IN THE CASE OF:  

		BOARD DATE:  6 October 2021

		DOCKET NUMBER:  AR20200010116


APPLICANT REQUESTS:  his Non-Prior Service Enlistment Bonus (NPSEB) incentive 
contract in the Pennsylvania Army National Guard (PAARNG) reflect termination of 
incentive without recoupment, and the recoupment debt cancelled.

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD:

*	DD Form 149 (Application for Correction of Military Record)
*	Memorandum, Subject: Notice of Incentive Termination Memorandum, 7 April 
2017
*	DFAS Letter, Subject: Indebtedness to the United States Government, 13 
November 2017
*	DFAS Account Statement

FACTS:

1.  The applicant states upon his separation from the Army National Guard, and his 
subsequent enlistment on active duty, he was given a memorandum that stated his 
enlistment bonus payments that he had received would not be recouped. However, 
approximately one year after transferring to active duty, he received a letter from DFAS 
stating that the bonus would be recouped in its entirety and DFAS began withdrawing 
payments from his paycheck. 

2.  Review of the applicant's service records shows: 

	a.  He enlisted in the Pennsylvania Army National Guard (GAARNG) for 8 years on 
16 September 2014. He agreed to serve 6 years as an assigned member of a troop 
program unit in the Selected Reserve and 2 years as an assigned member of the U.S. 
Army Reserve (USAR) Individual Ready Reserve. 

   c.  In connection with this enlistment, he signed Annex E (Non-Prior Service Enlisted 
Bonus Addendum). Annex E stated upon enlistment in the ARNG, he would be eligible 
for an enlistment bonus as indicated in the Selected Reserve Incentives Program 
(SRIP) and he would be receiving a non-prior service bonus as follows: 
		(1)  He enlisted for a Critical Skill (CS) vacancy in the grade of E4 or below in a 
Unit Identification Code (UIC) and a Military Occupational Specialty (MOS), Para/Line 
within Tier Levels 1-5 that matches the authorized military grade and skill qualification 
commensurate with the position for which enlisting.

		(2)  He enlisted for MOS 13F (Fore Support Specialist), UIC: WP23AA, Company 
D, 112th Infantry, [City], PA. He would receive a critical skill bonus of $7,500 for the 
enlistment option, less taxes.

		(3)  He would be paid the first bonus payment of 50% of the total authorized 
amount entered above, less taxes, when he completed initial active duty training and 
becomes duty DMOS Qualified (DMOSQ). The second and final payment of 50% will be 
paid on the 3rd year and 5th year anniversaries, respectively, of his date of enlistment 

		(4)  He indicated his understanding that he would not receive a payment until all 
requirements have been met and his entitlement has been verified and certified. The 
bonus would be terminated with recoupment if "I separate from the ARNG for enlistment 
into any Active Component (AC) (Army, Navy, Marines, Air Force, or Coast Guard) and 
receive an incentive for enlisting and/or if my contractual enlistment period is less than 
my remaining ARNG drilling obligation. The effective date of termination is the date of 
discharge from the ARNG." 

	c.  He entered active duty for training (ADT) on 13 January 2015, and completed 
required training for award of MOS 13F (Fore Support Specialist). He was honorably 
released from ADT on 30 May 2015.  

	d.  He was honorably discharged from the ARNG on 23 October 2016, in order to 
enlist in another component (Regular Army). His NGB Form 22 (National Guard Report 
of Separation and Record of Service) shows he completed 2 years, 1 month, and 8 
days of ARNG service. 

	e.  He enlisted in the Regular Army on 24 October 2016. He held MOS 19K (Tank 
Crewmember) as well as MOS 13F, he was promoted to sergeant/E-5, he completed 
airborne school, and he also completed Warrant Officer Candidate School. 

	f.  He was honorably discharged to accept appointment as a warrant officer. His DD 
Form 214 (Certificate of Release or Discharge from Active Duty) shows he completed 1 
year, 8 months, and 18 days of active service. 

	g.  He was appointed as a Reserve warrant officer of the Army and executed an oath 
of office on 12 July 2018. He was ordered to active duty for a 6-year obligation on that 
date. He was promoted to chief warrant officer two on 12 July 2020. 

	h.  Meanwhile, on 7 April 2017, he received a Notice of Incentive Termination 
Memorandum from the State Incentive Manager. He was informed his Non-Prior 
Service Enlistment Bonus (NPSEB) incentive contract has been terminated without 
recoupment in accordance with (IAW) your NPSEB Addendum and the National Guard 
Bureau policy. The termination date is the effective date of being discharged due to 
transferring to an active component on 23 October 2016. The PA State Education and 
Incentive Office has taken action to terminate his contract in accordance with:

*	Department of Defense Financial Management Regulation (DODFMR) 
Volume 7A, Military Pay Policy and Procedures
*	National Guard Regulation (NGR) 37-104-3 (Financial Administration Military 
Pay and Allowances Policy and Procedures - Army National Guard) 
Paragraph 7-3(b)(2)

	i.  He On 13 November 2017, DFAS notified him that he owed a debt of $1,145.83 
that had been referred to the Debt Collection Management Office for Collection. The 
debt is due to recoupment of the unearned portion of his ARNG bonus. His unit reported 
he satisfactorily performed 25 months of his contract. 

3.  An advisory opinion was received from the National Guard Bureau (NGB) on 21 
June 2021 in the processing of this case. An NGB official recommended approval and 
stated:  

	a.  Summary: Applicant requests his Non-Prior Service Enlistment Bonus (NPSEB) 
incentive contract reflect termination without recoupment and recoupment debt 
cancelled by DFAS. 

	b.  Soldier contracted for a NPSEB in the PAARNG for a 6 year enlistment in the 
amount of $7,500 less taxes in MOS 13F signed 16 September 2014. The bonus was to 
be paid in three installments: the first 50% payment to be process upon the effective 
date of becoming DMOSQ with 24 months of the contract start date, the second 25% 
payment to be processed on the third year anniversary of the enlistment date, and the 
final 25% payment to be processed on the fifth year anniversary of the enlistment date. 

	c.  He was separated from the PAARNG on 23 October 2016 and enlisted Active 
Duty the very next day, 24 October 2016. He served 2 years 1 month and 8 days of his 
enlistment contract. His contract end date for the PAARNG was 15 September 2020 
which left 3 years 10 months and 22 days remaining on his contract. 

	d.  According to Annex E, NPESB Addendum, Section VI - Termination, paragraph l 
states: "I may be terminated from incentive eligibility with recoupment for any of the 
following reasons: (1)"I separate from the ARNG for enlistment into any Active 
Component (AC) (Army, Navy, Marines, Air Force, or Coast Guard) and receive an 
incentive for enlisting and/or if my contractual enlistment period is less than my 
remaining ARNG drilling obligation. The effective date of termination is the date of 
discharge from the ARNG." 

	e.  According to Annex E, NPSB Addendum, Section VI - Termination, paragraph 3 
states: "The amount to be recouped or final payment shall be computed as follows: a. 
When relief is not granted through the waiver or Exception to Policy (ETP) process for 
incentives received, the service member must refund pro-rata the amount due to the 
Government when termination with recoupment has been deemed appropriate. 
Commanders will refer to the Chief, Army National Guard (CNGB) for resolution and 
consideration for waiver or ETP in doubtful cases, in which recoupment is contrary to 
personnel policy or management objectives, against equity and good conscience or 
contrary to the best interest of the U.S. and the ARNG. b. (1) The recoupment will be 
based on the following formula: Total basic incentive authorized divided by the total 
number of months contracted (Establishes the monthly amount available). Multiply the 
dollar amount by the total number of months served prior to separation (determines the 
total amount earned). Subtract the amount earned from the amount already paid to 
determine if you have been overpaid or underpaid. (2) Calculated overpayments will be 
recouped."

	f.  The applicant received the initial 50% payment in accordance with the contract 
agreement in the amount of $3,750 less taxes on 31 May 2015. The second installment 
of 25% in the amount of $1,875 less taxes was eligible to be disbursed on 16 
September 2017, however, GIMS (Guard Incentive Management System) payment 
history shows the payment was placed "on hold due to termination." Based on the 
termination calculation referenced above, after serving 25 months and 8 days of the 
contract, the Soldier received an overpayment of $1,145.83 for the first installment 
payment which was required to be recouped in accordance with the terms of his NPSEB 
addendum.

	i.  Soldier received a notice of incentive termination memorandum dated 7 April 2017 
from the PAARNG State Incentive Manager indicating the contract NPSEB was 
terminated without recoupment with an effective date of termination 23 October 2016. 
Action was taken in the GIMS to terminate the incentive without recoupment. According 
to input received from the PAARNG, the State misinterpreted the termination guidance 
which led to providing the Soldier misinformation on the appropriate termination action. 
Therefore, it is the recommendation of this office that the Soldier be granted relief from 
any further recoupment based on erroneous information provided by the State Incentive 
Manager acting as an agent of the PAARNG. 

	j.  The State concurs with this recommendation. 

4.  The applicant was provided with a copy of this advisory opinion to give him an 
opportunity to submit comments and/or a rebuttal. He responded by email on 24 June 
2021 and stated after reviewing the advisory opinion, he understood that the National 
Guard and State of Pennsylvania have agreed that the debt should be cancelled without 
further recoupment. He questioned whether amount that was recouped through DFAS 
already would be returned to him and opined that a determination to cancel the debt 
would result in the debt paid to be returned to him. 

5.  DODI 1205-21, paragraph 6.2. (Written Agreements) states as a condition of the 
receipt of an incentive covered by this Instruction, each recipient shall be required to 
sign a written agreement stating that 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. That agreement shall 
clearly specify the terms of the Reserve service commitment that authorizes the 
payment of the incentive to the member. 

6.  By regulation (NGR 37-104-3), chapter 7 states collections from ARNG military 
personnel for overpayment of pay entitlements and for property lost, damaged, or 
destroyed will be collected from pay due per the provisions of the DODFMR Volumes 5 
and 7A. 

BOARD DISCUSSION:

After reviewing the application and all supporting documents, the Board found that relief 
was warranted. The Board carefully considered applicant’s contentions, military record, 
and regulatory guidance. The reviewed and concurred with the National Guard advisory 
finding that the applicant received an overpayment thorough no fault of his own and 
assumed to be valid. The Board further noted that the Soldier was to be granted relief 
from any further recoupment. Based on the preponderance of evidence available for 
review, the Board determined the evidence presented sufficient to warrant a 
recommendation for relief.












BOARD VOTE:

Mbr 1	Mbr 2	Mbr 3

:X	:X	:X	GRANT FULL RELIEF

:	:	:	GRANT PARTIAL RELIEF

:	:	:	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 repayment of any monies 
recouped and payment of any monies due, the amount of which to be determined by the 
Defense Finance and Accounting Services.

		 
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, updates 
policy, assigns responsibilities, and prescribes procedures for management of the 
Reserve components incentive programs. Paragraph 6.2. Written Agreements. As a 
condition of the receipt of an incentive covered by this Instruction, each recipient shall 
be required to sign a written agreement stating that 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. That 
agreement shall clearly specify the terms of the Reserve service commitment that 
authorizes the payment of the incentive to the member. Services shall use the model 
written agreements set out in this Instruction. However, Service-specific agreements 
may be used, if they include all elements of the model agreements.

2.  The National Guard Bureau Memorandum, ARNG-HRM-15-001, dated 3 October 
2014, provides an extension to the Army National Guard (ARNG) Selected Reserve 
Incentive Programs (SRIP) Policy for Fiscal Year 2014, Effective 2 June 2014 (ARNG 
HRZ Policy #14-01). It applies to all applicants and current ARNG service members 
entering or serving in a traditional status. It provides that the Non-Prior Service 
Enlistment Bonus (PSEB) is a part of the Army National Guard Selected Reserve 
Incentive Program. 

	a.  A qualifying Non-Prior Service Soldier can receive a bonus amount, depending 
on the Tier Level (Tier 1 through 5) and length of enlistment (3year or 6-year), and 
ranging from $7,500 to $15,000 for enlisting into designated critical skill positions or 
units, for which a bonus is authorized. 

	b.  A person who enters into an agreement and received all or part of the bonus 
under the agreement but who does not commence to serve in the Selected Reserve or 
does not satisfactorily participate in the Selected Reserve for the total period of service 
specified in the agreement, shall repay the United States Government the amount of 
bonus so paid.

//NOTHING FOLLOWS//
ABCMR Record of Proceedings (cont)	 AR20200010116


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ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


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