RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2021-01970

XXXXXXXXX	COUNSEL: NONE
	
	HEARING REQUESTED: NO 

APPLICANT’S REQUEST

He be eligible to receive her Continuation Pay (CP) under the Blended Retirement System (BRS).

APPLICANT’S CONTENTIONS

He was denied payment of Continuation Pay (CP) under the Blended Retirement System (BRS), but according to Public Law, he is still eligible.  After the Air Force Total Force Service Center (TFSC) told him that he was no longer eligible because his election was not submitted prior to the start of his 12th year of service, he has found no clear statement to support their claim.  The applicant contends that the decision to deny his payment of CP should be reversed based on the following excerpts from current standing laws and policies governing the BRS program:  

- AFI 36-3012, "4.2.1. Timing: Continuation payment will be offered at 12 years of service as determined by the pay date. (T-1)" 

- BRS Combined Policy Document (Oct 2020) "8.f. Timing: The Secretary concerned will pay continuation pay to eligible members, in accordance with section 8.b., no earlier than upon completion of 8 years of service and no later than upon completion of 12 years of service, as calculated from that member’s PEBD..." 

- PL 114-328 (NDAA FY17) Continuation Pay.--Subsection (a) of section 356 of title 37, United States Code, is amended--(1) by striking paragraph (1) and inserting the following  new paragraph (1):``(1) has completed not less than 8 and not more than 12  years of service in a uniformed service." 

In response to these three policies, the applicant states that he is not currently in his 12th year, and will complete his 12th year on 23 December 2021, as determined by his pay date. There is no mention of denial of CP based on elections made during the 12th year of service, nor is there any comment on election submission prior to the start of the 12th year.”

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is an active duty Air Force captain (O-3).  

The Military Personnel Data System (MilPDS) shows that the applicant’s actual “Pay Date” (also referred to as the Pay Entry Base Date [PEBD]) is 23 December 2008.  Since he had less than 12 years of service as of 31 December 2017, he was eligible to opt-in to the Blended Retirement System and did so on 17 August 2018.  Furthermore, under the Blended Retirement System, the applicant was eligible for Continuation Pay, provided his election was made prior to the 12th anniversary of his “Pay Date” (23 December 2020).   

On 16 Mar 21, according to “Continuation Pay Statement of Understanding and Election,” provided by the applicant, he requested Continuation Pay.  On 1 Apr 21, his commander approved his request; however, the request was initiated after the 23 December 2020 anniversary date of his 12th year from his Pay Date.  

For more information, see the excerpt of the applicant’s record at Exhibit B and the advisory at Exhibit D.

APPLICABLE AUTHORITY/GUIDANCE

General Blended Retirement System Guidance:  Sections 631 through 635 of Public Law 114-92, the National Defense Authorization Act for Fiscal Year 2016, amended in Public Law 114-80, National Defense Authorization Act for Fiscal Year 2017.

On 27 January 2017, the Deputy Secretary of Defense implemented guidance for the newly created retirement system for the Uniformed Services, which was enacted in the 2016 National Defense Authorization Act for Fiscal Year 2016.  This system, called the Blended Retirement System combines the traditional legacy retirement pension, also known as a defined benefit, with a defined contribution benefit into a Thrift Savings Plan.  The Blended Retirement System went into effect on 1 January 2018.  

Active component Service members with fewer than 12 years of service as of 31 December 2017, calculated from their Pay Entry Base Date [PEBD] (for the Air Force it is referred to as the “Pay Date”), and members of the National Guard or Reserve who have accrued fewer than 4,320 points as of 31 December 2017, are also grandfathered under the current retirement system but may choose to opt-in to the Blended Retirement System.  

Guidance on Continuation Pay: In accordance with AFI 36-3012, Military Entitlements, Chapter 4, Continuation Pay and Personnel Services Delivery (PSD) Guide, Blended Retirement System (BRS) Continuation (CP) Execution, Organization, and Responsibilities: 

Members of the Uniformed Services who are covered by the Blended Retirement System are eligible to receive a one-time, mid-career bonus payment in exchange for an agreement to perform additional obligated service. The amount is determined by applying a multiplier to the member’s monthly base pay. For RegAF Airmen, the multiplier is 2.5 and for ANG or AFR Airmen, the multiplier is 0.5.

Service members eligible to receive continuation pay must have completed not less than 8 and not more than 12 years of service, as computed from the members Pay Entry Base Date (otherwise referred to in the Air Force as the “Pay Date”).  In addition, the member must complete the Statement of Understanding and Election (SOU), obtain their commander’s approval for Continuation Pay, and commit to a four year military service obligation. The election for Continuation Pay must be made prior to the member’s 12th year of service based on pay date but no earlier than 90 days in advance.

According to a myPers article, Blended Retirement System Continuation Pay, updated on 12 March 2021, “Airmen will be notified of their potential eligibility for BRS CP and receive a BRS CP Election SOU via myPers messaging starting approximately 90 days prior to the potential BRS CP effective date.”  In addition, the Continuation Pay fact sheet pulled from myPers states that notification for Continuation Pay will start 60 days before a member’s 12th year of service.

For more information, see Exhibit C.

AIR FORCE EVALUATION

HQ AFPC/DPSSM, recommends denying the application.  On 30 August 2020, the applicant acknowledged his eligibility for Continuation Pay via myPers, which provided the required documents and submission requirements.  On 16 March 2021, the applicant opened a separate myPers incident and inquired how to submit his BRS Statement of Understanding.  In response to the applicant’s inquiry he was notified that he had missed his 12 year service anniversary and was no longer eligible to elect CP.  

While the applicant claims that the NDAA 2017 memo was unavailable and that Air Force policies did not align, this is incorrect.  The NDAA 2017 was created to establish the BRS. The memo delegated authority to each service secretary to create guidance specific to their service. That initiated the creation of AFI 36-3012 with the information regarding Continuation Pay.  

The fact is that the applicant did not sign their SOU electing Continuation Pay before his 12 year pay date anniversary.  

The complete advisory opinion is at Exhibit D.

APPLICANT’S REVIEW OF AIR FORCE EVALUATION

The Board sent a copy of the advisory opinion to the applicant on 13 January 2022 for comment (Exhibit E), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was timely filed.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is not the victim of an error or injustice.  The Board concurs with the rationale and recommendation of HQ AFPC/DPSSM and finds a preponderance of the evidence does not substantiate the applicant’s contentions.  Therefore, the Board recommends against correcting the applicant’s records.

RECOMMENDATION

The Board recommends informing the applicant the evidence did not demonstrate material error or injustice, and the Board will reconsider the application only upon receipt of relevant evidence not already presented.

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2021-01970 in Executive Session on 15 March 2022:

, Panel Chair
, Panel Member
, Panel Member

All members voted against correcting the record.  The panel considered the following:

Exhibit A:	Application, DD Form 149, w/atchs, dated 25 May 2021.
Exhibit B:	Documentary evidence, including relevant excerpts from official records.
Exhibit C:	Blended Retirement System Guidance.
Exhibit D:	Advisory opinion, HQ AFPC/DPSSM, dated 16 December 2021.
Exhibit E:	Notification of advisory, SAF/MRBC to applicant, dated 13 January 2022.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings, as required by AFI 36-2603, paragraph 4.11.9.