQ/CCs ago, I would have been thinking similarly, but we’re on a pretty good vector now.

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Just got my annual bonus installment...you know, for all the bad parts about this job, the money ain't too bad.

Gonna keep it in checking until this PCS is over, then probably dump a fair amount into an ETF.  Part of me is hoping for another stock market crash before I pull the trigger.

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2 hours ago, pawnman said:

Just got my annual bonus installment...you know, for all the bad parts about this job, the money ain't too bad.

Gonna keep it in checking until this PCS is over, then probably dump a fair amount into an ETF.  Part of me is hoping for another stock market crash before I pull the trigger.

You shouldn't need to wait long. 😄

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On 7/14/2020 at 12:10 PM, pawnman said:

Just got my annual bonus installment...you know, for all the bad parts about this job, the money ain't too bad.

Gonna keep it in checking until this PCS is over, then probably dump a fair amount into an ETF.  Part of me is hoping for another stock market crash before I pull the trigger.

I tried to time the remainder of our Roth IRA contributions this past February, but lets just say that 20/20 hindsight says that was a premature deposit...

If you’re playing the long game (unlike the kids day-trading Tesla and Boeing), being consistent is generally better than timing the market. I think someone posted this link about timing the market vs time in the market on another thread (I’m not claiming originality, though I would be curious to see that guy’s Google spreadsheet go past May 2019).

We’re using the bonuses on our mortgage principal to kill that “gravity penalty” that mortgage interest is, while still investing.  Rolling equity forward to future PCS moves can be eye-watering if you are patient.  If you’re already there, though, more power to you in timing the crash perfectly.

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4 minutes ago, PAWS said:

I tried to time the remainder of our Roth IRA contributions this past February, but lets just say that 20/20 hindsight says that was a premature deposit...

If you’re playing the long game (unlike the kids day-trading Tesla and Boeing), being consistent is generally better than timing the market. I think someone posted this link about timing the market vs time in the market on another thread (I’m not claiming originality, though I would be curious to see that guy’s Google spreadsheet go past May 2019).

We’re using the bonuses on our mortgage principal to kill that “gravity penalty” that mortgage interest is, while still investing.  Rolling equity forward to future PCS moves can be eye-watering if you are patient.  If you’re already there, though, more power to you in timing the crash perfectly.

Oh, I agree.  I'm not waiting around for another crash, just kind of hoping for it when the time comes.  I'll be putting the money in either way.

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  • 1 month later...
The ACP is supposed to pay out monthly, right?
I signed for the 3 year option ($35k/yr) about 2 weeks ago and I just received a sizable deposit from DFAS today (~$19k) and I'm under the impression that is incorrect.

I’m pretty sure it’s paid annually in the month that you sign the agreement.


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Just now, Danger41 said:

19k on a 35k bonus? That’s some hefty tax!

Seriously...I figured 22% "bonus" tax from the feds and my HOR is Illinois so I've never paid state tax...that's why I partially think this $19k isn't bonus related. But if Moose is right then I guess that's the only logical explanation and I'll just have to figure out how the hell I got into the ~40% tax bracket.

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19k on a 35k bonus? That’s some hefty tax!
I had the same problem last year. When finance loads the bonus, it defaults to $25K/year (roughly $19.5k after taxes). They've got to do something additional to bump it up to $35K. Talk to your finance office to get it fixed

Edit to add: the bonus also pays out annually, not monthly.
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I had the same problem last year. When finance loads the bonus, it defaults to $25K/year (roughly $19.5k after taxes). They've got to do something additional to bump it up to $35K. Talk to your finance office to get it fixed

Edit to add: the bonus also pays out annually, not monthly.

Correct. Annual payment. Should be 2 deposits: $19,500 & $7,800.
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Well, looks like I'll have to reach out to finance and fix this years bonus payment. Looks like they did deposit the whole $35K in one payment this year, but I took a lump sum up front so my annual payments should've been reduced this year.

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41 minutes ago, jazzdude said:

Well, looks like I'll have to reach out to finance and fix this years bonus payment. Looks like they did deposit the whole $35K in one payment this year, but I took a lump sum up front so my annual payments should've been reduced this year.with

With the lump sum option, I believe they do the lump sum first year, then 35k per year for the remaining years until the contract amount is paid.  So 35K year two (minus taxes) and so on for the remaining years until the contract amount reaches zero.  That would mean the 10 year contract amount would be paid to you in full the first 5-6 years of your contact in 35K yearly increments.  Which is actually better for investment.  It's confusing wording, but pretty sure that's how it works.

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With the lump sum option, I believe they do the lump sum first year, then 35k per year for the remaining years until the contract amount is paid.  So 35K year two (minus taxes) and so on for the remaining years until the contract amount reaches zero.  That would mean the 10 year contract amount would be paid to you in full the first 5-6 years of your contact in 35K yearly increments.  Which is actually better for investment.  It's confusing wording, but pretty sure that's how it works.
That would also make sense, but wasn't how I understood the contract. Either way, I've got a finance ticket in so I can confirm.
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That would also make sense, but wasn't how I understood the contract. Either way, I've got a finance ticket in so I can confirm.

Lump sum option pays the full amount, then a reduced amount each year for the length of the contract. I took an 8-year at 30k with 100k lump. It worked out to 100k the first year, then 20k a year for the next 7.


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Lump sum option pays the full amount, then a reduced amount each year for the length of the contract. I took an 8-year at 30k with 100k lump. It worked out to 100k the first year, then 20k a year for the next 7.


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This was how it was explained to me before I signed. I guess that means finance is 0/2 so far on getting my bonus payments correct
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4 hours ago, Whisky said:

With the lump sum option, I believe they do the lump sum first year, then 35k per year for the remaining years until the contract amount is paid.  So 35K year two (minus taxes) and so on for the remaining years until the contract amount reaches zero.  That would mean the 10 year contract amount would be paid to you in full the first 5-6 years of your contact in 35K yearly increments.  Which is actually better for investment.  It's confusing wording, but pretty sure that's how it works.

Nope.  Mine was half up front, then $12.5k a year for each year of the contract.

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5 hours ago, jazzdude said:
7 hours ago, CaptainMorgan said:

Lump sum option pays the full amount, then a reduced amount each year for the length of the contract. I took an 8-year at 30k with 100k lump. It worked out to 100k the first year, then 20k a year for the next 7.


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This was how it was explained to me before I signed. I guess that means finance is 0/2 so far on getting my bonus payments correct

Huh, well let us know what your finance says. Seems like every finance can have a different answer on some things. I did the lump sum as well and received 35k for the following year and the contract amount was reduced by 35k respectively. Maybe I need to go to finance too. When I re-read the ACP wording, it seemed ambiguous about later installments, with only the 35k mentioned so I assumed that was how they were doing it. 

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13 hours ago, Techsan said:


Correct. Annual payment. Should be 2 deposits: $19,500 & $7,800.

Okay got it. I had both of those but was also expecting a back payment for a couple months tax free...figured the $7800 was that.

I was wrong, guess it's all the ACP! Now back to waiting for my tax free. 😂

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  • 1 month later...

Hey guys, I have a very specific question for the peanut gallery; it only applies to Reserve AGR flyers so if you're not one you can scroll on. 

BACKGROUND: I had significant difficulties getting my orders extended to 20 despite having been granted career status (another long story) that led to my being unable to apply for AvB under the FY20 bonus before midnight 30 Sept.  Therefore, I won't be able to sign the FY21 bonus until it comes out in (I'm being told) June of '21.  On the reserve side, my airframe has achieved excellent manning levels (AGR), therefore I anticipate between that and the airline situation, the bonus is going away for me in '21.  This means that because of delays caused by ARPC I am liable to lose out on $140K worth of bonus, all due to bureaucratic incompetence. 

GET TO THE POINT: (Again, Reserve AGR Only) Does anyone know of any circumstances in which a waiver for the bonus signup cutoff requirement was granted?  Has anyone lawyered up?  Do you think I should after exhausting all the normal lines of effort?  Just thought I'd ask the hive mind, this is a pretty huge bummer.

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14 hours ago, TexanDriver8 said:

Hey guys, I have a very specific question for the peanut gallery; it only applies to Reserve AGR flyers so if you're not one you can scroll on. 

BACKGROUND: I had significant difficulties getting my orders extended to 20 despite having been granted career status (another long story) that led to my being unable to apply for AvB under the FY20 bonus before midnight 30 Sept.  Therefore, I won't be able to sign the FY21 bonus until it comes out in (I'm being told) June of '21.  On the reserve side, my airframe has achieved excellent manning levels (AGR), therefore I anticipate between that and the airline situation, the bonus is going away for me in '21.  This means that because of delays caused by ARPC I am liable to lose out on $140K worth of bonus, all due to bureaucratic incompetence. 

GET TO THE POINT: (Again, Reserve AGR Only) Does anyone know of any circumstances in which a waiver for the bonus signup cutoff requirement was granted?  Has anyone lawyered up?  Do you think I should after exhausting all the normal lines of effort?  Just thought I'd ask the hive mind, this is a pretty huge bummer.

So, I’m active, not AGR, but hopefully this helps. 

Did you actually submit an application for the bonus through the MyPers website (does ARPC do it that way?)

I ask because I transferred from the Navy in Aug19 and immediately asked AFPC about the bonus. Due to admin stuff associated with my transfer, the lady running the program couldn’t get me paperwork to sign until Oct 19,!well after the cutoff date. Since I had applied online before the cutoff date, I was allowed to remain on the FY19 program even though I didn’t have an approved application until after the due date.

 

Edited by Bigred
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15 hours ago, TexanDriver8 said:

Hey guys, I have a very specific question for the peanut gallery; it only applies to Reserve AGR flyers so if you're not one you can scroll on. 

BACKGROUND: I had significant difficulties getting my orders extended to 20 despite having been granted career status (another long story) that led to my being unable to apply for AvB under the FY20 bonus before midnight 30 Sept.  Therefore, I won't be able to sign the FY21 bonus until it comes out in (I'm being told) June of '21.  On the reserve side, my airframe has achieved excellent manning levels (AGR), therefore I anticipate between that and the airline situation, the bonus is going away for me in '21.  This means that because of delays caused by ARPC I am liable to lose out on $140K worth of bonus, all due to bureaucratic incompetence. 

GET TO THE POINT: (Again, Reserve AGR Only) Does anyone know of any circumstances in which a waiver for the bonus signup cutoff requirement was granted?  Has anyone lawyered up?  Do you think I should after exhausting all the normal lines of effort?  Just thought I'd ask the hive mind, this is a pretty huge bummer.

Well, you could submit a CMS case with the FY20 AvB application, presumably with current AGR orders to 20AD now on hand, on Mypers and find out.  No crystal ball and all that, but the AGR bonus is not likely to go away entirely in FY21. It certainly stands to lower in offering, we will have to see. As to 140K, current AGR bonuses are only offered in 3 year increments, so that number doesn't add up in current offering. A 4th year would require a renewal contract. Though you mentioned career status, so you've probably been a bonus recipient previously and all these contracts would be renewals anyways. As of the last two FY, the Reserve AvB didn't have a penalty for renewal contracts. It's probably not a stretch to see it go back to that though. 

I'm a non-airline career AGR btw, not that an AD guy couldn't have given ya the same piece of information, as the programs parallel themselves pretty close (sans the lump sump options in AD). AGR Bonus was never an inflection point in my decision to not pursue airline employment for a career, but that's a my monkey my circus thing. Good luck to ya. 

Edited by hindsight2020
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  • 1 month later...

Any rumors/latest and greatest for this years bonus? With COVID and all, do you think they are smart enough to see there is still going to be a shortage and need to get as many bonus takers as possible? Keep the the 3 year and up bonus or back to 5 years? 

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