RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           30 November 2004
      DOCKET NUMBER:  AR2004104751


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mr. Joseph A. Adriance            |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. John N. Slone                 |     |Chairperson          |
|     |Ms. Shirley L. Powell             |     |Member               |
|     |Mr. Patrick H. McGann             |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that his transfer to the Retired
Reserve be voided and that he be placed back into the Individual Ready
Reserve (IRR) to allow for continued payment of his earned Voluntary
Separation Incentive (VSI) benefits.

2.  The applicant states, in effect, that in April 2001, he was notified by
officials of the Army Reserve Personnel Command (ARPERSCOM) that he was
eligible to transfer to the Retired Reserve without losing his VSI payment
and would not be required to take a physical examination or to reenlist.
He states he confirmed this information in a telephone conversation with
ARPERSCOM officials.  However, he was later informed that this information
had been incorrect and that his transfer to the Retired Reserve resulted in
his losing his eligibility for VSI.

3.  The applicant provides a self-authored statement in support of his
application.

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that he served on active duty for

18 years, 8 months and 12 days.  He was honorably separated on 10 July
1992.
in the rank of sergeant first class/E-7 (SFC), and transferred to the USAR
Control Group, St. Louis, Missouri as a member of the IRR based on
completing a USAR enlistment contract for 3 years.

2.  The separation document (DD Form 214) issued to the applicant on the
date of his separation, 10 July 1992, shows that he was honorably separated
under the provisions of paragraph 16-8, Army Regulation 635-200, by reason
of the Fiscal Year 1992 Enlisted Voluntary Separation Program.  The remarks
section of this form confirms that the applicant was authorized annual VSI
payments of $11,373.60 for 37 years and 4 months.

3.  On 20 May 1995, the applicant reenlisted in the USAR for six years and
on
19 May 2001, he was transferred to the Retired Reserve.

4.  In July 1992, when the applicant did not receive his annual VSI
payment, he immediately contacted ARPERSCOM to determine why his VSI
payments had been stopped.  He was informed that his transfer to the
Retired Reserve made him ineligible for VSI payments.  At this time, he was
advised by ARPERSCOM personnel officials to apply to this Board for relief,
which he did in August 2002.
5.  In June 2003, this Board returned the applicant’s application because
ARPERSCOM records indicated his last physical examination was completed in
1992, and as a result he was ineligible to reenlist in the IRR.  The
applicant claims he completed a physical examination 1997, but it was lost.
 ARPERSCOM records now indicate he completed a physical examination on 13
November 2003, which found him fully eligible for reenlistment.

6.  Army policy and Department of Defense Military Pay and Allowances
Entitlements Manual (DoDPM), based on Public Law 102-190, 5 December 1991,
as amended, prescribes the qualifications for entitlement to readjustment
benefits for certain voluntary separated members.  The VSI was one of the
monetary benefits associated with this incentive program.  The voluntary
incentive program was designed to support the Army’s drawdown.

7.  Headquarters, Department of the Army message 281802Z January 1992,
clarified issues associated with the voluntary separation incentive program
via a question and answer format.  It stated that soldiers approved for VSI
would be paid in annual installments commencing on their departure date
from active duty, and on each anniversary date thereafter for twice the
number of years on active duty, provided the soldier continues to serve in
the Ready Reserve.  VSI annual payments will be discontinued if the member
is separated from the Ready Reserve unless the individual becomes
ineligible to continue to serve due to medical or age limitations in which
case the soldier will be transferred to the Standby Reserve or the Retired
Reserve.

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s contention that he was not properly counseled on the
impact of his transfer to the Retired Reserve election was carefully
considered and found to have merit.  The evidence of record shows he was
not properly advised that his transfer to the Retired Reserve would cancel
his entitlement to VSI payments prior to electing this option.  This is
evidenced by the fact that when he discovered his transfer to the Retired
Reserve resulted in the discontinuation of his of VSI payments, he
immediately tried to resolve the situation through ARPERSCOM channels and
ultimately by application to this Board.
2.  The record further confirms the applicant served honorably on active
duty for over 18 years and was entitled to the VSI payments for over 37
years upon his separation from active duty in 1992.  It is unreasonable to
believe that he or any other individual would voluntarily accept a transfer
to the Retired Reserve knowing that such an action would suspend his earned
annual VSI payments.

3.  In view of the facts of this case, it is concluded that it would be
unjust to hold the applicant to a decision he made that ultimately impacted
his eligibility to continue to receive his VSI payments, knowing that he
made that decision without full knowledge of the consequences.  Thus, it
would serve the interest of equity and justice to void applicant’s transfer
to the Retired Reserve.  It would further be appropriate, given his
physical eligibility has subsequently been confirmed, to correct his record
to show he reenlisted in the USAR, IRR for six years on 20 May 2001 and by
reinstating his VSI payments accordingly.

BOARD VOTE:

___JNS__  __SLP __  __PHM__  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant
a recommendation for relief.  As a result, the Board recommends that all
Department of the Army records of the individual concerned be corrected by
voiding his 19 May 2001 transfer to the Retired Reserve; and by showing
that he reenlisted in the USAR, IRR for six years on 20 May 2001.

2.  That the entitlement of the individual concerned to VSI payments be
restored and by providing him retroactive payment of any lost VSI payments
that resulted from his transfer to the Retired Reserve.




            ____John N. Slone ______
                    CHAIRPERSON

                                    INDEX

|CASE ID                 |AR2004104751                            |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |2004/11/30                              |
|TYPE OF DISCHARGE       |N/A                                     |
|DATE OF DISCHARGE       |N/A                                     |
|DISCHARGE AUTHORITY     |N/A                                     |
|DISCHARGE REASON        |N/A                                     |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.  291  |128.0800                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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