RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  02-03795
		INDEX CODE:  128.00

		COUNSEL:  NONE

		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

She be allowed to revoke her decision to elect the High-3 REDUX retirement plan.

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APPLICANT CONTENDS THAT:

She fell under the new REDUX/High-3 option Retirement Plan.  She chose the REDUX option, and after doing so, realized she had made a very serious mistake.  She states that she has not spent the money from the Career Status Bonus (CSB) and is willing and able to return it to the Air Force immediately upon notification of this decision, should the Board rule in her favor.

She indicates that after searching for over 5 years, she and her husband found the perfect piece of property for their retirement home in Alaska.  Unfortunately, with the recent large drop in the stock market, they would take quite a loss to take the money out of their investment/retirement funds.  She researched the Retirement Choice internet web page, and found that if she were willing to stay in the Air Force for 30 years she had little to lose (other than the annual .5% cost of living increases).  She also figured that if she put in as little as $5,000 into a Thrift Savings Plan (TSP) she would still have the funds she needed while also minimizing the tax burden.  She contacted multiple agencies on base to determine how she could elect to have the specific amount withheld for TSP, but other than the general election form she already filled out, no one knew.  She was told that it would be approximately 90 days before she would receive the funds.  She didn’t want to have special pay deducted for 3 months before the REDUX bonus arrived, so she waited.

Approximately 2 months had gone by, and the closing for their land was approaching.  She contact the REDUX point of contact (POC) and was informed that it would be another 30-60 days before she would receive the money.  He further indicated that if she needed the money faster, she should find alternate funds and request a cancellation of the REDUX bonus.  She requested the cancellation and was informed by the REDUX POC that he would proceed with the cancellation.  The next day he notified her that it was too late, the money had already been sent and her decision was irrevocable as of the date she initially signed the paperwork. She states that she does not recall reading or signing anything that stated the decision was irrevocable, nevertheless, she thought she was making the best decision at that time.

In support of her appeal, the applicant provided a personal statement and other documentation.

Applicant’s complete submission, with attachments, is at Exhibit A.
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STATEMENT OF FACTS:

The applicant is currently serving on extended active duty in the grade of captain.

On 23 August 2002 applicant elected to accept and receive the High-3/REDUX retirement option, which resulted in her receiving a $30,000 lump-sum bonus upon reaching her 15-year point of active service.

On 18 October 2002, applicant requested to cancel the REDUX prior to receiving her bonus payment.

In accordance with Public Law 106-65, effective 5 October 1999, changes were made to the retired pay system.  Service members who initially entered the uniformed service on or after 1 August 1986 were given a choice of retirement plans at their 15th year of service.  Their two options were to take the pre-1986 retirement system (High-3 System) or elect to receive a one-time lump-sum Career Status Bonus (CSB) of $30,000.00 at 15 years of service in exchange for length-of-service retired pay computed under the post-1986 retirement system (the Military Retirement Reform Act of 1986, commonly known as REDUX).  This option is referred to jointly as the CSB/REDUX option.

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AIR FORCE EVALUATION:

AFPC/DPPRR recommended denial.  They indicated that the applicant was determined to be eligible by her commander for the Career Status Bonus (CSB) program, March 2002, which afforded her six months to make an election decision.  She made her decision on 23 August 2002.  Based upon the information received and the guidance on the CSB program, they believe the applicant is not entitled to revoke her CSB election.  Once a member makes an election, the choice is irrevocable as stated on the DD Form 2839, CSB Election, Section IV, #12, “…I understand that once the election is effective it may not be revoked…”

The evaluation is at Exhibit C.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

On 3 January 2003, a copy of the Air Force evaluation was forwarded to the applicant for review and response within thirty (30) days.  As of this date, no response has been received by this office.

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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 an error or injustice.  After thoroughly reviewing the evidence of record, it appears that the applicant voluntarily chose the REDUX Option after being identified as being eligible.  She indicates that she does not recall reading or signing anything stating that the election may not be revoked.  However, we note that the DD Form 2389, Career Status Bonus Election, which she signed on 23 August 2002, clearly states that once the election is effective, it may not be revoked.  Applicant does not present persuasive evidence that she was unaware of the terms and effects of her election.  It was her responsibility to ensure that she fully understood the REDUX Option program before she elected this retirement alternative.  It appears she made her choice based upon what she believed was in the best interest of her and her family at the time.  Therefore, we are in agreement with the opinion and recommendation of the Air Force and adopt their rationale that she has not been the victim of an error or an injustice.  In view of the foregoing and in the absence of evidence to the contrary, we find no compelling basis upon which to recommend granting the requested relief.

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THE BOARD DETERMINES THAT:

The applicant be notified that the evidence presented did not demonstrate the existence of 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 AFBCMR Docket Number 02-03795 in Executive Session on 11 February 2003, under the provisions of AFI 36-2603:

The following documentary evidence was considered:

   Exhibit A.  DD Form 149, dated 19 November 2002, w/atchs.
   Exhibit B.  Applicant's Master Personnel Records.
   Exhibit C.  Letter, AFPC/DPPRR, dated 10 December 2002.
   Exhibit D.  Letter, SAF/MRBR, dated 3 January 2003.