RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  26 June 2007
	DOCKET NUMBER:  AR20070007174 


	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.


Ms. Catherine C. Mitrano

Director

Mr. Michael L. Engle

Analyst


The following members, a quorum, were present:


Mr. James E. Anderholm

Chairperson

Mr. Jerome L. Pionk

Member

Ms. Jeanette B. McPherson

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 correction of his military records to show that he declined the career status bonus.  He also requests to personally appear before the Board. 

2.  The applicant states that he declined the career status bonus but the Defense Finance and Accounting Service (DFAS) paid it to him anyway.  He tried to have the payment reversed through his finance office in the Republic of Korea but was told he had to wait until after his return to the United States. 

3.  The applicant provides copies of his Career Status Bonus (CSB) Election 
(DD Form 2839) and a pay inquiry.

CONSIDERATION OF EVIDENCE:

1.  On 15 July 1987, the applicant enlisted in the Regular Army for 3 years.  He has continued to serve through a series of enlistments and at the time of his application was still on active duty.  He attained the rank of master sergeant, pay grade E8 and had 19 years, 10 months and 4 days of creditable active duty.

2.  On 7 March 2002, the applicant completed a DD Form 2839 at Fort Bragg, North Carolina, declining to receive a CSB.  This form was witnessed on 
11 March 2002.  There is no available evidence to show that the applicant completed a subsequent form during the period from 12 March to 15 July 2002, his 15th anniversary date.

3.  In the processing of this case, an advisory opinion was obtained from a Financial Systems Analyst, Army Military Pay Operations, DFAS.  He stated that when Soldiers complete 14 years and 6 months of active duty, they are notified by their personnel office that they have a 6 month period in which to make an election regarding the CSB. During this 6-month period Soldiers are permitted to change their election.  Ten days prior to completion of 15 years of active duty the personnel office sends the Soldier's latest DD Form 2839 to the servicing finance office for review and verification.  One of the validation steps was to ensure that block 12a of "acceptance forms" included the statement "I UNDERSTAND THAT IF I RECEIVE THE CSB IN ERROR, I MUST REPAY THE FULL, BEFORE TAX BONUS AMOUNT".  On or after the date of the Soldier’s 15-year anniversary, the servicing finance office would then transmit an electronic copy to DFAS to process the payment.  Any form received prior to the Soldier’s 15-year anniversary would be destroyed, as DFAS is not responsible for suspending the document.  DFAS also reviews the form for completion and accuracy and to insure that the statement was properly entered in block 12a, if the Soldier is accepting the CSB.  The Financial Systems Analyst contends that a payment could not have been made by DFAS based on a declination DD Form 2839.  He further stated that once the Soldier reaches his 15-year anniversary date, his DD Form 2839 on file becomes final and irrevocable.  In the applicant’s case, the CSB was paid in January 2003 based on his 15 July 2002 anniversary date.  Therefore, he contends that it was not based on the applicant’s March 2002 declination DD Form 2839.  However, DFAS no longer has the processed form on file.    

4.  On 5 June 2007, the applicant submitted a pay inquiry stating that he had declined the CSB but was paid anyway in 2002.  He further stated that he had previously gone to the finance office in the Republic of Korea and at Fort Irwin, California, to have this payment reversed.  Each time he was told there was nothing they could do. 

5.  On 15 June 2007, the applicant acknowledged receipt of the advisory opinion. He stated that after he processed his declination DD Form 2839, he processed out of Fort Bragg, North Carolina, enroute to his assignment in the Republic of Korea.  

DISCUSSION AND CONCLUSIONS:

1.  The applicant requested a personal appearance before the Board; however, since there is sufficient evidence on the record to fully consider this case, a formal hearing is not warranted.    

2.  The applicant has provided evidence showing that on 7 March 2002, he declined to receive the CSB.  This action was properly witnessed. There is no available evidence to show that he ever changed his mind.

3.  There is no evidence showing that the applicant ever signed the qualifying statement agreeing to repay the entire bonus of $30,000.00.

4.  Notwithstanding DFAS's contention that their procedures preclude any possibility of making a payment in error they insist that Soldiers sign a qualifying statement on an acceptance DD Form 2839, acknowledging that they must repay any bonus if received in error.  




5.  The Financial Systems Analyst contends that the applicant’s March 2002 
DD Form 2839 could not have been used as a basis for payment of the CSB because it was paid in January 2003.  This may or may not be true, since there is no record of how long it took the servicing finance office to transmit the election form to DFAS.  In fact, there is no evidence of any transmittal to DFAS. 

6.  DFAS has no evidence of record to show that the applicant elected to accept a CSB, even though the applicant has yet to retire.  One would expect that a document of such importance would be maintained, at least, until he retired.

7.  Additionally, the advisory opinion makes no mention of DFAS procedures for when a Soldier fails to make an election, or when the servicing finance office fails to process a Soldier’s election to DFAS.  If it is to automatically assume acceptance and make payment, the applicant was paid in error.  

8.  In view of the above, and as a matter of equity, the applicant’s request should be granted.

BOARD VOTE:

__JEA___  __JLP __  __JBM __  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:

a.   showing that he declined to receive a Career Status Bonus; and

b.   treating the monies that he received as a Career Status Bonus as an overpayment and process recoupment appropriately by DFAS.





_     James E. Anderholm____
          CHAIRPERSON



INDEX

CASE ID
AR20070007174
SUFFIX

RECON
 
DATE BOARDED
20070626 
TYPE OF DISCHARGE

DATE OF DISCHARGE
 
DISCHARGE AUTHORITY
 
DISCHARGE REASON

BOARD DECISION
Grant
REVIEW AUTHORITY

ISSUES         1.
128.14100
2.

3.

4.

5.

6.