PROCEEDINGS

	IN THE CASE OF:           

	BOARD DATE:               4 September 2003
	DOCKET NUMBER:      AR2003086554

	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. Beverly A. Young		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O'Connor		Chairperson	
	Ms. Barbara J. Ellis		Member	
	Mr. Frank C. Jones		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 correction of his DD Form 214 (Certificate of Release or Discharge from Active Duty) to indicate that he declined involuntary separation pay.

3.  The applicant states that he refused to accept involuntary separation pay of $24,986.88 as reflected in Block 18 (Remarks) of his DD Form 214.  

4.  The applicant submitted a copy of his DD Form 214; a letter from the Veterans Affairs Office located in North Charleston, South Carolina; a Separation Pay Worksheet; and a memorandum in which he declines involuntary separation pay in support of his application.

5.  The applicant’s military records show that after having prior service in the Regular Army, he enlisted in the U.S. Army Reserve (USAR) on 26 June 1986.  He was voluntarily ordered to active duty in an Active Guard Reserve (AGR) status on 24 September 1989.  The applicant was later selected for separation from active duty under the Qualitative Management Program which qualified him for half separation pay.  On 8 July 2002, the applicant submitted a request for release from active duty with concurrent transfer to the Retired Reserve.  

6.  U.S. Army Reserve Personnel Command Orders C-07-291271, dated 29 July 2002 released the applicant from active duty and transferred him to the USAR Control Group (Reinforcement) with an effective date of 30 August 2002.  The special instructions on the separation orders state that the applicant was entitled to half separation pay per Title 10, United States Code Section 1174.  The separation orders also noted that soldiers "who receive separation pay based on service in the armed forces, and who subsequently qualify under 10 USC or 14 USC for retired or retainer pay, shall have deducted an amount equal to the total amount of separation pay not previously recouped.  This amount will be recouped from each payment of retired or retainer pay until the total amount deducted is equal to the total amount of separation pay received."

7.  The applicant provided a memorandum dated 19 August 2002 in which he acknowledged that he was entitled to half separation pay and that he declined separation pay due to anticipation of repaying taxes, the effect it would have on his retirement, and the greater risk of financial hardship.  He further requested his DD Form 214 indicate "Soldier decline separation pay."

8.  Block 18 on the applicant's DD Form 214 shows the entries: "SEPARATION PAY - -$24986.88" and "MEMBER IS ENTITLED TO HALF INVOLUNTARY SEPARATION PAY."  

9.  The applicant provided a Separation Pay Worksheet prepared on 22 August 2002.  This document does not show that the applicant received involuntary separation pay.

10.  The applicant's Leave and Earnings Statement for the period 1 to 30 August 2002 obtained from the Defense Finance and Accounting Service (DFAS) shows he had separation pay in the amount of $2,489.08 deducted from his pay.  There is no evidence of record which shows the applicant received half involuntary separation pay in the amount of $24,986.88.

11.  Army Regulation 635-5 (Separation Documents) in pertinent part states that a soldier receiving separation/readjustment or non-disability severance pay (as indicated by the finance office) will have the type of pay and amount entered in item 18 (Remarks).  

CONCLUSIONS:

1.  The Board notes that the regulation specifically requires an entry in item 18 only when a soldier receives separation/readjustment or non-disability severance pay.  There is no required entry when a soldier is authorized separation pay but declines to, and does not, receive it.

2.  The Board concludes that therefore the entry in the applicant's DD Form 214 regarding his separation pay is clearly misleading.  Although not provided for in regulation, it would be equitable to amend his DD Form 214 as an exception to policy to delete entry "SEPARATION PAY- -$24986.88" and to amend the entry "MEMBER IS ENTITLED TO HALF INVOLUNTARY SEPARATION PAY" to add "BUT DECLINED TO ACCEPT, AND WAS NOT PAID, HALF INVOLUNTARY SEPARATION PAY."

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:

a.  by deleting the entry "SEPARATION PAY- -$24986.88" from item 18 of the applicant's DD Form 214; and

b.  by amending the entry "MEMBER IS ENTITLED TO HALF INVOLUNTARY SEPARATION PAY" to add "BUT DECLINED TO ACCEPT, AND WAS NOT PAID, HALF INVOLUNTARY SEPARATION PAY."

BOARD VOTE:  

RVO____  BJE_____  FCJ_____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		Raymond V. O'Connor___
		        CHAIRPERSON

INDEX

CASE ID	AR2003086554	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20030904	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY	Mr. Schneider	
ISSUES         1.	100.0000	
2.		
3.		
4.		
5.		
6.