IN THE CASE OF: BOARD DATE: 12 January 2016 DOCKET NUMBER: AR20150005358 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, in effect, cancellation of his Career Status Bonus (CSB) debt, and reimbursement of monies already recouped in the amount of $30,000.00. 2. The applicant states, in effect: a. His CSB debt should be cancelled, and monies deducted from his account returned to him due to military and civilian errors from both the retirement and finance offices at Fort Sill, OK. b. During his processing for the CSB, he completed and signed DD Form 2839 (Defense Technical Information Center). He claims he was never informed that he was ineligible for CSB and it has caused a hardship for his family. c. The amount that was recouped was in error and he requests that this matter be reconciled with the utmost urgency due to this injustice. 3. The applicant provides: * A memorandum from the U.S. Army Human Resources Command (HRC) dated 28 November 2012 * DA Form 3508 (Application for Remission or Cancellation of Indebtnedness) * DD Form 2839 (CSB Election) * Enlisted Record Brief * A memorandum from the Defense Finance and Accounting Service (DFAS) dated 11 July 2012 * DD Form 139 (Pay Adjustment Authorization) * A memorandum from Headquarters 434th Field Artillery Brigade, Fort Sill, OK, dated 19 November 2012 * A memorandum from the U.S. Army Noncommissioned Officer Academy, Fort Sill, OK, dated 10 August 2012 * DA Form 2823 (Sworn Statement) dated 21 November 2012 CONSIDERATION OF EVIDENCE: 1. The applicant had prior service with the U. S. Marine Corps from 14 June 1988 to 13 June 1992 and with the Army National Guard from 1992 to 1996. 2. His Enlisted Record Brief (ERB) shows his Date of Initial Entry into Military Service (DIEMS) is 25 June 1987. 3. The evidence of record shows the applicant enlisted in the Regular Army (RA) on 21 November 1996. 4. On 12 April 2011, the applicant was offered and accepted a CSB in return for participating in the REDUX (reduced retirement plan) program. He elected to receive a single lump sum payment of $30,000.00. 5. In executing the DD Form 2839 at the Retirement Services Office (RSO) for review and processing, the applicant indicated that he understood the following: "…I make this election upon my attainment of 15 years of active duty service and having been determined eligible for the bonus by my Service. I understand that once the election is effective it may not be revoked. My election is effective once received and accepted at the 15th year of service, or if later, the date received and determined acceptable by my Service, but no later than the date that is 6 months after being notified of my eligibility. I understand that if I received the CSB in error, I must repay the full, before-tax bonus amount.” 6. The DD Form 2839 was signed by the applicant and the recording official was the Commandant of the U.S. Army NCO Academy, who signed the form on 12 April 2011. 7. On 11 July 2012, DFAS sent a letter to the applicant’s command indicating that he had an indebtedness for the CSB he received. DFAS stated that the applicant received payment for CSB on 12 April 2011 in the amount of $30,000.00 and was not eligible due to his time in service. Upon date of notification, the applicant had more than 18 years of active federal service and was ineligible in accordance with Army Regulation 800-8-7, paragraph 7-4, table 7-1. 8. On 11 July 2012, the applicant applied to HRC for remission or cancellation of his CSB debt created by his retirement under the REDUX plan. 9. On 10 August 2012, the Commandant of the U.S. Army NCO Academy submitted a memorandum to DFAS on behalf of the applicant stating “It is my recommendation that the request be approved due to no fault of the Soldier. Furthermore, I recommend that the debt be suspended until such approval or disapproval has been made.” 10. On 19 November 2012, the applicant’s commanding officer at Headquarters, 434th Field Artillery Brigade, submitted a memorandum to DFAS recommending approval, stating, “[the applicant] submitted a DD Form 2839 (CSB Election) to the local RSO on 12 April 2011 for review. He was then escorted to the Finance Section for processing and payment of this paperwork. He was informed that it would take between 7-10 days to receive payment. He was never informed by the RSO or the Defense Military Pay Office (DMPO) that he was not eligible for the CSB. …according to the DD Form 2839 Section 2, [he] was qualified: (1) Be on active duty, (2) Complete 15 years of active duty service, (3) Have a DIEMS of August 1, 1986 or later, and (4) Qualify under Service regulations for retention to 20 years of active duty service.” 11. On 21 November 2012, the applicant signed a sworn statement stating, in essence, that he submitted his request for a CSB and it was properly reviewed by the RSO and the DMPO for payment. He was never told that he was not eligible to receive the CSB. Furthermore, he had already used the money to pay for bills since he thought he was authorized the funds. 12. On 28 November 2012, HRC sent a letter to the DMPO, subject: Remission or Cancellation of Indebtedness. The letter disapproved the applicant’s request. They stated the review determined that no grounds exist to remit or cancel the debt based on hardship or injustice. 13. On 30 November 2012, the applicant was honorably retired under the provisions of Army Regulation 635-200 (Active Duty Enlisted Administrative Separations), chapter 12. His DD Form 214 (Certificate of Release or Discharge from Active Duty) for the period ending 30 November 2012 shows in: * item 12c (Record of Service - Net Active Service This Period) – “16 00 10” * item 12d (Total Prior Active Service) – “04 00 00” 14. The Military Reform Act of 1986 created the REDUX retirement system and it applied to all members who joined on or after August 1, 1986. The National Defense Authorization Act (NDAA) for FY2000 amended this system. The NDAA made two major changes: 1) it allowed those in this group to choose between the High-3 retirement system and the REDUX retirement system and 2) it added a $30,000 Career Status Bonus as part of the REDUX retirement system. Those members who elected the CSB/REDUX retirement system at their 15th year of service receive a $30,000 CSB. To receive this bonus, the member must agree to complete a twenty-year active duty career with length-of-service retired pay under the 1986 Military Retirement Reform Act (MRRA) -- 1986 MRRA or REDUX. Continuation beyond twenty years is possible, subject to Service personnel management actions. However, the member's commitment with the CSB is only to the 20-year point. The entire $30,000 bonus, or first installment payment for those electing a multi-year payment option, is paid shortly after the member makes the CSB/REDUX election and commits to the 20-years-of-service obligation. If the member does not complete the obligation of the twenty-year career, the member must repay a pro-rated share of the bonus. 15. Army Regulation 600-8-7 prescribes policies governing military personnel retirement services. Chapter 7 (CSB/REDUX Pay Plan) sets forth the tasks, rules, and steps for processing applications for Soldiers making a choice under the CSB/REDUX plan. a. Paragraph 7-2 (Background) provides that Soldiers with a DIEMS on or after 1 August 1986 who are eligible under current Service regulations to serve continuously to 20 years must choose between the High-3 and the CSB/REDUX between 14 1/2 to 15 years of active duty, although retirement will not occur until the Soldier has completed 20 years of service. The DIEMS pertains to the earliest date of enlistment, induction, or appointment in a Regular or Reserve Component of a Uniformed Service as a commissioned officer, warrant officer, or enlisted Soldier. A DIEMS is rarely the same as a basic active service date and often earlier than a pay entry basic date. The Soldier's basic active service date serves as the basis when calculating the 14 1/2 to 15 years of active duty. b. Paragraph 7-3 (Rules for Processing Requests for a Choice under the Plan) provides that installation commanders are required to conduct monthly or individual CSB/REDUX briefings for eligible Soldiers once they complete 14 1/2 years of active duty to help them decide between the CSB/REDUX or High-3 retirement plans. The options for CSB are: * one payment of $30,000.00 * two annual installments of $15,000.00 each * three annual installments of $10,000.00 each * four annual installments of $7,500.00 each * five annual installments of $6,000.00 each c. Paragraph 7-4 outlines the steps required to process a Soldier's request to make a choice under the CSB/REDUX. (1) Step 1 (Responsibility – Personnel Officer) – Provide eligible Soldier with written notification at 14 1/2 years of active duty. Personnel will include procedures for electing the CSB and an explanation of the effect that electing the CSB will have on the computation of retired pay if and when the Soldier becomes eligible. (2) Step 2 (Responsibility – Soldier) – Soldier has 6 months to decide to either remain under High-3 or elect CSB/REDUX. (3) Step 3 (Responsibility – Personnel Officer) – A lieutenant colonel or the designated representative in the Soldier's chain of command must sign item 13 and item 17 of the DD Form 2839. The same person must sign both blocks. (4) Step 4 (Responsibility – Soldier) – Soldier gives completed DD Form 2839 to the personnel officer. DISCUSSION AND CONCLUSIONS: 1. The applicant had prior U. S. Marine Corps service from June 1988 to June 1992 and Army National Guard Service from 1992 to 1996. He entered the RA on 21 November 1996 and on 12 April 2011, he was notified by his command that he was entitled to a CSB/REDUX; however, he already had over 18 years of total active duty service, to include his service in the U.S Marine Corps, and was not eligible for a CSB under REDUX plan. 2. The applicant applied to the HRC for a remission or cancellation of his indebtedness in the amount of $30,000.00 due to receiving a CSB; however, HRC correctly denied his request since he did not meet the requirements for a CSB under the REDUX plan due to his total years in service. Therefore, DFAS put him in a debt status. (Presumably he is now receiving High-3 retired pay in lieu of REDUX retired pay. If that is not the case, he is advised to contact DFAS.) 3. At the time of his separation on 30 November 2012, he had 20 years and 10 days of active duty service and he was placed on the retired list. 4. Although the applicant voluntarily accepted a CSB in return for participating in the REDUX, and his command, RSO and DMPO all approved his request for CSB and authorized payment of $30,000.00, he was not eligible for a CSB under the REDUX plan pursuant to Army Regulation 800-8-7 due to having over 18 years of service. BOARD VOTE: ________ ________ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ___x____ ___x____ ____x____ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. _______ _ 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) AR20150005358 6 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS