ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 27 February 2020 DOCKET NUMBER: AR20180007520 APPLICANT REQUESTS: in effect, cancellation of bonus incentive termination and recoupment. APPLICANT’S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Letter from Defense Finance and Accounting Service (DFAS) * National Guard Bureau (NGB) Exception to Policy (ETP) * Leave and Earnings Statements (LES) * Department of Defense Debt * Discharge Order * Bonus Addendum * Noncommissioned Officer Evaluation Reports (NCOER) * NGB Form 22 (National Guard Report of Separation and Record of Service) FACTS: 1. The applicant states, in effect, he would like the Board to cancel his bonus termination debt. He received a letter from DFAS saying he was delinquent in paying back a debt from his reenlistment bonus. That was the only notification he received regarding his debt. The DFAS letter stated he was a satisfactory member of his unit for only 11 months. The NCOERs he provided for the Board's consideration disprove that. 2. The applicant's service records show a DA Form 4836 (Oath of Extension of Enlistment or Reenlistment), dated 12 December 2012 showing the applicant reenlisted in the Army National Guard (ARNG) for 6 years from his current Expiration Term of Service (ETS) of 21 August 2013. His new ETS date was 21 August 2019. 3. The applicant's service records are void of documentation showing he had unsatisfactory performance. 4. The applicant's service records are void of Army Physical Fitness Test (APFT) results relevant to the time frame he had his bonus. The applicant's service records are void of DA Form(s) 268 (Report to Suspense of Favorable Personnel Actions (Flag)) indicating he was flagged for APFT failure. 5. The applicant provides, the following documents for the Board's consideration: a. A letter from DFAS, dated 30 April 2018 showing he has a debt of $8,137.95. A portion of the debt is due to recoupment of the unearned portion of his ARNG Bonus. His unit reported he satisfactorily performed 11 months of his contract. b. A NGB ETP, dated 7 October 2015, which states: * his request for ETP to retain his $10,000 reenlistment bonus was denied * the reason for denial was he failed two consecutive APFTs * the state incentive manager would terminate his incentive with recoupment effective the date of his second APFT failure c. LES for 22 June 2017, which shows: * payment of a debt in the amount of $141.51 * the debt was for reenlistment bonus * the debt amount was $8472.22 * the original debt date was 22 August 2013 d. LES for 30 August 2017, which shows: * payment of a debt in the amount of $193.38 * the debt was for reenlistment bonus * the debt balance was $8,085.45 * the original debt date was 22 August 2013 in the amount of $8472.22 e. LES for 20 September 2017, which shows: * payment of a debt in the amount of $193.39 * the debt was for reenlistment bonus * the debt balance was $7892.06 * the original debt date was 22 August 2013 * the original debt date was 22 August 2013 in the amount of $8472.22 f. A printout of his FICO score, dated 10 May 2018, which shows he had a Department of Defense debt in the amount of $8,117 which was updated on 15 April 2018. g. Orders 272-025 published by Green Mountain Armory, Camp Johnson, dated 29 September 2017, honorably discharging the applicant from the ARNG effective 11 September 2017. h. Annex R to DD Form 4 or DA Form 4836 Reenlistment/Extension Bonus Addendum, dated 12 December 2012, which shows: * the applicant reenlisted in the ARNG for a period of 6 years for a $10,000 bonus * the bonus could be terminated with recoupment if he became an unsatisfactory participant; the termination date would be the date of his first unexcused absence * Section III, paragraph 1b, the bonus could be terminated if he had two consecutive APFT failures; the termination date would be the date of his second APFT failure i. NCOERS, which show: * from 30 November 2016 through 11 September 2017 he was rated for 10 months * he was on profile so did not take his APFT * from 1 December 2015 through 29 November 2016 he was rated for 12 months * he failed his APFT on 16 October 2016 * from 1 December 2014 through 30 November 2015 he was rated for 12 months * he passed his APFT on 13 September 2015 * from 1 December 2013 through 30 November 2014 he was rated for 12 months * he failed his APFT on 5 October 2014 * from 1 December 2012 through 30 November 2013 he was rated for 12 months * he failed his APFT on 3 November 2013 * from 1 December 2011 through 30 November 2012 he was rated for 12 months * he passed his APFT on 6 May 2012 j. An NGB Form 22, which shows the applicant was honorably discharged from the ARNG effective 11 September 2011. He was a participant in the Selective Reserve Incentive Program with no termination. He was discharged for a medical, physical, or mental condition. 6. See below for references. BOARD DISCUSSION: 1. The applicant contracted for a reenlistment bonus (REB) of $10,000 on 12 December 2012 for a period of 6 years. He would have to remain enlisted for the 6 years. The contract states in Section III, paragraph 1b, initialed by the applicant, that if the applicant had two consecutive record APFT failures and/or two consecutive failures to meet body fat standards within this contract term, the REB would be terminated effective on the date of my second APFT failure or second failure to meet body fat standards. The applicant failed the APFT on 3 November 2013 and 5 October 2014. Accordingly, his eligibility for REB terminated on 5 October 2014, at the 22 month point (about 30%) out of a 6 year (72 month) contract instead of the 11 months DFAS stated was reported by the applicant’s unit. The applicant’s debt should then be about 50 months (70%) of the $10,000 or about $7,000 instead of the $8,111 reported as the original debt. 2. The Board did not find that the debt was unjustified or in error in that the applicant did violate his contract at the 22 month point by failing 2 consecutive APFT. Only partial relief is justified to correct the debt to 50 months of the 72 month contract for the $10,000. ? BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF :XXX :XXX :XX GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: 1. The Board determined the overall merits of this case are sufficient to warrant a recommendation for relief. Accordingly, the Board recommends that the applicant’s reenlistment bonus of $10,000 for 6 years’ service which began on 12 December 2012 be terminated according to contract on 5 October 2014 due to failing two consecutive APFT; that his debt be recalculated accordingly; and that debt interest accrued to date be waived. 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 forgiving the entire debt. 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. DODI 1205.21 (Reserve Component Incentive Programs Procedures), currently in effect, requires each recipient of an incentive to sign a written agreement stating the member has been advised of, and understands the conditions under which continued entitlement to unpaid incentive amounts shall be terminated and which advance payments may be recouped. The agreement must clearly specify the terms of the Reserve Service commitment that authorizes the payment of the incentive. 2. Army National Guard Selective Reserve Incentive Program Policy for Fiscal Year (FY) 2012, (Policy Number 12-01), dated 17 April 2012, states: a. A bonus may be terminated with recoupment if the Soldier receives two consecutive record APFT failures and/or two consecutive failures to meet body fat standards within the contract term. The effective date of termination is the date of the second APFT Failure or second failure to meet body fat standards. b. A bonus may be terminated if the Soldier is declared an Unsatisfactory Participant after the appeal process. Recoupment is not required if the Soldier completed his or her six year contract prior to the break in service. // NOTHING FOLLOWS // ABCMR Record of Proceedings (cont) AR20180007520 5