PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:  8 October 2002
	DOCKET NUMBER:  AR2002071483

	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:

	Ms. Jennifer L. Prater		Chairperson	
	Mr. James E. Anderholm		Member	
	Mr. Melvin H. Meyer		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 he be reenlisted in the U. S. Army Reserve and that he be provided his Voluntary Separation Incentive (VSI) payments from June 2001.

3.  The applicant states that he did not enlist in the Ready Reserve upon separation from the Regular Army because he was not instructed to do so.  As a condition for receiving the VSI, he has a Reserve obligation until 10 May 2024 and should not have been discharged in March 2000.

4.  The applicant’s military records show that as a sergeant, pay grade E-5, he reenlisted in the Regular Army on 26 October 1994, for a period of 4 years.  A 
DD Form 214 (Certificate of Release or Discharge from Active Duty) shows that on 30 June 1998, he was honorably released from the Regular Army under the early release program with VSI as authorized by Army Regulation 635-200, paragraph 16-8, and transferred to the USAR Control Group (Reinforcement).  The DD Form 214 shows that he was authorized VSI payments of $6774.06 for 
25 years and that his Reserve obligation termination date is 10 May 2024.

5.  He received VSI payments of $6774.06 in 1998 upon release from the Regular Army and on the anniversary of his release in 1999 and 2000.  He did not receive his VSI payment in 2001 or 2002.

6.  On 21 March 2000, the U. S. Army Reserve Personnel Command honorably discharged the applicant from the USAR Control Group (Reinforcement) due to the expiration of his enlistment.  An entry in the Reserve automated management system dated 5 April 2000, states, "Soldier was automatically discharged when his ETS was up.  Soldier is a VSI recipient and should not have been discharged."

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 VSI.  The VSI pays an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay at separation from the active Army multiplied by the soldier's 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 that they receive VSI annual payments.  A VSI recipient must remain eligible for retention or reenlistment in the Ready Reserve by maintaining Army weight standards, completing a military physical examination every five years, keeping their residence address and phone number updated at the Army Reserve Personnel Command (AR-PERSCOM), and responding to all official written and telephonic correspondence from AR-PERSCOM.  Enlisted VSI recipients must reenlist at 

the end of each term of service.  If the VSI recipient fails to remain eligible or reenlist, the soldier will be separated from the Reserve and the VSI annual payments will be discontinued  If a VSI recipient becomes ineligible to continue to serve in the Ready Reserve, through no fault of his or her own, the soldier will be transferred to the Retired Reserve and continue to receive annual VSI payments for the remaining period authorized for VSI.  At age 60, the VSI recipients will automatically be transferred to the Retired Reserve and continue to receive annual VSI payments for the remaining period authorized for VSI.

8.  Army Regulation 140-111 (U. S. Army Reserve Reenlistment Program), paragraph 5-15, authorizes antedating reenlistment agreements to avoid a break in service when reenlistment has been delayed through administrative error or through no fault of the soldier.  The soldier must meet Army weight standards and have a current (within five years) qualifying military physical to be reenlisted.

CONCLUSIONS:

1.  The applicant is authorized to receive VSI payments each year until 10 May 2024.  He should have been provided reenlistment documents to reenlist in the Reserve on or about 26 October 1998, instead of being discharged on 21 March 2000.  He should now be reenlisted, antedated effective 26 October 1998, so that there is no break in service.  He should be given waivers for weight standards and current military physical as required, as an exception, in order to restore his VSI status and correct the error of him being discharged.  His term of enlistment should expire on 25 October 2003.  He should be entered into the process to qualify for reenlistment on 26 October 2003.  He should be provided his VSI payments for 2001 and 2002 and reinstated for annual VSI payments.

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

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected for the individual concerned, as an exception, by:

	a.  reenlisting him for a five year term of service in the Reserve, antedated effective 26 October 1998, with waivers for weight standards and current military physical as required;

	b.  revoking his 21 March 2000 order for discharge from the Reserve;

	c.  reinstating his VSI payments; and

	d.  providing him VSI payments for 2001 and 2002.

BOARD VOTE:  

__jp___  ___ja___  ___mm___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		____Jennifer L. Prater____
		        CHAIRPERSON

INDEX

CASE ID	AR2002071483	
SUFFIX		
RECON		
DATE BOARDED	20021008	
TYPE OF DISCHARGE	HD	
DATE OF DISCHARGE	20000321	
DISCHARGE AUTHORITY	AR 135-178	
DISCHARGE REASON	ETS	
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	110.03 – Reinstatement	
2.	128.00 – Pay and Allowances	
3.		
4.		
5.		
6.