RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS
IN THE MATTER OF: DOCKET NUMBER: BC-2012-04817
COUNSEL: NONE
HEARING DESIRED: NO
________________________________________________________________
APPLICANT REQUESTS THAT:
His daughter be removed as a beneficiary of his Survivor Benefit
Plan (SBP).
________________________________________________________________
APPLICANT CONTENDS THAT:
His daughter requires constant supervision for her disability
and now receives financial support from federal and state funds.
He has learned that should she receive funds from his SBP, she
would no longer qualify for these resources, leaving her without
the care she needs. He was not informed of the negative benefit
designating her as a beneficiary would have on the entitlements
his disabled daughter would be otherwise qualified.
The applicant's complete submission is at Exhibit A.
________________________________________________________________
STATEMENT OF FACTS:
Data extracted from the Air Force advisory shows the applicant
retired on 31 July 1975.
The remaining relevant facts pertaining to this application are
contained in the letter prepared by the appropriate office of
primary responsibility, which is attached at Exhibit B.
________________________________________________________________
AIR FORCE EVALUATION:
AFPC/DPFFF recommends approval. The applicant who was married
and had a dependent child, elected spouse and child coverage
based on a reduced level of retired pay prior to his retirement.
Title 10 USC Section 1447 (11) states that an eligible child is
a person who is incapable of self-support because of a mental or
physical incapacity that existed before their 18th birthday. If
a member elects child coverage in conjunction with an election
for the spouse, or elects child only coverage, the SBP annuity
may be paid to the disabled childs conservator or trustee, but
cannot be paid to a special needs trust. In addition, various
income tests used by the Social Security Administration and
other federal and state agencies to determine eligibility
benefits for disabled children do not exempt SBP payments.
The applicant contends he was not fully briefed that SBP for a
disabled child would be subject to integration with other
benefits has some merit. This complex situation is not common
and there is no evidence the matter was routinely reflected on
material used by SBP counselors or provided to retiring members
until after 2000. The integration and possible negative impact
caused by SBP annuity payments for children who are entitled to
other federal and state disability benefits have been discussed
by the Office of the Assistant Secretary of Defense Joint board.
The Services representative supports legislative changes that
would eliminate the integration, or exempt SBP payments from any
means test. However, there has not yet been a change that would
provide such relief.
The complete DPFFF evaluation is at Exhibit B.
________________________________________________________________
APPLICANT'S REVIEW OF AIR FORCE EVALUATION:
A copy of the Air Force evaluation was forwarded to the
applicant on 14 December 2012, for review and comment within
30 days (Exhibit C). As of this date, this office has received
no response.
________________________________________________________________
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 an injustice. After a thorough
review of the evidence, we believe corrective action is
warranted. The record clearly indicates the applicant was not
counseled regarding the effect of listing his daughter as a
beneficiary of his SPB annuity. Additionally, AFPC/DPFFF has
also confirmed this was a systemic problem as members who
retired prior to 2000 were not routinely counseled on the
negative impact caused by SBP annuity payments for disabled
children who are entitled to other federal and state disability
benefits. Based on the aforementioned, the Board recommends the
applicants records be corrected as indicated below.
THE BOARD DETERMINES THAT:
The pertinent military records of the Department of the Air
Force relating to APPLICANT, be corrected to show that on
1 August 1975, he elected spouse only coverage, rather than
spouse and child coverage, under the Survivor Benefit Plan (SBP)
based on the previous reduced level of retired pay.
________________________________________________________________
The following members of the Board considered AFBCMR Docket
Number BC-2012-04817 in Executive Session on 17 June 2013, under
the provisions of AFI 36-2603:
Panel Chair
Member
Member
All members voted to correct the record, as recommended. The
following documentary evidence was considered:
Exhibit A. DD Form 149, dated 8 Oct 12.
Exhibit B. Letter, AFPC/DPFFF, dated 28 Nov 12.
Exhibit C. Letter, SAF/MRBR, dated 14 Dec 12.
Panel Chair
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