IN THE CASE OF: BOARD DATE: 14 February 2022 DOCKET NUMBER: AR20210008810 APPLICANT REQUESTS: correction of his record to show he was enrolled in the Blended Retirement System (BRS) instead of the Legacy Retirement System. APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Page 3 of DD Form 4 (Enlistment/Reenlistment Document Armed Forces of the United States) * Enlisted Record Brief (ERB), dated 24 March 2021 FACTS: 1. The applicant states his Basic Active Service Date (BASD) is 9 July 2018, yet he was wrongfully placed in the legacy retirement system. He contends that due to the implications of this error, he missed matching contributions to his Thrift Savings Plan (TSP) the entire time of his service in the Army. His expiration term of service date is 16 December 2021. 2. A review of the applicant's service records shows: a. On 25 August 2017, the applicant enlisted in the U.S. Army Reserve for a period of 8 years and entered in the Delayed Entry Program (DEP). This is the applicant's Date Initially Entered Military Service (DIEMS). b. On 9 July 2018, the applicant was released from the DEP and entered on active duty for a period of 3 years. c. On 16 December 2021, the applicant was honorably released from active duty and transferred to the U.S. Army Reserve Control Group (Reinforcement). 3. The applicant provides page 3 of his enlistment showing he enlisted in the Regular Army on 9 July 2018 and a copy of his ERB. 4. The analyst of record inquired with the U.S. Army Human Resources Command (HRC) pertaining to the applicant’s retirement plan. HRC provided an email stating the applicant is not enrolled in the BRS. 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 contentions, military record, and regulatory guidance. Documentation available for review shows the applicant entered active duty 9 July 2018 and qualified to participate in the Blended Retirement System. Had he been automatically enrolled, he would have had the opportunity to pay into the system with matching contributions at the rate of one percent rate As the applicant was also participating in the Thrift Savings Plan, he would have further qualified for a matching payment of four percent. Based on the preponderance of the 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 : : : GRANT FORMAL HEARING : : : DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined the evidence presented 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 * showing the applicant enrolled in the Blended Retirement System effective 9 July 2018 * affording him the opportunity to pay into the system through matching 1% contributions for the period 9 July 2018 - 16 December 2021 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. National Defense Authorization Act (NDAA) Fiscal Year (FY) 2016, Title VI (Compensation and Other Personnel Benefits), Subtitle D (Disability Pay, Retired Pay, and Survivor Benefits), Part I (Retired Pay Reform) established a new military retirement defined benefit that, when combined with the government-matching Thrift Savings Plan, would comprise a new hybrid retirement system. This new system would apply to new entrants after 1 January 2018, and to those already serving members who choose to opt-in. The new defined benefit would continue to apply only to those members who reach 20 years of service, with a multiplier rate of 2.0 times years of service rather than the current rate of 2.5 times years of service. The agreement includes provisions that would limit service members who may opt-in to the new retirement system to those with less than 12 years of service. 2. Department of Defense (DoD) Financial Management Regulation, Volume 7B states pursuant to the NDAA for FY 2016, as amended by the NDAA FY 2017, the DoD established the modernized retirement system, commonly known as the BRS. The BRS is the retired pay system for all Service members who entered military service on or after 1 January 2018. All members serving as of 31 December 2017 were grandfathered under the applicable legacy retirement system. The law permits active duty Service members with less than 12 years of service on 31 December 2017, the option of electing to be covered under the BRS or to remain with their applicable legacy retirement system. The law provides a one-year election period for those Service members eligible to opt into the BRS from 1 January 2018 and ends on 31 December 2018. The decision to opt into the BRS is irrevocable. 3. Deputy Secretary of Defense Memorandum, Subject: Implementation of the BRS, dated 27 January 2017, states in section 9 (Enrollment): Enrollment Period. (1) A member of a Uniformed Service who qualifies to enroll in the BRS under any of the provisions outlined in paragraphs 6.b(2) (has a Date Initially Entered Military Service on or before 31 December 2017 and less than 12 years of service) may make the election to enroll on or after 1 January 2018 through 31 December 2018. (2) A member who, but for a break in service, would otherwise be eligible to elect to enroll in BRS under any of the provisions of paragraphs 6.b.(2) who returns to service with a Uniformed Service on or after 2 December 2018, following a break in service that commenced prior to 1 December 2018, may make an election to enroll in the BRS: * For members returning to the Active Component (AC) or affiliating in a paid status with the Reserve Component (RC) after separating from the AC, within 30 days of reentry; or, * For members returning to a paid status in the RC following a break in service in the RC, no later than 31 December 2018, or 30 days from the date of reentry, whichever is later 4. The Uniform Services Blended Retirement System states DIEMS is the Date of Initial Entry into Military Service while PEBD is the Pay Entry Base Date. DIEMS marks the day a member first enters military service by signing a contract or agreement to serve, even if on that day he or she is in an inactive status such as in the DEP, or as a student in one of the Service Academies or Reserve Officers' Training Corps. PEBD is the day a member first begins earning Basic Pay or Inactive Duty Pay (drill pay). For many Service members, these days are essentially the same, while for many others DIEMS is earlier than PEBD. Determining whether a member is grandfathered under legacy High- 3 or automatically enrolled in BRS is based on DIEMS. If DIEMS is on or before 31 December 2017, he or she is grandfathered. If DIEMS is on or after 1 January 2018, he or she is automatically enrolled in BRS. Of those who are grandfathered, determining eligibility to opt into BRS is based on PEBD (as is eligibility for Continuation Pay). Fewer than 12 years of service since PEBD makes an otherwise grandfathered Active Component member eligible to opt into BRS. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20210008810 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1