RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  28 February 2008
	DOCKET NUMBER:  AR20070013773 


	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 J. Fowler

Analyst


The following members, a quorum, were present:


Mr. Richard T. Dunbar

Chairperson

Ms. Marla J. N. Troup

Member

Mr. David R. Gallagher

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 he be paid the full amount of his prior service enlistment bonus (PSEB) of $5,000.00 and student loan repayment program (SLRP) incentive of $10,000.00 for his enlistment in the United States Army Reserve (USAR).

2.  The applicant states, in effect, that he enlisted in the USAR under the PSEB for $5,000.00.  He was to receive $2,500.00 on the initial payment, and the remainder to be paid in 6 increments of $416.66.  Although he drilled for over a year he never received any part of the bonus.  The applicant further states that he is still a member of the USAR and has been called to active duty from the Individual Ready Reserve (IRR).

3.  The applicant provides his entire enlistment contract, dated 28 June 2002, and a letter from the U.S. Army Human Resources Command, St. Louis (USAHRC-STL), dated 10 November 2005.

CONSIDERATION OF EVIDENCE:

1.  The applicant had prior service the Regular Army (RA) and was released from active duty on 17 June 1994.  

2.  A DD Form 1966/2 (Record of Military Processing Armed Forces of the United States), dated 28 June 2002, shows in section III, item 24, that he indicated having previous military service.  Section VI, item 24a, shows that he served in the RA from August 1986 to June 1994 as an enlisted member. 

3.  A DD Form 4/1 (Enlistment/Reenlistment Document - Armed Forces of the United States), dated 28 June 2002, shows in section B, item 8, that the applicant enlisted in the USAR for 6 years in the pay grade of E-5.

4.  A DA Form 5261-5-R (Selected Reserve Incentive Program – USAR Prior Service Enlistment Bonus Addendum), dated 28 June 2002, shows that the applicant enlisted in the USAR for a 6-year term of service for a bonus of $5,000.00, in military occupational specialty (MOS) 11B.  The document stated "The initial payment will be $2,500.00.  The remainder will be paid in 
6 increments of $416.66.  The incremental payments will be paid on satisfactory completion of each year of the 6 year term of service in a USAR Selected Reserve TPU [Troop Program Unit]."


5.  A DA Form 5241-4-R (Student Loan Repayment Program Addendum), dated 28 June 2002, shows that the applicant contracted to serve for 3 or more years in the Selected Reserve in MOS 11B30 which Headquarters, Department of the Army (HQDA) had approved for a maximum of $10,000.00 in loan repayments.

6.  The Soldier Management System (SMS), USAHRC-STL, Retirement Points Detail Section, shows that the applicant participated in TPU drills from 21 July 2002 to 12 January 2003, totaling 5 months and 24 days.  There are no orders in the applicant's records that show when he was transferred to the IRR.

7.  A Headquarters, 180th Division (Institutional Training) memorandum, dated 26 December 2002, responding to a congressional inquiry, stated that the applicant was not eligible for the $5,000.00 PSEB or the $10,000.00 SLRP when he enlisted.  The memorandum also stated that his MOS was not on the Selected Reserve Incentive Program List during the period of 1 April 2002 through 
30 September 2002.

8.  The SMS, USAHRC-STL, Transaction History, indicates that on 22 December 2004 the applicant contacted his career management contact and the remarks section show "SOLDIER REFUSES TO SUBMIT LETTERS STATING ENLISTMENT CONTRACT WAS VOIDED, BECAUSE THE SOLDIER DOES NOT TRUST HRC TO CORRECT HIS RECORD."  The SMS also shows that on 
8 and 9 December 2004 the applicant contacted his career management contact and made inquiries into his enlistment bonus and indicated he submitted a congressional inquiry.  The inquiry came back stating that he had missed his eligibility date by four days; therefore, he would not receive it.  As a result, he stopped attending drills and his unit transferred him to IRR.  The applicant stated that he wanted to get back into a unit but before he went he wanted his bonus.  The applicant stated that the enlistment contract should voided and indicated that the congressional response "eluded" to that.  The applicant was further informed that he could appeal to this Board.

9.  USAHRC-STL Orders, dated 20 July 2007, show that the applicant was ordered to active duty (OAD) in support of Operation Iraqi Freedom from the USAR Control Group (Reinforcement).  He entered active duty on 9 September 2007 and was released from active duty (REFRAD) on 24 October 2007.  He was OAD again in January 2008.

10.  By message from the CONUS Replacement Center at Fort Benning, Georgia to the USAR Pay Center, Fort McCoy, Wisconsin, dated 19 September 2007, an inquiry was made regarding the applicant's PSEB.  The Reserve pay analyst stated, "Without researching his account as it stood back in 2002, I cannot say for certain why the bonus was not paid.  I have checked our personnel system and it appears that the Soldier came to the AR from the NG.  In 2002, in order for a Soldier to be paid this type of bonus, and they were coming from the NG, there was a required 12 month break in service.  It would appear that this criteria was not met and that is why the request for payment has been denied in the past."

11.  In the processing of this case an advisory opinion was obtained from the Department of the Army, Office of The Deputy Chief of Staff G-1.  The advisory opinion notes that a review of the applicant's contract dated 28 June 2002 shows that he was not paid a $5,000.00 PSEB and a $10,000.00 SLRP.  The Soldier was placed in the IRR and ultimately activated on 9 September 2007.

12.  The advisory opinion further stated, "A review of this Soldier's case shows conflicting evidence as to why his bonus and SLRP were not paid.  An attached e-mail from the Defense Finance and Accounting Service (DFAS) shows that the bonus may possibly not have been paid because he transferred to the USAR from the ARNG.  A bonus (in 2002) was negated if the Soldier transferred from one reserve component to another within 12 months of the original contract.  The statute has since been changed regarding the 12-month rule.  There is also no explanation as to why the Soldier was transferred to the IRR."

13.  The advisory opinion recommended that the applicant be allowed full payment on the $5,000.00 PSEB and the $10,000.00 SRLP based on the confusion surrounding this case and the applicant's good faith in this enlistment.

14.  A copy of the advisory opinion was provided to the applicant for comment or rebuttal.  He did not respond within the given time frame.

15.  On 7 February 2008, the USAR Pay Center, Fort McCoy confirmed that the applicant's finance records showed that he never received any portion of an enlistment bonus.  A USAR Pay Center analyst stated that the applicant is listed in their database with a code "A," indicating that he transferred from the Army National Guard to the USAR prior to his enlistment.  Apparently, the code voided out his enlistment bonus for not having a 12-month break between transferring from one component to another.   

16.  On 7 February 2008, the ARNG Readiness Center, Personnel Division confirmed that the applicant was never listed in their database as a member of the ARNG.  

17.  Army Regulation 135-7 prescribes policies and procedures for the administration of the ARNG and the USAR incentive programs.  Chapter 2-1 provides policy and guidance for the administration of the SRIP USAR Prior Service Enlistment Bonus.  The incentive offers a cash bonus to eligible persons with prior military service who enlist in the USAR and contract to serve in a TPU of the Selected Reserve in a designated MOS announced by HQDA, or as a drill sergeant.  The incentive offers $5,000 for an enlistment to serve 6 years in a TPU.  A cash bonus as prescribed by paragraph 2.1–2a is offered to any person who meets all of the following requirements: received an honorable discharge at the conclusion of his or her last period of military service; if last discharged from the ARNGUS or USAR, the applicant has been out of the military service for at least 12 months; has completed his or her statutory military service obligation and has less than 10 years of total military service; and the member is not being released from active duty or full–time National Guard duty (FTNGD) for the purpose of enlistment in the USAR.  

18.  The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Prior service Soldiers must agree to enlist for 3 or more years and agree to serve the entire term of service in the Selected Reserve in the enlisted MOS.
Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year. 

DISCUSSION AND CONCLUSIONS:

1.  Evidence of record shows that on 28 June 2002 the applicant enlisted in the USAR for a 6-year term of service for a $5,000.00 PSEB and a $10,000.00 SLRP incentive.  He was never paid his $5,000.00 PSEB or the $10,000.00 SLRP (there is also no evidence he had qualified loans to be repaid).  

2.  There were conflicting reasons as to why he was not paid his PSEB and SLRP bonus incentives.  Initially the applicant was misinformed through a congressional inquiry that he was not eligible for the $5,000.00 PSEB or the $10,000.00 SLRP when he enlisted due to his MOS not being on the Selected Service Incentive Program List.  In 2007, he was informed by the USAR Pay Center that he was listed in their records as transferring from the ARNG to the USAR without having a 12-month break in service to be eligible for the PSEB and SLRP.  There is no evidence of record to show the applicant was ever in the ARNG.

3.  The advisory opinion noted that applicant was eligible for the PSEB and SLRP incentives.  Notwithstanding the fact the advisory opinion recommended the applicant be paid the full payment of his incentives, however, evidence shows that the applicant only drilled from 21 July 2002 to 12 January 2003 in his TPU.  

4.  His initial payment would have been $2,500.00.  He was then required to remain in the TPU for the full 6 years.  The remainder of the PSEB would have been paid in 6 increments of $416.66, and the incremental payments would have been paid on satisfactory completion of each year of the 6-year term of service in the USAR.  

5.  The applicant stopped drilling on 12 January 2003.  In the absence of orders transferring him to the IRR, it is presumed for now that he was transferred on 
13 January 2003.  The assignment terminated future PSEB and SLRP bonus entitlements upon the assignment.  By accepting transfer to the IRR, the applicant effectively waived his right to these enlistment incentives.  However,  he should be paid a pro-rated share of the initial $2,500.00 PSEB based on his   5 months and 24 days of service in the Selected Reserve.

6.  The applicant's finance records should be corrected to show he enlisted in the USAR on 28 June 2002 and not coded as being transferred from the ARNG to the USAR.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

__RDT __  __MJNT    ___DRG    GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to warrant a recommendation for partial relief.  As a result, the Board recommends that all of the Department of the Army records related to this case be corrected by showing the applicant enlisted in the USAR on 28 June 2002 for a $5,000.00 bonus; deleting all records that currently indicate he was in the ARNG at the time he enlisted on 28 June 2002 or at any time previously; and by paying to him a       pro-rated amount of the initial, $2,500.00, payment of the bonus for time served in the Selected Reserve (a period of 5 months and 24 days).
2.  The Board further determined that the evidence presented is insufficient to warrant a portion of the requested relief.  As a result, the Board recommends denial of so much of the application that pertains to paying the full amount of the applicant's $5,000.00 PSEB and $10,000.00 SLRP bonus incentives. 




____Richard T. Dunbar _
          CHAIRPERSON




INDEX

CASE ID
AR20070013773
SUFFIX

RECON

DATE BOARDED
28 FEBRUARY 2008
TYPE OF DISCHARGE

DATE OF DISCHARGE

DISCHARGE AUTHORITY

DISCHARGE REASON

BOARD DECISION
PARTIAL GRANT 
REVIEW AUTHORITY
MS. MITRANO
ISSUES         1.
112.1100.0000
2.

3.

4.

5.

6.