RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS


IN THE MATTER OF:	DOCKET NUMBER:  BC-2013-01431

		COUNSEL:  NONE

		HEARING DESIRED:  NO 


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APPLICANT REQUESTS THAT:

1.  Her deceased husband’s Survivor Benefit Plan (SBP) participation option be increased to full coverage.

2.  Her deceased former husband’s coverage under the Servicemembers Group Life Insurance (SGLI) be converted to Veterans Group Life Insurance (VGLI).

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APPLICANT CONTENDS THAT:

1.  Her deceased husband had multiple brain surgeries while on active duty and was not at full mental capacity at retirement.  During the retirement process, she only initialed where she was told and didn’t read the paperwork.  Her husband told her she would receive one half of his retirement pay and his life insurance if anything happened to him.  He underwent a medical evaluation board (MEB) before retirement, and the doctors believed he was mentally incapable of making these decisions.  He should have had an advisor to help him.  She is disabled herself. 

2.  She was never informed that the conversion from SGLI to VGLI was not automatic.

The applicant’s complete submission, with attachments, is at Exhibit A.

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STATEMENT OF FACTS:

On 13 Jul 11, the former Air Force member passed away.  

The remaining relevant facts pertaining to this application are contained in the letters prepared by the Air Force offices of primary responsibility (OPRs), which are attached at Exhibits C and D.  

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AIR FORCE EVALUATION:

DFAS-JFBE/CL recommends denial, indicating there is no evidence of an error or injustice.  The deceased former member retired on 31 May 96 and declined SBP coverage.  He was recalled to active duty on 15 Nov 01 and then retired again on 18 Aug 04 under a different law.  When he reverted to retired status, he elected SBP for spouse at a reduced base amount of $1,500.00.  In error, DFAS did not update the deceased former member’s second SBP election when he returned to retired status; however, the proper annuity was established when DFAS was advised of the error by the Air Force Personnel Center (AFPC).  The applicant is receiving Dependency Indemnity Compensation (DIC) from the Department of Veteran’s Affairs (DVA).  Public Law 92-425 states that DIC paid to a surviving spouse by the DVA must be deducted from the SBP annuity.  If DIC is more than the SBP amount payable, there is no entitlement under SBP.  If DIC is less than the SBP amount payable, the difference is payable.  In either case, excess costs paid into the plan by the member are refunded to the surviving spouse.  The applicant became entitled to DIC effective 1 Aug 11.  Her DIC in the amount of $1,154.00 was greater than her SBP in the amount of $1,021.00.  Therefore, the applicant’s SBP annuity account is suspended due to her DIC entitlement.  In addition, the National Defense Authorization Act for Fiscal Year 2008 (NDAA FY08) created the Special Survivor Indemnity Allowance (SSIA) entitlement.  The SSIA became effective 1 Oct 08.  Any surviving spouse who has an offset (partially or totally) to payments under the SBP as a result of receiving DIC from the DVA, is eligible for the SSIA.  However, the monthly amount of SSIA may not exceed the amount of SBP that was offset by DIC.  Therefore, the applicant is also receiving a monthly SSIA payment of $90.00.  The applicant’s annuity account has been adjusted.  There is no further action to be taken. 

The complete DFAS-JFBE/CL evaluation is at Exhibit C.

AFPC/DPSIAR recommends denial indicating there is no evidence of an error or injustice.  The applicant is requesting an increase in the base amount under SBP from a reduced level of retired pay to full coverage.  A member who elects less than the maximum SBP spouse coverage may not increase the base amount in the future except within the first year of a post-retirement re-marriage or unless Congress authorizes an open enrollment period.  Public Law requires a spouse’s written concurrence be obtained if a married member elects less than full spouse SBP coverage.  On 18 Aug 04, the deceased former member reverted back to retired status and was placed on the Permanent Disability Retired List (PDRL).  At that time, he changed his SBP election to spouse-only coverage based upon a reduced level of retired pay.  The applicant signed a concurrence statement on 13 Aug 04, agreeing with the decision for reduced SBP coverage and acknowledging she understood the effects of her decision.  The deceased former member’s monthly premium for spouse-only coverage was less than $98.00, while the monthly cost for spouse-only coverage based on full retired pay would be approximately $328.00.  There is no evidence the deceased former member submitted an election during the 1999-2000 or the 2005-2006 open enrollment periods.  Unfortunately, a member’s medical condition does not determine a widow’s eligibility under SBP.  Providing relief to the applicant based upon the evidence provided is not justified.  In the event relief is granted, approval should be contingent upon recovery of the retroactive premiums, which would be approximately $60,000.00.  

The complete AFPC/DPSIAR evaluation is at Exhibit D.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

Copies of the Air Force evaluations were forwarded to the applicant on 5 Jul 13 for review and comment within 30 days.  As of this date, no response has been received by this office (Exhibit E).

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THE BOARD CONCLUDES THAT:

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

2.  The application was timely filed.

3.  Insufficient relevant evidence has been presented to demonstrate the existence of an error or injustice.  We took notice of the applicant’s complete submission in judging the merits of the case; however, we agree with the opinions and recommendations of the Air Force offices of primary responsibility (OPRs) and adopt their rationale as the basis for our conclusion the applicant has not been the victim of an error of injustice.  While the Board notes the applicant’s additional request to convert her deceased husband’s Servicemembers Group Life Insurance coverage to Veterans Group Life Insurance, that request is not within the authority of the AFBCMR and must be directed to the Department of Veteran’s Affairs (DVA).  Therefore, in the absence of evidence to the contrary, we find no basis to recommend granting the relief.

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THE BOARD DETERMINES THAT:

The applicant be notified the evidence presented did not demonstrate the existence of material error or injustice; the application was denied without a personal appearance; and the application will only be reconsidered upon the submission of newly discovered relevant evidence not considered with this application.

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The following members of the Board considered AFBCMR Docket Number BC-2013-01431 in Executive Session on 11 Dec 13, under the provisions of AFI 36-2603:

	Panel Chair
	Member
	Member

The following documentary evidence was considered:

	Exhibit A.  DD Form 149, dated 11 Mar 13, w/atchs.
	Exhibit B.  Applicant's Master Personnel Records
	Exhibit C.  Letter, DFAS-JFBE/CL, dated 10 Apr 13.
	Exhibit D.  Letter, AFPC/DPSIAR, dated 12 Jun 13.
	Exhibit E.  Letter, SAF/MRBR, dated 5 Jul 13.




                                   
                                   Panel Chair