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AF | BCMR | CY1998 | 9800361
Original file (9800361.pdf) Auto-classification: Approved
DEPARTMENT OF THE AIR FORCE 

WASHINGTON, DC 

L 

JUL  2 7  l938 

Office of the Assistant Secretary 
AFBCMR 98-0036 1 

MEMORANDUM FOR THE CHIEF OF STAFF 

Under the authority of Section 1,552,  Title 10, United States Code, 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: 

s of the Department of the Air Force relating 
ted to show that on 13 May 1987, he elected 
eligible former spouse beneficiary, based on full retired pay. 

erage from “spouse coverage” to “former spouse coverage, 

DONNA PITTENGER 
Chief Examiner 
Air Force Board for Correction 
of Military Records 

DEPARTMENT OF THE AIR FORCE 

WASHINGTON, DC 

4 

Office of the Assistant Secretary 

AFBCMR 98-00361 

JUL  a 7  lpss 

MEMORANDUM OF CONSIDERATION OF APPLICATION BEFORE THE AFBCMR 

Having carefully reviewed this application, we agree with the recommendation of the Air 
Force 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 
36-2603, the applicant’s records will be corrected as set forth in the accompanying Memorandum 
for the Chief of Staff signed by the Executive Director of the Board or his designee. 

Attachment: 
Ltr, AFPCDPP’TR, dtd 9 Jun 98 

Panel Chair 

DEPARTMENT  OF THE AIR  FORCE 

HEADQUARTERS  AIR  FORCE  P E R S O N N E L  CENTER 

RANDOLPH AIR  FORCE  BASE TEXAS 

MEMORANDUM FOR AFBCMR 

FROM:  HQ AFPCIDPPTR 

550 C Street West Ste 11 
Randolph AFB TX  781 50471 3 

SUBJECT:  Application for Correction of Military Records 

Requested Correction:  The applicant is requesting corrective action .J show he filed a 
timely election to voluntarily change his Survivor Benefit Plan (SBP) coverage from spouse to 
former spouse based on full retired pay following divorce. 

Basis for Request:  The applicant claims he sent a copy of the divorce decree to the 

finance center and requested his former spouse was to continue as the designated beneficiary 
of the SBP. 

Backaround:  A spouse beneficiary loses eligibility to receive an annuity following 

divorce.  However, the law provides two mechanisms for changing spouse coverage to former 
spouse coverage.  Both must be exercised within the first year following divorce:  the retiree 
may file an election change, or the former spouse may request the retiree be deemed to have 
made such a change on his or her behalf.  In the latter case, the former spouse must provide 
legal documentation that the member agreed, or that the court ordered the member, to 
establish former spouse coverage.  If neither the member nor the former spouse requests the 
election change during the one-year eligibility period, former spouse coverage may not be 
established thereafter.  Although SBP premiums may continue to be deducted from the 
member's retired pay following divorce, the former spouse is not eligible to receive annuity 
payments in the event of the member's  death. 

Facts:  The parties married on 4 Dec 45.  The member retired for disability effective 

7 Nov 67 and elected full spouse coverage during the initial SBP open enrollment period 
authorized by Public Law (PL) 92-425 (21 Sep 72 - 20 Mar 74).  The parties divorced on 
12 May 87, but the court order was silent on the issue of SBP.  The applicant remarried on 
23 May 87, but there is no evidence he requested SBP coverage be established on his new 
wife's behalf.  SBP premiums continued to be deducted from the applicant's retired pay and 
his former spouse was erroneously listed as the eligible spouse beneficiary for over ten years 
following their divorce.  In Dec 97, Defense Finance and Accounting Service-Cleveland Center 
(DFAS-CL) suspended spouse coverage and issued the member a premium refund 
(approximately $8,700) retroactive to the date of divorce, but subject to the six-year statute of 
limitations. 

Discussion: Although the member made no election change during the required one- 

year time limit following divorce, he did not request DFAS terminate his former spouse's 
coverage, premiums continued to be deducted from his pay, and he took immediate action to 

establish former spouse coverage after DFAS-CL advised him it was not in effect, all indicative 
of his intent to maintain his former spouse as the eligible SBP beneficiary.  The member 
agrees to repay any premium debt. 

Recommendation:  Although there is no evidence of Air Force error, we recommend 

that the member's record be corrected to reflect that on 13 May 87 he elected t 
coverage to former spouse coverage based on full retired pay, naming 
as the eligible former spouse beneficiary.  Approval should be conting 

recoupment of all applicable premiums. 

PAT PEEK, DAFC 
Chief, Retiree Services Branch 
Directorate of Pers Program Management 



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