PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:  4 February 2003
	DOCKET NUMBER:  AR2002073719

	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	
	Ms. Joyce A. Wright		Analyst	

  The following members, a quorum, were present:

	Mr. Melvin H. Meyer		Chairperson	
	Mr. Ronald J. Weaver		Member	
	Mr. Curtis L. Greenway		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 Voluntary Separation Incentive (VSI) payments be reinstated and that he be returned to a Ready Reserve status.

3.  The applicant states, in effect, that his VSI payments should be reinstated and his transfer to the Retired Reserve be revoked.  In support of his application, he submits a copy of his retirement orders, dated 9 November 2000.

4.  The applicant’s military records show he enlisted in the Regular Army on 24 July 1978.  He continued to serve until he was honorably discharged on 16 March 1992, under the provision of Army Regulation 635-200, paragraph 
16-8, Enlisted Voluntary Transition Program.  He had a total of 13 years, 7 months, and 23 days of creditable service.  Item 18 (Remarks) of his DD Form 214 states he would be paid VSI in the amount of $6,042.41.  He was transferred to the USAR Control Group (Reinforcement) Individual Ready Reserve (IRR).

5.  He enlisted in the Army Reserve on 17 March 1992, for a period of 3 years.  He continued to serve until he was honorably released on 21 October 1993, in order to enlist in the Florida Army National Guard (FLARNG).  

6.  He enlisted in the FLARNG on 22 October 1993.  

7.  On 2 August 2000, the FLARNG notified the applicant that he had completed the required years of service to be eligible for retired pay at age at 60 (20-Year Letter).  

8.  On 24 August 2000, the applicant requested assignment to the FLARNG Retired List with an effective date of 30 November 2000.

9.  The applicant's records contain a copy of his Army National Guard Current Annual Statement, dated 24 August 2000, which shows that he had completed 21 years of qualifying service for retirement purposes.

10.  On 30 November 2000, the applicant was honorably discharged from the FLARNG and was transferred to the USAR Control Group, Retired.

11.  Information provided by the Defense Finance and Accounting Service (DFAS) revealed that his last VSI payment was received on March 2001.

12.  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 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.  

13.  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.

CONCLUSIONS:

1.  The applicant was separated from active duty on 16 March 1992, under the VSI program and was to receive $6,042.41 a year for 26 years.  A condition of receiving the VSI payments was to remain in the Ready Reserve.

2.  The evidence of record shows that the applicant received his 20-Year Letter that shows that he was eligible for transfer to the Retired Reserve.  However, it is presumed that after receiving this letter he took what he believed to be the appropriate action and requested transfer to the Retired Reserve.  It was approved with an effective date of 30 November 2000.  There is no evidence in the available record that shows he was informed that voluntary transfer to the Retired Reserve terminates VSI.

3.  The Board notes that the applicant would not have knowingly created conditions that would have terminated his VSI payments.  Therefore, he should be reinstated in the IRR and his VSI payments reinstated.

4.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

Insofar as records of the Florida Army National Guard are concerned, the ABCMR recommends that the Adjutant General of the State of Florida amend the 9 November orders of the individual concerned to show that he was transferred to the USAR Control Group (Reinforcement), Individual Ready Reserve effective 30 November 2000.  

2.  That upon correction of the records as recommended in paragraph 1 above, the Defense Finance and Accounting Services:

	a.  Reinstate the VSI payments of the individual concerned.

	b.  Provide the VSI payment for 2002 and thereafter as long as the individual concerned remains eligible. 

BOARD VOTE:  

__mm__  ___rw___  ___cg___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		____Melvin H. Meyer__
		        CHAIRPERSON

INDEX

CASE ID	AR2002073719	
SUFFIX		
RECON		
DATE BOARDED	20030204	
TYPE OF DISCHARGE	HD	
DATE OF DISCHARGE	20001130	
DISCHARGE AUTHORITY	AR .arng 600-200, para 8-16 . . . .  	
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	1047	
2.	230	
3.		
4.		
5.		
6.