IN THE CASE OF: BOARD DATE: 6 April 2022 DOCKET NUMBER: AR20210013156 APPLICANT REQUESTS: * remission of debt associated with previously received Career Status Bonus (CSB) election * correction of records to reflect eligibility for High-3 pay plan rather than REDUX APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * DD Form 2839 (Career Status Bonus (CSB) Election dated 25 February 2016 * Labor information * National Guard Bureau (NGB) Form 23A (Army National Guard Current Annual Statement) dated 17 February 2021 * Memorandum – Subject: Cancellation of CSB recoupment dated 8 June 2021 FACTS: 1. The applicant states in pertinent part that she entered into an agreement with the Army National Guard (ARNG) on 25 February 2016 pertaining to the CSB. A review of her records at the time reflected that she was eligible make an election to receive the CSB. However, in March 2021, it was determined that her Date of Initial Entry into Military Service (DIEMS) date reflected within her records was incorrect. She contests that the correction of this date resulted in her DIEMS date falling outside of the eligibility requirements associated with receipt of the CSB resulting in recoupment of her previously received CSB. She is attempting to prevent an assessed debt. 2. A review of the applicant's available personnel records reflects the following: a. After serving in the U.S. Marine Corps, the applicant enlisted in the ARNG on 31 October 2005 to serve as a 42L (Administrative Assistant). At the time of her enlistment in the ARNG, the applicant had completed approximately 7 years 10 months 3 days of active federal service and 10 months and 10 days of prior inactive service. The applicant's DD Form 1966/1 (Record of Military Processing – Armed Forces of the U.S.) completed at the time of her initial enlistment in the ARNG reflects that she enlisted in the USMC in September 1983. b. On 8 December 2006, the ARNG issued Orders Number 221-133 ordering the applicant to active duty for special work (ADSW) from 2 – 30 September 2007. c. On 29 July 2008, the ARNG issued Orders Number 141-216 ordering the applicant to active duty in an Active Guard/Reserve Status with a reporting date of 1 August 2008. d. On 25 February 2016, the applicant completed DD Form 2839, electing to receive the CSB payment of $30,000.00 in a single lump sum payment. The document was subsequently endorsed by her Human Resource Officer on 7 March 2016. Section IV (Eligible and Electing to Receive the CSB) provides acknowledgment by the applicant that she made this election upon reaching 15 years of active duty service and having been determined as eligible for the bonus by her service. She understood that once this election was effective that it could not be revoked and that this election was effective once received and accepted at the 15th year of service or if later, the date received and determined acceptable by her Service, but no later than the date that is 6 months after being notified of her eligibility. Lastly, the applicant understood that if she received the CSB in error, she must repay the full, before-tax bonus amount. e. On 7 November 2017, the applicant was issued her Notification of Eligibility for Retired Pay for Non-Regular Service (20-Year Letter). 3. The applicant provides the following a: a. Labor information reflective of the applicant having a 27 September 1983 DIEMS and a 15 October 1999 Basic Active Service Date (BASD), as of 2 November 2020. b. NGB Form 23A, dated 17 February 2021, reflective of the applicant's points earned towards retirement between 27 September 1983 and 31 October 2020; total of 7,842 points for retired pay (23 years, 8 months, and 12 days of creditable service for retired pay). c. Memorandum – Subject: Cancellation of CSB recoupment, dated 8 June 2021, reflective of information pertaining to the applicant's service wherein the G-1, Director, Personnel provides that the applicant entered into an agreement with the ARNG on 25 February 2016 for the CSB payment. Upon review of the policy and applicant's records he notes that the applicant was eligible for the election offered at the time. However, on 23 March 2021, it was identified that the applicant's DIEMS date was annotated in the system of record incorrectly. Immediate action was taken to update this information i.e. correcting her DIEMS. This update resulted in her DIEMS falling outside of the perimeter of eligibility, prompting recovery of the CSB. Recovery of CSB would be against equity and good conscience and contrary to the best interest of the U.S. Therefore, he requested that the recoupment of the CSB payment be canceled. BOARD DISCUSSION: After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found that relief was warranted. The Board carefully considered the applicant's record of service, documents submitted in support of the petition and executed a comprehensive and standard review based on law, policy and regulation. Upon review of the applicant’s petition, available military records and the National Guard memorandum, the Board concurred with the advising official recommendation to grant relief based on the applicant's DIEMS date being annotated in the system of record incorrectly. Immediate action was taken to update this information i.e. correcting her DIEMS. This update resulted in her DIEMS falling outside of the perimeter of eligibility, prompting recovery of the CSB. Based on this, the Board grant relief for remission of debt associated with previously received Career Status Bonus (CSB) election and correction of records to reflect eligibility for High-3 pay plan rather than REDUX. 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 Army records and Defense Finance and Accounting System (DFAS) of the individual concerned be corrected to show remission of debt associated with previously received Career Status Bonus (CSB) election and correction of records to reflect eligibility for High-3 pay plan rather than REDUX. 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. Army Regulation (AR) 600-8-7 (Retirement Services Program) provides policies governing military personnel retirement services, the Survivor Benefit Plan and the Career Status Bonus. Chapter 6 (Career Status Bonus/Reduced (REDUX) Retired Pay Plan) provides that the Military Reform Act of 1986 created the REDUX retired pay plan. The National Defense Authorization Act (NDAA) for Fiscal Year 2000 amended this plan with 2 major changes: it allows Soldiers with a Date of Initial Entry to Military Service (DIEMS) date after 31 July 1986, including AGR Soldiers, to choose between the High– 3 and the REDUX retired pay plans. All Soldiers in this group, who are eligible under current service regulations to serve continuously to 20 years, must choose between the High–3 and the REDUX retired pay plans between 14 1/2 and 15 years of active duty, although retirement will not occur until the Soldier has completed at least 20 years of service. Every Soldier's decision will be recorded on DD Form 2839 and uploaded to the Soldier's personnel file. The DIEMS date pertains to the earliest date of enlistment, induction, or appointment in a Uniformed Service. A DIEMS date is rarely the same as a Basic Active Service Date (BASD) and often earlier than a pay entry basic date. The Soldier's BASD serves as the basis for calculating the 14 1/2 to 15 years of active duty. a. The Army Reserve Full Time Manning Support Directorate will provide a monthly roster of eligible AGR Soldiers to their assigned commands. The local commands are required to process requests to make a choice under the CSB/REDUX. b. Installations are required to conduct monthly or individual CSB/REDUX briefings for all Soldiers who have completed 14 1/2 years of active duty to help them decide between the REDUX and High–3 retired pay plans. Installations will review Soldiers' Official Military Personnel File during in and out processing to determine if their DIEMS dates are correct, if eligible Soldiers have made timely CSB/REDUX elections, and if their personnel records have been updated. c. The REDUX retired pay plan differs from the High–3 retired pay plan in three ways: * Under the REDUX retired pay plan, the retired pay multiplier is 2.0 percent per year for the first 20 years of creditable service (see 10 USC 1409); 3.5 percent for years 21 through 30; and 2.5 percent after 30 years, multiplied by the average of the Soldier’s highest 36 months of basic pay * The REDUX retired pay plan’s cost-of-living adjustments (COLAs) are one percent less than those under the final pay or High–3 retired pay plans * Soldiers who elect the REDUX retired pay plan are entitled to receive a $30,000.00 CSB, payable at their 15th year of active duty to compensate for the reduced pay multiplier and COLA provisions 2. AR 600-4 (Remission or Cancellation of Indebtedness) in accordance with the authority of Title 10 United States Code (USC), section 4837, the Secretary of the Army may remit or cancel a Soldier's debt to the U.S. Army if such action is in the best interests of the United States. Indebtedness to the U.S. Army that may not be canceled under Title 10 USC, section 4837 when the debt is incurred while not on active duty or in an active status. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20210013156 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1