The U.S. Army is leveraging continuation pay (CP) as a retention incentive as part of its new strategy to keep top talent in critical roles at key career points. CP is a monetary incentive, like a bonus, designed to encourage mid-career Soldiers enrolled in the blended retirement system to continue their service. The Army saw an eight percent increase in CP participation in fiscal 2025 compared to the previous year, as eligibility and awareness of the program grew.
“Continuation pay is a mutual benefit for the Soldier and the Army,” said Master Sgt. Nicole Palmer, Senior Army Retention Operations Noncommissioned Officer. “It helps the Army to retain talented Soldiers, and it provides those Soldiers with a significant financial boost.”
In calendar year 2026, Soldiers with between seven and 12 years of service are eligible. Those transferring from other military branches must complete their transfer before reaching 10 years of service, based on their pay entry basic date.
To receive CP, Soldiers must commit to an additional four years of service, commencing on the date they sign the CP election form. For Regular Army (RA) and Active Guard Reserve (AGR) Soldiers, the incentive is significant: 2.5 times their active duty monthly basic pay, calculated using their current pay grade.
U.S. Army Reserve (USAR) and Army National Guard (ARNG) Soldiers are also eligible for CP, receiving 2.5 times their active duty monthly basic pay if they fall within the eligibility window and have performed 270 or more days of involuntary mobilization during a 730-day period; otherwise, eligible USAR and ARNG Soldiers receive 0.5 times their active duty monthly basic pay.
Soldiers can receive their CP in a single lump sum or in a series of equal installments, spread over a maximum of four annual payments over four consecutive years. It can also be directed into their Thrift Savings Plan. Those wishing to do so must update their allotment allocations in myPay and their TSP settings before submitting their CP request.
The Army recently announced it is transforming its retention strategy to focus on measures aligned with its evolving priorities, such as matching retention incentives to critical force needs and to individual contributions. The Army’s recent revisions to Army CP eligibility reflect its new strategy.
Soldiers interested in continuation pay should speak with their career counselor or visit the Army retention website for more information on CP and other retention incentives.
The below graphic is an example continuation pay chart based on the 2025 pay scale.
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