RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  01-01333
		INDEX CODE:  128.02
		COUNSEL:  NONE

		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

A sum of $25,000 of his income be moved from his 2000 W-2, Wage and Tax Statement, to his 1999 W-2.
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APPLICANT CONTENDS THAT:

On 10 Dec 99, he signed an agreement to receive Aviation Continuation Pay (ACP) for extending his active duty service commitment (ADSC).  His commander faxed his agreement to AFPC.  Due to a delay in processing his paperwork, he did not receive his first payment until 11 Jan 00.  Since the payment was made in 2000, it was considered income for 2000.  This income was authorized, earned, and payable in 1999 by his agreement.  The effective date of the agreement was 16 Nov 99.  Paragraph 3 of the agreement states that payments are based on the effective date of the agreement and the option he selects.  Since he received two ACP payments in 2000, his pay was increased $50,000 for the year resulting in $2,012 extra in taxes.  Another individual's (Lt Col S---‘s) ACP agreement was faxed after his agreement and that individual received his payment on 29 Dec 99.

In support of his request applicant provided a sample ACP agreement; AF Form 102, Inspector General, Personal and Fraud, Waste and Abuse Complaint Registration; email communications; and, his 1999 and 2000 U.S. Individual Income Tax Returns. 

His complete submission is appended at Exhibit A.

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STATEMENT OF FACTS:

The relevant facts pertaining to this application, extracted from the applicant’s military records, are contained in the letter prepared by the appropriate office of the Air Force.  Accordingly, there is no need to recite these facts in this Record of Proceedings.

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AIR FORCE EVALUATION:

The Chief, Aviation Continuation Pay, AFPC/DPAOY, reviewed applicant's request and recommends denial.  DPAOY states that the Air Force made no technical errors, unnecessary delays or identified any irregularities during the processing of his ACP agreement.  The fact that he was not paid during 1999 was caused by his 27 day delay in signing the agreement from program inception; the massive volume of agreements that were being processed; the government closures from the holidays and the Y2K computer issues; and, different payment dates at Defense Finance and Accounting Service (DFAS) (see Exhibit B).
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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

Applicant states that the advisory fails to note that although the program was authorized on 16 Nov 99, implementation of the program was delayed several weeks while AFPC developed the procedures for implementation.  The facts concerning the massive number of agreements during the holidays and period of the Y2K problem are irrelevant.  In the interest of fairness, all agreements signed before the end of the year should have been processed and paid before the end of the year.

Lt Col. agreement was faxed during the same telephone call.  It appears that both agreements were processed on that same day, 27 Dec 99, however, Lt Col. was paid on 29 Dec 99 and he was not paid until 11 Jan 00.  Although there was a first-in first-out policy in place at AFPC, DFAS does not seem to share this policy (see Exhibit D).

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THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing law or regulations.

2.  The application was timely filed.

3.  Insufficient relevant evidence has been presented to demonstrate the existence of probable error or injustice.  We took notice of the applicant's complete submission in judging the merits of the case; however, we agree with the opinion and recommendation of the Air Force office of primary responsibility and adopt their rationale as the basis for our conclusion that the applicant has not been the victim of an error or injustice.  While the applicant’s increased tax burden for 2000 was unfortunate, in our opinion the time that it took to process his payment was not unreasonable given the high volume of applications being processed in a rather constrained timeframe.  Therefore, in the absence of evidence to the contrary, we find no compelling basis to recommend granting the relief sought in this application.

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THE BOARD DETERMINES THAT:

The applicant be notified that the evidence presented did not demonstrate the existence of probable material error or injustice; that the application was denied without a personal appearance; and that the application will only be reconsidered upon the submission of newly discovered relevant evidence not considered with this application.

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The following members of the Board considered this application in Executive Session on 15 Aug 01, under the provisions of AFI 36-2603:

The following documentary evidence was considered:

    Exhibit A.  DD Form 149, dated 5 May 01, w/atchs.
    Exhibit B.  Letter, AFPC/DPAOY, dated 11 Jun 01, w/atchs
    Exhibit C.  Letter, SAF/MIBR, dated 14 Jun 01.
    Exhibit D.  Letter, Applicant, dated 6 Jul 01.

                                   
                                   Panel Chair