IN THE CASE OF:	

		BOARD DATE:	  6 August 2013

		DOCKET NUMBER:  AR20120022438 


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 payment of the second $5,000.00 installment of his officer accession bonus (OAB).

2.  The applicant states he was commissioned as a second lieutenant (2LT) in the Michigan Army National Guard (MIARNG) in September 2008 and was awarded a $10,000.00 OAB.  He states the first $5,000.00 installment payment was made in July 2009 when he completed the Basic Officer Leadership Course (BOLC) with the second payment being due on the anniversary of his third year of service.  When he did not receive his payment he submitted an inquiry through his unit  and was informed that his payment had been denied because of missing signatures by the service representative and a witnessing officer.  He further states he submitted a request for an exception to policy (ETP) and his request was denied.  Additionally, the officer responsible (State Incentive Manager) was subsequently relieved after an investigation revealed that he had mishandled a number of OAB cases such as the applicant's.

3.  The applicant provides a memorandum from the MIARNG Incentive Manager, his request for an exception to policy and the National Guard Bureau's (NGB's) denial of his request, his Written Agreement – OAB Addendum, and his appointment orders.

CONSIDERATION OF EVIDENCE:

1.  The applicant served in the Regular Army from 28 July 1998 to 23 November 2001.  He enlisted in the Army National Guard on 24 November 2001.  He continued to serve and was appointed as an infantry second lieutenant in the MIARNG on 26 September 2008.  He also signed an Written Agreement – OAB Addendum in which he agreed to serve in the Selected Reserve in a critical skill that is designated for bonus entitlement ($10,000.00) by the Secretary of the Army.  The applicant's bonus agreement was not signed by a service representative or a witnessing officer.

2.  The applicant completed the Infantry Officer Leadership Course at Fort Benning, Georgia, and he was awarded area of concentration (AOC) 11A (Infantry).  He was paid the first installment of his OAB in July 2009.  He completed two additional schools and deployed to Iraq.  He was promoted to the rank of first lieutenant on 23 November 2009.

3.  Meanwhile, he submitted a request for an ETP to receive the second installment payment of his OAB and was supported by the State Incentive Manager who indicated the applicant met the requirements for the OAB and the former State Incentive Manager had been relieved of his position.

4.  The applicant executed an interstate transfer to the Georgia Army National Guard on 22 September 2011.

5.  On 10 July 2012, NGB responded to the applicant's request for an ETP.  NGB denied the applicant's request to receive his OAB because the service representative and a witnessing officer failed to sign the addendum and advised the applicant to apply to this Board.

6.  In the processing of this case a staff advisory opinion was obtained from NGB which recommended approval of the applicant's request.  The advisory opinion was provided to the applicant and to date no response has been received by the staff of the Board.

7.  Title 37, U.S. Code, section 308j(b), states the Secretary concerned may pay an accession bonus under this section to an eligible person who enters into an agreement with the Secretary to:  (a) accept an appointment as an officer in the Armed Forces and (b) to serve in the Selected Reserve of the Ready Reserve in a skill designated under paragraph (2) for a period specified in the agreement.  Paragraph (2)(a) states the Secretary concerned shall designate for an Armed Force under the Secretary's jurisdiction the officer skills to which the authority under this subsection is to be applied.  Paragraph (2)(b) states a skill may be designated for an Armed Force under paragraph (2)(a) if, to mitigate a current or projected significant shortage of personnel in that Armed Force who are qualified in that skill, it is critical to increase the number of persons accessed into that Armed Force who are qualified in that skill or are to be trained in that skill.  Paragraph (2)(b) states an accession bonus payable to a person pursuant to an agreement under this section accrues on the date on which that agreement is accepted by the Secretary concerned.

8.  National Guard Regulation 600-7 (Selected Reserve Incentive Programs), paragraph 2-5, provides that bonus contracts are valid only with bonus control numbers which will be issued from the State Incentive Management Office to Military Entrance Processing Station counselors and reported to NGB on a monthly basis.  The State Incentive Manager will verify accession packets as prescribed by State policy for bonus control numbers, accuracy of enlistment contract and bonus addendum, critical skill and bonus unit eligibility, valid position vacancy, and required educational level.

9.  NGB Selected Reserve Incentive Program (SRIP) Guidance for Fiscal Year (FY) 2007 (Policy Number 07-06 – which was continued to FY08), dated 10 August 2007, paragraph 14, provides that in order to be eligible for receipt of either of two OAB's, applicants must sign their bonus addendums on the date they accept their appointments/commissions and meet the following eligibility requirements:

	a.  agree to serve as an officer for a period of not less than 6 years on active drilling status and meet all the required eligibility;

	b.  agree to serve in a critical skill AOC as defined by the ARNG;

	c.  not accept an appointment as an officer or warrant officer for the purpose of qualifying for employment in a military technician or Active Guard Reserve position; and

	d.  not be receiving and will not receive the following benefits during the period of service for which contracted:  Health Professions Stipend Program, Education Loan Repayment Program, Other Educational Assistance Programs – U.S. Marine Corps Platoon Leaders Class College Tuition Assistance Program, Reserve Officers' Training Corps (ROTC) Financial Assistance Program for Specially Selected Members, ROTC Financial Assistance Program for Specially Selected Members – Army Reserve and ARNG, or Senior Health Care Professionals in Critically Short Wartime Specialties.

10.  NGB SRIP Guidance for FY07 (Policy Number 07-06), dated 10 August 2007, paragraph 14p, also provides that the ARNG offers a $10,000.00 OAB to newly-commissioned officers and newly-appointed warrant officers who agree to serve 6 years in a modified table of organization and equipment (MTOE) unit in a valid AOC.  The MTOE OAB will be paid in two 50-percent installments.  The first 
50-percent installment ($5,000.00) will be paid upon successful completion of a BOLC and the second and final 50-percent installment will be processed for payment on the third anniversary of commission or appointment.

DISCUSSION AND CONCLUSIONS:

1.  There is no doubt the applicant entered into an agreement for payment of an OAB.  However, the agreement was determined to be invalid 3 years after the fact because it appears that his agreement was not signed by the service representative and a witnessing officer.

2.  The applicant attests that he was informed that he would be paid a $10,000.00 OAB in return for his agreement to fulfill a 6-year commitment in the ARNG and by successfully completing the required training within 3 years of his appointment/commissioning date.

3.  The applicant was commissioned as a 2LT on 26 September 2008, completed his infantry BOLC, and was paid $5,000.00 of his OAB in July 2009.  However, in 2011 he was not paid the second $5,000.00 OAB installment because of the administrative irregularities discovered in his agreement.

4.  Officials of both the MIARNG and NGB affirm the applicant's contention and acknowledge this error occurred as a result of an administrative oversight on the part of the MIARNG Incentive Officer and was due to no fault of the applicant.

5.  The MIARNG supported the applicant's request for an ETP and authorization for the remaining payment of the OAB which was subsequently denied by NGB based upon the fact that the agreement was not signed by the service representative and a witnessing officer.  However, NGB now supports relief in his case.

6.  The evidence shows the applicant fulfilled the requirements to qualify for payment of the bonus, did absolutely nothing wrong, and upheld his end of the bargain.  Therefore, it would serve the interest of equity and justice to pay him the remainder of his OAB.  It simply does not make sense to hold the applicant at fault for the administrative errors made in completing the addendum as a newly-commissioned 2LT when more experienced officers who were responsible for officer accessions failed to ensure the Written Agreement – OAB Addendum was properly completed.  This is especially true since he was paid his initial installment and the MIARNG waited 3 years to inform him that his contract was not valid for administrative reasons.  If it took the MIARNG 3 years to discover that his contract/addendum was administratively flawed, it is not reasonable that a newly-commissioned 2LT would know what the procedures were on the date he was commissioned.

7.  In short, to date the applicant has been penalized for relying on those officials responsible for recruiting officers.  It is not appropriate for the applicant to suffer for the mistakes of more senior officials that were responsible for ensuring that all State Army National Guard and paperwork was done in a proper manner and it does not send the proper kind of message to a future leader or demonstrate that the Army takes care of its own and is responsible for its actions.

8.  Accordingly, in the interest of justice and equity, the applicant should be paid his remaining OAB installment.

BOARD VOTE:

____X____  ___X_____  ___X_____  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined the evidence presented is sufficient to warrant a recommendation for relief.  As a result, the Board recommends that all State Army National Guard and Department of the Army records of the individual concerned be corrected by:

	a.  showing all parties concerned properly executed and signed a properly-prepared Written Agreement – OAB Addendum on the date of his appointment/commissioning and that he is therefore fully entitled to payment of the bonus in accordance with the terms of his Written Agreement – OAB Addendum; and

	





b.  paying him the remaining $5,000.00 installment for the total amount of the $10,000.00 bonus, less applicable deductions, out of ARNG funds as a result of this correction.




      ____________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)                                         AR20120022438



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ABCMR Record of Proceedings (cont)                                         AR20120022438



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