PROCEEDINGS

	IN THE CASE OF:      

	BOARD DATE:            24 February 2000                  
	DOCKET NUMBER:   AR1999026898

	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.  

	Mr. W. E. Schnupp		Analyst	

  The following members, a quorum, were present:

	Ms. Celia L. Adolphi		Chairperson	
	Mr. James P. Huber		Member	
	Ms. Margaret V. Thompson		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests that the effective date of his USAR retirement orders be changed from 1 June 1996 to 24 July 1996 and his indebtedness to the government be erased, all money already seized be refunded and his credit reporting agency be advised that the collection action was in error.

3.  The applicant states that his retirement orders were published on 24 July 1996 but were backdated to be effective on 1 June 1996 resulting in an action to collect pay he received for duty in Kenya until 2 July 1996.  He contends that he served as the Task Force XO in Kenya, Africa during annual training from          10 June 1996 to 2 July 1996.  Because his retirement order shows an effective date of 1 June 1996, the Defense Finance and Accounting Service instituted a collection action that resulted in his tax refund being seized, interest charged on the debt and an unfavorable reference on his credit report.  He was also denied refinancing of his house due to his debt to the US Government.

4.  In support of his request, he has provided an affidavit from his commander setting forth the events regarding his annual training (AT) and his retroactive retirement, a copy of his AT orders and a copy of the orders assigning him to the Retired Reserve.

5.  The applicant’s military records show that on 3 January 1995 he was notified of his second nonselection for promotion.  At that time, since he had less than 20 years service, he was retained in the USAR to complete the necessary years of qualifying service for retirement.  

6.  On 12 April 1996 his unit, including himself, was ordered to AT in Kenya, Africa for the period 10 June 1996 to 30 June 1996.  According to the affidavit from his commander, the unit’s return to the States was delayed until 2 July 1996 because of transportation difficulties.

7.  On 24 July 1996 his higher headquarters published Orders 96-206-017 announcing his transfer to the Retired Reserve effective 1 June 1996.

8.  Army Regulation 140-10, Assignment, Attachments, Details, and Transfers, provides, in pertinent part, that officers having 18 or 19 years of qualifying Federal service for retired pay will not be removed without their consent.  Officers who meet this criteria on the date removal is required will be retained to complete 20 years.  Retained officers will be informed that they must notify the appropriate authority when the service is completed.

CONCLUSIONS:

1.  The headquarters that placed the applicant’s unit on AT should have advised the headquarters that published his retirement order that the applicant was in an AT status in June 1996 and could not have been retired effective 1 June 1996.
2.  Nevertheless, backdating the retirement order appears to have been an administrative error and caused the financial problems for the applicant.  Had the order been published with an effective date of 3 July 1996, after he had completed AT, for example, instead of 1 June, it would have had no adverse impact on the individual or entitled him to any greater retirement benefit.

3.  Therefore, in the interest of justice, it would be appropriate to change the effective date of Orders 96-206-017 from I June 1996 to 3 July 1996 and excuse any indebtedness to the government that was caused by the error.  Insofar as correcting his credit report is concerned, that is a problem for the applicant to resolve personally, however, a copy of these Proceeding may be helpful toward that end.

4.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case be corrected by:

	a.  showing that Orders 96-206-017 dated 24 July 1996 are amended to reflect that the individual concerned was transferred to the Retired Reserve effective 3 July 1996; and

	b.  canceling his indebtedness to the government and returning to him any monies already collected. 

2.  That so much of the application as is in excess of the foregoing be denied.

BOARD VOTE:  

__cla____  _jph____  __mvt___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		__Celia L. Adolphi_________
		        CHAIRPERSON

INDEX

CASE ID	AR1999026898	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20000224	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.  128.10		
2.   136.01		
3.		
4.		
5.		
6.