Section 329 - Incentive bonus: retired members and reserve component members volunteering for high-demand, low-density assignments(a) INCENTIVE BONUS AUTHORIZED.-The Secretary of Defense may pay a bonus under this section to a retired member or former member of the Army, Navy, Air Force, or Marine Corps or to a member of a reserve component of the Army, Navy, Air Force, or Marine Corps (who is not otherwise serving on active duty) who executes a written agreement to serve on active duty for a period specified in the agreement in an assignment intended to alleviate the need for members in a high-demand, low-density military capability or in any other specialty designated by the Secretary as critical to meet wartime or peacetime requirements.(b) MAXIMUM AMOUNT OF BONUS.-A bonus under subsection (a) and any incentive developed under subsection (d) may not exceed $50,000.(c) METHODS OF PAYMENT.-At the election of the Secretary of Defense, a bonus under subsection (a) and any incentive developed under subsection (d) shall be paid or provided-(1) when the member commences service on active duty; or(2) in annual installments in such amounts as may be determined by the Secretary.(d) DEVELOPMENT OF ADDITIONAL INCENTIVES.-(1) The Secretary of Defense may develop and provide to members referred to in subsection (a) additional incentives to encourage such members to return to active duty in assignments intended to alleviate the need for members in a high-demand, low-density military capability or in other specialties designated by the Secretary as critical to meet wartime or peacetime requirements.(2) The provision of any incentive developed under this subsection shall be subject to an agreement, as required for bonuses under subsection (a).(3) Not later than 30 days before first offering any incentive developed under this subsection, the Secretary shall submit to the congressional defense committees a report that contains a description of that incentive and an explanation why a bonus under subsection (a) or other pay and allowances are not sufficient to alleviate the high-demand, low-density military capability or otherwise fill critical military specialties.(4) In this subsection, the term "congressional defense committees" has the meaning given that term in section 101(a)(16) of title 10.(e) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.-A bonus or other incentive paid or provided to a member under this section is in addition to any other pay and allowances to which the member is entitled.(f) PROHIBITION ON PROMOTIONS.-The written agreement required by subsections (a) and (d) shall specify that a member who is paid or receives a bonus or other incentive under this section is not eligible for promotion while serving in the assignment for which the bonus or other incentive is provided.(g) REPAYMENT.-A member who does not complete the period of active duty specified in the agreement executed under subsection (a) or (d) shall be subject to the repayment provisions of section 303a(e) of this title.(h) HIGH-DEMAND, LOW-DENSITY MILITARY CAPABILITY.-In this section, the term "high-demand, low-density military capability" means a combat, combat support or service support capability, unit, system, or occupational specialty that the Secretary of Defense determines has funding, equipment, or personnel levels that are substantially below the levels required to fully meet or sustain actual or expected operational requirements set by regional commanders.(i) REGULATIONS.-The Secretary of Defense may prescribe such regulations as the Secretary considers necessary to carry out this section.(j) TERMINATION OF AUTHORITY.-No agreement under subsection (a) or (d) may be entered into after December 31, 2010.Added Pub. L. 109-364, div. A, title VI, §621(a), Oct. 17, 2006, 120 Stat. 2253.STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE Pub. L. 109-364, div. A, title VI, §621(e), Oct. 17, 2006, 120 Stat. 2255, provided that: "No agreement may be entered into under section 329 of title 37, United States Code, as added by subsection (a), before October 1, 2006."