IN THE CASE OF:	  

		BOARD DATE:	  31 July 2014

		DOCKET NUMBER:  AR20140008413 


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 correction of his records to allow him to retain his Non-Prior Service Enlistment Bonus (NPSEB) based on his enlistment in the Iowa Army National Guard (IAARNG) on 3 February 2010 and cancellation of recoupment.

2.  The applicant states:

	a.  he received a notice that his NPSEB would be recouped after serving over 3 years of satisfactory service in the IAARNG.

	b.  he was unaware of the recoupment policy for contracting as a Simultaneous Membership Program (SMP) cadet. 

3.  The applicant provides:

* Exception to policy (ETP) response
* ETP denial letter
* DA Form 1559 (Inspector General (IG) Action Request)

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the ARNG Recruit Force Pool on 21 October 2009 for a period of 1 year.  


2.  On 3 February 2010, he enlisted in the IAARNG for a period of 7 years and 
38 weeks.  His NPSEB Addendum shows he enlisted for a bonus in the amount of $15,000.00.  Section V (Termination) of this addendum states "I understand that I may be terminated from bonus eligibility with recoupment for service of one year or less of an enlisted incentive contract term (contract term starts the date the initial payment of the bonus is authorized) before accepting a commission as an officer, appointment as a warrant officer, becoming a contracted Reserve Officers' Training Corps (ROTC) Cadet in the Simultaneous Membership Program (SMP), or accepting any ROTC scholarship.  Termination is effective the date of acceptance of commission or appointment, the ROTC contract effective date for SMP participants or the college class start date for any Soldier awarded an ROTC scholarship."  Section IX (Certification by Service Representative) does not contain an enlisting official's name or signature.
 
3.  Item 32a (Specific Option/Program Enlisted for, Military Skill, or Assignment to a Geographic Area Guarantees) of his DD Form 1966 (Record of Military Processing – Armed Forces of the United States), dated 3 February 2010, does not show he enlisted for an NPSEB bonus. 
     
4.  He was enrolled as a cadet in the ROTC effective 31 March 2010.

5.  He was honorably discharged from the IAARNG on 20 December 2013 for appointment as a commissioned officer.

6.  He was appointed as a second lieutenant in the IAARNG on 21 December 2013.

7.  He provides an ETP memorandum from the National Guard Bureau (NGB), dated 14 March 2014, which states:

	a.  an ETP request to retain the $15,000.00 NPSEB is denied.

	b.  the State Incentive Manager will terminate the incentive with recoupment effective the ROTC class start date.

	c.  the applicant's contract/bonus addendum contains a missing signature and date from the Witnessing Official and missing signature date from the Service Representative which violates Department of Defense Instruction 1205.21 (Reserve Components Incentive Program Procedures).

	d.  the applicant entered into the SMP/ROTC which violates ARNG Selective Reserve Incentive Program Policy Number 07-06.

	e.  the applicant initially enlisted into the Recruit Force Pool and then enlisted into the active status ARNG Selected Reserve on 3 February 2010.  At the second enlistment period, he does not appear to have contracted for an NPSEB which is substantiated by the DD Form 4 (Enlistment/Reenlistment Document) and the DD Form 1966, block 32a.  The DD Form 4 does not reflect the proper incentive annex and the NPSEB is not listed in the specific options enlisting for in block 32a of the DD Form 1966.  A review concludes that a manual NPSEB addendum was completed by the recruiter prior to MEPS and the MEPS guidance counselor used this document instead of selecting the automated NPSEB addendum, which in turn would have reflected the proper annex code on the DD Form 4.  Although the NPSEB can be substantiated, the request to retain the NPSEB cannot be granted based upon the applicant's entry into the ROTC program. 

8.  He provides a DA Form 1559, dated 4 April 2014, which shows he requested an investigation be conducted regarding the recoupment of his bonus.  An IG official concluded the applicant violated his contract.  The applicant stated he was rushed through the signing, but he is still responsible for knowing what he is signing.  His ETP request was denied because he violated his contract by going into the ROTC.  He was advised to work out a payment plan through finance/Defense Finance and Accounting Service and appeal the ETP denial decision to this Board.  His case was closed on 10 April 2014.  

9.  Department of Defense Financial Management Regulation, volume 7A (Military Pay Policy and Procedures – Active Duty and Reserve Pay), chapter 2 (Repayment of Unearned Portion of Bonuses and Other Benefits), section 0201 (General Provisions), provides that a member of the Uniformed Services who enters into a written agreement with specified service conditions for receipt of a bonus, special or incentive pay, educational benefits, stipend, or similar payment (hereinafter referred to as "pay or benefit"), is entitled to the full amount of the pay or benefit if the member fulfills the conditions of that pay or benefit.  If the member fails to fulfill the service conditions 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.  Such repayment will be pursued unless the member's failure to fulfill specified service conditions is due to circumstances determined reasonably beyond the member's control.  Conditions under which repayment will not be sought are set forth in section 0202.





DISCUSSION AND CONCLUSIONS:

1.  The evidence confirms the applicant enlisted in the IAARNG on 3 February 2010 for a period of 7 years and 38 weeks for an NPSEB in the amount of $15,000.00.

2.  The evidence also shows he was enrolled as a cadet in the ROTC effective 31 March 2010.  He signed a contract (notwithstanding that he says he was rushed into signing it) that clearly stated the bonus would be recouped if he had less than one year of enlisted service before contracting as an SMP cadet.

3.  In March 2014, NGB terminated the incentive with recoupment.

4.  Since he violated his NPSEB Addendum contractual obligation by entering the ROTC before completing one year of his contract, there is no basis for granting the applicant's request.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

____X____  ____X____  ___X_____  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.



      _______ _   ___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)                                         AR20140008413





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ABCMR Record of Proceedings (cont)                                         AR20140008413



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