BOARD DATE:	  20 June 2013

		DOCKET NUMBER:  AR20120014930 


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 his bonus debt.

2.  The applicant states, in effect, that he extended his enlistment on 29 April 2007 for a period of 3 years and a Selective Retention Incentive Program (SRIP) bonus.  Prior to his retirement he inquired of the unit administrative staff on at least two occasions as to whether he would have to repay his bonus if he elected to retire and was told that such was not the case.  However, after he retired on 30 June 2010 he was notified by the Defense Finance and Accounting Service (DFAS) that an audit of his pay records showed that he had not signed a bonus addendum and had only served 29 months of his 36-month obligation.  Accordingly, his entire bonus ($7,500) was being recouped.  He would not have placed himself in a position to incur such a debt had he been properly informed; therefore, he should not have to repay the debt as it will place a financial burden on his family to do so.

3.  The applicant provides a one-page letter explaining his application, an inspector general action request, an issue paper, a letter from DFAS, a termination notice from the Nebraska Army National Guard (NEARNG), a copy of his extension, his retirement points statement, and his National Guard Bureau (NGB) Form 22 (Report of Separation and Record of Service).

CONSIDERATION OF EVIDENCE:

1.  On 29 April 2007, while serving in the NEARNG, the applicant extended his enlistment for a period of 3 years and a SRIP bonus of $7,500.  His bonus addendum prepared at the time of his extension shows that while the enlisting official and incentives manager signed the addendum, it was never completed by the applicant.  However, the bonus addendum clearly states that his bonus would be recouped on a pro-rated basis if he separated from the National Guard before completing his obligation.  Nevertheless, the applicant was paid his $7,500 SRIP bonus. 

2.  On 29 January 2010, the applicant was issued his Notification of Eligibility for Retired Pay at Age 60 (20-year letter) by the NEARNG.

3.  On 30 June 2010, the applicant was honorably discharged from the NEARNG and was transferred to the Retired Reserve.

4.  On 24 September 2010, officials of the NEARNG dispatched a memorandum to the applicant informing him that the unearned portion of his bonus would be recouped.

5.  On 25 October 2010, officials of the NEARNG informed the applicant that he did not sign his bonus addendum at the time of his extension and thus was not eligible for a bonus.  Accordingly, his entire bonus was being recouped.

6.  On 19 October 2011, officials at DFAS dispatched a notice to the applicant informing him of his debt.

7.  On 23 January 2012, the NGB denied the applicant’s request for an exception to policy to retain the SRIP bonus based on his failing to sign the bonus addendum and failure to complete his term of enlistment.

8.  On 26 June 2012, in response to assistance from the Office of the Inspector General, NEARNG, the applicant was advised to apply to this Board.

9.  Army Regulation 600-4 (Remission or Cancellation of Indebtedness) serves as the authority for the remission or cancellation of indebtedness.  It provides that the objective of remission or cancellation is to remit or cancel debts that are considered unjust.

DISCUSSION AND CONCLUSIONS:

1.  The applicant's contentions that his debt should be cancelled/remitted because he was not made aware prior to his retirement that his retirement would result in recoupment has been noted and found to lack merit.

2.  The applicant’s bonus addendum, though not signed, clearly indicates that his bonus would be recouped on a pro-rated basis if he failed to complete the terms of his incentive contract.

3.  He has not shown through the evidence of record or the evidence submitted with his application that his debt is in error or unjust.  Therefore, it would be inappropriate to allow him to keep unearned monies for service he did not perform.  To do so would afford him a benefit not afforded to others in similar circumstances.

4.  However, it is not the Soldier’s responsibility to ensure that all necessary administrative requirements are met in order to accomplish an extension or reenlistment and the Soldier should not be penalized for actions that were the responsibility of his unit, especially since he was paid the bonus and only after he retired was the error discovered.

5.  Therefore, it is in the interest of equity that he be paid for the time he served and that only the monies paid for the time he did not serve be recouped. 

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 State ARNG and Department of the Army records of the individual concerned be corrected by showing a portion of his debt was waived and pro-rating the applicant’s debt and recouping only that amount due for the time he did not serve on his bonus extension.






2.  The Board further determined that the evidence presented was 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 remission/cancellation of the applicant’s entire debt of $7,500 or the unserved portion of his debt.  





      _______ _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)                                         AR20120014930





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ABCMR Record of Proceedings (cont)                                         AR20120014930



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