Aviation Continuation Pay (ACP - The Bonus)

[Khruangbin33]

22 hours ago, di1630 said:

 IF you can show the paper trail of their error and your denied bonus.
 

 

10 hours ago, tac airlifter said:

Tough case to make, even if you had gobs of free time.  

Agree on both points, and free time is something I don't exactly have right now.  Also, paper trail is hard to establish when TFSC case messages auto-delete after a certain period of time.  For the casual/inexperienced reader - make sure you screenshot/save every interaction with AFPC.  You are the only one looking out for you.

[jrobe]

On 2/23/2020 at 1:09 PM, wazzuPIC said:

Odd situation/possible low SA on my part at the time:

As a CSO with an expired CSO ADSC, I was eligible for the ACP that dropped late September/Early Oct of 18.  However, well before that bonus was announced, I was picked up for pilot training.....

So, months later, when the time came to apply for the bonus, it was of course denied because I had an existing (erroneous) UPT ADSC.........

I'm missing out on $225k of pre-tax bonus here, so does anyone think I have a chance of getting this resolved in my favor?  Do I open a case with AFPC, Finance, Legal, IG?  Lawyer up?  Or do I just STFU and enjoy my window seat?

Unfortunately I don’t think you have a case for the cash....

I think the lawyers would say....

when accepting and being assigned to UPT the became an AFSC of 92T0 which is not 12XX and not eligible for the bonus

But for 200K why not push for it.  There may may have been a short window of still being a 12XX...remember they pay in full years

[Danger41]

If you’re deployed when the bonus hits, is it tax free?

[jazzdude]

If you’re deployed when the bonus hits, is it tax free?

No for commissioned officers. A portion may be tax free (up to the monthly CTZE cap allowed for commissioned officers).

But if your on the combat zone, your TSP cap goes up to $55K, so that's an option to squirrel away some of the bonus money as well.

[Splntr]

On 2/23/2020 at 1:09 PM, wazzuPIC said:

Odd situation/possible low SA on my part at the time:

As a CSO with an expired CSO ADSC, I was eligible for the ACP that dropped late September/Early Oct of 18.  However, well before that bonus was announced, I was picked up for pilot training.  While processing my PCS orders, MPF/TFSC told me that in order to receive those orders to UPT, I had to sign an ADSC stating that if I completed pilot training, I would owe 10 years.  Well, I went ahead and signed that, and they tacked on a 10 year UPT ADSC effective on the day I signed it, well before I ever left my pre-UPT assignment.

So, months later, when the time came to apply for the bonus, it was of course denied because I had an existing (erroneous) UPT ADSC.  This was 8 months before UPT graduation.  In fact at the time I was too busy getting my shit pushed in in T-6's to bother trying to fix the ADSC issue.  Once I graduated UPT, that 10 year ADSC was updated to reflect my grad date.

I'm missing out on $225k of pre-tax bonus here, so does anyone think I have a chance of getting this resolved in my favor?  Do I open a case with AFPC, Finance, Legal, IG?  Lawyer up?  Or do I just STFU and enjoy my window seat?

I was in the same situation, applied for the Nav bonus after talking to AFPC. I was at the end of my T-38C time in UPT. They said I was eligible so I submitted my paperwork and it got approved. Now I just have to live in fear for the rest of my time in the Air Force... I tried to be as clear as possible to make sure they new my situation and was still told to submit the paperwork. I would definitely make some calls. 

[DuckHunter]

Anybody have SA on next years bonus?

[hindsight2020]

5 minutes ago, DuckHunter said:

Anybody have SA on next years bonus?

[LookieRookie]

12 hours ago, DuckHunter said:

Anybody have SA on next years bonus?

Meet the new bonus, it's like the old bonus of 25K, except it says FY21.

 

 

 

 

 

 

 

 

 

 

I have no idea, but I have the pitchfork and torch market cornered.

[DuckHunter]

42 minutes ago, LookieRookie said:

Meet the new bonus, it's like the old bonus of 25K, except it says FY21.

 

 

 

 

 

 

 

 

 

 

I have no idea, but I have the pitchfork and torch market cornered.

That’s what I’m thinking as well...if even that.  Since Corona derailed my getting out plans, I’m looking at a PCS that is agreeable to the family and me.  Since I’ll get the ADSC anyway, toying with taking the 3 year option.  

Just wanted to see if anybody had SA so I make the best possible decision.  Other than the obligatory don’t take the devils money.

[PAWS]

On 7/10/2020 at 6:48 PM, DuckHunter said:

That’s what I’m thinking as well...if even that.  Since Corona derailed my getting out plans, I’m looking at a PCS that is agreeable to the family and me.  Since I’ll get the ADSC anyway, toying with taking the 3 year option.  

Just wanted to see if anybody had SA so I make the best possible decision.  Other than the obligatory don’t take the devils money.

Some quick Google-Fu:  This article on Federal News Network (not sure on their veracity in reporting, but an interesting speculation nonetheless) seems to predict higher percentage of take rates than historically.  Elsewhere in the aviation industry, talking heads are forecasting doom and gloom for the next few years, El Al is pretty much in an accelerated stall though they’re about to get a ballistic recovery system from New York, Emirates is cutting OVER 9000 jobs without actually admitting that they’re in dire straits (or “up to 9000” if you want to quote it verbatim), and The Motley Fool is claiming that United Airlines isn’t expecting the most recent spike in air travel to continue...  

Personally, I took 4 years under the FY19 AvB, paired with the BRS for concurrent monies and ADSCs.  But this summer, the wife and I are considering tacking on a few more years in the FY20 offering before Big Blue’s money dries up, which would allow me to eventually enroll in the check-of-the-month club.  Family stability and meeting significant financial independence goals are the primary reasons, and the current COVID-driven dip in outside employment in my career field shouldn’t affect the FY25-FY28 hiring peak too much, I hope.

Edited July 12, 2020 by PAWS

[SurelySerious]

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 July 12, 2020 by SurelySerious

[PAWS]

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.

[pawnman]

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.

[gearhog]

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. 😄

[PAWS]

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.

[pawnman]

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.

[StoleIt]

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.

[MooseAg03]

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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[Danger41]

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

[StoleIt]

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.

[jazzdude]

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.

[Techsan]

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.

[Bigred]

42 minutes ago, Techsan said:

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

Interesting, I just get one lump payment for all of it. 

[jazzdude]

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.

[Whisky]

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.