PROCEEDINGS

	IN THE CASE OF:       

	BOARD DATE:            10 May 2000
	DOCKET NUMBER:   AR2000036774

	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. Carl W. S. Chun		Director	
	Mr. Jessie B. Strickland		Analyst	

The following members, a quorum, were present:

	Ms. Margaret K. Patterson		Chairperson	
	Mr. George D. Paxson		Member	
	Mr. Thomas B. Redfern III		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 his records be corrected to show that he was released from active duty in the pay grade of O-3E and was placed on the Retired list in the pay grade of 0-3E with entitlement to all back pay and allowances. 

3.  The applicant states, in effect, that at the time he retired he was under the impression that he was being retired in the pay grade of O-3E, to reflect his enlisted service and that all of the documentation prepared at the time of his separation reflected that such was the case.  However, he was informed by officials at the Army Cadet Command that his finance records only reflect that he was retired in the pay grade of O-3.  In support of his application he submits a copy of his separation pay worksheet (DFAS-IN Form 27-190R) reflecting his pay grade as O-3E and his retirement orders which show that he had over 4 years of enlisted service. 

4.  The applicant’s military records show that he served on active duty in the Air Force for 3 years, 8 months, and 14 days before he was honorably released from active duty on 26 February 1973.  He enlisted in the Regular Army on 3 August 1983 and served until he was discharged in the pay grade of E-5 upon completion of OCS on 16 February 1984.  He had served 6 months and 14 days of active service during this period for a total of 4 years, 2 months and 28 days of total active service.

5.  He was commissioned as a USAR second lieutenant on 17 February 1984 with a concurrent call to active duty and remained on active duty until he was honorably released from active duty in the rank of captain on 31 August 1995 under the Voluntary Early Retirement Program (VERP).  He was placed on the Retired list effective 1 September 1995.  He had served 15 years, 9 months, and 12 days of total active service.  His report of separation (DD Form 214) issued at the time of separation reflects that his pay grade was “03”.

6.  The Department of Defense Military Pay and Allowances Entitlements Manual provides the statutory provisions for entitlements to pay for military personnel.  It states, in pertinent part, that effective 1 September 1980, commissioned officers in pay grades 0-1, 0-2, and 0-3 are entitled to the special rate pay for 0-1E, 0-2E, and 0-3E, if the officer has had over 4 years of active service as an enlisted member.

7.  In the processing of this case a staff member of the Board contacted officials at the Defense Finance and Accounting Service (DFAS) in Cleveland, Ohio. Officials at that agency advised the staff member that the applicant had contacted the DFAS on 2 February 2000, that it has been determined that he is being paid at the rate of O-3 instead of O-3E.  However, it would require an order from the Board to effect his entitlement to back pay and allowances. 
CONCLUSIONS:

1.  At the time of the applicant’s separation from the service he was serving in the pay grade of 0-3E and his DD Form 214 should have reflected that pay grade. However, it appears that an administrative error resulted in his pay grade being reflected as only 0-3.  Therefore, it would be in the interest of justice to correct the error at this time. 

2.  Likewise, the applicant was entitled to be placed on the Retired list in the pay grade of O-3E and to be paid at that rate as well.  Accordingly, it would be in the interest of justice to correct his records to show that he is entitled to Retired pay in the pay grade of 0-3E effective 1 September 1995, with entitlement to all back pay and allowances from that date. 

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

RECOMMENDATION:  That all of the Department of the Army records related to this case be corrected by showing that the individual concerned was separated in the pay grade of 0-3E on 31 August 1995 and was placed on the Retired list in the pay grade of O-3E effective 1 September 1995 with entitlement to all back pay and allowances from that date.

BOARD VOTE:  

__tbr____  ___gp___  __mkp __  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Margaret K. Patterson____
		        CHAIRPERSON

INDEX

CASE ID	AR2000036774	
SUFFIX		
RECON		
DATE BOARDED	2000/05/10	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.  302	129.0000/PAY GRD	
2.  189	110.0000/CORR 214	
3.		
4.		
5.		
6.