IN THE CASE OF:	  

		BOARD DATE:	  12 February 2009

		DOCKET NUMBER:  AR20080013416 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that his United States Army Reserve (USAR) enlistment be adjusted from 5 years to 6 years in order for him to qualify for a $15,000.00 bonus.

2.  The applicant states, in effect, that when he was separated from the Army National Guard (ARNG) in 2005 he was under the knowledge that the bonus he received would not be recouped.  He is currently trying to repay the Indiana ARNG (INARNG) with a bonus from the Reserve.

3.  In support of his application, the applicant provides copies of his NGB Form 600-7-3-R-E(Reenlistment/Extension Bonus Addendum, ARNG of the United States), his DD Form 4-1 (Enlistment Contract), his correspondence to the Army Reserve G-1 and their electronic mail (email) correspondence reply, and the Army Reserve G-1 response to a Member of Congress.

CONSIDERATION OF EVIDENCE:

1.  The applicant's military records show he enlisted in the INARNG, in pay grade E-1, on 1 March 1993, for 8 years.  On 4 May 2005, he extended his enlistment for 6 years, with a $15,000.00 enlistment bonus.  The contract was verified by the State Incentive Manager on 21 June 2005.

2.  The applicant was honorably discharged from the INARNG on 25 October 2006 and enlisted in the USAR, in pay grade E-6, on 26 October 2006, for 5 years.   
3.  In a memorandum, dated 21 May 2008, the Principal Deputy, Office of the Under Secretary of Defense, established modified DoD policy guidance on repayment of unearned portions of bonuses, special pay, educational benefits, and stipends consistent with Deputy Secretary of Defense policy memorandum, dated 8 April 2005.  The memorandum stated, in effect, that a member paid a bonus for a period of enlistment in a Military Department, who is discharged for immediate reenlistment or appointment in a Military Department for which no bonus is paid, may be considered to have completed the full term of service specified in the former enlistment contract, provide the term of the latter reenlistment or appointment includes the remaining period of service from the former enlistment.

4.  In addition, the policy memorandum upheld the Deputy Secretary of Defense's authority to establish additional exceptions if repayment would be contrary to a personnel policy or management objective, against equity and good conscience, or contrary to the best interest of the United States.  

5.  The applicant is currently a member of the USAR and was mobilized on 23 January 2009, in support of Operation Enduring Freedom.

6.  In an advisory opinion, dated 4 November 2008, the Reserve Component Policy Integrator, Enlisted Accessions Division, Office of the Deputy Chief of Staff, G-1, stated that the applicant's enlistment into the USAR triggered a Defense Finance and Accounting Service (DFAS) debt notice for the $15,000.00 ARNG bonus.  Previous Department of Defense (DoD) policy required recoupment of the bonus when personnel separated from their component to enlisted in or join another component prior to the completion of the contract.  The applicant maintained his 11B military occupational specialty (MOS) and is currently operating in MOS 00D, Special Duty Position.  Both MOSs are on the Fiscal Year 07 USAR Selected Reserve Incentive Program Plan.  Based on new DoD policy through the Office of the Under Secretary of Defense memorandum, Subject: Repayment of Unearned Portions of Bonuses, Special Pay, and Educational Benefits or Stipends, dated 21 May 2008, the Services are given authority to consider all circumstances that may impact termination of incentives, as well as repayment of those incentives determined.

7.  The G-1 official also stated that a review of the applicant's documents revealed that recouping his ARNG bonus only to conversely initiate an USAR bonus is not practicing sound fiscal management.  He recommended that relief be granted to the applicant for reinstatement of his reenlistment/extension bonus and his USAR enlistment documents remain unchanged.  

8.  The opinion was forwarded to the applicant for acknowledgment and/or rebuttal on 5 November 2008.  He did not respond.  
DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant extended his service in the INARNG on 4 May 2005, for 6 years, with a $15,000.00 enlistment bonus, after already having served over 12 years on what initially was an 8-year contract.  After having served more than one year of his extension, he was separated from the INARNG and enlisted in the USAR on 26 October 2006, for 5 years, without an enlistment bonus.  At that time a debt was established for recoupment of the unearned portion of the INARNG bonus.

2.  Based on new policy guidance, a member who is paid a bonus, discharged, and immediately reenlists in a Military Department for which no bonus is paid, may be considered to have completed the full term of service specified in the former enlistment.  The Services were given authority to consider all circumstances that may impact termination of incentives, as well as repayment.  In this case, the applicant completed more than one year of the INARNG enlistment extension and enlisted in the USAR for 5 years.  The Office of the Deputy Chief of Staff, G-1, revealed that he is also serving in an MOS that was on the Fiscal Year 07 USAR Selected Reserve Incentive Program Plan.  The applicant has continued, and in all likelihood will continue to serve on active duty just in a different Military Department.

3.  Based on current policy, the Office of the Deputy Chief of Staff, G-1, recommended the applicant not be required to repay the bonus funds previously paid.  Therefore, it is concluded that based on new policy memorandum and the support for favorable consideration expressed by the Office of the Deputy Chief of Staff, G-1, it would be appropriate to correct his enlistment/extension records to show the applicant received a waiver from the Department of the Army, G1, of repayment of the reenlistment bonus.

4.  In view of the foregoing, the applicant's records should be corrected as recommended below.  

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

___x____  ____x___  ___x____  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 the State of Indiana Army National Guard and Department of the Army records of the individual concerned be corrected by reinstating his $15,000.00 reenlistment bonus, by showing he received a waiver from the Department of the Army, G1, of repayment of the enlistment bonus at the time of his enlistment in the United States Army Reserve, and that Defense Finance and Accounting Service correct his records accordingly and show that any recoupment action for this debt payment is cancelled.

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 changing his United States Army Reserve enlistment from 5 years to 6 years.




      _______ _   _x______   ___
               CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.

ABCMR Record of Proceedings (cont)                                         AR20080013416



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ABCMR Record of Proceedings (cont)                                         AR20080013416


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