BOARD DATE:	  29 September 2011

		DOCKET NUMBER:  AR20110010820 


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 the remission/cancellation of her debt due to recoupment of her reenlistment bonus.

2.  The applicant states that she was hired as a military technician (MILTECH) after working active duty special work (ADSW) in the same job.  She goes on to state that she received her reenlistment bonus while working ADSW and was assured that her bonus was clear from recoupment by the incentive manager prior to accepting the position.  She goes on to state that another individual with dates even less than hers in the exact same situation was granted relief by the Department of the Army (G-1) based on 2008 guidance that eliminated the        6-month waiting period.  She further states that she would never have accepted the funds if she knew that she was not entitled at the time, which is why she inquired of the subject matter expert (SME) at the time.

3.  The applicant provides copies of her request for an exception to policy, the denial of her request for an exception to policy and the approved exception to policy for the Soldier in the same situation. 

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Michigan Army National Guard (MIARNG) on   17 November 1997 for a period of 8 years.  She completed her training as an administrative specialist and continued to serve in the MIARNG.  She was promoted to the pay grade of E-5 on 1 May 2004.

2.  On 15 August 2005 she was ordered to ADSW and on 12 April 2006 she reenlisted for a period of 6 years and a $15,000 reenlistment bonus under the Selected Reserve Incentive Program (SRIP).  She elected to receive her bonus in two installments and acknowledged that she understood that if she accepted a MILTECH position, recoupment would not be required if she had served at least 6 months of the incentive contract following the date of bonus payment eligibility.  
3.  She was released from ADSW on 8 July 2006 and on 10 July 2006 she was hired as a MILTECH.  

4.  An internal audit of transactions made by the previous incentive manager for fiscal years 2006 through 2008 discovered that 25 individuals, of which the applicant was one, were identified as being ineligible for payments received.  All Soldiers were given 60 days to present an appeal.  

5.  On 6 February 2010, the State Incentive Manager submitted request for an exception to policy regarding the termination and recoupment of the applicant’s bonus.  The incentive manager cited the case of another Soldier who had received an ETP from the Office of the Deputy Chief of Staff G1 based on Headquarters, Department of the Army (HQDA) guidance issued on 2 October 2008 which eliminated the 6-month waiting period and allows for termination of the bonus without recoupment.

6.  On 23 February 2010, the request for an exception to policy to retain her reenlistment bonus without recoupment was approved by the National Guard Bureau (NGB).

7.  However, on 30 August 2010, the NGB reversed its position on the applicant’s request and disapproved her request for an exception to policy.  Officials at the NGB cited Department of Defense Instruction (DODI) 1205.21 dated 20 September 1999 which required individuals to serve at least 6 months of the incentive period prior to accepting a MILTECH position in order to avoid recoupment.  Accordingly, the applicant was ineligible for a grant of relief from recoupment.

8.  The applicant was appointed as a warrant officer one (WO1) in the MIARNG on 18 November 2010.

9.  In the processing of this case a staff advisory opinion was obtained from the Office of the Deputy Chief of Staff, G-1 which recommends that the applicant be granted relief.  The opinion cites three Department of Defense (DOD) 

memoranda that support the G-1 recommendation.  The advisory opinion also indicated that members who had their bonus payment stopped before the effective date of the memoranda could also retain their incentive.  The advisory opinion was provided to the applicant for comment and she concurred with the opinion.  

10.  DODI 1205.21 dated 20 September 1999 (Reserve Component Incentive program Procedures) provides in paragraph 6.9 exceptions to recoupment.  It provides, in pertinent part, that if accepting a MILTECH position where membership in a Reserve Component is a condition of employment, and member has served at least 6 months of the incentive contract following receipt of the initial incentive payment, the bonus will be terminated without recoupment.

11.  Army Regulation 600-4 provides instructions for submitting and processing applications for remission or cancellation of indebtedness to the U.S. Army.  Applications must be based on an injustice, hardship, or both.  This includes debts caused by errors in pay to or on behalf of a Soldier.

DISCUSSION AND CONCLUSIONS:

1.  The evidence in this case shows that when the applicant reenlisted for her bonus she acknowledged that she understood that she had to serve at least 6 months of her contract prior to accepting a MILTECH position in order to avoid recoupment. 

2.  The applicant reenlisted on 12 April 2006 and accepted a MILTECH position on 10 July 2006, which was 2 months and 28 days later.  Accordingly, her bonus should have been terminated at that point. 

3.  However, a policy change was announced by DOD in 2007 and 2008 which allows members who had their bonus payments stopped before the date of the change to also retain their bonus. 

4.  Therefore, given the information provided by the Office of the Deputy Chief of Staff, G-1 which opines that the applicant should be allowed to keep her pro-rated share of her Reserve enlistment bonus, her debt should be declared invalid and she should be allowed to keep any monies already received.

5.  Additionally, any monies collected on that invalid debt should be returned to the applicant.


BOARD VOTE:

__X______  ___X___  ___X____  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 showing that the applicant’s Reserve enlistment bonus debt is not valid and that all monies recouped as a result of that debt be returned to the applicant.




      _______ _  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)                                         AR20110010820





3


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1

ABCMR Record of Proceedings (cont)                                         AR20110010820



2


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1