2.  The applicant requests correction of his military records by:  terminating his incentive special pay (ISP) agreement for the period 1 October 1992 through 30 September 1993 effective 30 June 1993; and by initiating a new ISP agreement for the period 1 July 1993 through 30 June 1994.  He states that he was mandatorily retired with 30 years of commissioned service on 30 June 1994, and this is the only way he may receive ISP for his final year of service.

3.  The applicant is a retired colonel (doctor) in the Medical Corps.  While on active duty, he signed an ISP agreement for $21,000 for the period 1 October 1993 through 30 September 1994.  Although he fully intended to serve the entire 12 month period of the ISP agreement, he did not realize that he faced mandatory 30 year retirement on 30 June 1994.  When his servicing personnel office advised him of his pending retirement on 7 April 1994, he was also notified on 6 May 1994 that, because he could not complete his ISP agreement, all $21,000 would be collected back even though he would have completed 3/4ths of the agreement by his retirement date.

4.  The Department of Defense Military Pay and Entitlements manual provides that medical officers may be authorized ISP under certain criteria.  To be eligible for ISP a medical officer must sign an agreement to remain on active duty for at least 1 additional year.  The ISP is paid in a lump sum at the beginning of the 12-month period for which the officer is entitled to such pay.  Entitlement to special pay is in addition to any other pay and allowances.

5.  In the processing of this case, a staff advisory opinion was obtained from the Office of the Surgeon General (OTSG) which recommends that, in the interest of justice and equity, the applicant be permitted to renegotiate his final ISP agreement to afford him 12 months of qualifying service.  To accomplish this, it further recommends that the applicant’s 1 October 1992 ISP agreement be terminated on 30 June 1993 and that 3 month’s of prorated ISP payments (July, August, and September 1993) be recouped.

CONCLUSIONS:

1.  The applicant believed that he was eligible for and, thus, entered into an ISP agreement on 1 October 1993.  This agreement was voided in May 1994 when he was informed that he would not be able to complete the agreement prior to his mandatory retirement date of 30 June 1994.  He was further informed that the entire amount ($21,000) would be collected back from him even though he had performed qualifying duty for 9 of the 12 months of the agreement.

2.  The Office of the Surgeon General recommends that, in the interest of justice, the applicant’s ISP agreement be renegotiated to afford him enough time (1 year) to earn the ISP payment.

3.  In consideration of the foregoing findings and conclusions, it would be appropriate to correct the records as recommended by the OTSG.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected:

	a.  by terminating the 1 October 1992 ISP agreement of the individual concerned effective 30 June 1993 and by recouping, on a pro rata basis, the ISP payment for the period 1 July 1993 through 30 September 1993; and

	b.  by initiating, and paying, a new ISP agreement at the rate of $21,000 for the period 1 July 1993 through 30 June 1994.

BOARD VOTE:  

                       GRANT AS STATED IN RECOMMENDATION

                       GRANT FORMAL HEARING

                       DENY APPLICATION




		                           
		        CHAIRPERSON