ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS

                  

                  BOARD DATE:  17 May 2019

                  DOCKET NUMBER:  AR20170019539


APPLICANT REQUESTS:  correction of her records to show her separation pay was 
$26,000.

APPLICANT’S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD:    

*	DD Form 149 (Application for Correction of Military Record)
*	DD Form 214 (Certificate of Release or Discharge from Active Duty)
*	Final Leave and Earnings Statement (LES)
*	letter from Veterans Affairs (VA) showing separation pay

FACTS:

1.  The applicant states:

*	she received $26,000 of separation pay
*	her LES shows readjustment pay of $40,727.88
*	if there was an adjustment on the separation pay from $36,232.80 to $40,727.88 
it was not paid to her
*	she received a letter from the VA stating Defense Finance and Accounting 
Service (DFAS) reported her separation pay as $40,727.88
*	she was actually paid $36,532.80 in separation pay

2.  The applicant provides a letter from the VA which states they received verification 
from DFAS that she received separation pay in the amount of $40,727.88 and paid 
federal tax in the amount of $10,181.97 with a net amount received of $30,545.91.  
They withheld compensation based on the amount of $36,532.80 which was reported 
on her DD Form 214.  Based on the information, they adjusted her compensation award 
and provided her a chart to show exactly what she would be receiving and what she had 
already paid.

3.  In the processing of this case, an advisory opinion was obtained on 8 March 2019, 
from the Chief, Compensation and Entitlements Division, Office of the Deputy Chief of 
Staff, G-1.  The advisory official opined with coordination with DFAS and determined the 
applicant was correctly paid her involuntary separation pay (ISP) with a net amount of 
$30,545.91.  When the Army discharged the applicant, the transition center, Manheim, 
Germany incorrectly documented the gross amount ($36,532.80) of the ISP in block 18 
on the DD Form 214.  A copy of the complete advisory opinion has been provided to the 
Board for their review and consideration.

4.  The applicant was provided a copy of this advisory opinion on 12 March 2019                                          
to provide her an opportunity to comment and/or submit a rebuttal.  She did not 
respond. 

5.  Department of Defense Instruction 1332.29 (Eligibility of Regular and Reserve 
Personnel for Separation Pay) provides the policy and procedures for the receipt of 
separation pay.  It states full payment of non-disability separation pay is authorized to 
members of the Regular and Reserve components involuntarily separated from active 
duty.
 
6.  Army Regulation 635-200 sets forth the basic authority for the separation of enlisted 
personnel.  Chapter 4 contains policies and procedures for voluntary and involuntary 
separation expiration of enlistment or fulfillment of service obligation.  

BOARD DISCUSSION:

After reviewing the application and all supporting documents, the Board found that 
partial relief was warranted.  

1.  The Board agreed that there is an error in the applicant’s record, identified by both 
the Army G1 (in consultation with the Defense Finance and Accounting Service (DFAS)) 
and the VA, in that the applicant’s DD Form 214 incorrectly shows that the applicant 
received only $36,532.80 in ISP, instead of the $40,727.88 that the applicant in effect 
received.

2.  However, the Board denied so much of the applicant’s request to correct her records 
to indicate that she is due additional Involuntary Separation Pay (ISP) or that the 
Department of Veterans Affairs (VA) is incorrect in its calculations of the amount of 
compensation it is withholding.  The Board agreed with the Army G1 advisory that the 
applicant was properly paid a gross amount of Involuntary separation Pay (ISP) of 
$40,727.88 with $10,181.97 for deferral taxes and a net amount of $30,545.91, which 
supports what the VA documents in their memorandum dated 01 November 2017.


?
BOARD VOTE:

Mbr 1	Mbr 2	Mbr 3

:	:	:	GRANT FULL RELIEF

: :X	:X	:X	GRANT PARTIAL RELIEF

:	:	:	GRANT FORMAL HEARING

:	:	:	DENY APPLICATION


BOARD DETERMINATION/RECOMMENDATION: 

1.  The Board determined the evidence presented is sufficient to warrant a 
recommendation for partial relief.  As a result, the Board recommends that all 
Department of the Army records of the individual concerned be corrected by amending 
item 18 (Remarks) of the applicant’s DD Form 214 to show she received $40,727.88 in 
Separation Pay vice $36,532.80.

2.  The Board further determined the evidence presented is insufficient to warrant a 
portion of the requested relief.  As a result, the Board recommends denial of so much of 
the application that pertains to paying the applicant additional Involuntary Separation 
Pay (ISP) or amending the amount of VA compensation withholding in the VA 
memorandum dated 01 November 2017.


												 
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.
ADMINISTRATIVE NOTE(S):  N/A


REFERENCES:

1.  Department of Defense Instruction 1332.29 (Eligibility of Regular and Reserve 
Personnel for Separation Pay) provides the policy and procedures for the receipt of 
separation pay.  It states full payment of non-disability separation pay is authorized to 
members of the Regular and Reserve components involuntarily separated from active 
duty.
 
2.  Army Regulation 635-200 sets forth the basic authority for the separation of enlisted 
personnel.  Chapter 4 contains policies and procedures for voluntary and involuntary 
separation expiration of enlistment or fulfillment of service obligation.

//NOTHING FOLLOWS//
ABCMR Record of Proceedings (cont)		AR20170019539
2