2.  The applicant requests that the separation program designator (SPD) code on his DD Form 214, Certificate of Release or Discharge, be corrected to show that bonuses are not to be recouped.

3.  He states that the bonus he received was for a military occupational specialty (MOS) that the Army chose to delete. His departure from the service was not because of anything he did or did not do.

4.  His military record shows he enlisted in the Regular Army on 26 October 1989 for 6 years for training as a tank systems mechanic with a cash bonus enlistment option.  The contract he signed states “ If my subsequent disqual-ification is neither voluntary nor my fault, I will not be required to repay any portion of the bonus.”  He was honorably discharged 3 October 1991 under the provisions of Army Regulation 635-200, paragraph 7-16b for an unfulfilled enlistment contract.  The SPD code on his DD Form 214 is KDS, indicating that he was separated in accordance with the aforementioned paragraph of the Army regulation.

5.  He successfully completed advanced individual training and was awarded the bonus MOS for which he had enlisted.  Accordingly, on 25 April 1990 he received the enlistment bonus in the amount of $4500.00.

6.  On 29 July 1991 the soldier was informed that the Army intended to discontinue his MOS.  In accordance with the options available to him, he could accept reclassification into another MOS or request discharge because of an unfulfilled enlistment contract.  He opted for discharge.

7.  A member of the staff of the Board contacted the Defense Finance and Accounting Service and ascertained that the enlistment bonus paid to the applicant had been recouped.

8.  Army Regulation 635-200, paragraph 7-16b, provides in pertinent part that an unfulfilled enlistment commitment exists when the soldier received a written enlistment commitment from recruiting personnel for which the soldier

was qualified, but which cannot be fulfilled by the Army and the soldier did not knowingly take part in the creation of the unfulfilled enlistment commitment.

9.  Army Regulation 635-5-1, Separation Program Designator Codes, provides in pertinent part, that SPD codes are three-character alphabetic combinations which identify reasons for, and types of separation from active duty.  The sole purpose of SPD codes is to provide statistical accounting of reasons for separation.  They are intended exclusively for the internal use of DOD and the military services to assist in the collection and analysis of separation data.

CONCLUSIONS:

1.  There was no error in the SPD code assigned at the time of his separation.  SPD code KDS is consistent with the regulation governing the reason for his discharge.

2.  His enlistment contract provides, however, that if his disqualification for service is neither voluntary or his fault, and his was not, he would not be required to repay any portion of the bonus.  Under the circumstances, there is no justification to recoup his bonus.

3.  Accordingly, it would be equitable and just to return any enlistment bonus that was recouped from him.

4.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by reimbursing the individual concerned that portion of the enlistment bonus that was recouped from him to include interest and penalties, as a result of his premature discharge.




BOARD VOTE:

                       GRANT AS STATED IN RECOMMENDATION

                       GRANT FORMAL HEARING

                       DENY APPLICATION




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						CHAIRPERSON