PROCEEDINGS IN THE CASE OF: BOARD DATE: 12 August 1998 DOCKET NUMBER: AC97-10224 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. The following members, a quorum, were present: Analyst The applicant and counsel if any, did not appear before the Board. The applicant requests correction of military records as stated in the application to the Board and as restated herein. 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 separation program designator (SPD) code be corrected. 3. The applicant states in effect, that he was separated because he was unable to reenlist based on the retention control point (RCP) for soldiers in grade E-4; that he was authorized full separation pay at the time of his separation; and that now finance indicates he was ineligible based on the SPD code contained on his DD Form 214. 4. The applicant initially entered the Regular Army on 11 October 1989 for a period of 3 years. He reenlisted for an additional 3 years, for his second term of service, on 9 July 1992, and extended that enlistment for 6 months on 4 August 1992. 5. The applicant’s military records show that he was separated from the Regular Army, with an honorable characterization of service, on 8 January 1996, in the pay grade of E-4. At the time of his separation the applicant had completed 6 years, 2 months, and 28 days of active military service. 6. The DD Form 214 (Certificate of Release or Discharge from Active Duty) issued the applicant at the time of separation documents that the applicant was released from active duty, under the provisions of paragraph 16-8, AR 635-200, by reason of reduction in force. The applicant’s separation was based on his being ineligible to reenlist, at the time his expiration of term of service, because of the established retention control point (RCP) for soldiers in pay grade E-4. The applicant’s separation orders authorized full separation pay in accordance with 10 USC 1174, and Block 18 of the DD Form 214 contained the proper remarks authorizing separation pay. 7. The DD Form 214 also included the authorization for separation pay in the amount of $9,521.28 and verified that the applicant had completed his first full term of service. The reason for separation was listed as reduction in force; however, the DD Form 214 contained the SPD code of MCC, which does not authorize separation pay. The applicant based on being ineligible to reenlist because of the RCP for his grade, having completed his first term of service, and over 6 years of active military service was authorized to receive full separation pay, under the provisions of DA Circular 635-92-1. 8. DA Circular 635-92-1 (Separation Pay) outlines the prerequisites for awarding separation pay. It states, in pertinent part, that soldiers who are denied reenlistment based on the RCP for their grade; who have completed their first full term of service; and have over 6 years of active service are eligible for full separation pay. 9. Army Regulation 635-5-1 (Separation Program Designator (SPD) Codes) contains the policy for standardization of certain entries on the DD Form 214. It further defines the SPD codes to be used and the authorities and reasons for their use and control. This regulation directs that the SPD Code of JCC/LCC be used for soldiers who are separated involuntarily based on reduction in force, strength limitations, or budgetary restraints. CONCLUSIONS: 1. The Board concluded that the applicant was eligible for full separation pay at the time of his separation. The evidence of record indicates he met the regulatory prerequisites for full separation pay, based on his having completed his first full term of service and over 6 years of active service; and the fact that he was ineligible to reenlist based on the RCP for his grade. 2. The SPD code MCC, contained in Block 27 of the applicant’s DD Form 214 is incorrect. The SPD code assigned the applicant should have been JCC/LCC based on the applicant’s eligibility for full separation pay and the narrative reason for separation being reduction in force. 3. In view of the foregoing, the applicant’s records should be corrected as recommended below. RECOMMENDATION: 1. That all of the Department of the Army records related to this case be corrected by assigning the individual concerned the SPD code JCC/LCC and issuing a corrected DD Form 214. 2. That all financial records of the individual concerned be corrected to reflect he was entitled to full separation pay at the time he was released from active duty. BOARD VOTE: ________ ________ ________ GRANT AS STATED IN RECOMMENDATION ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION ______________________ CHAIRPERSON