RECORD OF PROCEEDINGS
         AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS


IN THE MATTER OF:      DOCKET NUMBER:  BC-2003-01298
            INDEX CODE:  128.00

            COUNSEL:  NONE

            HEARING DESIRED:  NO


_________________________________________________________________

APPLICANT REQUESTS THAT:

A Career Status Bonus (CSB)  installment  payment  in  the  amount  of
$10,000 be applied retroactively to  his  Thrift  Savings  Plan  (TSP)
account, effective 23 Oct 02, along with any interest  that  may  have
accrued.

_________________________________________________________________

APPLICANT CONTENDS THAT:

He was provided with incorrect information  during  a  Family  Support
Center briefing, and  a  DD  Form  2839,  Career  Status  Bonus  (CSB)
Election, was erroneously backdated.

The Military Personnel (MPF) Flight and/or  the  Defense  Finance  and
Accounting Service (DFAS) accomplished an incorrect payment action  in
Sep 02, causing recoupment and subsequent CSB errors.

The MPF did not take action in a timely manner after receipt  of  MPFM
02-41 on 23 Oct 02, and processed a payment request incorrectly.

The MPF did not provide proper guidance on the required paperwork  for
a TSP deposit, and provided incorrect information to DFAS.

In support of his appeal, the applicant provided an expanded statement
and copies of a DD Form 2839, electronic mail (e-mail) concerning  the
CSB payment, a memorandum of record, and  other  documents  associated
with the matter under review.

Applicant’s complete submission, with attachments, is at Exhibit A.

_________________________________________________________________

STATEMENT OF FACTS:

A DD Form 2839 provided by the applicant indicated that on  17 Jun 02,
he signed a DD Form 2839 electing to receive a CSB when  he  completed
15 years of active service.

Information extracted from the Personnel Data System  (PDS)  indicates
that the applicant is currently serving on active duty in the grade of
master sergeant, having been promoted to that grade on 1 May 03.   His
Total Active Federal Military Service Date (TAFMSD) is 7 Jul 87.

_________________________________________________________________

AIR FORCE EVALUATION:

AFPC/DPPRR noted the applicant initially elected CSB in Jun 02,  prior
to  implementation  of   installment   payment   options.    Applicant
erroneously received the CSB in Sep 02 for  the  full  CSB  amount  of
$30,000.  Since the applicant did not want/elect to receive the entire
CSB in a lump sum payment, the payment was later recouped.  In Dec 02,
the applicant was  notified  the  new  CSB  installment  options  were
available.  He then elected to receive the CSB in  three  installments
with the understanding that the payment would go to his  TSP  account.
In Jan 03, the applicant inquired as to the status of his CSB.  It was
discovered he needed to submit a new TSP form  for  the  bonus  to  be
distributed to his TSP account.  During this timeframe, DFAS  informed
the MPF the applicant could not receive a 2002 TSP payment  since  his
request for a bonus to be distributed in TSP was not established until
2003.  According to AFPC/DPPRR, based on laws governing the  CSB,  the
applicant is not eligible to receive a backdated 2002 CSB payment  for
transfer to his TSP account.  They recommended the applicant  be  paid
his first installment payment of $10,000 and it be distributed to  his
TSP account, and the remaining $10,000 installments be paid in Jan  04
and  Jan 05,  respectively.   AFPC/DPPRR  recommended  denial  of  the
applicant’s request to receive interest for previous transactions that
did not take place.

A complete copy of the AFPC/DPPRR evaluation is at Exhibit C.

_________________________________________________________________

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to  applicant  on  30
May 03 for review and response.  As of this date, no response has been
received by this office (Exhibit D).

_________________________________________________________________

ADDITIONAL AIR FORCE EVALUATION:

HQ USAF/JAA recommended denial indicating there was  no  evidence  the
applicant suffered an injustice.  The CSB installment option  was  not
put into effect until Dec 02.  DFAS has established a  reasonable  90-
day  suspense  in  which  to  process  the  paperwork  and   pay   the
servicemember.  The applicant was scheduled to receive  the  money  by
Mar 03.  Under existing Internal Revenue  Service  rules,  unless  the
late TSP contribution is due to an agency error, there is no provision
to apply current year  funds  to  a  previous  year’s  401(k)  or  TSP
account.  The money may only be applied in the year  it  is  received.
In this instance, there has  been  no  agency  error.   In  fact,  the
applicant is responsible for much  of  the  confusion  given  that  he
initially requested the CSB in Jun 02 and then turned it back in.   He
failed to complete the proper paperwork  to  indicate  he  wanted  the
payment placed into his TSP  account.   In  HQ  USAF/JAA’s  view,  any
misunderstanding on this matter is due to  the  applicant’s  confusion
concerning the TSP program.  They believe the applicant has failed  to
demonstrate  the  existence  of  any  error  or  present   facts   and
circumstances supporting an injustice.

A complete copy of the HQ USAF/JAA evaluation is at Exhibit E.

_________________________________________________________________

APPLICANT'S REVIEW OF ADDITIONAL AIR FORCE EVALUATION:

A copy of  the  additional  Air  Force  evaluation  was  forwarded  to
applicant on 23 Oct 03 for review and response.  As of this  date,  no
response has been received by this office (Exhibit F).

_________________________________________________________________

ADDITIONAL AIR FORCE EVALUATION:

DFAS-POCC/DE indicated that based on their findings, it  was  apparent
the applicant received a windfall of earnings on an erroneous  deposit
of $12,000 from 8 Apr 03 through 31 Dec 03.  As  a  result  of  agency
error, the applicant was not penalized and any investment gains on the
erroneous deposit  remained  in  the  applicant’s  TSP  account.   The
applicant also earned breakage (lost TSP  earnings)  on  late  monthly
payroll contributions that were not timely deposited.  Since  breakage
cannot be manually calculated on a “what if” deposit of $10,000 in Mar
03, they urge the Board to reconsider their findings and determine the
applicant has been made whole based on the  earnings  he  has  already
received.

A complete copy of the DFAS-POCC/DE evaluation is at Exhibit H.

_________________________________________________________________

APPLICANT'S REVIEW OF ADDITIONAL AIR FORCE EVALUATION:

A copy of  the  additional  Air  Force  evaluation  was  forwarded  to
applicant on 4 Mar 04 for review and response.  As of  this  date,  no
response has been received by this office (Exhibit I).

_________________________________________________________________

THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing  law
or regulations.

2.  The application was timely filed.

3.  Insufficient relevant evidence has been presented  to  demonstrate
the  existence  of  error  or  injustice.   The  applicant's  complete
submission was thoroughly  reviewed  and  his  contentions  were  duly
noted.  However, we do not find the  applicant’s  assertions  and  the
documentation  provided  in  support  of   his   appeal   sufficiently
persuasive to override the rationale provided  by  DFAS-POCC/DE.   The
applicant requests a CSB installment payment in the amount of  $10,000
be applied retroactively to his TSP account effective 23 Oct 02, along
with any interest he may have accrued.  While it appears the applicant
was paid the bonus, as recommended by AFPC/DPPRR, it was not  received
until 2003.  However, we note there are no provisions allowing current
year funds to be applied to a previous year’s TSP account  unless  the
late TSP contribution is due to an agency error.  No evidence has been
presented which has shown to our satisfaction such an  error  occurred
to his detriment.  However, it does appear he received a  windfall  of
earnings in 2003 as a result of an  erroneous  deposit  by  DFAS,  for
which he was not penalized and any investment gains on  the  erroneous
deposit remained in his TSP account.  In view of the foregoing, and in
the absence of sufficient evidence to the contrary, we agree with  the
recommendation of DFAS-POCC/DE and adopt their rationale as the  basis
for our decision that the applicant has failed to sustain  his  burden
of establishing that he has suffered either an error or an  injustice.
Accordingly, we find no compelling basis  to  recommend  granting  the
relief sought in this application.

_________________________________________________________________

THE BOARD DETERMINES THAT:

The  applicant  be  notified  that  the  evidence  presented  did  not
demonstrate the existence of material error  or  injustice;  that  the
application was denied without a personal  appearance;  and  that  the
application will only be reconsidered upon  the  submission  of  newly
discovered relevant evidence not considered with this application.

_________________________________________________________________

The following members of the Board considered AFBCMR Docket Number BC-
2003-01298 in Executive Session on 13 Jan 04 and 30 Apr 04, under  the
provisions of AFI 36-2603:

      Ms. Charlene M. Bradley, Panel Chair
      Ms. Olga M. Crerar, Member
      Mr. Christopher Carey, Member

The following documentary evidence was considered:

    Exhibit A.  DD Form 149, dated 8 Apr 03, w/atchs.
    Exhibit B.  Applicant's Master Personnel Records.
    Exhibit C.  Letter, AFPC/DPPRR, dated 27 May 03.
    Exhibit D.  Letter, SAF/MRBR, dated 30 May 03.
    Exhibit E.  Letter, AFBCMR, dated 6 Oct 03.
    Exhibit F.  Letter, HQ USAF/JAA, dated 20 Oct 03.
    Exhibit G.  Letter, AFBCMR, dated 23 Oct 03.
    Exhibit H.  Letter, DFAS-POCC/DE, dated 3 Mar 04.
    Exhibit I.  Letter, AFBCMR, dated 4 Mar 04.




                                   CHARLENE M. BRADLEY
                                   Panel Chair