RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  22 March 2007
	DOCKET NUMBER:  AR20060015988 


	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. Gerard W. Schwartz

Acting Director

Ms. Joyce A. Wright

Analyst


The following members, a quorum, were present:


Ms. Linda D. Simmons

Chairperson

Mr. John T. Meixell

Member

Mr. Roland S. Venable

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 the $10,000.00 bonus she received from the HPBP (Health Care Professionals Bonus Program) and which was recouped be returned to her.

2.  The applicant states, in effect, that her $10,000.00 HPBP is being collected, in the full amount, plus interest.  She paid taxes on her HPBP and received the bonus in 2005, while serving as a Reserve officer.  Her pay has been attached since November 2006.  She completed 3 years in the Army Reserve, was ordered to active duty, and her first year was a $22,000.00 bonus, with each subsequent year as $10,000.00.  She was paid her first bonus a year later, so the subsequent bonuses were a year late.

3.  The applicant provides an additional statement.  She states that she was paid a bonus following her entry into the U.S. Army Reserve (USAR), as a dentist in Area of Concentration (AOC), 63A, and has now been asked to repay the $10,000.00 bonus incentive.  She believed that she was entitled to retain that bonus and requests that her records be corrected to reflect that she is entitled to the bonus amount.

4.  She elected to participate in two bonus programs on 15 August 2002.  The first was the HPLRP (Health Professionals Loan Repayment Program), and the second was the HPBP.  Under HPLRP, she would receive repayment of her student loan obligations in the amount of $30,000.00 as follows:  $20,000.00 on 16 August 2003, the 1-year anniversary of her recruitment, and $10,000.00 on 16 August 2004, the 2-year anniversary of her recruitment.  She actually received the following student loan payments:  $20,000.00 on 9 September 2004 and $10,000.00 on 22 October 2004.  

5.  She states that under HPBP, she was to receive two annual bonus payments of $10,000.00.  These payments were to be paid on 16 August 2004, 16 August 2005, and 16 August 2006.  She actually received the $10,000.00 bonus payment on 22 October 2004 and 15 August 2005.  She entered active duty on 1 September 2005.  She believed that the reason she is being asked to repay the last $10,000.00 bonus is that her unit incorrectly processed her recruitment documents, resulting in late payments of the loan repayment and bonus.  The incentive was to be paid each year following completion of a qualifying year of service, which she successfully completed each year.  If she had received the entitlements in a timely manner, there would be no question of her eligibility.  However, since the incentives were paid approximately 1-year late in each case, it appears she did not complete the required service periods.
6.  The applicant provides copies of her bank and school loan statements showing payments of her bonuses, a copy of orders ordering her to active duty, and a copy of her Oath of Office, in support of her request.

CONSIDERATION OF EVIDENCE:

1.  On 20 June 2002, the applicant completed a USAREC Form 1205 (US Army Reserve and Army National Guard Incentive Declaration Statement) which shows that she elected to be considered for participation in the HPBP, for 3 years, and the HPLRP.  She stated, by her signature on the form, she understood that these incentives would not be received concurrently. 

2.  On 15 August 2002, the applicant completed a DA Form 5536-R, Agreement Health Professionals Loan Repayment (HPLR).  Section II, Eligibility, of that form states in part, "I am/will be performing as an officer in a Selected Reserve unit of the ARNG or USAR….I must remain in the Selected Reserve in good standing to obtain loan repayments."  Section V, Termination, of that form states in part, "I understand my eligibility will continue unless terminated because I:  become an unsatisfactory participant; am separated from the SELRES; or enter the Inactive National Guard or Individual Ready Reserve (IRR)."

3.  On 15 August 2002, an APRC Form 4117 (Amendment to DA Form 5536-R) was prepared.  In this HPLRP amendment, the applicant indicated she understood the maximum aggregated amount of repayments under this agreement has been increased to $20,000.00 per year for the first two annual payments(s) or the remaining balance of the loans, whichever was less.  The third annual payment would not be more than $10,000.00 or the remaining balance of the loan(s), whichever was less.  Total program repayments for all years would not exceed the maximum amount authorized of $50,000.00.  She also understood when participating in the Specialized Training Assistant Program (STRAP), she must participate satisfactorily in a SELRES (Selected Reserve) status for eligibly to receive the HPLR incentive.  She understood that she must extend her STRAP obligation when continuing to receive the HPLR incentive after completion of her specialized training or, she could terminate her HPLR agreement and begin serving her STRAP obligation.  The applicant also acknowledged she understood that the special pay was taxable.

4.  The applicant's records show that she was appointed in the United States Army Reserve, as a captain (CPT/O-3), effective 15 August 2002, in the Army Dental Corp.  On that same day, she was assigned to a troop program, TPU, position with the 455th Medical Corp Company.  

5.  On 16 August 2002, the applicant completed a USAREC Form 1103 (Incentive Enrollment Data Sheet).  This form indicated that she would receive a bonus for 2 years, in the amount of $10,000.00.

6.  The applicant was ordered to active duty on 3 January 2005, in support of Operation Enduring Freedom.  She was released from active duty on 7 May 2005.  She was transferred to a TPU.

7.  The applicant was promoted to major (MAJ/O-4) effective 1 June 2005. 

8.  The applicant was ordered to active duty with an initial reporting date of 13 July 2005, for a period of 36 months, to fulfill an active Army requirement.  Orders were amended to show a reporting date of 1 September 2005.

9.  The applicant provided several bank statements, which shows that she has attempted to repay her bonus. 

10.  In the processing of this case, an advisory opinion was requested of the Director, AMEDD (Army Medical Department) Region, US Army Human Resources Command (AHRC)-St. Louis, Missouri.   

11.  On 22 January 2007, AHRC provided the Board an advisory opinion.  AHRC stated that the applicant contracted on 15 August 2002 to participate in the Army Reserve HPLRP and HPBP.  The SELRES Recruitment Bonus Program Contract (USAREC Form 1166-R-E) required the provider to participate satisfactorily in the SELRES for continued involvement.  These incentive programs could not be utilized simultaneously.  

12.  AHRC stated that the applicant elected to activate the HPLRP first followed by the bonus program after satisfying the requirements of the HPLRP service agreement.  She received two HPLRP installments totaling $40,000.00 before submitting a written request on 30 September 2004 to discontinue her involvement in the HPLRP and to initiate her 3-year participation in the bonus program.  Bonus payments were to be made on the anniversary date of the contractual agreement.  Subsequent payments were automatic unless the Soldier breached the service agreement.  The applicant received her first installment of $10,000.00 (less taxes) on 24 October 2004 for the period of 15 August 2004 through 14 August 2005.  




13.  The applicant applied and was selected for accession on active duty with an initial effective date of 13 July 2005 which was later amended to 1 September 2005.  She neglected to notify the Incentives Team Manager at the AHRC-St. Louis of her entry on active duty.  Consequently, her second year Bonus installment was automatically paid on 15 August 2005 for service from 15 August 2005 through 14 August 2006.

14.  AHRC stated that an annual review of her records for verification of satisfactory participation in the SELRES was made on 1 August 2006.  It identified her component status had changed from SELRES to active duty.  
This was in violation of the SELRES Recruitment Bonus Program Contract, Section II d, which states; "I shall be required to perform satisfactorily in the SELRES, in accordance with Army Regulation 135-91", and Section III b, which states:  "I understand that my entitlement under this program continues unless or until I do one of the following:  Separate from the SELRES for any reason (Including appoint, or voluntary order to active duty in the active forces)."  Since her entry on active duty breached the requirements of her bonus contract, she was not eligible to receive the second year $10,000.00 Bonus installment.  Therefore, recoupment action was initiated. 

15.  The opinion was forwarded to the applicant for her acknowledgement and/or possible rebuttal on 23 March 2006 and she did not respond.

DISCUSSION AND CONCLUSIONS:

1.  The evidence shows that the applicant signed an agreement, on 15 August 2002, stating that she understood her HPLR eligibility would be terminated if she became an unsatisfactory participant, separated from the SELRES, or entered the Inactive National Guard or IRR.

2.  The applicant received two installments totaling $40,000.00 before submitting a written request on 30 September 2004, to discontinue her involvement in the HPLRP and to initiate her 3-year participation in the bonus program.  She later applied and was selected for accession on active duty effective 1 Septemebr 2005.

3.  The applicant failed to notify the Incentives Team Manager at AHRC-St. Louis of her entry on AD.  Her second year Bonus installment was automatically paid on 15 August 2005 for her service from 15 August 2005 through 14 August 2006.



4.  In the annual review of her records, AHRC verified her status had changed from SELRES to active duty.  This status change was in violation of the SELRES recruitment Bonus Program Contract.  Her entry on AD breached her contract which made her ineligible to receive the second year $10,000.00 bonus installment.  Recoupment action was initiated.

5.  In view of the circumstances in this case, the applicant is not entitled to a return of the $10,000.00, with interest, in HPBP funds that were recouped. Therefore, there is no basis for granting the applicant's request.

6.  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.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

____J_      ___LDS__  ___RSV_  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.




______Linda D. Simmons____
          CHAIRPERSON



INDEX

CASE ID
AR20060015988
SUFFIX

RECON
YYYYMMDD
DATE BOARDED
20070322
TYPE OF DISCHARGE

DATE OF DISCHARGE
YYYYMMDD
DISCHARGE AUTHORITY
ACTIVE DUTY
DISCHARGE REASON

BOARD DECISION
DENY
REVIEW AUTHORITY

ISSUES         1.
128
2.

3.

4.

5.

6.