RECORD OF PROCEEDINGS
         AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  BC-2003-01298
		INDEX CODE:  128.00

		COUNSEL:  NONE

		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

A Career Status Bonus (CSB) installment payment in the amount of $10,000 be applied retroactively to his Thrift Savings Plan (TSP) account, effective 23 Oct 02, along with any interest that may have accrued.

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APPLICANT CONTENDS THAT:

He was provided with incorrect information during a Family Support Center briefing, and a DD Form 2839, Career Status Bonus (CSB) Election, was erroneously backdated.

The Military Personnel (MPF) Flight and/or the Defense Finance and Accounting Service (DFAS) accomplished an incorrect payment action in Sep 02, causing recoupment and subsequent CSB errors.

The MPF did not take action in a timely manner after receipt of MPFM 02-41 on 23 Oct 02, and processed a payment request incorrectly.

The MPF did not provide proper guidance on the required paperwork for a TSP deposit, and provided incorrect information to DFAS.

In support of his appeal, the applicant provided an expanded statement and copies of a DD Form 2839, electronic mail (e-mail) concerning the CSB payment, a memorandum of record, and other documents associated with the matter under review.

Applicant’s complete submission, with attachments, is at Exhibit A.

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STATEMENT OF FACTS:

A DD Form 2839 provided by the applicant indicated that on 17 Jun 02, he signed a DD Form 2839 electing to receive a CSB when he completed 15 years of active service.

Information extracted from the Personnel Data System (PDS) indicates that the applicant is currently serving on active duty in the grade of master sergeant, having been promoted to that grade on 1 May 03.  His Total Active Federal Military Service Date (TAFMSD) is 7 Jul 87.

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AIR FORCE EVALUATION:

AFPC/DPPRR noted the applicant initially elected CSB in Jun 02, prior to implementation of installment payment options.  Applicant erroneously received the CSB in Sep 02 for the full CSB amount of $30,000.  Since the applicant did not want/elect to receive the entire CSB in a lump sum payment, the payment was later recouped.  In Dec 02, the applicant was notified the new CSB installment options were available.  He then elected to receive the CSB in three installments with the understanding that the payment would go to his TSP account.  In Jan 03, the applicant inquired as to the status of his CSB.  It was discovered he needed to submit a new TSP form for the bonus to be distributed to his TSP account.  During this timeframe, DFAS informed the MPF the applicant could not receive a 2002 TSP payment since his request for a bonus to be distributed in TSP was not established until 2003.  According to AFPC/DPPRR, based on laws governing the CSB, the applicant is not eligible to receive a backdated 2002 CSB payment for transfer to his TSP account.  They recommended the applicant be paid his first installment payment of $10,000 and it be distributed to his TSP account, and the remaining $10,000 installments be paid in Jan 04 and Jan 05, respectively.  AFPC/DPPRR recommended denial of the applicant’s request to receive interest for previous transactions that did not take place.

A complete copy of the AFPC/DPPRR evaluation is at Exhibit C.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to applicant on 30 May 03 for review and response.  As of this date, no response has been received by this office (Exhibit D).

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ADDITIONAL AIR FORCE EVALUATION:

HQ USAF/JAA recommended denial indicating there was no evidence the applicant suffered an injustice.  The CSB installment option was not put into effect until Dec 02.  DFAS has established a reasonable 90-day suspense in which to process the paperwork and pay the servicemember.  The applicant was scheduled to receive the money by Mar 03.  Under existing Internal Revenue Service rules, unless the late TSP contribution is due to an agency error, there is no provision to apply current year funds to a previous year’s 401(k) or TSP account.  The money may only be applied in the year it is received.  In this instance, there has been no agency error.  In fact, the applicant is responsible for much of the confusion given that he initially requested the CSB in Jun 02 and then turned it back in.  He failed to complete the proper paperwork to indicate he wanted the payment placed into his TSP account.  In HQ USAF/JAA’s view, any misunderstanding on this matter is due to the applicant’s confusion concerning the TSP program.  They believe the applicant has failed to demonstrate the existence of any error or present facts and circumstances supporting an injustice.

A complete copy of the HQ USAF/JAA evaluation is at Exhibit E.

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APPLICANT'S REVIEW OF ADDITIONAL AIR FORCE EVALUATION:

A copy of the additional Air Force evaluation was forwarded to applicant on 23 Oct 03 for review and response.  As of this date, no response has been received by this office (Exhibit F).

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ADDITIONAL AIR FORCE EVALUATION:

DFAS-POCC/DE indicated that based on their findings, it was apparent the applicant received a windfall of earnings on an erroneous deposit of $12,000 from 8 Apr 03 through 31 Dec 03.  As a result of agency error, the applicant was not penalized and any investment gains on the erroneous deposit remained in the applicant’s TSP account.  The applicant also earned breakage (lost TSP earnings) on late monthly payroll contributions that were not timely deposited.  Since breakage cannot be manually calculated on a “what if” deposit of $10,000 in Mar 03, they urge the Board to reconsider their findings and determine the applicant has been made whole based on the earnings he has already received.

A complete copy of the DFAS-POCC/DE evaluation is at Exhibit H.

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APPLICANT'S REVIEW OF ADDITIONAL AIR FORCE EVALUATION:

A copy of the additional Air Force evaluation was forwarded to applicant on 4 Mar 04 for review and response.  As of this date, no response has been received by this office (Exhibit I).

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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 error or injustice.  The applicant's complete submission was thoroughly reviewed and his contentions were duly noted.  However, we do not find the applicant’s assertions and the documentation provided in support of his appeal sufficiently persuasive to override the rationale provided by DFAS-POCC/DE.  The applicant requests a CSB installment payment in the amount of $10,000 be applied retroactively to his TSP account effective 23 Oct 02, along with any interest he may have accrued.  While it appears the applicant was paid the bonus, as recommended by AFPC/DPPRR, it was not received until 2003.  However, we note there are no provisions allowing current year funds to be applied to a previous year’s TSP account unless the late TSP contribution is due to an agency error.  No evidence has been presented which has shown to our satisfaction such an error occurred to his detriment.  However, it does appear he received a windfall of earnings in 2003 as a result of an erroneous deposit by DFAS, for which he was not penalized and any investment gains on the erroneous deposit remained in his TSP account.  In view of the foregoing, and in the absence of sufficient evidence to the contrary, we agree with the recommendation of DFAS-POCC/DE and adopt their rationale as the basis for our decision that the applicant has failed to sustain his burden of establishing that he has suffered either an error or an injustice.  Accordingly, 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 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 BC-2003-01298 in Executive Session on 13 Jan 04 and 30 Apr 04, under the provisions of AFI 36-2603:
The following documentary evidence was considered:

    Exhibit A.  DD Form 149, dated 8 Apr 03, w/atchs.
    Exhibit B.  Applicant's Master Personnel Records.
    Exhibit C.  Letter, AFPC/DPPRR, dated 27 May 03.
    Exhibit D.  Letter, SAF/MRBR, dated 30 May 03.
    Exhibit E.  Letter, AFBCMR, dated 6 Oct 03.
    Exhibit F.  Letter, HQ USAF/JAA, dated 20 Oct 03.
    Exhibit G.  Letter, AFBCMR, dated 23 Oct 03.
    Exhibit H.  Letter, DFAS-POCC/DE, dated 3 Mar 04.
    Exhibit I.  Letter, AFBCMR, dated 4 Mar 04.