IN THE CASE OF: BOARD DATE: 15 November 2023 DOCKET NUMBER: AR20230003393 APPLICANT REQUESTS: requests waiver of Career Status Bonus (CSB). APPLICANT'S SUPPORTING DOCUMENT(S) CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Headquarters (HQs), U. S. Army Garrison Command, Fort Knox Orders Number 109-0164 * Defense Finance and Accounting Service (DFAS) letter FACTS: 1. The applicant states in effect, he requests the waiver of his CSB recoupment in accordance with the Department of Defense Financial Management Regulation (DoD FMR) 7000.14, volume 7A (Military Pay), chapter 66, paragraph 4.2.1.1 (Waiver of CSB recoupment) due to service member being involuntarily retired as a result of physical disability. He petitioned the DFAS multiple time; however, they would not recognize this exception. The regulation stated the secretary of the military department is the approving authority for the waiver. 2. A review of the applicant’s service record shows: a. The applicant enlisted in the U. S. Army Reserve (USAR) on 26 November 1996. b. DD Form 214 (Certificate of Release or Discharge from Active Duty) shows the applicant was ordered to active duty for training (ADT) on 7 July 1997. The applicant was honorably released from active duty on 27 February 1998 and completed 7-months and 21-days of active service. c. The applicant enlisted in the Regular Army (RA) on 3 October 2002 and had continuous service through reenlistments. d. On 7 April 2022, the informal Physical Evaluation Board (PEB) found the applicant physically unfit for retention and recommended the be placed on the Temporary Disability Retired List (TDRL) with 90 percent disability for: * major depressive disorder – 70 percent disability * thoracic spine degenerative arthritis and lumbar spine degenerative arthritis – 40 percent disability * cervical spine degenerative arthritis and cervical spondylosis – 30 percent disability e. On 19 April 2022, Orders Number 109-0164, issued by HQs, U. S. Army Garrison Command, Fort Knox, the applicant was placed on the TDRL on 11 July 2022 in the rank of sergeant first class (SFC)/E7 with 90 percent disability. The order states the applicant was eligible for and elected to participate in CSB. His initial entry date in the military was 26 November 1996. f. On 10 July 2022, the applicant was honorably retired from active duty and assigned to the USAR Control Group (Retired Reserve). DD Form 214 shows the applicant completed 19-year, 9-months and 8-days of active service. g. On 23 July 2023, the informal PEB found the applicant physical unfit for retention and recommended he be placed on the Permanent Disability Retired List (PDRL) with 90 percent disability for: * major depressive disorder – 70 percent disability * thoracic spine degenerative arthritis and lumbar spine degenerative arthritis – 40 percent disability * cervical spine degenerative arthritis and cervical spondylosis – 30 percent disability h. On 4 August 2023, Orders Number D216-0011, issued by HQs, U. S. Army Physical Disability Agency, the applicant was removed from the TDRL and placed on the PDRL on 4 August 2023 with 90 percent disability under the provisions of Title 10, United States Code (USC), section 1201. i. The applicant's records are void of any documents pertaining to a CSB. Likewise, he does not provide documentation showing the payment of a CSB. 3. The applicant provides letter from DFAS dated 10 January 2023 which stated the applicant was a disability retiree who elected the CSB option and since his pay was computed based upon the 90 percent disability and not his 21-years, 3-months and 5- days of service his gross retired pay was not subject to the Military Retirement Reform Act (MRRA) of 1986 (REDUX) calculation which would normally accompany CSB. Unfortunately, the calculation to determine his Concurrent Receipt Disability Payment (CRCP) was subject to REDUX. The MRRA or REDUX is the act that changed the manner in which retired pay would be computed for all members who initially entered the Armed Forces on or after 1 August 1986. 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 and available military records, the Board determined there is sufficient evidence to warrant the applicant’s waiver request of his CSB recoupment. The Board agreed the applicant was involuntarily retired as a result of physical disability. Based on regulatory guidance the applicant met the criteria to waive his CSB recoupment in accordance with Title 10. Therefore, the Board granted 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 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 be corrected by show the applicant has an approved waiver of his Career Status Bonus (CSB). 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. ADMINISTRATIVE NOTE(S): NA REFERENCES: 1. DoD FMR 7000.14, volume 7A (Military Pay) prescribes the criteria for determining creditable service for military members; provides examples for computing valid creditable service; states periods of service that are not creditable for pay purposes; cites conditions for the payment of military pay entitlements. Chapter 66 (Career Status Bonus (CSB)/Continuation Pay (CP)), purpose of this chapter is to provide policy pertaining to Career Status Bonus (CSB) and the Continuation Pay (CP) bonus, which is payable only to members who are in the Blended Retirement System (BRS). The Military Retirement Reform Act of 1986, (referred to as REDUX), covered Uniformed Service members who first became members beginning on or after 1 August 1986 and before 1 January 2018. These members could elect, upon completion of 15-years of Active Duty (AD) in the Uniformed Services, to either retire under the High-3 retirement system or receive a $30,000 CSB and remain under the REDUX retired pay system. To make a CSB/REDUX election, a member was required to submit a DoD (DD) Form 2839, Career Status Bonus (CSB) Election or Service equivalent form, and any other Service required forms as directed in the eligibility notification no later than the date the member attained 15-years of active military service or 6-months after the eligibility notification was sent, whichever was later. Initial payment for CSB must be paid not earlier than the date the member attains 15-years of active service. The Secretary of the Military Department concerned was required to notify all members with a Date Initially Entered Military Service/DIEUS between 1 August 1986 and 31 December 2002, whether they were eligible to make a CSB/REDUX election. a. Paragraph 4.1 (CSB Recoupment Computation) states a CSB recipient who fails to serve continuously on active duty until the completion of 20 years of active duty must repay a comparable portion of the CSB received. The amount is calculated by multiplying $30,000.00 by a factor that is determined by dividing the uncompleted period of active duty by the total period of continuous active duty required as a result of the CSB/REDUX election. b. Paragraph 4.2 (Waiver of CSB Recoupment), the Secretary of the Military Department concerned may waive, in whole or in part, the required CSB refund if the Secretary determines that recovery would be against equity and good conscience or contrary to the best interests of the United States. The Secretary of the Military Department concerned will waive the required refund if the member: * dies * is separated or retired as a result of a physical disability under Title 10 United States Code (USC), section chapter 61 * is separated under a Service offer for early retirement such as Temporary Early Retirement Authority (commonly referred to as TERA) or other separation program The Secretary of the Military Department concerned will not waive repayment if the member's separation is due to misconduct or if a waiver of repayment would be inconsistent with other prescribed law, regulation, or policy. 2. Public Law 99-348 (Military Retirement Reform Act of 1986), eligible service members can opt to have their retired pay computed in accordance with the Redux formula and receive an immediate $30,000 cash bonus called a Career Status Bonus.16 Those who select the Career Status Bonus (CSB) must remain on active duty until they complete 20-years of service or forfeit a portion of the bonus. 3. The Defense Finance and Accounting Service website provides the following pertaining to CSB. a. Members who entered the service after 31 July 1986 are given a choice of two retirement plans when they reach their 15th year of active service: * High-3 Year Average * Career Status Bonus (CSB)/REDUX b. Military members who elect CSB/REDUX are eligible to receive a $30,000.00 bonus when they reach their 15th year of active service but will also have their retired pay calculated at a reduced rate. 4. Title 10, USC, section 1201 (Regulars and members on active duty for more than 30 days: retirement) states upon a determination by the Secretary concerned that a member described in subsection (c) is unfit to perform the duties of the member’s office, grade, rank, or rating because of physical disability incurred while entitled to basic pay or while absent as described in subsection (c)(3), the Secretary may retire the member, with retired pay computed under section 1401 of this title, if the Secretary also makes the determinations with respect to the member and that disability specified in subsection (b). based upon accepted medical principles, the disability is of a permanent nature and stable; (2) the disability is not the result of the member’s intentional misconduct or willful neglect, and was not incurred during a period of unauthorized absence; and the member has at least 20 years of service computed under section 1208 of this title; or the disability is at least 30 percent under the standard schedule of rating disabilities in use by the Department of Veterans Affairs at the time of the determination the disability was not noted at the time of the member’s entrance on active duty (unless clear and unmistakable evidence demonstrates that the disability existed before the member’s entrance on active duty and was not aggravated by active military service); //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20230003393 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1