IN THE CASE OF: 

		BOARD DATE:	    1 April 2014

		DOCKET NUMBER:  AR20130013666 


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, amendment of the termination date of his Non-Prior Service Enlistment Bonus (NPSEB) from 10 July 2012 to 21 December 2012.

2.  The applicant states he received a memorandum stating he owed a payment of $2,500.00 for an enlistment bonus recoupment.  The start date for the recoupment period was 10 July 2012, the date he was first flagged, even though he was discharged on “17 November 2012.”  He was told by the State Incentive Manager that he owed from the actual discharge date and the amount was $1,100.11.  This amount (from discharge to his expiration of term of service (ETS), not from the date of flag to ETS) is what he should have to repay in accordance with the Department of Defense (DoD) Financial Management Regulation, Volume 7a, chapter 9, section 090107 "Repayment."  Being flagged is not presumptive of unsatisfactory service.

3.  The applicant provides copies of the following:

* DD Form 4/1 (Enlistment/Reenlistment Document, Armed Forces of the United States)
* National Guard Bureau (NGB) Form 600-7-1-R-E (Annex E to DD Form 4, Non-Prior Service Enlistment Bonus (NPSEB) Addendum)
* DD Form 214 (Certificate of Release or Discharge from Active Duty)
* DA Form 268 (Report to Suspend Favorable Personnel Actions (FLAG))
* NGB Form 22 (Report of Separation and Record of Service) and General Discharge Certificate
* Orders Number 356-025 and 362-002
* two Notification of Incentive Eligibility Termination memoranda
* email correspondence from State Incentive Manager
* two Exception to Policy (ETP) memoranda

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Idaho Army National Guard (IDARNG) on 30 March 2007.  On the same date, he executed an Annex E for a $20,000.00   6-Year NPSEB.  The addendum states in:

   a.  Section III (Payments), "I will receive my first bonus payment of 50 percent of the total authorized amount when I complete IADT [initial active duty training] and I am awarded the MOS [military occupational specialty] for which I enlisted.  The second and final payment of 50 percent will be paid on the 36th-month anniversary of my date of enlistment."

   b.  Section VI (Recoupment), "Recoupment is calculated as following:  The amount of monies that I am entitled to from the incentive is calculated by multiplying the number of months served satisfactorily during the term for which the incentive was authorized by the proportionate monthly dollar amount.  The proportionate monthly dollar amount is determined by dividing the total authorized bonus amount by the total amount of months of the original contractual obligation.  The amount of the bonus that I am entitled to keep, as calculated above, will be subtracted from the total bonus paid to date."

2.  He entered on IADT on 17 June 2008, completed training, and was awarded MOS 92G (food service operations).  He was released from IADT on 18 August 2008.

3.  He provided copies of the following:

   a.  A DA Form 268, dated 14 September 2012, which shows he was flagged for adverse action with an effective date of 14 September 2012.

   b.  An NGB Form 22, which shows he was discharged on 17 November 2012, under the provisions of National Guard Regulation 600-200 (Enlisted Personnel Management), paragraph 6-35i(1), for patterns of misconduct under the Uniform Code of Military Justice, State Military Codes, or similar laws; with a general discharge.  He was credited with completing 5 years, 7 months, and 18 days of net active service with no time lost.  Item 11 (Terminal Date of Reserve/Military Service Obligation) lists a date of 29 March 2013.

   c.  A General Discharge Certificate, dated 17 November 2012.
   
   d.  Orders Number 356-025, dated 21 December 2012, discharging him with an effective date of 17 November 2012.

   e.  Orders Number 362-002, dated 27 December 2012, amending his discharge effective date to 21 December 2012.

   f.  A Notification of Incentive Eligibility Termination memorandum, dated 7 February 2013, wherein he was advised of the termination of his incentive and the recoupment amount was $2,500.00.

   g.  Email correspondence, dated 8 March 2013, wherein the State Incentive Manager advised the IDARNG that the applicant wasn't actually out of the Army until 21 December 2012, so he shouldn't be charged until that date.

   h.  A Request for ETP memorandum, dated 14 March 2013, wherein the IDARNG advised the NGB of the following:

		(1)  The applicant contracted for a $20,000.00 NPSEB on 30 March 2007. He received a Suspension of Favorable Personnel Actions (SPFA) on 10 July 2012 and was discharged due to the SFPA on 21 December 2012.  The SPFA was not favorably closed by the Commander via a DA Form 268 prior to discharge.  The contract was signed prior to NGB providing guidance in policy or addendum on how to action active SFPAs when discharged.  

		(2)  The applicant was requesting approval for his $20,000.00 NPSEB to be terminated on discharge date instead of SFPA as he had no knowledge of this guidance released after contracting.

   i.  A Request for ETP memorandum, dated 14 March 2013, wherein the Deputy G1, NGB, advised the IDARNG that the ETP to retain the $20,000.00 NPSEB was denied with recoupment.  The applicant was discharged or separated prior to completion of the service obligation which violated ARNG Selected Reserve Incentive Program Guidance for Fiscal Year 2007, Policy Number 07-04.  The applicant was informed he may file a claim with the Army Board for Correction of Military Records if there is belief that an error or injustice still exists. 

   j.  A Notification of Incentive Eligibility Termination memorandum, dated 8 May 2013, wherein he was advised of the termination of his incentive and the recoupment amount was $2,500.00.

4.  DoD Financial Management Regulation, Volume 7a, states in:

   a.  Chapter 2, section 020101 - if a member fails to fulfill the service condition specified in the written agreement for the pay or benefit, then the pay or benefit may be terminated and the member may be required to repay an amount equal to the unearned portion of the pay or benefit.

   b.  Chapter 2, section 020103 - the term "service" as used in this chapter, refers to an obligation willingly undertaken by a member of the uniformed services in exchange for pay or benefit offered to remain on active duty or in an active status in a Reserve Component.

   c.  Chapter 9, section 090107 - a member who does not complete the term of enlistment will be subject to the repayments provisions of chapter 2.  The amount of payment will be divided by the months of which the bonus was payable.  This is the bonus amount per month.  This number is multiplied by the number of months and fractions of months not served (including lost time, unless such lost time has been made up).  This is the amount to the recouped.

DISCUSSION AND CONCLUSIONS:

1.  The applicant enlisted in the IDARNG on 30 March 2007 for a $20,000.00     6-Year NPSEB.  He was flagged effective 14 September 2012.  He was discharged on 21 December 2012 for patterns of misconduct.  

2.  In accordance of regulatory policy, recoupment is required for an amount equal to the unearned portion of a benefit when the member is no longer on active duty or in an active status in a Reserve Component.  A bonus recoupment will be multiplied by the number of months and fractions of months not served.  

3.  He was discharged on 21 December 2012 and his service obligation date was 29 March 2013.  Therefore, he did not serve in an active status for a period of 3 months and 8 days.  The bonus paid per year would be $3,333.33 ($20,000.00 divided by 6 years).  The bonus amount paid per month would be $3,333.33 divided by 12 equals payments of $277.77 per month.  Of this 72-month (6 years) period, the applicant served 5 years, 8 months, and 21 days.  That is, he did not serve 3 months and 8 days for which he received bonus payment.  Recoupment would be $277.77 multiplied by 5 months and 8 days equaling a total debt owed of $1,462.92 ($1,388.85 for 5 months and $74.07 ($9.25 for 8 days)   

4.  In view of the foregoing, his record should be corrected to show his recoupment debt is $1,462.92.

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 Department of the Army and State ARNG records of the individual concerned be corrected by showing the applicant's total recoupment debt is $1,462.92 for the remaining portion of the unearned NPSEB executed on 30 March 2007.




      ___________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)                                         AR20130013666





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ABCMR Record of Proceedings (cont)                                         AR20130013666



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