IN THE CASE OF: BOARD DATE: 9 February 2012 DOCKET NUMBER: AR20110015338 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests cancellation of the bonus debt against him. 2. The applicant states: * Officials at the Defense Finance and Accounting Service (DFAS) told him he did not fulfill his U.S. Army Reserve (USAR) reenlistment contract by 8 months * DFAS stated that the period of 8 months after he signed his reenlistment contract in Iraq did not fulfill his USAR contract * DFAS told him that since he was on active duty, his Reserve time was not accumulating * He was never an active duty Soldier; he has always been a USAR Soldier * He completed over 4 years of active service in a combat zone and he should not be penalized for being mobilized * He was never aware of who initiated the debt and why 3. The applicant provides: * DFAS letter, dated 16 September 2010 * Reserve/Guard Recoupment Worksheet * Wage Garnishment Order * DD Form 214 (Certificate of Release or Discharge from Active Duty) CONSIDERATION OF EVIDENCE: 1. The applicant enlisted in the USAR for 8 years on 17 April 2001. Item 32 (Specific Options/Program Enlisted for) of his DD Form 1966/3 (Record of Military Processing – Armed Forces of the United States) shows he enlisted for: * the standard training option in military occupational specialty (MOS) 88N (Transportation Management Coordinator) * MGIB and Kicker under the 6x2 (6 years in a troop program unit in the Selected Reserve and 2 years in the Individual Ready Reserve) * $3,000 enlistment bonus * Student Loan Repayment Program * Assignment to the 1188th Transportation Detachment 2. In connection with his enlistment in the USAR, he completed various documents, including a DA Form 5261-R (Selected Reserve Incentive Program - Enlistment Bonus Addendum) that show he enlisted for assignment to a unit authorized an enlistment bonus in an MOS that is authorized a bonus entitlement. He agreed to serve his initial 6 years in the bonus unit or in a bonus MOS. His bonus of $3,000 would be paid in three installments of 50 percent (%) initial, 25% on his second anniversary, and 25% on his fourth anniversary. 3. Based on his initial enlistment, his contractual agreement in the Selected Reserve was established as 16 April 2007 (6 years from the date he enlisted). 4. He entered active duty for training (ADT) on 29 October 2001 and he completed training for MOS 88N. He was released from ADT on 12 March 2002 to the control of his Reserve unit. 5. He was ordered to active duty on 19 February 2003 as a member of his Reserve unit, the 1188th Transportation Detachment, in support of Operation Enduring Freedom. He was honorably released from active duty on 21 March 2004. 6. He was again ordered to active duty on 1 September 2005 as a member of his Reserve unit, the 650th Transportation Detachment, in support of Operation Iraqi Freedom. He served in Kuwait/Iraq from 8 November 2005 to 8 October 2006. He was honorably released from active duty on 7 November 2006. 7. While in Iraq, he executed a 3-year reenlistment in the USAR on 14 September 2006. A copy of his DD Form 4 (Enlistment/Reenlistment Document - Armed Forces of the United States) is not available for review with this case. However, DFAS records show the reenlistment took place and that he reenlisted for a $7,500.00 reenlistment bonus. 8. His reenlistment on 14 September 2006 added 3 more years to his contractual obligation that would have ended on 16 April 2007. His adjusted contractual obligation in the Selected Reserve became 16 April 2010. 9. He was reassigned to the 570th Movement Regulation Team, another troop program unit of the USAR. He remained with this unit until he was discharged from the USAR on 13 September 2009, 8 months shy of his contractual obligation. A copy of his discharge orders is not available for review with this case. 10. On 16 September 2010, by letter, DFAS notified him that he owed the amount of $1,688.58 as a result of the recoupment of a portion of his reenlistment bonus. The recoupment worksheet shows he contracted for 36 months but he only served for 28 months. Accordingly, a pro-rated recoupment action was initiated against him. 11. On 26 May 2011, a Wage Garnishment Order was initiated against him. 12. An advisory opinion was obtained from the Office of the Deputy Chief of Staff, G-1, on 11 October 2011, in the processing of this case. An official recommended approval to cancel the applicant's debt. The official stated that the issue of bonus recoupment is discussed in various messages. To the extent permitted by law, personnel who receive a reenlistment bonus are affected by these messages. The intent is not to penalize the member who served in one capacity or another in events brought on by personnel actions. These messages give the services flexibility to cancel bonus-related debts caused by personnel decisions as a matter of equity. The applicant's case meets the equity test. 13. The applicant concurred with the advisory opinion. 14. DOD Financial Management Regulation 7000.14-R, Volume 7A provides for Selected Reserve Accession, Affiliation, Enlistment, and Reenlistment Bonuses. It states in section 560401 the Secretary concerned (or designee) may pay a bonus to an enlisted member of a Reserve Component after the following conditions are met: (a) Has completed not more than 20 years of total military service; and (b) reenlists or voluntarily extends his or her enlistment for a period of at least 3 years in a designated military skill, or in a designated unit, as determined by the Secretary concerned (or designee), in the Selected Reserve of the Ready Reserve of an Armed Force. 15. A Principal Deputy Under Secretary of Defense memorandum delegates to the Secretary concerned a determination on a case-by-case basis that bonus repayment will not be required, if it is determined that such repayment would be contrary to a personnel policy or management objectives, against equity and good conscience, or contrary to the best interest of the United States. DISCUSSION AND CONCLUSIONS: 1. The applicant contends the bonus debt against him should be cancelled due to the fact that he was deployed and he completed the tour for which he was activated. 2. He originally agreed to serve in the Selected Reserve for 6 years from April 2001 through April 2007 and he received an enlistment bonus for agreeing to serve 6 years in the Selected Reserve. Prior to completing this contractual agreement of 6 years in the Selected Reserve, specifically, 8 months prior, he reenlisted in the USAR for 3 years. He agreed to serve an additional 36 months in the Selected Reserve and received a $7,500 reenlistment bonus. 3. In order to satisfy the conditions of both contracts, he would have had to complete his original 6 years plus 3 additional years in the Selected Reserve, giving him an ETS of April 2010. He was discharged from the USAR in September 2009, 8 months shy of completing what he committed to. DFAS officials advised him that since he completed only 28 months (out of his 36 month reenlistment), he owed the amount of $1,688.58 to cover the un-served 8 months. 4. Nevertheless, as a matter of equity, based on the applicant's multiple mobilizations and subsequent combat service, and based on the appearance that repayment would be contrary to a personnel policy or management objectives, against equity and good conscience, or contrary to the best interest of the United States, the applicant's records should be corrected to show his debt was cancelled. BOARD VOTE: ___X____ ___X ___ ____X___ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined that the evidence presented was sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by showing his U.S. Army Reserve reenlistment bonus recoupment action was waived by the appropriate officials in a timely manner to the extent of allowing him to retain an additional 8 months of the bonus as "earned." __________X____________ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. ABCMR Record of Proceedings (cont) AR20110015338 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20110015338 5 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1