PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:  30 April 2002
	DOCKET NUMBER:  AR2001060082

	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. Thomas E. O'Shaughnessy		Member	
	Mr. Hubert O. Fry		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 Voluntary Separation Incentive (VSI) benefit be reinstated and that he be reinstated in the Individual Ready Reserve (IRR).

3.  The applicant states, in effect, that he received a letter from the Army Reserve Personnel Command (AR-PERSCOM) informing him that all his obligations to the USAR were satisfied and that he was eligible for an honorable discharge.  The letter stated that by checking the appropriate boxes shown on the letter and returning it to AR-PERSCOM, he would receive his honorable discharge.  The letter made no mention that by so doing, he would lose his VSI benefits.  He checked the box on the letter and returned it to AR-PERSCOM in the enclosed return envelope.  He did not keep a copy of the letter.  He then received his honorable discharge effective 17 April 2000.  He did not learn that his VSI payments had also been terminated until he did not receive the next VSI payment in June 2001.  He would not have requested discharge if he had been informed that it would terminate his VSI benefits.

4.  The applicant’s military records show that he was a U. S. Army Reserve (USAR) captain serving on active duty.  On 30 June 1993, he was honorably released from active duty and transferred to the IRR under the Early Release Program – VSI.  A provision of the VSI shown on his DD Form 214 (Certificate of Release or Discharge from Active Duty) was that he would receive $10,525.95 per year for 22 years.  He was promoted to major, USAR, effective 1 April 1994 with a date of rank of 28 July 1993.

5.  He was honorably discharged from the USAR on 17 April 2000, by 
AR-PERSCOM orders D-05-024485, dated 1 May 2000.

6.  An advisory opinion was provided by AR-PERSCOM that some IRR officers in receipt of VSI payments did receive erroneous letters directing them to either join a unit or request discharge but they do not have a record of sending the applicant one of the letters.  The applicant has not provided rebuttal to this opinion.

7.  The National Defense Authorization Act of Fiscal Year 1992, to assist in maximizing voluntary separation during the drawdown period of military forces, established a separation incentive called the Voluntary Separation Incentive (VSI).  The VSI paid an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay at separation multiplied by his 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 was separated from the Ready Reserve.  However, if the soldier became ineligible to continue to serve in the Ready Reserve, through no fault of his own, 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.

CONCLUSIONS:

1.  The applicant was separated from active duty on 30 June 1993, under the VSI program.  An incentive to voluntarily request early separation from active duty, was for the applicant to receive payment of $10,525.95 a year for 22 years.  A condition of receiving the VSI payments was to remain in the Ready Reserve.  However, by correspondence from AR-PERSCOM, the applicant was erroneously led to believe that he had satisfied his Ready Reserve obligation and was eligible for discharge.  He would not have knowingly created conditions that would have terminated his VSI payments.  He should be reinstated in the IRR and his VSI payments be reinstated.

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 by:

a.   revoking his 17 April 2000 discharge from the USAR and reinstating him in the IRR; 

b.  reinstating his VSI payments; and 

c.  providing his VSI payment for 2001.

BOARD VOTE:  

__ao___  __ts___  ___hf_____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Arthur A. Omartian___
		        CHAIRPERSON

INDEX

CASE ID	AR2001060082	
SUFFIX		
RECON		
DATE BOARDED	20020430	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	128.22 – Special Separation Pay	
2.		
3.		
4.		
5.		
6.