RECORD OF PROCEEDINGS

	IN THE CASE OF

	BOARD DATE:          4 March 2004                   
	DOCKET NUMBER:  AR2003086144

	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. Klaus P. Schumann		Analyst	

  The following members, a quorum, were present:

	Ms. Kathleen A. Newman		Chairperson	
	Mr. Kenneth L. Wright		Member	
	Mr. Eric N. Andersen		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).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:  

1.  The applicant requests, in effect, an audit of his records to determine if the  $23,000 debt to the government is appropriate and if not to relieve the debt.

2.  The applicant states, in effect, that he was misinformed about his correct Mandatory Retirement Date (MRD) and that he based financial decisions based on this information.  Specifically, he states, that had he known his correct MRD, he would have negotiated a three-year contract for Medical Additional Special Pay (MASP) and Mutli-year Special Pay (MSP)/Multi-year Incentive Special Pay (MISP), instead of a two-year contract.  He states that this action would have prevented the debt he currently owes to the Defense Finance and Accounting Service (DFAS) since he would have been entitled to an additional year of MASP and MSP/MISP.

3.  The applicant provides, in support of his application, a request for medical corps MSP, dated 15 October 2001, a request for MISP agreement in conjunction with MSP, dated 15 October 2001, and a Leave and Earnings Statement (LES), dated October 2002.

CONSIDERATION OF EVIDENCE: 

1.  The applicant received his commission through the Reserve Officer Training Corps and initially entered active duty on 9 July 1976 for a four-year period.  Subsequently, he entered medical school for the period 21 August 1986 through 28 May 1990.  Upon completion of training he reentered active duty on 17 June 1990.

2.  The applicant provided copies of two requests, which show that he requested medical corps MSP and MISP in conjunction with MSP on 15 October 2001 for a two-year period from 1 October 2001 through 30 September 2003.  However, these requests were returned to the applicant without action because they exceeded his MRD, which made him ineligible to enter into a contract for the period he requested.  

3.  In the processing of this case, an advisory opinion was obtained from the Office of the Army Surgeon General, AMEDD Special Pay Branch.  It shows that the applicant entered into a two-year MISP contract with an annual payment of $14,000 and a two-year MSP contract with an annual payment of $9,000 for the period 1 October 1999 through 30 September 2001.  Additionally, the advisory opinion stated that this contract period actually ran for an additional nine-month period through 30 June 2002, due to a previously unfulfilled contract from a prior period.

4.  The advisory opinion also shows that on 26 February 2002, the applicant requested an extension of his MRD, which was subsequently approved and extended his MRD from 30 June 2002 to 30 June 2004.

5.  The advisory opinion shows that based on the extension of the applicant's MRD to 30 June 2004, he requested renegotiation of his contract, which was approved for a two-year MISP contract with an annual payment of $15,000 and a two-year MSP contract with an annual payment of $12,000 for the period 1 July 2002 through 30 June 2004.  

6.  The advisory opinion states that the DFAS paid the applicant for three-years of an MISP/MSP contract which was established for a two-year period from 
1 October 1999 through 30 September 2001.  Upon recognizing their error, the DFAS imposed a debt against the applicant for $23,000, for a one-year overpayment of MISP and MSP for this period.

7.  However, the advisory opinion also indicates that the applicant is entitled to a prorated payment of $11,250 for an Incentive Special Pay (ISP) with an annual payment of $15,000 for the period 1 October 2001 through 30 June 2002 for which he was not paid.

8.  The applicant provides an Officer Records Brief (ORB), dated 12 July 2000, which shows his MRD as 30 June 2002.  The applicant provides a corrected ORB, dated 8 October 2003, which shows his MRD as 1 May 2006.

9.  The applicant's military records contain a statement of service (DA Form 1506), dated 21 June 1990, which shows that his basic active service date (BASD) is 17 June 1986.

10.  Army Regulation 600-8-24 (Officer Transfers and Discharges) prescribes policies and procedures governing transfer and discharge of officer personnel.  Chapter 2 of this regulation sets forth the tasks, rules, and steps for the Release From Active Duty (REFRAD) of Reserve Component (RC) officers.  Paragraph 
2-25 states that RC officers will be released from AD when he or she completes 20 years active federal service (AFS). These officers may request voluntary retirement under 10 USC 3911, provided they have 10 years commissioned service.

11.  Title 37, United States Code, Sections 301d, 302, 302f, and 303a provide for multiyear retention bonuses and special pays for medical officers and health professionals of the Armed Forces.  For Army Medical Corps Officers (Physicians), these special pays are:  1) Variable Special Pay (VSP), which is paid to all Medical Corps Officers monthly upon entry on active duty; 2) Board Certification Pay (BCP), which is paid monthly to all board certified Medical Corps Officers based upon their date of board certification and their creditable service used to establish the Health Professional Pay Entry Date (HPPED);  
3) Medical Additional Special Pay (MASP), which is paid to all Medical Corps Officers upon completion of internship (not during initial residency) at the current rate of $15,000 (less taxes) for a one year active duty obligation that can be served concurrently with all other obligations; 4) Incentive Special Pay (ISP), which is paid based on a variable rate to selected Medical Corps Officers who hold the specialties eligible to receive this pay for a one year active duty obligation that may be served concurrently with all other obligations; and  
5) Multiyear Special Pay (MSP), which is paid based on execution of a contract for 2, 3, or 4 years of active duty to selected Medical Corps Officers based on their specialty.  This pay is authorized concurrently with Medical Additional Special Pay and Incentive Special Pay.

12.  Multi-year retention bonuses and special pays for medical officers, as authorized under selected provisions of Title 37 United States Code and the Assistant Secretary of Defense (Health Affairs) Medical Officer Special Pay Plan, are implemented by the Surgeon General of the Army in an annual message, subject:  Army Medical Corps Officer Special Pay Policy, Plan and Rates.  This message establishes, among many requirements, the specialties eligible for and rates for special pays, active duty obligation requirements and the Department of the Army policies governing the five special pays for active duty Medical Corps Officers.  

DISCUSSION AND CONCLUSIONS:

1.  Evidence of record indicates that the applicant's MRD was incorrectly established and that this impacted his ability to negotiate and enter into incentive pay contracts that were the most financially advantageous to him.

2.  The applicant contends that he was misinformed in regards to his established MRD and had he known his correct MRD, he would have renegotiated a 
three-year contract for MASP and MSP/MISP for the period 1 October 2000 through 30 September 2003, instead of opting for a two-year contract for a shorter period.  The AMEDD Special Pay Branch advisory opinion confirms that the applicant was denied a three-year contract for this period because it exceeded the incorrect MRD entered on his record.  

3.  Regulatory guidance states that as a RC Lieutenant Colonel (LTC), the applicant is authorized to serve on active duty until he attains twenty-years of active federal service which at a minimum in this case should have established the applicant's MRD as 16 June 2006.  Therefore, given that his official MRD was incorrect at the time he requested a three-year contract for MSP/MSIP and given that an incorrect MRD was the cause for his request for a three-year contract to be denied, it is appropriate to grant his request for a three-year Multi-year Special Pay contract for the period 1 October 2000 through 30 September 2003.

4.  The advisory opinion in this case obtained from the Office of the Surgeon General states that the applicant did not receive Incentive Special Pay for the period 1 October 2001 through 30 June 2002.  Therefore, the applicant is entitled to a payment of $11,250 for this nine-month period.

BOARD VOTE:

_KAN____  __KLW___  __ENA__    GRANT RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant a recommendation for relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by showing that his request for a Multi-year Special Pay contract for three years from 1 October 2000 through 30 September 2003 was approved, with any applicable adjustments in pay based on changes to prior and subsequent contracts. 

		Kathleen A. Newman
		   CHAIRPERSON

INDEX

CASE ID	AR2003086144	
SUFFIX		
RECON		
DATE BOARDED	2004/03/04	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.MSP	128.2100.0000	
2.		
3.		
4.		
5.		
6.