RECORD OF PROCEEDINGS
             AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS


IN THE MATTER OF:      DOCKET NUMBER:  00-02770
            INDEX CODE: 137.04

       (DECEASED)      COUNSEL:  NONE

            HEARING DESIRED:  NO


___________________________________________________________________

APPLICANT REQUESTS THAT:

The Survivor Benefit Plan (SBP) election  be  changed  from  spouse  only
coverage to spouse and children coverage, based on full retired pay.

___________________________________________________________________

APPLICANT CONTENDS THAT:

Her husband elected reduced benefits because he thought he would  recover
from his terminal illness  and  because  the  cost  of  maximum  survivor
benefits was too expensive.  Once he signed up, there was no going  back.
She felt forced to sign  the  retirement  papers  because  she  would  be
denying her husband the hope and strength to  carry  on  as  long  as  he
could.

Applicant's complete submission is attached at Exhibit A.

___________________________________________________________________

STATEMENT OF FACTS:

The relevant facts pertaining to this  application,  extracted  from  the
deceased military records, are contained in the letter  prepared  by  the
appropriate office of the Air Force.  Accordingly, there is  no  need  to
recite these facts in this Record of Proceedings.

___________________________________________________________________

AIR FORCE EVALUATION:

The Chief, Retiree Services Branch, AFPC/DPPTR, reviewed this application
and recommended partial relief because, although the  SBP  form  revealed
the decedent’s clear intent to elect spouse only coverage, the  level  of
coverage was uncertain.  The member initialed the block, “coverage  based
on full retired pay without supplemental SBP,” but the counselor inserted
a reduced base amount of $1800.  The administrative error invalidated the
election and DFAS should have established full spouse coverage to  comply
with the law.  Therefore, they recommended that the record  be  corrected
to show that on 2 February 1996, the member elected spouse only  coverage
based on full retired pay.  Approval should be contingent  on  recoupment
of all applicable premiums the member would have paid  had  he  made  the
election at that time.

A member who elects  less  than  maximum  SBP  spouse  coverage  may  not
increase the base amount in the future unless Congress authorizes an open
enrollment period.  A member who  has  eligible  children  and  fails  to
provide coverage for those  children  is  barred  from  providing  future
coverage for those children or  other  children  except  during  an  open
enrollment period.  The spouse of a retiring member must provide  written
concurrence in an election for less than maximum spouse coverage.  In the
event a member is determined to be incompetent for pay and records,  that
SBP decision is made by the Secretary of the Air Force at the request  of
the  member’s  immediate  next   of   kin.    Children   are   contingent
beneficiaries in spouse and child elections, receiving  payment  only  in
the event the surviving spouse dies or remarries before age 55.

The applicant and the decedent were married on 28 May 1977.  He  elected,
and the applicant concurred in the election for spouse only SBP  coverage
based on a reduced level of retired pay, prior  to  his  3 February  1996
disability retirement.  He died on 14 September 1996.  The  applicant  is
currently receiving an SBP annuity of $192, after the $881 offset,  based
on her entitlement to Dependency and Indemnity Compensation (DIC) awarded
to her by the Veterans Administration (VA).  If  the  election  had  been
based on full retired pay, the applicant’s SBP would  be  $1,172  ($2,053
minus the $881 offset).

A complete copy of the evaluation, with attachments, is at Exhibit C.

___________________________________________________________________

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to the applicant  on  22
December 2000, for review and response within 30 days  (Exhibit D).   She
stated that she was pleased with the recommendation for  partial  relief,
and posed questions regarding her children’s  eligibility  for  benefits,
recoupment  of  premiums,  and  the  errors  made  during  her  husband’s
retirement processing.  Her complete response, with  attachments,  is  at
Exhibit E.

___________________________________________________________________

THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing law  or
regulations.

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented  to  demonstrate  the
existence  of  probable  error  warranting  partial  relief,   since   an
administrative error on the SBP election form  concerning  the  level  of
coverage should have invalidated the election.  As such,  DFAS-CL  should
have established full spouse coverage to comply with the law.  Therefore,
we accept the opinion and recommendation from the Chief, Retiree Services
Branch, and  recommend  that  the  records  of  the  deceased  member  be
corrected to the extent indicated below.

4.  While we determined that the applicant is entitled to an SBP  annuity
due to an administrative error, insufficient relevant evidence  has  been
presented to demonstrate the existence of  probable  error  or  injustice
with respect to the applicant’s request that the records be corrected  to
allow for coverage for the children of the deceased member.  We noted the
additional questions raised by the applicant in her  rebuttal  and  offer
the  following  for  amplification.   At  the  time  of  his   disability
retirement, the deceased member was  considered  competent  for  pay  and
records, but he failed to  elect  coverage  for  his  eligible  children.
Therefore, he was barred from ever providing coverage for those  children
except during an open enrollment period.  There was  no  open  enrollment
period after his retirement in February 1996,  or  before  his  death  in
September  1996.   Moreover,  children  are   contingent   beneficiaries,
receiving benefits only  in  the  event  the  surviving  spouse  dies  or
remarries before age 55.  Therefore, the request  for  coverage  for  the
children of the deceased member is not favorably considered.

5.  With respect to the question concerning the  recoupment  of  premiums
for spouse only coverage based on full retired pay,  the  Chief,  Retiree
Services Branch, AFPC/DPPTR, states that all applicable premiums from the
time of the deceased member’s retirement  in  February  1996,  until  his
death in September 1996, will be recouped.  According to AFPC/DPPTR,  the
applicant will continue to receive the reduced benefit until all premiums
have been paid.  Since  the  amount  of  the  increased  premiums  totals
approximately  $700  ($100  x  7  months),  the  applicant  should  start
receiving the full annuity for spouse only coverage based on full retired
pay after approximately one month.

___________________________________________________________________

THE BOARD RECOMMENDS THAT:

The pertinent military  records  of  the  Department  of  the  Air  Force
relating to APPLICANT, be corrected to show that on 2 February  1996,  he
elected spouse only coverage under the Survivor Benefit Plan (SBP), based
on full retired pay.

___________________________________________________________________

The following  members  of  the  Board  considered  this  application  in
Executive Session on 16 May 2001, under the provisions of AFI 36-2603:

                 Mr. David C. Van Gasbeck, Panel Chair
                 Ms. Patricia D. Vestal, Member
                 Mr. Mike Novel, Member

All members voted to correct the records, as recommended.  The  following
documentary evidence was considered:

     Exhibit A.  DD Form 149, dated 8 Oct 2000, w/atchs.
     Exhibit B.  Applicant's Master Personnel Records.
     Exhibit C.  Letter, AFPC/DPPTR, dated 7 Dec 2000, w/atchs.
     Exhibit D.  Letter, SAF/MIBR, dated 22 Dec 2000.
     Exhibit E.  Letter, Applicant, dated 11 Jan 2001, w/atchs.




                                   DAVID C. VAN GASBECK
                                   Panel Chair





AFBCMR 00-02770




MEMORANDUM FOR THE CHIEF OF STAFF

      Having received and considered the recommendation of the Air Force
Board for Correction of Military Records and under the authority of
Section 1552, Title 10, United States Code (70A Stat 116), it is directed
that:

      The pertinent military records of the Department of the Air Force
relating to (DECEASED), , be corrected to show that on 2 February 1996,
he elected spouse only coverage under the Survivor Benefit Plan (SBP),
based on full retired pay.





            JOE G. LINEBERGER
            Director
            Air Force Review Boards Agency