Defense Authorization Bill Becomes Law

President Bush signed the fiscal 2006 Defense authorization bill Jan. 1. Significant features: 3.1 percent military pay raise across the board effective Jan. 1; maximum reenlistment bonus up from $60,000 to $90,000; top enlistment bonus upped from $20,000 to $40,000; hardship-duty pay ceiling lifted from $300 to $750 a month; assignment incentive pay cap went from $1,500 to $3,000 a month; allowance authorized to cover the first $150,000 in Servicemembers’ Group Life Insurance premiums for troops serving in Operations Iraqi and Enduring Freedom; as much as $2,500 in bonuses for members who transfer from one service to another; and up to $1,000 in incentive pay for service members who refer a recruit to the Army who successfully completes basic training.