IN THE CASE OF: BOARD DATE: 26 October 2023 DOCKET NUMBER: AR20230002940 APPLICANT REQUESTS: cancellation or remission of a Defense Finance and Accounting Service (DFAS) debt in the amount of $518.22. APPLICANT'S SUPPORTING DOCUMENT(S) CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Orders Number 22-048-00017, 17 February 2022 * Defense Finance and Accounting Service (DFAS) letter, 16 November 2022 FACTS: 1. The applicant states in pertinent part that his debt was unjustly assessed because of an adjustment to his Pay Entry Base Date (PEBD) that occurred after he had reached his Expiration Term of Service (ETS) date. He contests that debts cannot be applied to a Soldier who is no longer obligated under a service contract. 2. A review of the applicant's available service records reflects the following: a. On 6 February 2004, the applicant enlisted in the U.S. Army Reserve (USAR) for 8 years. b. On 11 March 2004, the U.S. Army Human Resources Command issued an AHRC Form 249-2-E (Chronological Statement of Retirement Points) reflective of the applicant's PEBD of 6 February 2004. c. On 9 June 2004, the applicant was ordered to active duty for completion of Basic Combat Training. d. On 20 August 2004, the applicant was released from active duty. e. On 7 August 2005, the applicant was ordered to active duty in support of Operation Iraqi Freedom. f. On 5 October 2006, the applicant was released from active duty. g. On 7 February 2012, the applicant was ordered to active duty in support of Operation Enduring Freedom. h. On 27 September 2012, Headquarters, 88th Regional Support Command issued Orders Number 12-271-00047 announcing the applicant's promotion to the rank/grade of sergeant (SGT)/E-5, effective 1 October 2012. i. On 21 January 2013, the applicant was released from active duty by reason of completion of required active service. j. On 13 December 2015, the applicant reenlisted for 6 years. k. On 17 February 2022, Headquarters, 88th Readiness Division issued Orders Number 22-048-00017 discharging the applicant from the USAR, effective 17 February 2022. 3. The applicant provides DFAS letter dated 16 November 2022 reflective of communication provided to his congressional representative concerning the applicant's incurred debt. The Debt and Claims Office received the following debts on 26 May 2022 and notified the applicant on 15 July 2022. The applicant had a PEBD of 6 February 2004, as of 31 December 2021. This date was later changed to 9 June 2004, effective 31 March 2022. The retroactive adjustment of this date created a debt in the amount of $706.24 for the periods of 1 January 2014 through 30 December 2014, 1 January 2016 through 30 December 2016 and 1 October 2021 through 7 October 2021. a. The applicant's $96.98 debt is due to the deferred collection of Old Age, Survivors, and Disability Insurance ("OASDI"), also known as Social Security tax, from September 2020 through 31 December 2020. Collection of OASDI was deferred in accordance with the Presidential Memorandum issued 8 August 2020, Internal Revenue Service Notice 2020-65, and the direction of the Office of Management and Budget and Office of Personnel Management. In accordance with these authorities, OASDI withholdings were required to be deferred from September through December 2020 and collected, where possible, from 2021 wages. b. The applicant's Servicemembers' Group Life Insurance (SGLI) debt of $50.00 was due to his SGLI premiums paid on his behalf at the rate he elected. Their office records reflect a 17 February 2022, date of separation, and the timeframe for his SGLI debt is 24 January 2022 and 22 February 2022, at $25.00 per month. Family Servicemembers' Group Life Insurance (FSGLI) debt of $5.30 was also due to his premiums paid on his behalf for 24 January 2022. The applicant was not participating in active-duty drills at this time, and he was not able to pay back those premiums paid for him. c. On 18 October 2022, a portion of the applicant's debt in the amount of $351.57 was written off. It was determined that this debt did not satisfy the collection threshold criteria established within the Debt and Claims Management Office. The debt was systemically written off according to a management directive, which decreased his total debt balance to $518.22. 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 no evidence indicating the applicant performed inactive duty training (IDT) prior to beginning his initial period of active duty training (ADT). Therefore, in accordance with regulation, his PEBD was 9 June 2004, the date he entered his initial period of ADT, not 6 February 2004, the date he enlisted in the USAR. While it is unfortunate that the error was corrected many years later, the Board found no error, injustice, or inequity in the decision to collect the amount he was overpaid. The Board further found the additional amounts he owed (deferred OASDI and SGLI premiums) to be proper debts to the government. Based on a preponderance of the evidence, the Board determined there is an insufficient basis for cancellation or remission of the debt. 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. Army Regulation 637-1 (Army Compensation and Entitlements Policy) provides that the basic pay rate is established according to the pay grade and the number of years creditable service a Soldier has completed. Creditable service is determined per this chapter and DoD FMR Volume 7A. Creditable service will be used to establish the Soldier's PEBD and Basic Active Service Date (BASD). a. For most Soldiers who enter and serve on active duty without a break in service, the PEBD and BASD is the date the Soldier enters service. However, if there is a break in service, the time between periods of service usually is not included. In addition, there are statutory periods of service in certain components that Service may not use when computing creditable service dates. Conversely, there are periods of constructive service a Service may use even though the Soldier was not actually serving on active or inactive service. b. Service not creditable - Do not use any service that is not listed as creditable service to compute a PEBD or BASD. For enlistments entered into on or after 29 November 1989: (a) A period of enlisted service in a Reserve Component (RC) under Title 10, United States Code (USC), section 12103, including inactive service under a Delayed Entry Program, if the Soldier does not perform IDT before beginning active duty or an initial period of ADT; or (b) Service performed as an enlisted Soldier in an RC under Title 10, USC, section 513 other than a period of active duty. 2. AR 600-4 (Remission or Cancellation of Indebtedness) in accordance with the authority of Title 10 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. 3. AR 15-185 (ABCMR) paragraph 2-9 states the ABCMR begins its consideration of each case with the presumption of administrative regularity. The applicant has the burden of proving an error or injustice by a preponderance of the evidence. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20230002940 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1