| Mr. Carl W. S. Chun | Director | |
| Mrs. Nancy Amos | Analyst |
| Mr. John N. Slone | Chairperson | |
| Ms. Barbara J. Ellis | Member | |
| Mr. John E. Denning | Member |
APPLICANT REQUESTS: That he be paid the full amount of the Voluntary Separation Incentive (VSI) payment he was informed was due him.
APPLICANT STATES: That he was informed that he would be paid an annual VSI payment of $11,376.02. If he had known the amount he would be receiving would be only $8,283.36, he would not have given up 18 years of service for so small an amount.
COUNSEL CONTENDS: Counsel makes no additional contention. However, in a 21 April 1999 response to the applicant, counsel informed him that although the military originally misinformed him concerning the amount of his benefits, it was not estopped to require him to complete the required number of active years of service.
EVIDENCE OF RECORD: The applicant's military records show:
After having had prior service in the Army National Guard, he enlisted in the Regular Army on 22 April 1985. He was promoted to Staff Sergeant, E-6 on 1 February 1993.
Around February 1998, the applicant was approved for separation under the Fiscal Year 1998 Enlisted Voluntary Early Release Program. Around that time, a calculation of his estimated annual VSI annuity before taxes was prepared for him. His base pay at the time he was due to separate was estimated to be $2,097.00. It was estimated his annuity would be $11,376.02 before taxes. He was informed that this was an estimate only and that finance would make the final calculation during his outprocessing.
The applicant was discharged on 1 April 1998 after completing 13 years, 2 months, and 26 days of creditable active service and over 18 years and 1 month of service for pay and transferred to a Reserve Component unit. His Certificate of Release or Discharge from Active Duty, DD Form 214, item 18 shows he would receive a VSI payment of $8,283.36 for 36 years.
The National Defense Authorization Act for Fiscal Year 1992 established voluntary incentive programs to support the Army drawdown. The VSI was an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay multiplied by his years of service (fractions of years to be computed in accordance with Title 10, U. S. Code, section 1405), multiplied by 12 and paid for twice the number of years served. Soldiers approved for VSI must have been
appointed, enlisted, or transferred to the Ready Reserve for the entire period they received VSI annual payments. The formula for calculating the annuity was given in the Fiscal Year 1998 Enlisted Voluntary Early Release Program implementing message.
The applicant’s base pay at the time he was due to separate was estimated to be $2,097.00 x .025 = 52.425 x 18 = 943.65 x 12 = $11,323.80 (or, with the fraction of his year included, approximately $11,376.02). The Defense Finance and Accounting Service – Cleveland Center stated that Federal taxes are deducted before annual VSI payments are made and that the current tax rate is approximately 27 or 28 percent. The difference between $11,376.02 and $8,283.36 is $3,092.66, approximately 27 percent of $11,376.02.
DISCUSSION: Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:
1. In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust. The applicant has failed to submit evidence that would satisfy this requirement.
2. When the applicant’s VSI calculations were made, he was informed that the $11,376.02 amount was the estimated annual annuity before taxes. It appears that the $8,283.36 he is actually receiving is the annuity after taxes. He could have calculated his estimated annuity based upon the guidance given in the implementing message prior to submitting his request for early separation and he could have then contacted his finance office or the nearest Internal Revenue Service office to determine what the tax on his estimated VSI payment would be.
3. The applicant provides no evidence to show that the $8,283.36 amount he is receiving is also before taxes and that further Federal taxes are being deducted.
4. The Board also notes that the applicant did not have 18 years towards a length of service retirement; he had a little over 13 years towards a length of service retirement.
5. In view of the foregoing, there is no basis for granting the applicant's request.
DETERMINATION: The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.
BOARD VOTE:
________ ________ ________ GRANT
________ ________ ________ GRANT FORMAL HEARING
__jns___ __bje___ __jed___ DENY APPLICATION
| CASE ID | AR2001064408 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020214 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | (DENY) |
| REVIEW AUTHORITY | |
| ISSUES 1. | 128.00 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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