PROCEEDINGS

	IN THE CASE OF:       

	BOARD DATE:            1 March 2000 
	DOCKET NUMBER:    AR1999032611

	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. George D. Paxson		Chairperson	
	Ms. Melinda M. Darby		Member	
	Mr. John Saputo 		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 the Separation Program Designator (SPD) code assigned her at separation be corrected on her DD Form 214 (Certificate of Release or Discharge from Active Duty). 

3.  The applicant states, in effect, that the Defense Finance and Accounting Service (DFAS) advised her by letter that she was in debt to the government.  The debt was based on the applicant having been assigned an SPD code of MBK on her DD Form 214, which did not authorize payment of separation pay. 

4.  The applicant’s military records show that she initially entered the Regular Army on 15 September 1988 and served on active duty continuously until she was released from active duty (REFRAD) on 26 September 1996.

5.  Her military records show that she was separated from the Regular Army, with an honorable characterization of service, on 26 September 1996, in the rank of specialist/E-4.  At the time of her REFRAD the applicant had completed 8 years and 26 days of active service and she had completed her first full term of service. 

6.  The DD Form 214 issued the applicant at the time of her separation documents that she was REFRAD, under the provisions of Chapter 4, 
Army Regulation 635-200, by reason of expiration of term of service (ETS).  Upon reaching her ETS the applicant was denied reenlistment because she had reached the established retention control point (RCP) for soldiers in pay grade 
E-4.  Her separation orders authorized full separation pay in accordance with Title 10 of the United States Code, Section 1174 (10 USC 1174), and Block 18 of the DD Form 214 issued her contained the proper remarks authorizing full separation pay. 

7.  The DD Form 214 also included an authorization for separation pay in the amount of $13,521.32 and verified that the applicant had completed her first full term of service.  The reason for separation was listed as completion of required service; however, the DD Form 214 contained the SPD code of MBK, which does not authorize separation pay. 

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 having reached 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 LCC be used for soldiers who are REFRAD after being denied reenlistment based on reduction in force, strength limitations, or budgetary restraints, which includes soldiers who are denied reenlistment based on having reached the RCP for their grade. 

CONCLUSIONS:

1.  The Board concluded that the applicant was eligible for full separation pay at the time of her separation.  The evidence of record indicates she met the regulatory prerequisites for full separation pay, based on her having completed her first full term of service and over 6 years of active service; and the fact that she was ineligible to reenlist based on having reached the RCP for her grade.

2.  The SPD code MBK contained in Block 27 of the applicant’s DD Form 214 is incorrect.  The SPD code assigned the applicant should have been LCC based on her eligibility for full 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 by assigning the individual concerned an SPD code of LCC, and correcting all her financial records to reflect that she was entitled to full separation pay at the time she was released from active duty.   

BOARD VOTE:  

__js___  __mmd___  ___gdp__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		____George D. Paxson_____
		        CHAIRPERSON

INDEX

CASE ID	AR1999032611	
SUFFIX		
RECON		
DATE BOARDED	2000/03/01	
TYPE OF DISCHARGE	HD	
DATE OF DISCHARGE	1996/09/26	
DISCHARGE AUTHORITY	AR 635-200 C4	
DISCHARGE REASON	ETS/RCP	
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1. 291	128.0800	
2. 189	110.0000	
3.		
4.		
5.		
6.