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AF | BCMR | CY1998 | 9702962
Original file (9702962.pdf) Auto-classification: Approved
DEPARTMENT OF THE AIR FORCE 

WASHINGTON, DC 

Office of the Assistant Secretary 
AFBCMR 9 7 - 0 2 9 6 2  

MEMORANDUM OF CONSIDERATION OF APPLICATION BEFORE THE AFBCMR 
SUBJECT : 

Having carefully reviewed this application, we agree with the 
recommendation of the Air Force office of primary responsibility 
and adopt the rationale expressed as the basis for our decision 
that the applicant has been the victim of either an error or an 
injustice.  Therefore, under the authority delegated in AFI 
3 6 - 2 6 0 3 ,   the applicant's records will be corrected as 
the accompanying Memorandum for the Chief of Staff signed by the 
Executive Director of the Board or his designee. 

set forth in 

Phe1 Chair/ 

Attachment: 
Ltr, HQ AFPC/DPPTR, dtd Oct 3 ,   1 9 9 7 ,  
w/Atchs 

DEPARTMENT OF THE AIR FORCE 

WASHINGTON, DC 

office of the Assistant Secretary 

AFBCMR 97- 02962 

MEMORANDUM FOR THE CHIEF OF STAFF 

Under the authority of Section 1552,  Title 10, United States 

Code and Air Force Instruction 36-2603, and having assured 
compliance with the provisions of the above regulation, the 
decision of the Air Force Board for Correction of Military Records 
is announced, and it is directed that: 

The pertinen 
Force relating to 
show that, on 30 
spouse and child coverage based on Cull retired pay. 

nt of the Air 
e corrected to 
efit Plan  ( S B P )  
. - - - ,  

j2!2j@i!% 

Chief  xaminer 

V  Air Force Board for Correction 

of Military Records 

D E P A R T M E N T  OF T H E  AIR  FORCE 

HEADQUARTERS AIR  FORCE  PERSONNEL CENTER 

RANDOLPH AIR  FORCE BASE TEXAS 

E7 ?@ @9& 

MEMORANDUM FOR AFBCMR 

FROM: HQ AFPC/DPPTR 

550 C Street West Ste 11 
Randolph AFB TX  781504713 

SUBJECT:  Application for Correction of Military Records 

_ _ _ 4  

Reference: 

- 

Requested Correction:  The applicant is requesting corrective action to show he 
elected spouse and child coverage based on full retired pay under the Survivor Benefit 
Plan (SBP) prior to retiring.  He has provided a statement indicating his willingness to 
pay all premiums that accrue if his request is approved. 

Basis for Request:  The applicant claims that an administrative error on the part 
of the Defense Finance and Accounting Service (DFAS) resulted in coverage not being 
established. 

Backaround:  When DFAS fails to receive a valid SBP election prior to a 
member’s retirement, the law requires coverage to be established for all eligible 
beneficiaries. 

Facts:  Records indicate the member and Betty were married 15 Aug 53 and he 
completed an SBP election for spouse and child coverage, maximum annuity, prior to 
his 1 Jul 88 retirement.  Nevertheless, the DFAS-Denver Center (DFAS-DE) 
erroneously established his retired pay account to show he had declined SBP 
coverage.  Subsequently, a copy of the original election was located in the applicant‘s 
retired pay record, but the DFAS-Cleveland Center (DFAS-CL) refused to establish the 
coverage because of the ten-year delay and the significant retroactive debt. 

A 

Discussion:  We have been unable to determine why DFAS-DE failed to accept 

the member’s election for spouse and child coverage.  Furthermore, the member‘s 
record contains no evidence of a valid election to decline SBP coverage.  Although it is 
each member’s responsibility to ensure their SBP coverage has been properly 
established and although the applicant has offered no explanation for his failure to 
question why SBP premiums were not being deducted from his pay, the finance center 
erred by its failure to implement the coverage the member elected.  Furthermore, the 
DFAS error was compounded when it failed to establish the coverage required by law if 
there is no valid SBP election on record. 

Recommendation:  We recommend the member's record be corrected to reflect 
on 30 Jun 88 he elected spouse and child coverage based on full retired pay.  Approval 
should be contingent upon recovery of appropriate costs. 

PAT PEEK, DAFC 
Chief, Retiree Services Branch 
Directorate Pers Prog Management 



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