---
kind: "section"
citation: "37 U.S.C. § 327"
title: "37"
title_heading: "Pay and Allowances of the Uniformed Services"
number: "327"
heading: "Incentive bonus: transfer between armed forces"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/37/327"
units:
  - "Chapter 5 — Special and Incentive Pays"
  - "Subchapter I — Existing Special Pay, Incentive Pay, and Bonus Authorities"
---

# §327. Incentive bonus: transfer between armed forces

- (a) **Incentive Bonus Authorized.—** A bonus under this section may be paid to an eligible [member](/usc/37/101.md?p=23) of a regular component or [reserve component](/usc/37/101.md?p=24) of an armed force who executes a written agreement—
  - (1) to transfer from such regular component or [reserve component](/usc/37/101.md?p=24) to a regular component or [reserve component](/usc/37/101.md?p=24) of another armed force; and
  - (2) to serve pursuant to such agreement for a period of not less than three years in the component to which transferred.
- (b) **Eligible Members.—** A [member](/usc/37/101.md?p=23) is eligible to enter into an agreement under [subsection (a)](#a) if, as of the date of the agreement, the [member](/usc/37/101.md?p=23)—
  - (1) has not failed to satisfactorily complete any term of enlistment in the [armed forces](/usc/37/101.md?p=4);
  - (2) is eligible for reenlistment in the [armed forces](/usc/37/101.md?p=4) or, in the case of an [officer](/usc/37/101.md?p=11), is eligible to continue in service in a regular or [reserve component](/usc/37/101.md?p=24) of the [armed forces](/usc/37/101.md?p=4); and
  - (3) has fulfilled such requirements for transfer to the component of the armed force to which the [member](/usc/37/101.md?p=23) will transfer as the Secretary having jurisdiction over such armed force shall establish.
- (c) **Limitation.—** A [member](/usc/37/101.md?p=23) may enter into an agreement under [subsection (a)](#a) to transfer to a regular component or [reserve component](/usc/37/101.md?p=24) of another armed force only if the Secretary having jurisdiction over such armed force determines that there is shortage of trained and qualified personnel in such component.
- (d) **Amount and Payment of Bonus.—**
  - (1) A bonus under this section may not exceed $10,000.
  - (2) A bonus under this section shall be paid by the Secretary having jurisdiction of the armed force to which the [member](/usc/37/101.md?p=23) to be paid the bonus is transferring.
  - (3) A bonus under this section shall, at the election of the Secretary paying the bonus—
    - (A) be disbursed to the [member](/usc/37/101.md?p=23) in one lump sum when the transfer for which the bonus is paid is approved by the chief personnel [officer](/usc/37/101.md?p=11) of the armed force to which the [member](/usc/37/101.md?p=23) is transferring; or
    - (B) be paid to the [member](/usc/37/101.md?p=23) in annual installments in such amounts as may be determined by the Secretary paying the bonus.
- (e) **Relationship to Other Pay and Allowances.—** A bonus paid to a [member](/usc/37/101.md?p=23) under this section is in addition to any other [pay](/usc/37/101.md?p=21) and allowances to which the [member](/usc/37/101.md?p=23) is entitled.
- (f) **Repayment.—** A [member](/usc/37/101.md?p=23) who is paid a bonus under an agreement under this section and who, voluntarily or because of misconduct, fails to serve for the period covered by such agreement shall be subject to the repayment provisions of [section 303a(e) of this title](/usc/37/303a.md?p=e).
- (g) **Regulations.—** The Secretaries concerned shall prescribe regulations to carry out this section. Regulations prescribed by the Secretary of a military department under this subsection shall be subject to the approval of the Secretary of Defense.
- (h) **Termination of Authority.—** No agreement under this section may be entered into after December 31, 2018.

## Source credit

(Added and amended Pub. L. 109–163, div. A, title VI, §§ 641(a), 687(b)(35), Jan. 6, 2006, 119 Stat. 3304, 3333; Pub. L. 109–364, div. A, title VI, §§ 614(h), 620(a), Oct. 17, 2006, 120 Stat. 2249, 2252; Pub. L. 111–84, div. A, title VI, § 615(7), Oct. 28, 2009, 123 Stat. 2354; Pub. L. 111–383, div. A, title VI, § 615(7), Jan. 7, 2011, 124 Stat. 4237; Pub. L. 112–81, div. A, title VI, § 615(7), Dec. 31, 2011, 125 Stat. 1451; Pub. L. 112–239, div. A, title VI, § 615(7), Jan. 2, 2013, 126 Stat. 1777; Pub. L. 113–66, div. A, title VI, § 615(7), Dec. 26, 2013, 127 Stat. 781; Pub. L. 113–291, div. A, title VI, § 615(8), Dec. 19, 2014, 128 Stat. 3401; Pub. L. 114–92, div. A, title VI, § 615(8), Nov. 25, 2015, 129 Stat. 839; Pub. L. 114–328, div. A, title VI, § 615(8), Dec. 23, 2016, 130 Stat. 2159; Pub. L. 115–91, div. A, title VI, § 615(8), Dec. 12, 2017, 131 Stat. 1423.)

## Notes

### Editorial Notes

### Amendments

2017—Subsec. (h). Pub. L. 115–91 substituted “December 31, 2018” for “December 31, 2017”.

2016—Subsec. (h). Pub. L. 114–328 substituted “December 31, 2017” for “December 31, 2016”.

2015—Subsec. (h). Pub. L. 114–92 substituted “December 31, 2016” for “December 31, 2015”.

2014—Subsec. (h). Pub. L. 113–291 substituted “December 31, 2015” for “December 31, 2014”.

2013—Subsec. (h). Pub. L. 113–66 substituted “December 31, 2014” for “December 31, 2013”.

Pub. L. 112–239 substituted “December 31, 2013” for “December 31, 2012”.

2011—Subsec. (h). Pub. L. 112–81 substituted “December 31, 2012” for “December 31, 2011”.

Pub. L. 111–383 substituted “December 31, 2011” for “December 31, 2010”.

2009—Subsec. (h). Pub. L. 111–84 substituted “December 31, 2010” for “December 31, 2009”.

2006—Subsec. (d)(1). Pub. L. 109–364, § 620(a), substituted “$10,000” for “$2,500”.

Subsec. (f). Pub. L. 109–163, § 687(b)(35), amended heading and text of subsec. (f) generally. Prior to amendment, text read as follows:

“(1) A member who is paid a bonus under an agreement under this section and who, voluntarily or because of misconduct, fails to serve for the period covered by such agreement shall refund to the United States an amount which bears the same ratio to the amount of the bonus paid such member as the period which such member failed to serve bears to the total period for which the bonus was paid.

“(2) An obligation to reimburse the United States imposed under paragraph (1) is for all purposes a debt owed to the United States.

“(3) A discharge in bankruptcy under title 11 that is entered less than 5 years after the termination of an agreement under this section does not discharge the person signing such agreement from a debt arising under paragraph (1).”

Subsec. (h). Pub. L. 109–364, § 614(h), substituted “2009” for “2006”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2006 Amendment

Pub. L. 109–364, div. A, title VI, § 620(b), Oct. 17, 2006, 120 Stat. 2252, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on October 1, 2006, and shall apply to agreements entered into or revised under section 327 of title 37, United States Code, on or after that date.”

### Savings Provision

For savings provision relating to payment or repayment of any bonus, incentive pay, special pay, or similar pay obligated to be paid before Apr. 1, 2006, under a provision of this section amended by section 687(b) of Pub. L. 109–163, see section 687(f) of Pub. L. 109–163, set out as a note under section 510 of Title 10, Armed Forces.