211.00 Retention Special Pay - Change contract date
Recommendations of the Board for Correction, Case No.033-83 xxxxx
Xxxxxxxxxxxx filed an application with the Board for Correction dated Xxxxxxx 1983, requesting Retention Special Pay (RSP) coverage for the period Xxxxxxx 1982-Xxxxxxx 1983. The merits of the request were reviewed on the basis of the documentation provided. The relevant facts and the Board's Findings, Conclusions and Recommendations are included as Attachment 1.
After consideration of all information provided, the vote of the members of the Board was divided on Xxxxxxx request. The Board's Findings, Conclusions and Recommendations includes the two recommendations that were before the Board. You are requested to review these recommendations, the case summary and the file on Xxxxxxx and render a decision.
It is certified that the foregoing recommendations are true and complete statements of actions taken by the Board for Correction, as contained in Attachment 1 to this memorandum, and that the report of these actions has been reviewed by the Board members. Further, it is certified that the documentation contained in Attachment 2 includes all information presented to the members of the Board, and that, in addition to applicable statutes, regulations and policies, it has been considered in arriving at these recommendations. Finally, it is certified that a quorum was present at the Board's meeting on xxxxx 1983 when Xxxxxxx request was considered.
The foregoing action of the Board for Correction is submitted for your review and decision.
(1) Board's Findings, Conclusions and Recommendations
(2) Case Summary and all available documenting evidence
FINDINGS AND CONCLUSIONS
The basic question before members of the Board is whether Xxxxxxx should be required to bear the consequences of his decision to change the effective date of his RSP contract, or whether that decision was the result of administrative problems over which he had no control, and from which he should be granted relief.
CPOD takes the position that Xxxxxxx has been correctly paid in accordance with the policy in effect, and that his decision to change the effective date of his RSP contract was for the purpose of obtaining a more favorable tax treatment, and that the request before the Board should be denied.
The members of the Board believe that the motivation behind Xxxxxxx decision to change the effective date of his RSP contract is more appropriately understood by inquiring into the administrative practices during the early days of the RSP program and the effects of those practices on the choices made available to Xxxxxxx.
The Board members find that during the early days of the RSP program, delays were experienced in processing contract support documentation which led to the situation described by Xxxxxxx in his request before the Board. The members of the Board believe that Xxxxxxx efforts to avoid receiving two bonus payments in one year, for tax or other reasons, Xxxxxxxxxxx is an option that should have been open to him and should not have been precluded by the consequences of the problems experienced in processing RSP payments.
The Board members recognize that the intent of the incentive pay program is to encourage officers to enter and remain on active duty. This objective is not served when an officer faces the risk or uncertainty of having to pay higher taxes due to no fault of his own.
After consideration of all information presented, the vote of the members of the Board was divided on Xxxxxxx request. On the one hand, it was recognized that Xxxxxxx had made an informed decision to change the date of his RSP contract and that he should bear the consequences of that decision. On the other hand, the Board members recognized that the problem faced by Xxxxxxx was not of his own making, but was the result of the administrative management practices of the RSP program, and that he should not be forced to suffer the consequences of those practices. The Board members agreed that these two recommendations should be forwarded to the Deputy Assistant Secretary for Health Operations and Director, Office of Management, for review and final decision.
I certify that each of the Board members has read this report and that its content is a true and complete statement of the deliberations of the Board.
Board for Correction of PHS Commissioned Corps Personnel Records
I have reviewed the two recommendations, the case summary and file on Xxxxxxx. It is my decision that his request be upheld and that he be placed under an RSP contract for the period xxxxxxx 1982-xxxxxx 1983, and that he receive RSP pay in the amount of $1,138.89.
Wilford J. Forbush
Deputy Assistant Secretary for Health Operations and Director, Office of Management
Anyone wishing to obtain an un-redacted copy of any of the decisions should submit a request for the un-redacted decision under the federal Freedom of Information Act (FOIA). Such requests should be directed to the PHS FOIA Office, Parklawn Building, Room 17 A-46, 5600 Fishers Lane, Rockville, MD 20857; telephone 301-443-5252; fax 301-443-0925.