IN THE CASE OF: BOARD DATE: 6 September 2022 DOCKET NUMBER: AR20220000802 APPLICANT REQUESTS: correction of his records to show he was eligible for Continuation Pay (CP) under the Blended Retirement System (BRS). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Self-Authored Letter * Email * Request for CP BRS * BRS CP Memorandum * Information Paper BRS * Enlisted Record Brief (ERB) * Uniformed Services BRS Policy Table of Contents * Memorandum of Implementation of BRS * Guidance for Implementation of the BRS for the Uniformed Services * Procedures for Determining and Publishing the Lump Sum Discount Rate * Memorandum BRS Lump-sum Government Discount Rate 2018 * Memorandum Paying Combat-Related Special Compensation Following a Lump Sum Election * Procedures for Determining and Paying Combat-Related Special Compensation * Memorandum Administering Survivor Benefit Plan (SBP) Following a Lump Sum Election of Retired Pay under the BRS * Procedure for Administering SBP When a Member Elects a Lump Sum of Retired Pay Under the BRS * Memorandum BRS CP for Calendar Year (CY) 2021 FACTS: 1. The applicant states in his application and self-authored letter, in pertinent part: a. He is requesting CP of 2.5 times his monthly pay in accordance with Title 37 United States Code (USC), section 356 (Continuation pay: Full TSP Members with 8 to 12 years of service). b. He opted into the BRS on 5 February 2018 with the intent of taking advantage of the mid-career CP payment prior to his 12th year of active duty service; however, he was provided erroneous information regarding the submission workflow and subsequently was deemed ineligible for approval based solely on missing the 60 day lead time prescribed by the Army Manpower and Reserve Affairs' implementation policy. c. As a member of the Denver Army Recruiting Battalion, he received a brief from the Brigade's Personal Finance Manager, which was designed to explain the new retirement system per paragraph 4, subparagraph f of the Deputy Secretary of Defense Memorandum, Subject Implementation of the BRS. During the aforementioned brief, Soldiers were told they would receive email notification between their 11th and 12th years of service as a catalyst to submit BRS CP requests; however, the mechanism was never established; therefore, he was never afforded the opportunity to submit his request no later than 60 days prior to his 12th anniversary. d. In fact, it was not until 26 February 2021, (13 days prior to his 12-year service anniversary) when he was forwarded a copy of the Calendar Year (CY) 20 policy form a colleague who in turn received it from another Soldier from the Recruiting Brigade. After circuitously receiving the CY20 policy, he reviewed the eligibility requirements as well as the process by which to request CP, and thereby submitted his initial request to the Brigade Retention Noncommissioned Officer (NCO) the very next business day, 1 March 2021. Immediately upon submission, he was notified via email that he would be required to extend his current contract by three months in order to meet the four-year minimum service obligation. On 2 March 2021, he replied to the Brigade Retention NCO affirming his willingness to add on three additional months. e. Approximately two weeks later, on 17 March 2021, he received an email from the Brigade Retention NCO that contained a response from a Major (MAJ), who was the primary point of contact listed on the applicable BRS CP Memorandum. In short, the MAJ stated he was ineligible for CP based on his untimely submission and furthermore explained there was no exception to policy to file a request within the 60-day timeframe. After receiving the MAJ's response, he contacted the Compensation and Entitlements Division, eventually receiving a response from the individual who provides programmatic oversight of BRS. The message stated unfortunately, there was nothing they could do to back-date his request and make him qualified for CP from the oversight's position per the statutory limit of 12 years per Title 37, USC, section 356. Nevertheless, in the same correspondence, the oversight encouraged him to submit his case to the Board in hopes of resolving this matter. 2. The applicant's service records contain the following documents for the Board's consideration: a. On 20 February 2009, the applicant enlisted in the U.S. Army Reserve (USAR) delayed entry program (DEP) for a period of 8 years. On 11 March 2009, he was discharged from the USAR DEP and entered active duty for a period of 4 years. b. He reenlisted or extended as follows: on 8 April 2012, for 4 years; on 22 October 2014, for 3 years; on 23 October 2014, for 9 months; and on 25 January 2018, for 6 years. 3. The applicant provides the following documents for the Board's consideration: a. Emails regarding the submission of his CP BRS packet, which state in pertinent part: (1) From a Staff Sergeant, dated 17 March 2021 which states, it was a response from a MAJ who was the point of contact for CP: There was no exception to policy. If the Pay Entry Basic Date (PEBD) was incorrect (and there was supporting documents to show that it was incorrect) they will allow for an exception to policy to be processed, but other than that, there is no exception to policy. The applicant must meet all the eligibility requirements. The applicant's PEBD was correct so he was not eligible to request CP. (2) From the applicant to the MAJ, dated 2 November 2021, which states in pertinent part: (a) On 1 March 2021, he reached out to his Brigade Career Counselor regarding getting his CP. The same day, she emailed his S-1 letting them know he was good and would need to extend for 3 months to meet the service obligation. He reached out to the career counselor to get that part completed but did not hear anything until 17 March 2021, when he was informed they received a response from the MAJ stating he was ineligible and there were no exceptions to policy available unless his PEBD was wrong in the system. (b) He looked at two sources of information. The BRS fact sheet states CP is a direct cash payout, like a bonus, available to service members enrolled in the BRS. It is targeted at the mid-career mark, payable between completion of eight years of service, but before completion of 12 years of service. (c) He also looked at the CY20 Memorandum that states any member who meets the following criteria is eligible to enter into an agreement to serve the obligation period (1) is covered under the BRS; and (2) will complete 11 years of service but no more than 12 years of service during CY20 as computed from the Soldier's PEBD. (d) The applicant's PEBD is 11 March 2009. He tried getting this done prior to 11 March 2021, which would have met those requirements. He completed 11 years of service on 11 March 2020 and would not have more than 12 years of service until 11 March 2021. An email to Mr. shows when he reached out to get this completed. (e) He knows that a memorandum supersedes a fact sheet but there is conflicting information out there that will continue to cause confusion. He believes, based off everything he has looked at, that he is entitled to CP. (f) He included his email to Mr. which states he has a hard time accepting that there is not an exception to policy for this, especially when it was the Brigade finance manager who briefed their entire battalion that they would receive an email between year 11 and year 12 of service that they were going to get their CP. He never received an email saying he would be receiving it or an email outlining the policy. (3) An email from the MAJ, dated 4 November 2021, which states the applicant signed his paperwork while still eligible; however, the unit did not send it forward because they were under the impression that he was ineligible. (4) An email from the applicant, dated 4 November 2021, which attached his CP Request form, dated 1 March 2021. He had not extended to meet the requirements because he was told then he was not eligible. He could extend if needed. (5) An email from the Program Analyst, Compensation and Entitlements Division, dated 4 November 2021, which states in pertinent part: (a) Unfortunately, there was nothing they could do to back-date the applicant's request and make him qualified for CP from his position per the statutory limit of 12 years per Title 37, USC, section 356: Continuation Pay. (b) The Analyst highly encouraged the applicant to submit his case, along with the substantiating evidence to the Board. (c) In accordance with paragraph 7 of the CY2021 CP policy, the applicant's request was outside the established application window of 60 days prior to his 12th year from his PEBD. Because of this delay, due to no fault of his own, he did not meet the eligibility to apply for CP and therefore unable to be extended or reenlisted as there was no service remaining requirement. b. Request for CP BRS dated 1 March 2021, which shows he was requesting 2.5 times of his monthly basic pay with the agreement of serving an additional 4 years of obligated service. The form is not endorsed by the approval authority or the certifying official. c. A Memorandum, Subject: BRS CP CY21, dated 19 January 2021, which states in pertinent part: (1) Any member who is covered under the BRS and will complete 11 years of service but not more than 12 years of service during CY21, as computed from the Soldier's PEBD is eligible to enter into a CP BRS agreement. (2) In exchange for the CP, Soldiers must agree to serve for four years of additional service in the component in which they are serving at the time CP is approved. The service obligation commences upon approval of the CP request. (3) All Soldiers may submit their CP request once they become eligible for CP based upon their PEBD. Soldiers should submit their CP request no later than 60 days prior to completing their 12th year of service. d. A document entitled The BRS CP, which states in pertinent part: (1) Service member enrolled in the BRS may be eligible to receive a one-time, mid-career bonus payment in exchange for an agreement to perform additional obligated service. This one-time bonus payment is in addition to any other career field- specific incentives or retention bonuses. (2) CP is a direct cash payout, like a bonus, available to service members enrolled in BRS. It is targeted at the mid-career mark, payable between completion of eight years of service, but before completion of 12 years of service. Most members will be eligible for CP, but the timing and amount is determined by your service. e. A memorandum from the Deputy Secretary of Defense, 27 January 2017, which implements the BRS which would become effective on 1 January 2018. The complete memorandum is available for the Board's review. f. A document entitled Guidance for Implementation of the BRS for the Uniformed Services, which provides guidance for the implementation of the Uniformed Services' BRS. The complete document is available for the Board's review. g. A document entitled Procedures for Determining and Publishing the Lump Sum Discount Rate which states in general a member of the Uniformed Service who elects to receive either 25 percent or 50 percent of that members' retired pay as a lump sum will receive the discounted present value of that portion of his or her retired pay. The entire document is available for the Board's review. h. A memorandum from the Office of the Assistant Secretary of Defense, dated 26 May 2017, subject BRS Lump-sum Government Discount Rate for 2018. The entire memorandum is available for the Board's review. i. A memorandum from the Under Secretary of Defense, dated 15 December 2017, subject Paying Combat-Related Special Compensation Following a Lump Sum Election. The entire memorandum is available for the Board's review. j. A document entitled Procedures for Determining and Paying Combat-Related Special Compensation when a Member Elects a lump Sum of Retired Pay which states in general the document provides specific policies and procedures for paying Combat Related Special Compensation for a member of the Uniformed Service who elects a lump sum of retired pay under the BRS. The entire document is available for the Board's review. k. A memorandum from the Under Secretary of Defense, dated 22 December 2017, subject Administering SBP Following a Lump Sum Election of Retired Pay Under the BRS. The entire memorandum is available for the Board's review. l. A document entitled Procedures for Administering SBP when a Member Elects a Lump Sum of Retired Pay Under the BRS, which states in general, the document provides specific policies for calculating SBP premiums when a retiring Uniformed Service member elects a lump sum of retired or retainer pay under the BRS, and the basis for calculating an annuity in the event of the same retiree's death. The entire document is available for the Board's review. m. An undated memorandum from the Assistant Secretary of the Army, subject BRS CP CY21. The entire memorandum is available for the Board's review. BOARD DISCUSSION: After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found that relief was warranted. a. Service member enrolled in the BRS may be eligible to receive a one-time, mid- career bonus payment in exchange for an agreement to perform additional obligated service. This one-time bonus payment is in addition to any other career field-specific incentives or retention bonuses. CP is a direct cash payout, like a bonus, available to service members enrolled in BRS. It is targeted at the mid-career mark, payable between completion of 8 years of service, but before completion of 12 years of service. The timing and amount is determined by the service. b. The Board noted that the applicant's PEBD is 11 March 2009. He tried getting this done prior to 11 March 2021 (12-yaer mark), which would have met the requirements. His Brigade finance manager who briefed their entire battalion said that they would receive an email between year 11 and year 12 of service that they were going to get their CP. The applicant did not receive this email in a timely manner. Another email states the applicant signed his paperwork while still eligible; however, the unit did not send it forward because they were under the impression that he was ineligible. A third email states there was nothing they could do to back-date his request and make him qualified for CP due to the statutory limit of 12 years and that his request was outside the established application window of 60 days prior to his 12th year from his PEBD. c. Because of this delay, due to no fault of his own, he did not meet the eligibility to apply for CP. It is clear that his intent was to file for CP but he was given incorrect information and therefore unable to gain eligibility in time to request. Because of the applicant's intent of opting into the BRS for the purpose of receiving CP and because of misinformation, the Board determined that an injustice occurred and that his record should be corrected to show he submitted a timely request for CP prior to the completion of 12 years of service as computed from the PEBD. 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 the Army records of the individual concerned to show he is entitled to Continuation Pay (CP) under the Blended Retirement System (BRS) and that his paperwork was properly submitted within his 11th year and in a timely manner. 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: Title 37, USC, section 356 (Continuation Pay: Full Thrift Savings Plan members with 8 to 12 years of service) and Public Law 114-328 states: a. To be eligible for CP an individual must have completed not less than 8 but not more than 12 years of service and enter into an agreement to serve not less than 3 additional years of obligated service. It further states: b. The Secretary concerned shall determine the payment amount under this section as a multiple of a full TSP member’s monthly basic pay. The multiple for a full TSP member who is a member of a regular component or a reserve component, if the member is performing active Guard and Reserve duty (as defined in section 101(d)(6) of title 10), shall not be less than 2.5 times the member’s monthly basic pay. The multiple for a full TSP member who is a member of a reserve component not performing active Guard or Reserve duty (as so defined) shall not be less than 0.5 times the monthly basic pay to which the member would be entitled if the member were a member of a regular component. The maximum amount the Secretary concerned may pay a member under this section is, in the case of a member of a regular component the monthly basic pay of the member at 12 years of service multiplied by 2.5; plus at the discretion of the Secretary concerned, the monthly basic pay of the member at 12 years of service multiplied by such number of months (not to exceed 13 months) as the Secretary concerned shall specify in the agreement of the member under subsection (a); and in the case of a member of a reserve component, the amount of monthly basic pay to which the member would be entitled at 12 years of service if the member were a member of a regular component multiplied by 0.5; plus at the discretion of the Secretary concerned, the amount of monthly basic pay described in subparagraph (A) multiplied by such number of months (not to exceed 6 months) as the Secretary concerned shall specify in the agreement of the member under subsection (a). //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20220000802 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1