Will MSP during fellowship extend one's obligated service?

Special Pays “Gotcha” for Fellows: The spin-up to the GME Selection Board reminds us that each year we have a few GME trainees, usually fellows, who fall victim to a little-known clause in the Special Pays rules. To qualify for the Multi-Year Special Pay an officer must have served 8 years on active duty, so most of our residents in training are not eligible for the MSP. However fellows and physicians in 2nd residencies may have active MSP contracts at the time they start their training. In most cases trainees can serve existing MSP obligations and their GME training obligations concurrently. However, if your MSP expires, and you negotiate a new MSP bonus while you are still a fellow or resident, the new MSP obligation automatically becomes CONSECUTIVE to your training obligation. This happens without your knowledge and in the absence of notification. In many cases the first time you become aware of the added obligation is when you submit separation papers. Such obligations are statutory, and are not waiverable.

This “gotcha” is easy to avoid with advanced planning. If you are entering GME training and have an active MSP special pay contract, please insure your MSP is negotiated for a term that exceeds the time you will be in training.

Reference: Navy Chief of the Medical Corps Newsletter, October 2007