PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:  27 November 2001
	DOCKET NUMBER:  AR2001059910

	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. Paul A. Petty		Analyst	

  The following members, a quorum, were present:

	Mr. Arthur A. Omartian		Chairperson	
	Mr. John T. Meixell		Member	
	Mr. Lester Echols		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 he be reinstated in the U. S. Army Reserve (USAR) Control Group (Reinforcement) Individual Ready Reserve (IRR) as a captain and that his Voluntary Separation Incentive (VSI) program benefits be restored.

3.  The applicant states, in effect, that based on incorrect assumptions, lack of information, and confusing information, he requested discharge from the Army Reserve.  He was not aware that the discharge would also terminate his VSI payments.  When he realized the error, he tried to get it administratively corrected, but without success.

4.  The applicant’s military records show that in 1996, as a Regular Army captain with 10 years active duty as an officer and 3 years active duty as enlisted, he requested release from active duty under the VSI Program.  His request was approved by Department of the Army on 10 September 1996.  He was honorably discharged on 2 January 1997 by reason of “Early Release Program – Voluntary Separation Incentive.”  His separation orders specified that he would receive VSI benefits until 12 March 2024, in accordance with the provisions of the VSI program.  These benefits included an annual annuity payment of $14,750.32 a year for 27 years, according to remarks on his DD Form 214 (Certificate of Release or Discharge from Active Duty).  As a condition of the VSI, he was commissioned as a captain in the Army Reserve on 3 January 1997, and assigned to the USAR Control Group (Reinforcement).

5.  By a letter dated 23 December 1997, from the U. S. Total Army Personnel Command (PERSCOM), St. Louis, the applicant was notified that he was eligible for consideration for promotion to major by the Army Reserve Components Selection Board that would convene on 24 March 1998.  The letter asked for updates, if any, to the applicant’s Official Military Personnel File (OMPF) to be provided by 9 February 1998.  The applicant stated that he had no way to view the microfiche copy of his OMPF which was provided with the letter.  He also stated that by the time he received this letter, there was not enough time to gather documents and send them before the 9 February suspense.  At the same time, the applicant stated that he also received a letter from the Army Reserve Personnel Command (AR-PERSCOM) informing him that he could request resignation.  The applicant stated, that fearing that he would not be selected for promotion because he could not get his file updated and then forced out because of non-selection, he requested discharge.  He states he did not know that by being discharged, his VSI annual annuity payments would stop.  He was honorably discharged from the USAR on 9 September 1998.  He states that he received his VSI annual annuity payment in January 1999 but did not receive the payment in January 2000.  After this non-payment, the applicant learned the error he had made by requesting discharge.  He made requests to 
AR-PERSCOM to correct this situation, but AR-PERSCOM determined that the applicant had been properly discharged at his request and denied requests to reinstate him and his VSI payments.

6.  The National Defense Authorization Act of Fiscal Year 1992 established two monetary Voluntary Separation Incentive Programs (VSIP) to assist in maximizing voluntary separation during the drawdown period of military forces.  One incentive program was called the Special Separation Benefit (SSB) which paid a lump sum equal to 15 percent of the soldier’s annual basic pay.  The other incentive program was called the Voluntary Separation Incentive (VSI) which paid an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay at separation multiplied by this number of years of service and paid for twice the number of years the soldier had served at the time of separation.  Soldiers approved for VSI must be appointed, enlisted, or transferred to the Ready Reserve for the entire period they received VSI annual payments.  The VSI annual payments would be discontinued if the soldier is separated from the Ready Reserve.  However, if the soldier becomes ineligible to continue to serve in the Ready Reserve, the soldier will be transferred to the standby Reserve or the Retired Reserve and continue to receive annual VSI payments for the remaining period authorized for VSI.

7.  According to AR-PERSCOM policy, Reserve officers who are receiving VSI benefits and are two time non-select for promotion, are offered the option of discharge (which results in the loss of VSI benefits) or transfer to the Retired Reserve and retention of VSI benefits.  These officers are notified of these options at the time that the are notified of two time non-selection.

CONCLUSIONS:

1.  Through lack of information and understanding of the provisions of VSI in a Reserve status, the applicant made an error that unintentionally resulted in his loss of VSI benefits to which he was entitled.  As a matter of justice and exception to policy, his 9 September 1998 discharge from the USAR should be voided, he should be reinstated in the IRR, his VSI benefits should be reinstated, and he should be provided his missed VSI annual annuity payments for January 2000, 2001, and 2002, if corrective action is not made in time to restore him to VSI status to provide the 2002 payment in a normal manner.

2.  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 for the individual concerned, as an exception to policy, by:

	a.  voiding ARPC-PSP-T-10 Orders D-09-858814, dated 9 September 1998, discharging him from the USAR;

	b.  reinstate him in the IRR;

	c.  reinstate his VSI benefits; and 

	d.  provide him VSI annual annuity payments for January 2000, 2001, and 2002.

BOARD VOTE:  

___ao__  ___jm__  ___le___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		__Arthur A. Omartian____
		        CHAIRPERSON

INDEX

CASE ID	AR2001059910	
SUFFIX		
RECON		
DATE BOARDED	20011227	
TYPE OF DISCHARGE	HD	
DATE OF DISCHARGE	19981209	
DISCHARGE AUTHORITY	AR 135-175	
DISCHARGE REASON	Individual Request	
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	110.03 – Reinstatement	
2.	128.22 – Special Separation Pay	
3.		
4.		
5.		
6.