Limited Time Remaining for Airmen to Submit Applications for Special Retention Incentive
The Air Force's Selective Retention Bonus (SRB) program, designed to incentivise reenlisting in high-demand career fields, has been depleted earlier than anticipated in the fiscal year 2025 (FY25). This development can primarily be attributed to the targeted use of SRBs in specialties facing low manning, poor retention, and high replacement training costs.
In a departure from the norm, the SRB program was opened in December 2022 instead of May, providing Airmen with a longer reenlistment window of 12 months prior to separation. This move was aimed at maximising the program's potential impact. However, the high demand for financial incentives in critical skill areas led to the early depletion of available SRB funds.
The multipliers that decide the size of bonuses for Airmen were higher than usual in FY25, with the maximum allowable reenlistment bonus reaching $180,000 and a career cap set at $360,000. The number of eligible career fields for SRBs was also higher than usual, expanded to 89 in December 2022.
The Air Force official thanked military personnel flights across the service, acknowledging that many of them will likely be busy processing last-minute applications over the next few days. Airmen already in the SRB program will still receive their anniversary payments, but the Air Force will no longer accept new applications after May 20, 2023.
The high take rates and early depletion of SRBs in FY25 can be explained by the strategic targeting of bonuses to career fields with significant manpower shortfalls. Without bonuses, retention rates were lower in these critical specialties, increasing overall demand for financial incentives. Furthermore, the expense and time required to train new personnel made retaining experienced Airmen through SRBs a strategically necessary and attractive option.
This trend is not a new one for the Air Force. The service under-executed the FY24 SRB budget by about $50 million, FY23 by about $70 million, and FY22 by about $109 million. The Air Force has nearly depleted the $172 million Congress allotted for SRBs in FY25.
Despite the high demand for SRBs, it's unclear what impact these large bonuses have on retention, due to a lack of information on the impact of past bonuses or incentive pays on accessions and retention. Lisa Harrington, a senior operations researcher at RAND and a retired Air Force veteran, has called for better integration between personnel budget policy stakeholders to avoid or mitigate shortfalls such as the one that occurred in 2023.
The Air Force official anticipates a similar level of SRB funding in FY26, signalling a continued focus on retaining key personnel in critical roles. However, the challenge remains to strike a balance between providing sufficient financial incentives to retain experienced Airmen and ensuring that these funds are used effectively and efficiently to meet the service's broader personnel needs.
[1] Air Force FY25 personnel documents.
- The rapid depletion of the Air Force's Selective Retention Bonus (SRB) funds in FY25 is primarily attributed to the strategic targeting of bonuses in specialties with low manning, poor retention, and high replacement training costs.
- To maximize the impact of the SRB program, the Air Force opened the program in December 2022 instead of May, providing Airmen with a longer reenlistment window of 12 months prior to separation.
- The number of eligible career fields for SRBs was expanded to 89 in December 2022, and the multipliers that decide the size of bonuses for Airmen were higher than usual, with the maximum allowable reenlistment bonus reaching $180,000 and a career cap set at $360,000.
- Without the SRB bonuses, retention rates were lower in critical specialties, increasing overall demand for financial incentives. The expense and time required to train new personnel made retaining experienced Airmen a strategically necessary and attractive option.
- Despite the high demand for SRBs, there is a lack of information on the impact of past bonuses or incentive pays on accessions and retention, and it's unclear what impact these large bonuses have on retention. Lisa Harrington, a senior operations researcher at RAND and a retired Air Force veteran, has called for better integration between personnel budget policy stakeholders to avoid or mitigate shortfalls such as the one that occurred in 2023.
