A OTH is the most severe form of administrative discharge. This type of discharge represents a serious departure from the conduct and performance expected of all military members. OTH discharges are typically given to service members convicted by a civilian court in which a sentence of confinement has been adjudged or in which the conduct leading to the conviction brings discredit upon the service.
It can also be given as the result of certain civil hearings, like a divorce for adultery. OTH discharges can be accepted in-lieu of court-martial proceedings at the service-member's request. Persons facing OTH are guaranteed, by the Uniform Code of Military Justice, the right to have their discharge heard by an administrative discharge board, which is similar to a court-martial but is not a public forum.
Recipients of OTH discharges are barred from reenlisting into any component of the Armed Forces (including the reserves), and are normally barred from joining the Army National Guard or Air National Guard, except under rare circumstances which require exception-to-policy waivers. As of September 2006, all 50 states had policies barring the reenlistment of UOTHC discharge recipients. In addition, the majority of veterans' benefits are not available to individuals who receive an other than honorable conditions discharge, including the Montgomery GI Bill and (in most cases) VA healthcare benefits.
A bit more... When I was in the military, the term generally used for an other-than-honorable discharge was "General" ... which meant that no great harm was done during the person's service, but that the service was not really up to expected standards. The most severe form of administrative discharge, of course, is "Dishonorable." That is reserved, generally, for criminals, traitors and deserters.
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