2.  The applicant requests correction of his military records to show that he changed his SBP (Survivor Benefit Plan) election from “spouse, based on full retired pay” to “spouse only, base amount $392.00” be approved.

3.  The applicant's military records show that he retired from active duty on 1 March 1995 with the rank of chief warrant officer four with more than 20 years of creditable active service.  The applicant elected SBP participation for spouse only coverage with a reduced base amount of $392.00, which required spousal concurrence by law (spouse concurred with the applicant’s desired election copy attached).  However, during the processing of his application an administrative error was committed by personnel at the Retirement Service Office, at Fort Bragg, North Carolina.  Apparently two DD Forms 2656 (Data for Payment of Retired Personnel) were submitted to DFAS-CL, one of which did not provide the desired reduced based amount.  DFAS-CL therefore, established the election as “full spouse” and withheld premiums accordingly.  Technically, the election should have been input as “auto full spouse”.  On 19 July 1995, the applicant submitted an appeal to this Board.

4.  Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity
after death to surviving dependents.  However, in those cases where the member elected not to participate in the SBP, to participate at less than the maximum coverage, or to exclude the spouse by designating children only as beneficiaries, it was required that the spouse was to be made aware of the member's decision and of the implications of that decision as it affected the spouse's future welfare.

5.  The cost of the survivor annuity for a spouse and the amount of the annuity are computed from the base amount selected.  The base amount may be any amount from a minimum of $300.00 (or the full monthly retired pay if less than $300.00) up to full retired pay.  The cost of the annuity is two and one-half percent of the base amount up to $300.00, plus 10 percent of the balance of the base amount over $300.00.  The annuity payable is 55 percent of the base amount selected.

7.  In the processing of this case, a staff advisory opinion was obtained from the SBP Board which recommended that the applicant’s request to change his survivor benefit plan election from “spouse, based on full retired pay” to spouse only, base amount $392” be approved, retroactive to date of retirement and that the record should also reflect that the applicant declined coverage for eligible children on date of retirement. 

CONCLUSIONS:

1.  The evidence of record shows that the applicant retired on 1 March 1995, and elected spouse only SBP coverage with a reduced based amount of $392 in which his spouse concurred with the applicant’s decision.

2.  However, the RSO, at Fort Bragg North Carolina committed an administrative error.  Apparently, two DD Forms 2656 (Data for Payment of Retired Personnel), somehow was submitted to DFAS-CL.  DFAS-CL therefore, established the election as “full spouse” and with held premiums accordingly.  Technically the election should have been input as “auto full spouse”.

3.  There appears to be no evidence of negligence on the part of the applicant.  Therefore, in view of the foregoing, findings, conclusions and the advisory opinion, it would be appropriate to correct the records as recommended below. 

RECOMMENDATION:  

That all of the Department of the Army records related to this case be corrected by showing that the individual concerned elected SBP for “spouse only base amount $392 retroactive to date of retirement with retroactive cost refund of overcollected premiums from date of retirement.
BOARD VOTE:  

                       GRANT AS STATED IN RECOMMENDATION

                       GRANT FORMAL HEARING

                       DENY APPLICATION




		                           
		        CHAIRPERSON