DEPARTMENT OF TRANSPORTATION 

BOARD FOR CORRECTION OF MILITARY RECORDS 

 
Application for the Correction of 
the Coast Guard Record of: 
 
                                                                                BCMR Docket No. 2000-054 
 
 

 

 
 

FINAL DECISION 

 
ANDREWS, Attorney-Advisor: 
 
 
This  proceeding  was  conducted  according  to  the  provisions  of  section 
1552 of title 10 and section 425 of title 14 of the United States Code.  It was dock-
eted on January 11, 2000, upon the BCMR’s receipt of the applicant’s completed 
application. 
 
 
appointed members who were designated to serve as the Board in this case. 
 

This  final  decision,  dated  October  12,  2000,  is  signed  by  the  three  duly 

RELIEF REQUESTED 

 
 
The  applicant,  a  seaman  apprentice  (SA;  pay  grade  E-2)  who  served  20 
months on active duty in the Coast Guard, asked the Board to correct his records 
so that the Coast Guard would repay him the $1,200.00 that was withheld from 
his pay under the Montgomery GI Bill (MGIB).1  He made no allegations of error 
other than that he should be allowed to recoup the money. 
 

SUMMARY OF THE RECORD 

 
 
The applicant enlisted as a seaman recruit in the Coast Guard on xxxxx, 
1998, for a term of four years.  On that day, he signed a Statement of Understand-
ing, form CG-3301I, regarding the MGIB program, which stated the following: 
 

I  am  automatically  enrolled  in  the  MGIB  and  my  basic  pay  will  be 

2. 
reduced by $100 per month for each of the first full 12 months of active duty. 

                                                 
1   38 U.S.C. § 3001 et seq. 

I cannot SUSPEND or STOP my monthly pay reduction under the MGIB, 

 
3. 
and there is NO REFUND of my monies under any circumstances. 
 
4. 

To be eligible for benefits, I must do the following:   
a. 

Complete 48 months of active duty.  

•  •  • 

I  can  make  a  one-time-only  election  to  disenroll  during  the  first  two 

8. 
weeks of active duty. 
 
I HAVE READ AND UNDERSTOOD EACH OF THE STATEMENTS ABOVE.  I 
UNDERSTAND THAT IF I DECIDE TO DISENROLL, IT MUST BE DONE DUR-
ING THE FIRST TWO WEEKS OF ACTIVE DUTY. 
 
On  June  2,  1998,  the  applicant  signed  another  statement  regarding  the 
MGIB program (form DD 2366), with somewhat different terms, which appear as 
follows: 
 
 
duty after June 30, 1985. 
 

I  am  eligible  for  the  MGIB  based  on  my  initial  entry  on  active 

(1) 

I  must  complete  24  months  of  active  duty  service  and  join  the 
Selected Reserve for a minimum of a 48 month service agreement and serve hon-
orably  in  the  Selected  Reserve  to  begin  receiving  $300  per  month  for  up  to  36 
months. 
 
The DD 2366 also included a place for the applicant to sign if he wished to 
disenroll from MGIB.  Because the applicant did not sign the “Statement of Dis-
enrollment,” he was automatically enrolled in MGIB, and $100 was withdrawn 
from his monthly pay for each of his first 12 months on active duty. 

 

(2) 

I  understand  that  I  am  automatically  enrolled  unless  I  exercise 
the  option  to  disenroll  by  signing  Item  3  below  by  the  date  designated  by  my 
Service. 
 
(3) 

I understand that unless I disenroll from the MGIB, my basic pay 
will  be  reduced  $100  per month  for  EACH  of  the  first  12 full  months  of  active 
duty  and  this  basic  pay  reduction  cannot  be  REFUNDED,  SUSPENDED  OR 
STOPPED. 

I  must  complete  36  months  of  active  duty  service  before  I  am 

entitled to $439.86 per month of benefits for 36 months. 

If my obligation is less than 36 months, I understand that I must 
complete  24  months  of  active  duty  to  receive  $250  per  month  of  benefits  for  a 
period of 36 months. 

 
(4) 

 
(5) 

 
(6) 

The applicant was honorably discharged from the Coast Guard on xxxxx, 
2000.  His DD 214 indicates that he was discharged due to “alcohol rehabilitation 
failure.” 
 

Statutory  requirements  for  entitlement  to  MGIB  benefits  appear  at  38 

APPLICABLE LAW 

 
 
U.S.C. § 3011 (1994).  The statute reads as follows: 
 

 

 

 

 

 

(1)  who— 

(A)    after  June  30,  1985,  first  becomes  a  member  of  the  Armed 

(a)  Except as provided in subsection (c) of this section, each individual – 
 
 
 
 
Forces or first enters on active duty as a member of the Armed Forces and – 
 
 
(i)    who  (I)  serves,  as  the  individual’s  initial  obligated 
period of active duty, at least three years of continuous active duty in the Armed 
Forces, … ; or 
 
(ii)  who serves in the Armed Forces and is discharged 
or released from active duty (I) for a service-connected disability, for a medical 
condition which preexisted such service on active duty and which the Secretary 
determines  is  not  service  connected,  for  hardship,  or  for  a  physical  or  mental 
condition that was not characterized as a disability and did not result from the 
individual's own willful misconduct but did interfere with the individual's per-
formance of duty, as determined by the Secretary of each military department in 
accordance with regulations … ; (II) for the convenience of the Government, … in 
the case of an individual who completed not less than 20 months of continuous 
active duty, if the initial obligated period of active duty of the individual was less 
than three years; or (III) involuntarily for the convenience of the government as a 
result  of  a  reduction  in  force,  as  determined  by  the  Secretary  of  the  military 
department concerned …; 
 
 
 
 
subsection— 

(3)    who,  after  completion  of  the  service  described  in  clause  (1)  of  this 

(2)  who [receives a high school diploma or the equivalent]; and 

•  •  • 

 

  

(B) is discharged from active duty with an honorable discharge; 

 
… 
 
is entitled to basic educational assistance under this chapter. 
 
(b)  The basic pay of any individual described in subsection (a)(1)(A) of this sec-
tion who does not make an election under subsection (c)(1) of this section shall be 
reduced by $ 100 for each of the first 12 months that such individual is entitled to 
such pay.  Any amount by which the basic pay of an individual is reduced under 
this  chapter  shall  revert  to  the  Treasury  and  shall  not,  for  purposes  of  any 
Federal law, be considered to have been received by or to be within the control of 
such individual. 
  
(c) 
(1)  An  individual  described  in  subsection  (a)(1)(A)  of  this  section  may 
make an election not to receive educational assistance under this chapter.  Any 
such election shall be  made at the time the individual initially enters on active 
duty  as  a  member  of  the  Armed  Forces.    Any  individual  who  makes  such  an 
election is not entitled to educational assistance under this chapter. 

 

Title 31 U.S.C. § 3702(a) provides that “[e]xcept as provided in this chapter 
or  another  law,  all  claims  of  or  against  the  United  States  Government  shall  be 
settled as follows:  (1) The Secretary of Defense shall settle—(A) claims involving 

uniformed service members' pay, allowances, travel, transportation, retired pay, 
and survivor benefits … .” 
 

VIEWS OF THE COAST GUARD 

On July 12, 2000, the Chief Counsel of the Coast Guard recommended that 

 
 
the Board deny the applicant’s request. 
 
 
The Chief Counsel stated that the Board should dismiss this case for lack 
of jurisdiction because the applicant has not identified any error in his record for 
the Board to correct.  Under 31 U.S.C. § 3702, he alleged the Comptroller General 
shall settle all claims of or against the United States.  Moreover, he argued the 
Comptroller General has held that the BCMR statute 10 U.S.C. § 1552 does not 
grant the Board authority to grant monetary benefits because “such entitlements 
‘depend solely on a proper application of the statutes to the facts or purported 
facts as shown by the corrected record in a particular case.’” 34 Comp. Gen. 7, 
No. B-117367 (July 7, 1954); accord, In re Garcia, 1982 U.S. Comp. Gen. LEXIS 367, 
No. B-20299 (October 6, 1982). 
 
 
The Chief Counsel also argued that the applicant has failed to prove that 
the  Coast  Guard  committed  any  error  or  injustice  by  deducting  the  disputed 
amount from his basic pay pursuant to his voluntary enrollment in MGIB or by 
not refunding that money to him upon his early discharge.  He alleged that the 
forms  signed  by  the  applicant  upon  his  enrollment  prove  that  he  voluntarily 
enrolled in MGIB and was informed that the money deducted from his basic pay 
could not be refunded.   
 

APPLICANT’S RESPONSE TO THE VIEWS OF THE COAST GUARD 

 
 
On  July  12,  2000,  the  Chairman  sent  the  applicant  a  copy  of  the  Chief 
Counsel’s  advisory  opinion  and  invited  him  to  respond  within  15  days.    The 
applicant did not respond. 
 

1. 
 
2. 

FINDINGS AND CONCLUSIONS 

 
 
The Board makes the following findings and conclusions on the basis of 
the applicant's military record and submissions, the Coast Guard's submissions, 
and applicable law: 
 

The application was timely. 

The Chief Counsel alleged that the Board has no jurisdiction over 
this case and cannot grant the relief requested by the applicant because there is 
no error in the applicant’s record for the Board to correct.  However, the Coast 
Guard clearly has duties with respect to the MGIB program and retains records 
concerning its members’ allotments and participation in those programs.  Under 

3. 

 
4. 

10 U.S.C. § 1552, the Board is authorized to correct errors and remove injustices 
in  Coast  Guard  records.    Therefore,  the  Board  has  jurisdiction  over  the  Coast 
Guard’s  records  concerning  the  applicant’s  allotments  and  participation  in 
MGIB. 
 

The Chief Counsel argued that the Board cannot grant relief in this 
case because under  31 U.S.C. § 3702, only the Comptroller General has authority 
to settle purely monetary claims against the United States.  However, that statute 
has been amended.  Under 31 U.S.C. § 3702(a), the Secretary of Defense settles 
members’  monetary  claims  against  the  Coast  Guard  that  do  not  involve  any 
alleged error or injustice in their military records. 

In signing the CG-3301I and DD 2366 at the time of his enlistment, 
the  applicant  voluntarily  agreed  to  participate  in  MGIB  and  have  the  money 
deducted from his basic pay.  Both forms clearly state that the money deducted 
from  his  pay  would  not  be  refunded  under  any  circumstances.    Although  the 
eligibility criteria listed on the two forms differ as to the number of months he 
was required to serve to become eligible for MGIB benefits, neither form stated 
that 20 months of active service would be sufficient to make him eligible.  The 
applicant  has  not  alleged  or  proved  that  the  Coast  Guard  coerced  him  to  sign 
these forms or committed any fraud against him with respect to his enrollment in 
MGIB.  He has not proved that there is any error in his record with respect to his 
MGIB enrollment.  Nor has he proved that the Coast Guard committed any error 
or  injustice  in  deducting  the  required  allotments  for  enrollment  from  his  basic 
pay or in failing to refund the money to him when he was discharged early for 
alcohol rehabilitative failure. 

 
5. 

 

 Accordingly, the applicant’s request should be denied.  

 
 
 
 
 

[ORDER AND SIGNATURES APPEAR ON NEXT PAGE]

The application of former XXXXXX, USCG, for correction of his military 

ORDER 

 

 
 

 
 

 
 

 
 

 
 

 
 

 

 
Nancy Lynn Friedman 

 

 

 

 
Robert H. Joost 

 

 

 
Karen L. Petronis 

 

 

 

 

 

 

 

 

 

 

 

 
 

 
 

record is hereby denied.