Docket No. 7907-19
Ref: Signature Date
 
From:  Chairman, Board for Correction of Naval Records 
To:    Secretary of the Navy 
 
Subj:   REVIEW OF NAVAL RECORD ICO ,    USN
 
Ref:   (a) Title 10 U.S.C. §1552 
       (b) CNO (N13) PDM 008-13 of 26 Apr 13 
 
Encl:   (1) DD Form 149 w/attachments 
        (2) CNP memo 7220 Ser N130C4/20U0188 of 6 Feb 20 
        (3) Subject’s naval record 
 
1.  Pursuant to the provisions of reference (a) Subject, hereinafter referred to as Petitioner, filed enclosure (1) with this Board requesting, in effect, that the applicable naval record be corrected to show Petitioner’s Sea Duty Incentive Pay (SDIP) lump-sum payment was determined to be tax-free. 
 
2.  The Board, consisting of         reviewed Petitioner’s allegations of error and injustice on 11 August 2020 and, pursuant to its regulations, determined that the corrective action indicated below should be taken on the available evidence of record.  Documentary material considered by the Board consisted of the enclosures, relevant portions of Petitioner’s naval record, and applicable statutes, regulations and policies. 
 
3.  The Board, having reviewed all the facts of record pertaining to Petitioner’s allegations of error and injustice, finds as follows: 
 
     a.  Before applying to this Board, Petitioner exhausted all administrative remedies available under existing law and regulations within the Department of the Navy. 
 
     b.  In accordance with reference (b), qualified sailors voluntarily continue sea duty service beyond their prescribed sea tour (PST) by a minimum of 12 months and a maximum of 48 months, based upon DoD area or minimum activity tour length. Eligible Sailors must be assigned to Type 2/4 Commands designated as sea duty for rotational purposes.  Upon approval for SDIP-Back-To-Back (SDIP-B) request, the Sailor will be assigned in accordance with Enlisted Distribution Policy (EDP) by requisition priority to a valid SDIP billet onboard a ship, submarine or at an aviation squadron designated as Type 2/4 sea duty for rotational  purposes. 
 
     c.  On 11 January 2011, Petitioner arrived to for duty. 
 
     d.  On 17 January 2014, Petitioner requested via NAVPERS 1306/7 (Enlisted Personnel Action Request), Sea Duty Incentive Pay (SDIP-B) for back to back sea duty in the amount of $750 per month for 24  months.  Furthermore, cognizant authority approved Petitioner’s request on 29 January 2014. 
 
     e.  On 25 February 2014, COMNAVPERSCOM message was published with the following:  
Petitioner’s voluntary request to extend at-sea for a back-to-back sea duty assignment for 36 months with SDIP, was approved.  He was entitled to a lump-sum SDIP payment, minus taxes if applicable, in the amount of 18,000 dollars based on the 24 months he has extended for a back-to-back sea tour.  Payment will normally be made within the first two pay periods after being properly reported on board the new SDIP command.  Petitioner’s current command was directed to comply with the following requirements: prepare and forward the SDIP NAVPERS 1070/613 (page 13) to NPC via fax to (901) 874-2647/DSN 882-2647 or email to mill sdip@navy.mil within 30 days of receipt of this message.  An SDIP payment transaction will not be forwarded to DFAS for payment until the SDIP page 13 is received and entered into the sailor’s enlisted master file.  The SDIP page 13 must be signed by the sailor and dated on or after the date of this message.  The SDIP page 13 represents the contract between the sailor and the U. S. Navy for SDIP. 
 
     f.  On 26 February 2014, Petitioner signed a NAVPERS 1070/613 (Administrative Remarks) volunteering to extend At-Sea with Sea Duty Incentive Pay (SDIP) for a Back-To-Back Sea Duty assignment for 24 months beyond his current Prescribed Sea Tour (PST). 
 
     g.  On 1 April 2015, Petitioner transferred from duty station. 
 
     h.  On 14 August 2015, Petitioner arrived to  for duty. 
 
     i.  In correspondence attached as enclosure (2), the office having cognizance over the subject matter addressed in Petitioner’s application has commented to the effect that the request has merit and warrants favorable action. 
 
CONCLUSION  
 
Upon review and consideration of all the evidence of record, and especially in light of the contents of enclosure (2), the Board finds the existence of an injustice warranting the following corrective action.  The Board concluded that there’s evidence that Petitioner received Hostile Fire/Imminent Danger Pay during the period he signed his NAVPERS 1070/613 on 26 February 2014.  The Board also concluded that Tax Free eligibility is determined by Defense Finance and Accounting Service (DFAS) based on the date that the SDIP NAVPERS 1070/613 is signed.  If Petitioner was in a Tax Free Zone on the date that the NAVPERS 1070/613 was signed, the payment will be Tax Free regardless of when it was paid.      
 
RECOMMENDATION 
 
That Petitioner’s naval record be corrected, where appropriate, to show that: 
 
DFAS will complete an audit of Petitioner’s records to determine if Petitioner’s SDIP payment was qualified for a tax free zone on 26 February 2014, the date that Petitioner signed NAVPERS 1070/613, and if Petitioner is due any back pay. 
 
A copy of this Report of Proceedings will be filed in Petitioner’s naval record. 
 
4.  It is certified that quorum was present at the Board’s review and deliberations, and that the foregoing is a true and complete record of the Board’s proceedings in the above entitled matter. 
 
5.   Pursuant to the delegation of authority set out in Section 6(e) of the revised Procedures of the Board for Correction of Naval Records (32 Code of Federal Regulations, Section 723.6(e)) and having assured compliance with its provisions, it is hereby announced that the foregoing corrective action, taken under the authority of reference (a), has been approved by the Board on behalf of the Secretary of the Navy.