Overseas Tour Extension Incentive Program

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In the United States Armed Forces, the Overseas Tour Extension Incentive Program (OTEIP), authorized under the authority of 10 USC 705 and 37 USC 314, is a changing tool[clarification needed] designed to improve servicemember retention overseas to qualified service members, based on the needs of either the Navy, Army, Marine Corps, and Air Force. Special rest and recuperative (SR&R) absences, travel benefits, and lump-sum bonuses are available for qualified servicemembers who have an OTEIP specialty, are serving in OTEIP designated geographical areas, and voluntarily extend their overseas service tours for not less than one year. If the servicemember is eligible for (OTEIP), the servicemember’s OTEIP election will be annotated on the FSTE request. [1]

Lump-sum bonuses are not added into base wage. It is viewed as a substitute of merit pay.