PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:  11 July 2002
	DOCKET NUMBER:  AR2002067244

	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. Ted S. Kanamine		Chairperson	
	Mr. Harry B. Oberg		Member	
	Mr. John T. Meixell		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 placed in the Retired Reserve and that his Voluntary Separation Incentive (VSI) payments be reinstated and paid from 1998 to the present.

3.  The applicant states, in effect, that he was erroneously discharged from the 
U. S. Army Reserve (USAR) Individual Ready Reserve (IRR) and thereby lost his VSI status and annual VSI payments.  He was medically disqualified for retention and should have been transferred to the Retired Reserve and continue to receive his VSI payments under the provisions of the VSI program.

4.  The applicant’s military records show that he was honorably discharged from the Regular Army on 14 August 1992, as a staff sergeant (pay grade E-6) with 
a total of 19 years, 1 month, and 15 days active service.  His DD Form 214 (Certificate of Release or Discharge from Active Duty) for the period ending 
14 August 1992, block 18 (Remarks), shows that he was authorized VSI payments for 30 years.  Under the provisions of the VSI program, he was enlisted in the USAR on 15 August 1992, for a term of 6 years.  He maintained the required Reserve affiliation and received his annual VSI payments through 1997. On 21 July 1998, he was discharged from the USAR at the expiration of his term of service and his VSI payments were terminated.  The applicant had been unaware of his pending discharge and requirement to reenlist.  The U. S. Army Reserve Personnel Command (AR-PERSCOM) took action to reinstate the applicant with an antedated reenlistment.  In securing the required physical evaluation, the applicant was found not medically qualified for retention.  The applicant's 21 July 1998 discharge was voided by AR-PERSCOM on 26 April 2002.  On 9 May 2002, AR-PERSCOM transferred the applicant to the Retired Reserve, effective 15 August 1998, due to medical disqualification.

5.  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. A soldier can loose affiliation status by failing to maintain a valid enlistment contract in the Army Reserve, failing to maintain a valid address, failing to respond to official correspondence, failing to maintain a current physical examination, receiving an involuntary separation action that is considered to be the soldier’s fault; or, as an officer, resigning a commission.  When a soldier looses Reserve affiliation, VSI payments cease.  VSI recipients 

may leave an active Reserve status as a result of involuntary separation actions not considered the soldier's fault and continue to receive VSI payments.  The VSI recipients will normally be transferred to the Retired Reserve.  The following are situations when the soldier may continue to receive payments: passed over two times for promotion (officers), not medically qualified for retention, reached Mandatory Removal Date (MRD), reached the maximum age for the grade held, or qualified for age 60 Reserve retirement.  The Defense Finance and Accounting Service - Cleveland Center makes annual payments after verification that the soldier has a proper Reserve status.  The Army Reserve Personnel Command (AR-PERSCOM) Transition and Separations Branch confirms a soldier’s Reserve status.

6.  On 21 June 2002, a letter was sent to the applicant informing him that 
AR-PERSCOM had voided his 21 July 1998 discharge order and had transferred him to the Retired Reserve due to medical disqualification.  The letter also informed him that this Board would take action on his request for VSI payments and offered him opportunity for comment.  As of the meeting of the Board, the applicant has not provided additional comment.

CONCLUSIONS:

1.  The applicant was authorized to receive VSI payments and did so through 1997.  In 1998, he was discharged through administrative oversite.  The discharge was revoked and he was transferred to the Retired Reserve, effective 15 August 1998, due to being medically disqualified.  Under the provisions of VSI, he should be provided VSI payments from 1998 to the present and continue to receive VSI payments.

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 providing him a lump sum VSI payment for 1998, 1999, 2000, 2001, and 2002, and continue to provide him future VSI payments according to the provisions of the VSI program.

BOARD VOTE:  

__tk___  ___ho_____  __jm___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Ted S. Kanamine__
		        CHAIRPERSON

INDEX

CASE ID	AR2002067244	
SUFFIX		
RECON		
DATE BOARDED	20020718	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	136 – Retirement/Separation	
2.		
3.		
4.		
5.		
6.