RECORD OF PROCEEDINGS 

 AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS 

 

IN THE MATTER OF: DOCKET NUMBER: BC-2011-03707 

 

 COUNSEL: NONE 

 HEARING DESIRED: YES 

 

________________________________________________________________ 

 

APPLICANT REQUESTS THAT: 

 

His retired pay be calculated under the Final Basic Pay 
retirement plan rather than the High-36 retirement pay plan and 
his debt be removed. 

 

________________________________________________________________ 

 

APPLICANT CONTENDS THAT: 

 

Based on the erroneous computation by Defense Finance and 
Accounting Service (DFAS), his retired pay should not be 
calculated under the High-36 retired pay plan thus removing the 
debt. DFAS initially calculated his retired pay using the Final 
Basic Pay retired pay plan and later discovered their 
calculations were in error and recalculated his retired pay 
under the High-36 retired pay plan, resulting in a significant 
recoupment of over $15,000.00, including interest. In addition, 
in trying to correct his retired pay, DFAS made further errors 
in calculating the tax implications of the recoupment. Because 
of the errors and the financial hardship caused by recoupment, 
the applicant wants his retired pay to be based on Final Basic 
Pay computations rather than under the provisions of the High-36 
retired pay plan. Although DFAS General Counsel has suggested 
the applicant file for Waiver of Indebtedness, the applicant 
wants to be returned to the Final Basic Pay retired pay plan. 

 

In support of his appeal, the applicant provides a personal 
statement of the circumstances surrounding his retirement pay; 
copies of correspondence with DFAS; pay documents; letters of 
indebtedness, and other supporting documents. 

 

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

 

________________________________________________________________ 

 

STATEMENT OF FACTS: 

 

The applicant was permanently retired for disability effective 
3 Jul 08, with a disability rating of 60 percent. He was 
credited with 9 years, 11 months, and 1 day of active service 
for retirement. 

 


On 14 Sep 09, the AFBCMR corrected the applicant’s record to 
reflect compensable disability rating at retirement was 
70 percent rather than 60 percent (AFBCMR BC-2009-00723). 

 

DFAS administratively corrected the applicant’s retired pay 
computation to reflect a retired pay computation based on the 
High 36 retired pay rather than Final Basic Pay, in accordance 
with applicable law and policy. 

 

________________________________________________________________ 

 

THE AIR FORCE EVALUATION: 

 

DFAS recommends denial, noting that while the errors that 
occurred are regrettable, the retired pay as computed by the 
high average method is correct. Unless it can be established 
that the applicant actually entered the Service prior to 
8 Sep 80, no correction is warranted. 

 

In addition, they note based on the record furnished at the time 
the applicant was retired, he initially entered the Service on 
21 May 98. In accordance with the provisions of tile 10, United 
States Code (USC), Section 1407, as he initially entered the 
Service after 8 Sep 80, he is not subject to the final basic pay 
computation. He is subject to the high average computation 
method. AFI 36-3262, Rule 2 of Table 5-1 refers to Note 2, 
which provides in pertinent part, the following "… For members 
who entered military service prior to 8 Sep 80, compute 
according to the current monthly basic pay rate. For members 
who entered military service on or after 8 Sep 80, compute from 
a monthly retired pay base (RPB). RPB is an average of the 
member's highest 36 months of active duty pay …. " 

 

The complete DFAS evaluation is at Exhibit C. 

 

AFPC/DPSOR recommends denial, stating, in part, there is no 
evidence in the applicant's military record or any evidence he 
provided to show he has a Date Initially Entered Uniformed 
Service (DIEUS) earlier than 8 Sep 80 which would entitle him to 
the Final Basic Pay retired pay plan (10 USC § 1406). DFAS 
notes that when a member is retired for permanent disability 
under 10 USC § 1201, either the active service for retirement or 
the percentage disability, whichever is higher (not to exceed 
75 percent) is used as the percentage applied to the member's 
retired pay plan. Members who have a Date Initially Entered 
Uniformed Service (DIEUS) earlier than 8 Sep 80 are under the 
Final Basic Pay retired pay plan (10 USC §1406). Members who 
have a DIEUS on or after 8 Sep 80 are under the High-36 retired 
pay plan. A DIEUS is the date a member first commits to an 
obligation for military service, such as a Delayed Enlistment 
Program contract, an AFROTC scholarship contract, or enters a 
service academy. The applicant's DIEUS is 21 May 98 based upon 
having executed the Oath of Office on that date. In order to be 
eligible for calculation of his retired pay under 10 USC § 1406, 


he would have to show evidence of having executed a military 
contract of some sort more than 17 years prior to the 
21 May 98 Oath of Office. DFAS has correctly ascertained that 
his current retired pay is based on High-36 (10 USC §1407) due 
to his DIEUS of 21 May 98 and that the applicant's retired pay 
is subject to recoupment based upon the earlier overpayment. 
The applicant's avenue for relief is to submit a Waiver of 
Indebtedness, not to request that the AFBCMR waive federal law. 

 

Initially, DFAS erroneously calculated his retired pay at 
60 percent times his Final Basic Pay. Later, his pay was 
recalculated at 70 percent times Final Basic Pay. DFAS 
ultimately detected their error, notified the applicant of the 
error and informed him of the recoupment involved. DFAS General 
Counsel informed him he could request a Waiver of Indebtedness 
through DFAS. 

 

The complete AFPC/DPSOR evaluation, with attachments, is at 
Exhibit D. 

 

________________________________________________________________ 

 

APPLICANT'S REVIEW OF THE AIR FORCE EVALUATION: 

 

The applicant states neither of these advisories recognizes the 
inequity and the injustice that has occurred because of the 
numerous errors that DFAS has made in recalculating his retired 
pay. As previously stated, it was his understanding prior to 
his retirement that his retired pay would be based on his 
current base pay. That is what the Air Force regulation 
provided, that is what he was advised, and that is what DFAS on 
two separate occasions calculated his retirement pay to be. 
Moreover, while the 25 Jul 08 letter does indicate that the 
average of the 36 highest monthly basic pay formula would be 
utilized, the amount of his monthly retired pay was calculated 
to be $3,479.00, as derived from the active duty base pay of 
$5,799.00. He has been unable to attain employment because of 
his physical disability; his financial future was based on the 
information he was provided at the time of his retirement, and 
DFAS's actions in their first and second calculations. As 
stated in his application, DFAS made numerous other errors in 
dealing with his account beyond these two basic calculations. 
It was almost like a circus with one letter arriving correcting 
errors followed by another letter the next day or so correcting 
the errors in the first letter followed by another letter 
correcting all those errors. He has not been advised by DFAS 
how or by whom these initial repeated errors were made. It is 
obvious that there is no computer crosscheck whereby DFAS could 
verify whether or not people are being paid too much or too 
little. Apparently, DFAS is not concerned about the 
consequences of their errors. These consequences fall on the 
servicemember to resolve or to live with. 

 


He still does not know for a fact that DFAS correctly 
adjudicated his current pay, the previous pay or the 
indebtedness that they initially claimed he owed them. It is 
very difficult to have any sort of long-term plans knowing the 
ease with which DFAS can make errors and ignore them. It is his 
understanding that many members of the AFBCMR staff and, 
probably voting members on the Board get checks monthly from 
DFAS. How many of you can be confident if your accounts are 
being handled in an appropriate way or in the manner his account 
was handled, with numerous compounded errors? It remains a 
matter of justice and equity that he should be allowed to rely 
on the information given to him at the time of his retirement on 
which he planned his future. He did not ask for his service to 
be curtailed. He intended to continue service in the Air Force 
for as long as he could, but his physical conditions required a 
change in the status as well as his life. He understands that 
DFAS cannot waive the statute; however, it is his understanding 
that the BCMR can make changes to his military record as a 
matter of equity; fairness and justice to overcome these 
compound errors, which have so severely impacted his financial 
stability. 

 

The applicant’s complete response, with attachments, is at 
Exhibit F. 

 

________________________________________________________________ 

 

THE BOARD CONCLUDES THAT: 

 

1. The applicant has not exhausted all remedies provided by 
existing law or regulations. The applicant has been advised to 
submit a waiver of indebtedness to DFAS to petition the relief 
of the debt. The applicant should submit a DD Form 2789, Waiver/Remission of Indebtedness Application, to DFAS as 
previously advised. 

 

2. The application was timely filed. 

 

3. Insufficient relevant evidence has been presented to 
demonstrate the existence of error or injustice. The Board 
notes the applicant’s retired pay was erroneously computed under 
final basic pay rather than the High-36 retired pay plan. 
However, since the applicant entered active duty after 
8 September 1980, pursuant to statute, his retired pay must be 
computed under the provisions of 10 USC 1407 (High-36 retired 
pay plan). Although the applicant implores the Board to correct 
his record as a matter of equity, we are precluded from 
correcting a military record contrary to provisions of law. 
While the errors made in computing the applicant’s retired pay 
are regrettable, his only recourse at this time is to seek 
waiver of the debt through appropriate channels. If his waiver 
request is not approved, he may then apply to this Board for 
consideration of waiving the debt. Therefore, in the absence of 


evidence to the contrary, we find no basis to recommend granting 
the relief sought in this application. 

 

4. The applicant's case is adequately documented and it has not 
been shown that a personal appearance with or without counsel 
will materially add to our understanding of the issue(s) 
involved. Therefore, the request for a hearing is not favorably 
considered. 

 

________________________________________________________________ 

 

THE BOARD DETERMINES THAT: 

 

The applicant be notified the evidence presented did not 
demonstrate the existence of material error or injustice; the 
application was denied without a personal appearance; and 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-2011-03707 in Executive Session on 12 June 2012, under 
the provisions of AFI 36-2603: 

 

The following documentary evidence was considered: 

 

 Exhibit A. DD Form 149, dated 13 Sep 11, w/atchs. 

 Exhibit B. Applicant's Master Personnel Records. 

 Exhibit C. Letter, DFAS-RBP-JBJE/CL, dated 30 Sep 11. 

 Exhibit D. Letter, AFPC/DPSOR, dated 3 Nov 11, w/atchs. 

 Exhibit E. Letter, SAF/MRBR, dated 18 Nov 11. 

 Exhibit F. Letter, Applicant, dated 15 Dec 11, w/atchs. 

 

 

 

 

 Panel Chair