PROCEEDINGS

	IN THE CASE OF:     

	BOARD DATE:            23 April 2002                  
	DOCKET NUMBER:   AR2001062562

	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. Lee Cates		Analyst	

  The following members, a quorum, were present:

	Ms. Karol A. Kennedy		Chairperson	
	Mr. Mark D. Manning		Member	
	Mr. Thomas Lanyl		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  The applicant requests, in effect, that his records be corrected to show that his discharge from the Army Reserve was revoked and that he was reinstated into the Retired Reserve.

3.  The applicant states that he is requesting to be reinstated into the Retired Reserve or other required Reserve Component so that he may continue to receive his annual VSI (Voluntary Separation Incentive) payments.  He indicates he was passed over for promotion a second time and was honorably discharged from his Reserve status. He indicates he was not aware that he was being passed over and that failing to submit required documents would result in losing almost $10,000 in annual payments, which is a substantial amount of money.  He indicates that he has moved six times in the past nine years and spent most of 2000 in Guam and Japan and could have misplaced or not received the information requiring him to take action.

4.  The applicant’s military records show that he entered on active duty on         25 May 1983.  He served as an Artillery captain and was honorably discharged on 1 August 1993.  At this time, he was awarded VSI in the amount of $9,512.34 annually for 20 years, until the year 2013.

5.  On 26 January 2000, officials at Army Reserve – Personnel Command (AR-PERSCOM) notified the applicant of his non-selection for promotion by letter to his current address, with a suspense date of 3 March 2000.  

6.  On 31 March 2000, when no response was received, discharge orders for his honorable discharge were published to be effective 1 August 2000.

7.  On 1 August 2000, he was honorably discharged from the Army Reserve.

8.  Department of the Army Message (DAPE-MP) 2021002DEC91, Subject:  Voluntary Incentive Programs to support Army Draw down indicates, in pertinent part, that “VSI annual payments will be discontinued if the soldier is separated from the Ready Reserve unless one of the following conditions apply:  (a) In the event of the soldier’s death, VSI annual payments will continue to beneficiaries designated by the soldier for the remaining period authorized.  (b) In the event the soldier becomes ineligible to continue to serve in the Ready Reserve due to medical or age limitations, 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.”

9.  Department of Defense Financial Management Regulation (DODFMR) 7000.14-R (Military Pay Policy and Procedures Active Duty and Reserve Pay) indicates, in pertinent part, that “If the member becomes ineligible to continue to serve in the Ready Reserve due to medical, age, failure to select for promotion, or other reasons determined to be no fault of the member concerned, the member will be transferred to the Standby Reserve or the Retired Reserve of a Reserve component.  The member will continue to receive annual VSI payments for the remaining period authorized.

10.  Department of Defense Instruction 1215.19 indicates that eligible soldiers must request transfer to the Retired Reserve.

11.  Army Regulation 135-175 (Separation of Officers), paragraph 4-4 (16) requires that an eligible officer who does not elect to be transferred to the Retired Reserve within 30 days from the date he was advised that he is being removed from an active status will be discharged.

CONCLUSIONS:

1.  The applicant did not fulfill his responsibilities by keeping his Reserve unit advised of his whereabouts, as required; however, he did receive the notification that he was discharged and that his VSI was discontinued.

2.  Notwithstanding the requirements to discharge the soldier, the DODFMR shows that, “a member will be transferred to the Standby Reserve or the Retired Reserve of a Reserve component.”

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 AR-PERSCOM Letter Order Number D-03-019527, dated        31 March 2000, with an effective date of 1 August 2000, which effected the discharge of the individual concerned is void and that he was transferred to the Retired Reserve, effective 1 August 2000, with continued entitlement to VSI payments.

BOARD VOTE:  

__kak___  __mdm__  _tl_____    GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Karol A. Kennedy
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2001062562	
SUFFIX		
RECON		
DATE BOARDED	20020423	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	129.02	
2.		
3.		
4.		
5.		
6.