Wednesday, January 7, 2009

Advice to Junior Officers: Nuke Bonus and TSP

A few things came to mind that I thought were worth mentioning for the junior officers that read my blog. As I was writing, this started turning into a really long post, so I broke it up into three parts. Part 1 was about tax withholding.

2. Nuke Bonus
For those of you who just signed up for the nuke bonus, take heed! Although you commonly hear people call it the "nuke bonus," the actual, official name for it is Nuclear Officer Incentive Pay (NOIP). In other words, cue Arnold Schwartzeneggar voice, "Eets NAUGHT a BOHNUS!" If, like me, you want a chunk of change from your "bonus" to go to the Thrift Savings Plan, then you need to remember it's really a type of PAY.

A common error that many people have made with their first nuke "bonus" (including me) is to enter a number in the "bonus" column on the MyPay website for TSP deductions, and then you are surprised and annoyed when the bonus comes and the DFAS people don't put any of it in your TSP account. You need to go back to the MyPay website and put a number in the "Incentive Pay."

Note there is a link on the bottom for "What is Special, Incentive, and Bonus Pay?" at the bottom of that screen shot.

Also, don't forget to scroll down and click "Save" before you click away from this page.


J120 Bowman said...

I've obviously been out too long (1996). I saw the title and wondered what the hell the nuke bonus had to do with trisodium phospate!

Sorry no bonus for you, your chemistry is out of spec!

Kat said...

That happened to my husband with his first bonus payment. We learned our lesson.