IN THE CASE OF: BOARD DATE: 5 January 2023 DOCKET NUMBER: AR20220002137 APPLICANT REQUESTS: correction of his separation pay. APPLICANT'S SUPPORTING DOCUMENT(S) CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * USAA Bank Statement * Leave and Earnings Statements (LES) FACTS: 1. The applicant states, in effect, upon receiving his Department of Veteran Affairs (VA) percentage, it was brought to his attention that the amount of separation owed back for his separation pay was around $11,000.00. As the LESs associated, and his bank account deposit indicates, he only received $8,554.21. He should either be entitled to the additional amount owed or the VA should recognize the amount paid back as $8,554.21. He is either overpaying on an amount he never received or he needs to obtain the additional amount he never received. 2. The applicant's service records contain the following documents for the Board's consideration: a. DD Form 4 (Enlistment/Reenlistment Document Armed Forces of the United States) which shows he enlisted in the U.S Army Reserve (USAR) Delayed Entry Program (DEP) on 29 August 2012 for a period of 8 years. On 4 February 2013, he was discharged from the USAR DEP and entered active duty. He continued service through reenlistments. b. Orders Number 272-1332, published by Headquarters, U.S. Army Training Center and Fort Jackson, dated 28 September 2020 shows the applicant was separated from the Army on 12 November 2020. The orders further state he was not entitled to separation pay. c. Orders Number 282-1331, published by Headquarters, U.S. Army Training Center and Fort Jackson, dated 8 October 2020, amended Orders Number 272-1332 to show he was entitled to half separation pay. d. DD Form 214 (Certificate of Release or Discharge from Active Duty) shows he was honorably discharged from active duty on 12 November 2020 by reason of failing the weight control program. He completed 7 years, 9 months, and 9 days of active duty service. The DD Form 214 states in item 18 (Remarks) separation pay $14,389.43. 3. The applicant provides the following documents for the Board's consideration: a. A USSA Federal Savings Bank Statement from 6 November 2020 through 8 December 2020, which shows the applicant received a deposit of $8,554.21 from Defense Finance Accounting Service (DFAS) - Indianapolis. b. LESs from 1 through 31 October 2020, which does not indicate he was paid separation pay; from 1 through 30 November 2020, which does not indicate he was paid separation pay; from 1 through 31 December 2020, which shows he received separation pay in the amount of $8,554.21 and a readjustment pay in the amount of $14,389.42. 4. On 19 December 2022, DFAS provided information pertaining to the applicant's separation pay and stated, the applicant's readjustment pay was $14,389.42 minus Federal taxes of $3,196.67. His final separation pay was $8,554.21 and $119.63. The difference was due to a report of survey collection and a portion of a reenlistment bonus that the applicant did not serve. Additionally, DFAS provided supporting LES's. BOARD DISCUSSION: 1. After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found relief is not warranted. 2. The Board found the evidence shows the applicant was authorized the proper amount of separation pay less taxes and two other collections based on a report of survey and recoupment of the unearned portion of a reenlistment bonus. Based on a preponderance of the evidence, the Board determined the amount of separation pay shown on his DD Form 214 and in DFAS records is not in error. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING :X :X :X DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. 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, United States Code (USC), section 1174 provides that a regular enlisted member of an armed force who is discharged involuntarily or as the result of the denial of the reenlistment of the member and who has completed six or more, but less than 20, years of active service immediately before that discharge is entitled to separation pay unless the Secretary concerned determines that the conditions under which the member is discharged do not warrant payment of such pay. a. Requirement for service in Ready Reserve; exceptions to eligibility: (1) As a condition of receiving separation pay under this section, a person otherwise eligible for that pay shall be required to enter into a written agreement with the Secretary concerned to serve in the Ready Reserve of a reserve component for a period of not less than three years following the person's discharge or release from active duty. If the person has a service obligation under Section 651 of this title or under any other provision of law that is not completed at the time the person is discharged or released from active duty, the three-year obligation under this subsection shall begin on the day after the date on which the person completes the person's obligation under such section or other provision of law. (2) Each person who enters into an agreement referred to in subparagraph (A) who is not already a Reserve of an armed force and who is qualified shall, upon such person's discharge or release from active duty, be enlisted or appointed, as appropriate, as a Reserve and be transferred to a Reserve Component. b. A member who is discharged or released from active duty is not eligible for separation pay under this section if the member: (1) Is discharged or released from active duty at his request. (2) ?Is discharged or released from active duty during an initial term of enlistment or an initial period of obligated service, unless the member is an officer discharged or released under the authority of Section 647 of this title. (3) ?Is released from active duty for training. (4) ?upon discharge or release from active duty, is immediately eligible for retired or retainer pay based on his military service. 2. Department of Defense Instructions 1332.29 (Involuntary Separation Pay Non- Disability) states Half Separation Pay (Non-disability). Half payment of non-disability Involuntary Separation Pay (ISP), computed as provided in Paragraph 3.2.b., is authorized to Service members of the Active and Reserve Components who are involuntarily separated from AD/AS and who meet each of the five conditions in the following paragraphs. In extraordinary instances, the Military Service concerned may award full ISP to Service members who are otherwise eligible for half ISP when the specific reasons for separation and the overall quality of the member’s service have been such that denial of such pay would be clearly unjust. a. The Service member meets the criteria for active service specified in Paragraph 3.1.a.(1). b. The Service member’s separation is characterized as "honorable" or "general (under honorable conditions)", and none of the conditions in Paragraph 3.4. apply. c. The Service member is being involuntarily separated by the Military Service concerned through either the denial of reenlistment or the denial of continuation on AD/AS, or the Service member is being separated for weight control failure. 3. Department of Defense Financial Management Regulation Volume 7A, section 350305 (Recoupment of Separation Pay From Retired Pay, Retainer Pay, or Department of Veterans Affairs (VA) Disability Compensation) states Service members who receive separation pay under any provisions of law based on service in the Armed Forces, and, subsequently, either qualify for retired or retainer pay under Title 10, USC or Title 14, USC, or become eligible for disability compensation administered by the Veterans Affairs (VA), are subject to the recoupment of the gross taxable separation pay they received. Recoupment from retired pay, retainer pay, or VA disability compensation will be completed as follows: If the Service member received VA disability compensation, then recoupment will be accomplished through a deduction from the VA disability compensation payable to the retired member in an amount that is equal to the gross taxable amount of separation pay made after September 30, 1996. The amount to be deducted from the VA disability compensation will be equal to the gross taxable amount of such separation pay, less the amount of federal income tax withheld from such pay at the flat withholding rate for supplemental payments prescribed under Publication 15, Department of the Treasury, Internal Revenue Service. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20220002137 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1