PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           30 August 2001                   
	DOCKET NUMBER:   AR2001054828

	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	
	Ms. Wanda L. Waller		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O’Connor		Chairperson	
	Mr. Christopher J. Prosser		Member	
	Ms. Linda D. Simmons 		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 correction of his military records to show that his retired pay grade is 0-3E instead of 0-3.

3.  The applicant states that his retired pay grade is incorrect.  He contends that he is currently being paid in the retired pay grade of 0-3 instead of 0-3E.  In support of his application, he submits a letter, dated 12 February 2001; a copy of enlistment orders, dated 1 March 1972 and 31 May 1972; DD Form 214 (Certificate of Release or Discharge from Active Duty) with an effective date of 
19 March 1981; DD Form 214 with an effective date of 30 June 1992; and a copy of his Leave and Earnings Statement (LES) for the period 1-31 May 1992.    

4.  The applicant’s military records show that he enlisted in the U.S. Army Reserve on 1 March 1972 and entered active duty on 31 May 1972.  He served as a personnel specialist and was honorably discharged in the rank of staff sergeant on 19 March 1981 to accept a commission.  He was commissioned as a second lieutenant on 20 March 1981 and remained on active duty until he retired in the rank of captain on 30 June 1992. 

5.  The applicant’s personnel records contain a DA Form 3713 (Data for Retired Pay), dated 5 May 1992, which shows his retired grade as “CPT”.  Item 29 (Basic Pay) on this form shows the entry “NA” in the section “Completed over 4 years Active Service as an Enlisted Member or Warrant Officer”.

6.  Records at the Defense Finance and Accounting Service (DFAS) in Cleveland, Ohio, show the applicant was placed on the Retired list in the grade of 0-3 effective 1 July 1992. 

7.  The applicant provided a copy of his LES for the period 1-31 May 1992 which shows his grade as “03E”.  

8.  The Department of Defense Military Pay and Allowances Entitlements Manual provides statutory provisions for entitlements, deductions, and collections, and establishes Department of Defense policy on the pay and allowances of military personnel.  Section 10105 (Active Enlisted and Warrant Officer Service - Pay Grades 0-1E, 0-2E, or 0-3E) provides, in pertinent part, that commissioned officers in pay grades 0-1, 0-2, or 0-3 are entitled to the special rate of pay for
0-1E, 0-2E, or 03-E, if the officer has had over 4 years of active service as an enlisted member.  

CONCLUSIONS:

1.  Evidence of record shows the applicant served almost 9 years of active duty as an enlisted member prior to his appointment as a commissioned officer in 1981.     

2.  Law provides, in effect, that commissioned officers in pay grades 0-1, 0-2, or 0-3 are entitled to the special rate of pay for 0-1E, 0-2E, or 03-E, if the officer has had over 4 years of active service as an enlisted member.  

3.  Based on the foregoing, the applicant is entitled to correction of his military records to show his retired pay grade as 0-3E, not 0-3.  

4.  In view of the foregoing facts and determination, the applicant is entitled to:

	a.  Correction of the DA Form 3713 (Data for Retired Pay), dated 5 May 1992, to show the applicant completed over 4 years of active service as an enlisted member in item 29 (Basic Pay); and

	b.  Payment of all back retired pay to which he is entitled based on correction of all records to show his retired pay grade as 0-3E.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected to show that the individual concerned was placed on the Retired list in pay grade 0-3E effective 1 July 1992 with his retired pay computed at the pay grade of 
0-3E and any back pay and allowances that may be due.   

BOARD VOTE:  

RVO____ CJP____  LDS_____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Raymond V. O’Connor__
		        CHAIRPERSON

INDEX

CASE ID	AR2001054828	
SUFFIX		
RECON		
DATE BOARDED	20010830	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY	  	
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	129.0500	
2.		
3.		
4.		
5.		
6.