The Nuclear-Trained Petty Officer Continuation Bonus

The response of the Navy's nuclear-trained enlisted force to a special continuation bonus, enacted by Congress in 1972 to forestall an expected shortage of supervisors. The nuclear-trained petty officer continuation bonus, payable to reenlistees with six to ten years' completed service, accumulates to more than $12,000 over the reenlistment term. The direct effect of this unique reenlistment incentive is analyzed here with data from the first four full quarters of bonus experience. Findings indicate that (1) the overall reenlistment rate for NTPOs with six to nine years' service has more than doubled between pre-bonus and bonus periods; (2) the reenlistment rate at six years shows the smallest improvement; (3) the NTPO-CB has been responsible for 862 additional man-years; (4) from FY 1974 to FY 1978, the bonus is projected to result in 900 additional reenlistments; and (5) total additional costs per additional man decline steadily over the projection period.