(a) Bonus Authorized. -

An aviation officer described in subsection (b) who, during the period beginning on January 1, 1989, and ending on December 31, 2001, executes a written agreement to remain on active duty in aviation service for at least one year may, upon the acceptance of the agreement by the Secretary concerned, be paid a retention bonus as provided in this section.

(b) Covered Officers. -

An aviation officer referred to in subsection (a) is an officer of a uniformed service who -

(1)

is entitled to aviation career incentive pay under section 301a of this title;

(2)

is in a pay grade below pay grade O-7;

(3)

is qualified to perform operational flying duty; and

(4)

has completed any active duty service commitment incurred for undergraduate aviator training.

(c) Amount of Bonus. -

The amount of a retention bonus paid under this section may not be more than $25,000 for each year covered by the written agreement to remain on active duty.

(d) Proration. -

The term of an agreement under subsection (a) and the amount of the bonus under subsection (c) may be prorated as long as such agreement does not extend beyond the date on which the officer making such agreement would complete 25 years of aviation service.

(e) Payment of Bonus. -

Upon the acceptance of a written agreement under subsection (a) by the Secretary concerned, the total amount payable pursuant to the agreement becomes fixed and may be paid by the Secretary in either a lump sum or installments.

(f) Additional Pay. -

A retention bonus paid under this section is in addition to any other pay and allowances to which an officer is entitled.

(g) Repayment of Bonus. -

(1)

If an officer who has entered into a written agreement under subsection (a) and has received all or part of a retention bonus under this section fails to complete the total period of active duty specified in the agreement, the Secretary concerned may require the officer to repay the United States, on a pro rata basis and to the extent that the Secretary determines conditions and circumstances warrant, all sums paid under this section.

(2)

An obligation to repay 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 a written agreement entered into under subsection (a) does not discharge the officer signing the agreement from a debt arising under such agreement or under paragraph (1).

(h) Regulations. -

The Secretaries concerned shall prescribe regulations to carry out this section. Regulations prescribed by the Secretary of a military department shall be subject to the approval of the Secretary of Defense.

(i) Reports. -

(1)

Not later than February 15 of each year, the Secretaries concerned shall submit to the Secretary of Defense a report analyzing the effect of the provision of retention bonuses to aviation officers during the preceding fiscal year on the retention of qualified aviators.

(2)

Not later than March 15 of each year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives copies of the reports submitted to the Secretary under paragraph (1) with regard to the preceding fiscal year, together with such comments and recommendations as the Secretary considers appropriate.

(j) Definitions. -

In this section:

(1)

The term ''aviation service'' means service performed by an officer (except a flight surgeon or other medical officer) while holding an aeronautical rating or designation or while in training to receive an aeronautical rating or designation.

(2)

The term ''operational flying duty'' has the meaning given such term in section 301a(a)(6)(B) of this title