BOARD DATE: 24 July 2020 DOCKET NUMBER: AR20180004374 APPLICANT REQUESTS: entitlement to the Selective Reenlistment Bonus (SRB). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * All Army Activities (ALARACT) Message 045-2006 * Defense Finance and Accounting Service (DFAS) Military Leave and Earnings Statements * DFAS Retired and Annuity Pay letter dated 29 April 2016 * DA Form 4187-1-R (Personnel Action Form Addendum) * DD Form 4 (Enlistment/Reenlistment Document) dated 4 May 2007 * DA Form 4789 (Statement of Entitlement to Selective Reenlistment Bonus) dated 4 May 2007 FACTS: 1. The applicant states that she was never received her entire $20,000.00 SRB for service in military occupational specialty 42A (Human Resources Specialist) within the Active Guard Reserve (AGR) Program per ALARACT 045-2006. She contests that her bonus payment ($4,375.04) was received in May 2008, however $3,018.78 was deducted from it. In May 2009 her bonus payment was $1,458.34, however $1,006.25 was deducted from that payment. In May 2010 no bonus payments were received. In April 2011, her LES reflects a partial payment of $1,044.89 was deducted three times. In May 2011 her LES indicates an advance debt was paid and then deducted in the amount of $177.60. There were no additional payments received. a. She initially believed that the recouping of her bonus was related to the separation pay that she received in 1993 in the amount of $18,539.64; however after she retired, DFAS informed her that they would begin recouping the separation pay in September 2016 for 18 months, which did occur. b. She contacted DFAS several times to see if the unpaid bonus entitlement could be used to cover the debt since she never received the full entitlement. She was advised that one had nothing to do with the other and was therefore redirected to her branch. Further, DFAS advised her that they submitted an inquiry for bonus verification to the Human Resources Command (HRC), but when she contacted them, they were unable to locate the email and were unable to provide assistance. c. She assumed DFAS deducted her bonus from her active duty pay because of the separation pay that she received in 1993. She did not find out until after she retired that this was not the case. 2. A review of the applicant’s available service records reflects the following: a. On 26 October 1984 she enlisted in the United States Army Reserve under the Delayed Entry Program. b. On 3 January 1985 she enlisted in the Regular Army. c. On 23 March 1993 she was released from active duty under the Early Release Program and transferred into the USAR. Upon release the applicant was provided with the payment of a Special Separation Benefit (SSB) entitlement of $18,539.64. At the time of separation, the applicant had completed 8 years 2 months and 24 days of active duty service. d. On 28 February 2002 she was ordered to active duty in support of Operation Nobel Eagle. e. On 21 February 2004 she was released from active duty. At the time of separation the applicant had completed 1 year, 11 months, and 24 days of active service during this period. f. On 5 April 2004 (Order R-04-472452), she was accessed into the AGR Program effective 25 April 2004. g. On 4 May 2007 she reenlisted for an indefinite period with entitlement to an SRB consistent with that authorized for military occupational specialty 42A. h. On 14 December 2015 a Physical Evaluation Board was conducted finding the applicant physically unfit for continued military service and therefore recommended that she be medically retired. i. On 11 January 2016 (Order C-01-600339), she was reassigned pending separation. j. On 16 March 2016 she was permanently medically retired. 3. The applicant provides the following: a. ALARACT 045-2006 reflective of Consolidated Policy for SRB for AGR Soldiers wherein it provides that the total amount of the SRB would be $20,000.00 for an indefinite reenlistment. SRB payments were to be paid as follows: 50% payment upon contract execution date and the remaining payments annually on the anniversary date of the reenlistment. b. Defense Finance and Accounting Service (DFAS) Military Leave and Earnings Statements for the following periods are detailed below: * May 2008 – payment of $4,375.04 (SRB entitlement); deduction of $3,018.78 (SRB entitlement) * May 2009 – payment of $1,458.34 (SRB entitlement); deduction of $1,006.25 (SRB entitlement) * May 2010 – void of an SRB payment * April 2011 – void of an SRB payment * May 2011 – void of an SRB payment c. DFAS Retired and Annuity Pay letter dated 29 April 2016 reflective of her being notified that in accordance with Title 10, United States Code (U.S.C) 1174(h)(1) her previously received separation pay would be recouped effective 1 September 2016 at a rate of $1,248.40 per month from her retirement pay. Recoupment would continue until the gross amount of the previously received separation pay was recouped. d. DA Form 4187 -1-R (Personnel Action Form Addendum) – this document appears to be incomplete as it does not detail the personnel action being recommended for approval nor the dates related. e. DD Form 4 (Enlistment/Reenlistment Document) dated 4 May 2007 reflective of her indefinite reenlistment. Item 8b. (Remarks) indicates that the SRB would be paid in accordance with MILPER Message 04-353 and future MILPER Messages directing change. f. DA Form 4789 (Statement of Entitlement to Selective Reenlistment Bonus) dated 4 May 2007 reflective of her acknowledged understanding of SRB consistent with her indefinite reenlistment as a 42A. 4. See applicable regulatory guidance below under REFERENCES. BOARD DISCUSSION: 1. After reviewing the application and all supporting documents, the Board found that relief is warranted. 2. The Board agreed the record offers no reason her SRB payments stopped even though she continued to serve in accordance with the terms of her SRB agreement. Based on a preponderance of evidence, the Board determined the applicant should be paid any remaining amount she is due under the SRB. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 :X :X :X GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined the evidence presented is 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 paying her the remainder of her Selective Retention Bonus in accordance with the program rules. 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. REFERENCES: 1. Title 10, USC 1174 paragraph h. Coordination with Retired or Retainer Pay and Disability Compensation.— a. A member who has received separation pay under this section, or separation pay, severance pay, or readjustment pay under any other provision of law, based on service in the armed forces, and who later qualifies for retired or retainer pay under this title or title 14 shall have deducted from each payment of such retired or retainer pay an amount, in such schedule of monthly installments as the Secretary of Defense shall specify, taking into account the financial ability of the member to pay and avoiding the imposition of undue financial hardship on the member and member’s dependents, until the total amount deducted is equal to the total amount of separation pay, severance pay, and readjustment pay so paid. b. A member who has received separation pay under this section, or severance pay or readjustment pay under any other provision of law, based on service in the armed forces shall not be deprived, by reason of his receipt of such separation pay, severance pay, or readjustment pay, of any disability compensation to which he is entitled under the laws administered by the Department of Veterans Affairs, but there shall be deducted from that disability compensation an amount equal to the total amount of separation pay, severance pay, and readjustment pay received, less the amount of Federal income tax withheld from such pay (such withholding being at the flat withholding rate for Federal income tax withholding, as in effect pursuant to regulations prescribed under chapter 24 of the Internal Revenue Code of 1986). 2. Department of Defense 700.14-R (Financial Management Regulation) Chapter 4 (Recoupment of Separation Payments) provides guidance for the recoupment of payments made to certain members upon involuntary discharge, release from active duty, disability separation, or voluntary separation; when members are later placed on a retired list. Service members who receive separation pay, nondisability severance pay, or readjustment pay under any provision of law based on service in the Armed Forces, who subsequently qualifies under Titles 10 or 14 of the U.S.C. for retired or retainer pay shall have deducted an amount equal to the total amount of separation pay, without regard to any withholding for taxes. Such deductions will be made from each payment of retired or retainer pay until the total amount recouped is equal to the total amount of separation pay, nondisability severance pay. 3. Army Regulation 601-280 (Army Retention Program) provides that the Selective Retention Bonuses for Enlisted Personnel may be offered to retain adequate numbers of qualified personnel in certain reenlistment categories. The MOSs designated for the SRB Program will be announced by message from HRC, Retention and Reclassification Branch. The SRB Program is a retention incentive paid to Soldiers who reenlist for a minimum of 3 years in a military skill designated as critical. Specific eligibility criteria are announced in the respective MILPER message for each bonus program. c. Upon reenlistment with an SRB, the Soldier must sign a written agreement. It states the Soldier has been counseled and understands the conditions under which continued entitlement to the SRB may be stopped and a pro rata portion of the advance bonus payment(s) may be recouped. This agreement will also clearly specify the terms of the active service commitment entitling the Soldier to a bonus. d. Recoupment from Soldiers who fail to complete obligated service and correction of erroneous SRB cases for Soldiers who voluntarily or involuntarily fail to complete additional obligated service for which an SRB was paid, will refund a percent of the bonus equal to the percent of unperformed obligated service. 4. ALARACT 045 2006 reflective of Consolidated Policy for SRB for AGR Soldiers wherein it provides that the total amount of the SRB would be $20,000.00 for an indefinite reenlistment. SRB payments were to be paid as follows: 50% payment upon contract execution date and the remaining payments annually on the anniversary date of the reenlistment. 5. MILPER Message 04-353 (Implementation of Selective Reenlistment Bonus (SRB) for United States Army Reserve (USAR) Active Guard Reserve (AGR) Soldiers provides that Zone C reenlistments are reenlistments between 10 and 16 years of active service. The total amount of bonus will be computed based on monthly base pay at the time of discharge or release from active duty, multiplied by years or fractions of a year of obligated service, multiplied by the SRB multiplier equals the total SRB to be paid (50% at the time of reenlistment and the remaining portion in annual installments on the anniversary of the reenlistment). //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20180004374 6 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1