PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           19 July 2001                   
	DOCKET NUMBER:   AR2001057042

	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	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Mark D. Manning		Chairperson	
	Mr. Lester Echols		Member	
	Ms. Gail J. Wire		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 Certificate of Release or Discharge from Active Duty, DD Form 214, be corrected to show he was separated under the Voluntary Separation Incentive (VSI) and not the Special Separation Benefit (SSB).

3.  The applicant states, in effect, that he initially requested separation under the VSI but changed his mind at the Fort Dix, NJ separation and transfer point and requested the SSB.  He was told he should not have been allowed to change his mind.  He has paid back the monies he received under the SSB (verified by the Defense Finance and Accounting Service – Denver Center on 22 June 2001).

4.  The applicant’s military records show that he enlisted in the Regular Army on 27 October 1982.

5.  On 15 January 1992, the applicant requested separation under the VSI.  His request was approved and separation orders were issued showing he was approved for VSI payment.  

6.  Apparently when the applicant arrived at the Fort Dix separation and transfer point he changed his request from the VSI to the SSB and was given a lump sum SSB payment of $18,936.27 (taxes deducted).  On 24 August 1992, the applicant was separated after completing 9 years, 9 months, and 28 days of creditable active service and was transferred to the U. S. Army Reserve (USAR).  His DD Form 214, item 18 shows he was authorized the SSB.  Items 26, 27, and 28 show that he was given a separation code of KCB (discharge with SSB), a reentry code of 3S (separation with SSB), and a narrative reason for separation of Voluntary Early Transition Program (SSB).  (Separation under the VSI would have given him a separation code of KCA and a reentry code of 3V.)  He enlisted in the USAR on 25 August 1992 for 3 years.

7.  The National Defense Authorization Act for Fiscal Year 1992 established voluntary incentive programs to support the Army drawdown.  Under the SSB, an eligible member of the armed forces would receive a lump sum payment equal to 15 percent of the soldier’s annual basic pay multiplied by his years of active service.  Soldiers who applied for this incentive were required to enter into a written agreement to serve in the Ready Reserve for a period of not less than      3 years, in addition to any remaining military service obligation based in statute, following the separation from active duty.  The VSI was an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay multiplied by his years of service and paid for twice the number of years served.  Soldiers approved for VSI must have been appointed, enlisted, or transferred to the Ready Reserve for the entire period they received VSI annual payments.

CONCLUSIONS:

1.  The applicant’s DD Form 214 is incorrect.  He had received an approved separation under the VSI.  He should not have been allowed to change his mind at the separation and transfer point to receive the SSB lump sum payment.  The Government has since recouped its overpayment.  Although the applicant could have been authorized VSI payments for as long as 18 years, it appears payments stopped after 3 years, upon his expiration term of service in the USAR, as governed by law. 

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

RECOMMENDATION:

That the applicant’s DD Form 214:

     a.  item 18 be amended to delete the entry pertaining to the SSB and to show he was authorized Voluntary Separation Incentive (VSI);

     b.  item 26 be amended to read KDA;

     c.  item 27 be amended to read 3V; and

     d.  item 28 be amended to read Voluntary Early Transition Program (VSI).

BOARD VOTE:  

__mdm___  __le____  __gjw___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Mark D. Manning
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2001057042	
SUFFIX		
RECON		
DATE BOARDED	20010719	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	100.00	
2.		
3.		
4.		
5.		
6.