DEPARTMENT OF HOMELAND SECURITY 

BOARD FOR CORRECTION OF MILITARY RECORDS 

 
Application for the Correction of 
the Coast Guard Record of: 
 
                                                                                BCMR Docket No.  2007-175 
 
XXXXXXXXXXXXXXX 
XXX-XXXXXXXXXXXX 
   

 

 
 

FINAL DECISION 

 
 
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.  The Chair docketed the application on August 
15, 2007, upon receipt of the applicant’s completed application and subsequently prepared the 
final decision as required by 33 CFR § 52.61(c). 
 
 
appointed members who were designated to serve as the Board in this case. 
 

This  final  decision,  dated  April  30,  2008,  is  approved  and  signed  by  the  three  duly 

APPLICANT’S REQUEST 

 
 
 The applicant asked the Board to correct his military record to show that he retired in 
pay grade E-5, which is the highest grade that he held in the Louisiana Army National Guard, 
rather than PS3 (pay grade E-4), which is the highest grade he held within the Coast Guard.   
 
 
The applicant enlisted in the Navy on August 30, 1965, and was discharged on January 
10, 1969, in pay grade E-3 (SN).  He served in the National Guard from June 19, 1981, until June 
18, 1989, and reached the rank of sergeant (SGT; pay grade E-5) on May 1, 1983.  Upon his 
discharge from the National Guard, he enlisted in the Coast Guard Reserve on May 20, 1990, in 
pay grade E-4 (PS3).   
 
 
The Commanding Officer, Coast Guard Human Resources Service & Information Center 
(HRSIC) informed the applicant that he had been transferred to the Coast Guard Retired Reserve 
(without pay) effective January 1, 1998, in pay grade E-4, the highest grade he held in the Coast 
Guard.    The applicant stated that after receiving notification of his transfer to the retired list, he 
brought the matter of the appropriateness of his grade to the attention to HRSIC personnel in 
February 1998, and was advised to wait until he was within 6 months of eligibility for receipt of 
retired pay to pursue having the matter corrected.   He submitted a copy of a letter that he sent to 
the HRSIC YN dated February 28, 1998, about his retired pay grade.  The applicant stated that he 
was due to begin receiving retired pay in January 2008, the month and year that he reached his 
60th birthday. 

United States Code 
 
 
who first became members before September 8, 1980: final basic pay) states the following:   
 

Section 1406(b)(2) of title 14 of the United States Codes (Retired pay base for members 

Non-regular service retirement.  In the case of a person who is entitled to retired 
pay under section 12731 of this title . . . the retired pay base is the monthly basic 
pay, determined at the rates applicable on the date when retired pay is granted, of 
the highest grade held satisfactorily by the person at any time in the armed forces. 

 
Coast Guard Reserve Policy Manual 
 
 
Article  8.C.8.  of  the  Reserve  Policy  Manual  states  that  retired  pay  for  members  with 
dates of initial entry into military service (DIEMS) prior to 8 September 1980 is computed based 
on the highest grade satisfactorily held at any time in the Armed Forces and the Commandant’s 
determination that the member’s performance in that grade was satisfactory.    
 

VIEWS OF THE COAST GUARD 

 
 
On January 1, 2008, the Judge Advocate General (JAG) of the Coast Guard submitted an 
advisory opinion recommending that the Board grant the partial relief, as recommended by the 
Commander, Coast Guard Personnel Command (CGPC) in a memorandum attached to the views 
of the Coast Guard.  CGPC stated that the “applicant’s retired pay [should] be computed based 
upon the highest grade satisfactorily held at any time in the armed forces pursuant to 10 USC § 
1406(b)(2).”   In this regard, CGPC further stated the following: 
 

 

 

APPLICABLE REGULATION 

 

Based upon a review of the applicant’s record and applicable policy and statute . . 
. the computation of the applicant’s retirement pay should be made according to 
the      “highest  grade  satisfactorily  held  at  any  time  in  the  armed  forces.”    The 
applicant’s record supports that while in the Louisiana Army National Guard he 
held  the  rank  of  Sergeant,  E-5,  from  May  1,  1983  until  his  discharge  from  the 
ARNG on June 8, 1989.  As the applicant’s record does not denote any derogatory 
information  or  demotion  during  this  period,  it  is  presumed  that  his  service  was 
satisfactory and therefore his retirement compensation in . . . should be computed 
based upon pay grade E-5 vice his official pay grade [E-4] upon assuming RET-2 
status  . . .   
 
Though the applicant’s BCMR application does not specifically request that his 
records be corrected to reflect the higher grade on his Armed Forces Identification 
Card  and  official  correspondence,  information  submitted  by  the  applicant  in 
support of his BCMR application indicates that he desires such.  A review of the 
applicant’s official record with the Coast Guard indicates that the highest grade he 
held with the Coast Guard was E-4 . . .  This is the applicant’s official rate and pay 

grade at the time he assumed RET-2 status and is therefore the rate/grade that is 
applicable for all official correspondence and to be used on his retired ID card.  
The rate/grade applied to the computation of the applicant’s retired pay does not 
have  to  conform  to  the  applicant’s  rate/grade  at  the  time  of  retirement.  
Additionally, it would be improper to indicate a grade as the applicant’s official 
grade  within  the  Coast  Guard  that  the  applicant  never  held,  i.e.,  petty  officer 
second class, E-5.  

APPLICANT’S RESPONSE TO THE VIEWS OF THE COAST GUARD 

 
 
Guard.  He stated that he accepted the Coast Guard’s recommendation for partial relief.   

On January 29, 2008, the Board received the applicant’s reply to the views of the Coast 

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 submission and applicable law: 
 
 
of the United States Code.  The application was timely.    

1.  The Board has jurisdiction concerning this matter pursuant to section 1552 of title 10 

 
2.  The Coast Guard admitted that it committed an error when it determined that E-4 was 
the highest grade satisfactorily held by the applicant for pay purposes during his military career.  
The Board agrees that the Coast Guard committed an error in this regard based upon CGPC’s 
recent review and determination that the applicant’s National Guard service in pay grade E-5 was 
satisfactory, as nothing in his record indicates otherwise.   

 
3.    CGPC’s  recent  determination  that  the  applicant’s  E-5  National  Guard  service  was 
satisfactory complies with Article 8.C.8. of the Reserve Policy Manual.     This provision states 
that “retired members with date of initial entry to military service . . . prior to 8 September 1980 
is computed based on the highest grade satisfactorily held at any time in the Armed Forces and 
the Commandant’s determination that the member’s performance in that grade was satisfactory.”  
[Emphasis added.]   
 
 
4.  The Board notes that the applicant accepted the recommendation of the Coast Guard 
that his retired pay will be calculated based on pay grade E-5, but that PS3, the highest grade he 
held while in the Coast Guard, will still be reflected on his other official Coast Guard documents, 
such as his military retiree identification card.   
 

5. 

Accordingly,  the  applicant  is  entitled  to  the  partial  relief  recommended  by  the 

 

 

Coast Guard.    
 
 
 

[ORDER AND SIGNATURES APPEAR ON NEXT PAGE] 

ORDER 

 

The application of XXXXXXXXXXXXX, USCGR, for correction of his military record 
is granted in part as follows:  The Coast Guard shall correct his record to show that he is entitled 
to retired pay computed based upon pay grade E-5, the highest grade he held satisfactorily in the 
National Guard.  The applicant shall receive back pay and allowances retroactive to the date on 
which his retired pay began.    

 
All other requests are denied. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 

 
 Bruce D. Burkley 

 

 

 
 Randall J. Kaplan 

 

 

 
 James E. McLeod