Defense bonuses still expected but on hold

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Defense bonuses still expected but on hold
By Leo Shane III, Stars and Stripes
Mideast edition, Friday, January 4, 2008

WASHINGTON — Defense Department officials still expect to pay out 26 specialty pays and bonuses that expired last month, but they have begun warning troops the money isn’t guaranteed.

The financial incentives all lapsed on Jan. 1 because of President Bush’s veto of the 2008 National Defense Authorization bill last month. The legislation, designed to set Defense spending policies for the fiscal year, also included a now-delayed 3.5 percent pay increase for all military personnel.

White House officials said the veto was needed because of a little-known clause regarding legal claims against the Iraqi government, which could have frozen that country’s reconstruction funds.

But until Congress and the president work out that issue later this month, the pay raise, bonuses and other incentives all remain on hold.

In a statement this week, Bill Carr, deputy undersecretary of Defense for military personnel policy, said defense officials are working with Congress to make sure all of the pay provisions are made retroactive to Jan. 1.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=51405