PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           23 March 2000                   
	DOCKET NUMBER:   AR1999032316

	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.  

	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Ms. Shirley L. Powell		Chairperson	
	Mr. Roger Able		Member	
	Mr. James E. Anderholm		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 that his transfer to the Retired Reserve be voided and he be reinstated in the Individual Ready Reserve.

3.  The applicant states that he was given erroneous information that led him to believe he could elect to retire in lieu of participation in the promotion process without affecting his Voluntary Separation Incentive (VSI) annuity payments.

4.  The applicant’s military records show that he entered active duty as a second lieutenant in 1976.  He applied for separation under the VSI program, agreed to serve in the ready reserve for the entire period the VSI would be received and he was released from active duty on 1 July 1992 after completing over 15 years of active service.

5.  On 11 February 1997, the applicant was apparently voluntarily assigned to the Retired Reserve.

6.  The VSI was an incentive program to assist in maximizing voluntary separations during the drawdown.  It was an annual annuity payment equal to 2.5 percent of the soldier’s annual basic pay multiplied by his years of service and paid for twice the number of years served.  Soldiers approved for VSI must have been appointed or transferred to the Ready Reserve for the entire period they receive VSI annual payments.  VSI payments would be discontinued if the soldier is separated from the Ready Reserve unless he died or became ineligible to continue to serve in the Ready Reserve due to medical or age limitations.  

CONCLUSIONS:

1.  The Board concludes the applicant was erroneously allowed to transfer to the Retired Reserve contrary to policy and resulting in his VSI payments being discontinued.

2.  In view of the foregoing, it would be in the interest of justice to correct the applicant’s records as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case be corrected by revoking orders C-02-705203, U. S. Army Reserve Personnel Center, dated 11 February 1997 and making null and void the applicant’s assignment to the Retired Reserve, thereby reinstating him in the Individual Ready Reserve.

2.  That the Defense Finance and Accounting Service be instructed to pay to the applicant any VSI payments due him as a result of the aforementioned correction.

BOARD VOTE:  

__slp___  __ra____  __jea___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Shirley L. Powell
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR1999032316	
SUFFIX		
RECON		
DATE BOARDED	20000323	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	135.03	
2.	128.14	
3.		
4.		
5.		
6.