PROCEEDINGS

	IN THE CASE OF:       

	BOARD DATE:            13 April 2000
	DOCKET NUMBER:   AR1999029471

	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. Joseph A. Adriance 		Analyst	

The following members, a quorum, were present:

	Mr. Fred Eichorn		Chairperson	
	Ms. Celia L. Adolphi		Member	
	Ms. Sherri V. Ward		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 indebtedness of $8,097.01, which resulted from an incorrect Separation Program Designator (SPD) code being listed on his  DD Form 214 (Certificate of Release or Discharge From Active Duty), be remitted. 

3.  The applicant states, in effect, that the SPD code listed on his DD Form 
214 is JCC , but that personnel from the Defense Finance and Accounting Service (DFAS) has indicated that the SPD contained in his military record is 
K22 and that he would have to apply to this Board for a correction to this item.  

4.  The applicant’s military records show that he continuously served on active duty, from 2 November 1983 until 30 September 1992 (8 years, 9 months, and 
10 days), at which time he was honorably discharged in the rank of private/E-1.

5.  On 21 September 1992, Orders Number 255-4, issued by the 369th Personnel Services Company, APO AE 09169, assigned the applicant to the United States Army Transition Point, Fort Jackson, South Carolina, for the purpose of discharge processing.  The special instructions of this order contained a statement that indicated that the applicant was authorized only half separation pay, in accordance with Title 10, Untied States Code, Section 1174 
(10 USC 1174).

6.  On 2 October 1992, a 1st endorsement to Orders Number 255-4 was published, by the commander of the 369th Personnel Services Company, which amended the portion of the orders pertaining to separation pay.  This amendment authorized the applicant full separation pay at the rate of 10% based on his rank of private/E-1 and his total active federal service of 8 years and 9 months.  

7.  The DD Form 214 issued the applicant, at the time of his discharge, verifies that he was discharged from active duty, under the provisions of paragraph 16-8, Army Regulation 635-200, by reason of the qualitative retention program.  His separation was based on his being ineligible to reenlist because he had reached the established retention control point (RCP) for soldiers in pay grade E-1.  The applicant’s separation orders authorized separation pay in accordance with 
10 USC 1174, and Block 18 of the DD Form 214 contained the proper remarks authorizing full separation pay.

8. The DD Form 214 also included the authorization for separation pay in the amount of $8,249.85 and verified that the applicant had completed his first full term of service.  The reason for separation was listed as qualitative retention program.  The DD Form 214 also contained, in block 26 (Separation Code), the SPD code of JCC, which authorizes full separation pay.  

9.  The evidence of record includes a letter to the applicant from the Debt and Claims Directorate of the DFAS, Denver, Colorado, dated 16 March 1999.  This letter states that the SPD code contained in the applicant’s military record is 
K22 and the SDP code contained on his DD Form 214 is JCC.  They state that in order for the applicant to get credit for separation pay, he would have to apply to this Board for a correction to his records. 

10.  Department of the Army (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 strength limitations or budgetary constraints or those who are ineligible for reenlistment based on having reached the retention control point (RCP) for their grade, who have completed their first full term of service; and have completed over 6 years of active service are eligible for full separation pay.  

11.  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 be used for soldiers who are discharged involuntarily, under the provisions of paragraph 16-8 of Army Regulation 635-200,  based on reduction in force, strength limitations, or budgetary restraints, which is the category of separation that applies to those members discharged as a result of the qualitative retention program.  

CONCLUSIONS:

1.  After a careful of examination of the evidence or record, the Board concluded that the applicant was eligible for full separation pay at the time of his separation. The evidence of record indicates that he met the regulatory prerequisites for full separation pay, based on his having completed his first full term of service; his having completed over 6 years of active service; and because he was involuntarily discharged as a result of being ineligible to reenlist based on the RCP for his grade.

2.  The records also show that the applicant was involuntarily discharged as a result of the qualitative retention program because he had exceeded the years of service allowed by the retention control point for his grade.  This clearly establishes that the SPD code of JCC, contained in block 26, of the applicant’s DD Form 214, as the proper SPD code assignment at the time.  Further, this verifies that the applicant was entitled to full separation pay at the time of his discharge.

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 showing that the individual concerned was authorized full separation pay at the time of his discharge.

2.  That any debt incurred by the individual concerned , as a result of a government collection of any portion of the full separation pay he was authorized at discharge, be remitted.  

BOARD VOTE:  

___sw___  __fe____  ___cla___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		______Fred Eichorn______
		        CHAIRPERSON

INDEX

CASE ID	AR1999029471	
SUFFIX		
RECON		
DATE BOARDED	2000/04/13	
TYPE OF DISCHARGE	HD	
DATE OF DISCHARGE	1992/09/30	
DISCHARGE AUTHORITY	AR 635-200 C16	
DISCHARGE REASON	RCP Strength Limitations/Budget Constraints	
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1. 293	128.1000	
2.  291	128.0800	
3.		
4.		
5.		
6.