2. The applicant requests correction of his military records by computing his retired pay based on the pay of a captain (O-3) with more than 4 years of enlisted service (O-E3) vice O-3. 3. The applicant’s military records show that he was appointed a Reserve commissioned officer with the rank of second lieutenant (O-1) with concurrent call to active duty on 21 October 1975 with 4 years, 7 months and 2 days of active service as an enlisted soldier. His Leave and Earnings Statement for the period 1-30 November 1975 indicates his pay based on pay grade O-1E. On 30 June 1991, he was honorably released from active duty for length of service. His DD Form 214 (Certificate of Release or Discharge from Active Service) erroneously indicates his pay grade as being O-3. His DA Form 3713, (Data for Retired Pay) also erroneously indicates retired pay based on O-3. 4. The Department of Defense Military Pay and Allowances Entitlements Manual provides in part one, paragraph 10105, that commissioned officers in pay grade O-1, O-2 or O-3 are entitled to the special rate of pay for O-E1, O-E2 or O-E3, if the officer has had more than 4 years of active service as an enlisted soldier. 5. In the processing of this case, a staff advisory opinion was obtained from the Defense Finance and Accounting Service which, in effect, recommended granting the applicant’s request provided the records show that he had more than 4 years of active service as an enlisted soldier before being appointed a commissioned officer. CONCLUSIONS: 1. The evidence of record clearly shows that the applicant served more than 4 years as an enlisted soldier before being appointed a Reserve commissioned officer. Therefore, his DD Form 214 should show his pay grade as being O-E3 rather than O-3. 2. Based on his prior enlisted service, his DA Form 3713 should show that his retired pay is based on the higher rate of a captain with prior enlisted service (O-E3). 3. In consideration of the foregoing, it would be just to correct the records as recommended below. RECOMMENDATION: That all of the Department of the Army records related to this case be corrected: a. by issuing to the individual concerned a DD Form 215 (correction to the DD Form 214) showing pay grade O-E3 vice O-3; b. by showing on the DA Form 3713 retired pay based on the higher rate of captain with prior enlisted service; and c. by recomputing his retired pay based on the rate of O-E3 retroactive to 1 July 1991. BOARD VOTE: GRANT AS STATED IN RECOMMENDATION GRANT FORMAL HEARING DENY APPLICATION CHAIRPERSON