National Call to Service (NCS) Revision of DD Form 2863 and Procedures for Incentive Payment

1. PURPOSE: TO INFORM COMMANDS OF THE CORRECT
PROCEDURES FOR NCS INCENTIVE PAYOUTS AND OF THE CHANGE IN POST
SELECTIVE RESERVE (SELRES) OPTIONS. 
2. THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2006
ELIMINATES THE PEACE CORPS AS A POST SERVICE OPTION. AS SUCH, DD
FORM 2863 NATIONAL CALL TO SERVICE ELECTION OF OPTIONS IS IN THE
PROCESS OF BEING REVISED TO ELIMINATE PEACE CORPS AS A NATIONAL
SERVICE OPTION IN WHICH A PARTICIPANT MAY SERVE THE REMAINDER OF
THEIR MILITARY SERVICE OBLIGATION (MSO) AFTER COMPLETING THE SELRES
OBLIGATION (SEE BLOCK 2, SERVICE COMMITMENT).
3. PARTICIPANTS IN THE NCS PROGRAM SELECT ONE OF FOUR IRREVOCABLE 
INCENTIVES AT THE TIME OF ACCESSIONS: $5,000.00 CASH BONUS, UP TO 
$10,000.00 PAYMENT OF QUALIFYING STUDENT LOANS, THE 12-MONTH 
EDUCATIONAL ASSISTANCE ALLOWANCE, OR THE 36-MONTH EDUCATIONAL 
ASSISTANCE ALLOWANCE. AFTER COMPLETING THE INITIAL 15-MONTHS OF 
POST ENTRY LEVEL TRAINING ACTIVE DUTY, PARTICIPANTS MAY ELECT TO 
CONTINUE THEIR MSO IN THE SELRES OR EXTEND ON ACTIVE DUTY FOR AT 
LEAST TWO YEARS. PAYMENT OF THE INCENTIVES FOR PERSONNEL WHO ELECT 
TO ENTER THE SELRES WILL BE EXECUTED AS FOLLOWS:
A. BONUS OF $5,000 PAYABLE ON COMPLETION OF ACTIVE DUTY OBLIGATION.
THE BONUS IS TO BE PAID BY THE SEPARATING COMMAND DISBURSING OFFICE.
B. REPAYMENT OF QUALIFYING STUDENT LOANS. CURRENTLY, THE MARINE
CORPS PAYS UP TO $10,000.00 OF QUALIFYING STUDENT LOANS. 
(1) 90-DAYS PRIOR TO THEIR EAS, PARTICIPANTS WILL MEET WITH THEIR
CAREER RETENTION SPECIALIST (CRS). COMMANDERS WILL ENSURE THAT WHILE
AT THE MEETING, MEMBERS ARE DIRECTED TO COMPLETE SECTION I OF THE
LETTER TO LOAN HOLDER. THE LETTER TO LOAN HOLDER CAN BE RETRIEVED 
FROM THE PARTICIPANT'S SERVICE RECORD BOOK (SRB). IF THE LETTER TO 
LOAN HOLDER IS NOT IN THE PARTICIPANT'S SRB, CONTACT CMC (MPO) AT 
(703) 784-9388 FOR A COPY. COMMANDERS WILL ENSURE THE LETTER TO
LOAN HOLDER IS FORWARDED TO THE PARTICIPANT'S LOAN INSTITUTION FOR THE 
COMPLETION OF SECTION II. THE LETTER TO LOAN HOLDER SHOULD NOT BE 
FILLED OUT BY A LOAN INSTITUTION UNTIL THIS TIME. 
(2) WHEN THE LOAN INSTITUTION RETURNS THE LETTER TO LOAN HOLDER TO 
THE COMMAND, THE COMMANDER WILL ENSURE THE LETTER TO LOAN HOLDER IS 
FORWARDED TO THE LOCAL ADMINISTRATION OFFICE. THE ADMIN OFFICER
WILL FORWARD THE NCS PACKAGE CONTAINING THE LETTER TO LOAN HOLDER, 
DD FORM 1966/3, AND NAVMC 321A TO DFAS KANSAS CITY CLAIMS (PMCCB) 
KANSAS CITY, MO 64197-0001 FOR DISBURSEMENT TO LOAN HOLDER. 
SCANNED PACKAGES MAY BE SENT TO DFAS-KC OMB AT 
SPECIALPROCESSING@DFAS.MIL. FOR QUESTIONS CONCERNING PAYMENT 
PROCEDURES, PLEASE CONTACT DFAS KANSAS CITY, CLAIMS AT DSN 465-5264 
OR COML (816) 926-5264. PARTICIPANTS ARE REMINDED THAT STUDENT LOAN 
AND CASH BONUS NCS INCENTIVES ARE TAXABLE FOR FITW AND SITW IN THE 
YEAR THAT THE PAYMENT IS MADE. 
C. THE TWO EDUCATIONAL ASSISTANCE ALLOWANCES WILL BE ADMINISTERED 
BY THE DEPARTMENT OF VETERANS AFFAIRS (VA). PARTICIPANTS MAY OBTAIN
CONTACT INFORMATION FOR THE VA FROM THEIR BASE EDUCATION OFFICER.
UTILIZATION OF THE ALLOWANCE WILL BE GOVERNED BY THE EXISTING RULES
OF THE MGIB-SELRES (CHAP 1606, 10 USC AND VA REGULATIONS) WITH THE
FOLLOWING EXCEPTIONS:
(1) BENEFIT RATES ARE PRESCRIBED IN SEC 3015, OF TITLE 38 USC.
(2) BENEFITS MAY BE USED UP TO 14 YEARS AFTER COMPLETION OF THE
ACTIVE DUTY PHASE OF THE NCS PROGRAM.
4. NCS MARINES ARE ELIGIBLE TO EXTEND ON ACTIVE DUTY UPON COMPLETION
OF THEIR INITIAL ACTIVE DUTY COMMITMENT PROVIDED THEY MEET CURRENT
SERVICE CRITERIA. SUCH EXTENSIONS MUST BE FOR AT LEAST TWO YEARS AND
WILL FULFILL THE SELRES COMMITMENT PORTION OF THE MSO. NCS MARINES
WILL NOT BE ELIGIBLE FOR A SELECTIVE REENLISTMENT BONUS FOR THIS
INITIAL EXTENSION. 
5. THE FOLLOWING DISPOSITION WILL BE TAKEN FOR THOSE NCS MARINES WHO
ELECT TO EXTEND ON ACTIVE DUTY FOR TWO YEARS:
A. IF THE $5,000 WAS SELECTED, THE ENTIRE BONUS WILL BE PAID AT THE
TIME OF EXTENSION. THE NCS MARINE WILL ALSO BE ALLOWED TO ENROLL IN
THE MONTGOMERY GI BILL (MGIB) BY COMPLETING A DD FORM 2366 AND HAVING
THEIR PAY REDUCED $100 PER MONTH FOR 12 MONTHS.
B. IF THE LOAN REPAYMENT OPTION WAS SELECTED, THE LOAN REPAYMENT
WILL BE MADE AT THE TIME OF EXTENSION. THE NCS MARINE WILL ALSO BE
ALLOWED TO ENROLL IN THE MGIB BY COMPLETING A DD FORM 2366 AND HAVING
THEIR PAY REDUCED $100 PER MONTH FOR 12 MONTHS.
C. IF EITHER OF THE EDUCATIONAL ASSISTANCE INCENTIVES WERE SELECTED,
NCS MARINES WILL RETAIN THAT INCENTIVE AND BE ALLOWED TO ENROLL IN
THE MGIB BY COMPLETING A DD FORM 2366 AND HAVING THEIR PAY REDUCED
$100 PER MONTH FOR 12 MONTHS. THE COMBINED TOTAL EDUCATIONAL
ALLOWANCE ENTITLEMENT (NCS + MGIB) CANNOT EXCEED 48 MONTHS OF TOTAL
BENEFITS.