2. The applicant requests correction of his military records by canceling his Survivor Benefit Plan (SBP) participation for person with insurable interest -daughter and restitution of payments that were withheld from his retirement annuity. He states, in effect, that when he filed for retirement benefits, he was told that he must have SBP coverage.
3. The applicants military records show he was born on 4 December 1934. He was a member of the Army National Guard of Pennsylvania. On 8 May 1994, the date he elected his SBP coverage, he was divorced with no dependent children. It was apparently at this time that the applicant was informed the he must have SBP coverage, so he chose one daughter as a person with insurable interest. On 4 December 1994, upon reaching age 60, the applicant was placed on the retired list.
4. On a date unknown, the applicant contacted DFAS and notified them to drop SBP coverage completely. This was done effective 9 May 1995.
5. Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. However, surviving children are only entitled to SBP payments until reaching age 22 in certain cases. Changes in SBP options are not authorized except in specific instances, or authorized by law.
6. Public Law 95-397, effective 1 October 1979, extended eligibility for coverage under the SBP to members and former members of the Reserve Components (RC) who had 20 or more years of qualifying service, but had not reached age 60, the age at which they would be eligible for retired pay.
7. In the processing of this case, a staff advisory opinion was obtained from the Headquarters Army Retirement Services, which recommended no action on the applicants request. The opinion acknowledges that the applicant does not currently participate in SBP but that in accordance with Public Law 103-337, 5 October 1994, no cost refund is due a member who withdraws that election. However, a further advisory opinion by DFAS-CL notes the applicant was not properly counseled at the time he elected SBP coverage, that a correction is warranted, and that it has no objection to a correction of records showing that he declined coverage as he had no eligible beneficiaries.
CONCLUSIONS:
1. The evidence of record shows that in May 1994 the applicant elected SBP coverage for his daughter, a person with insurable interest, based upon erroneous guidance or improper counseling upon which to complete his application for retired pay at age 60 and SBP options.
2. The SBP election, based upon erroneous guidance or improper counseling, resulted in a forfeiture of some monies from the applicants retired pay from January 1995 to May 1995, when DFAS-CL discontinued his SBP participation.
3. There appears to be no evidence of negligence on the part of the applicant. Therefore, in view of the foregoing, findings, conclusions and the advisory opinions, it would be appropriate to correct the records as recommended below.
RECOMMENDATION:
That all of the Department of the Army records related to this case be corrected by:
a. showing that the individual concerned declined to participate in the SBP at the time of his retirement on 4 December 1994; and
b. conducting a complete audit of the applicants account with an immediate cost refund of any and all SBP deductions withheld from his retired pay as a result of this correction.
BOARD VOTE:
GRANT AS STATED IN RECOMMENDATION
GRANT FORMAL HEARING
DENY APPLICATION
CHAIRPERSON
ARMY | BCMR | CY2008 | 20080016008
THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests that his DD Form 2656-2 (Survivor Benefit Plan (SBP) Termination Request) dated 1 August 2005 be accepted as the correct and official date he requested to terminate coverage and that all SBP and Reserve Component SBP (RCSBP) costs and overcharges as listed on his November 2005 and September 2007 Retiree Account Statements be refunded. Therefore, the applicant's 1 August 2005 DD Form 2656-2 is accepted as sufficient...
ARMY | BCMR | CY1995 | 9509208C070209
The applicant requests correction of his military records by canceling person with insurable interest (daughter) beneficiary and by changing the date of his RC-SBP (Reserve Component Survivor Benefit Plan) participation from 16 July 1984 to 11 January 1987 with the beneficiary being his current spouse. Public Law 95-397, effective 1 October 1978, extended eligibility for coverage under the SBP to members and former members of the Reserve Components (RC) who had 20 or more years of...
ARMY | BCMR | CY2012 | 20120007559
On 28 April 2011, by letter to DFAS, the applicant stated: * She had enclosed the necessary documentation DFAS requested regarding the FSM's death * She had been informed the last retirement payment would be made via direct deposit, and further payments would be terminated due to the FSM's death * She understood she was not entitled to compensation regarding his retirement pay because she was not his dependent * She was designated as his natural insurable interest SBP beneficiary on his DD...
ARMY | BCMR | CY2012 | 20120017911
The applicant states DFAS informed him in November 2011 that DFAS had not received his initial SBP election dated in 1992 until June 2011. On 13 October 2011, DFAS wrote a letter to the applicant informing him that his SBP coverage was changed from spouse only to an insurable-interest person based on his DD Form 1883. Accordingly, it would be appropriate to correct the applicant's records by voiding his DD Form 1883 and showing his initial SBP election was made in conjunction with his 2002...
ARMY | BCMR | CY2009 | 20090006835
Office of the Assistant Secretary of Defense (Force Management Policy) memorandum, dated 17 March 1995, subject: Sections 637 and 638 of the National Defense Authorization Act for Fiscal Year 1995, Public Law 103-337, October 5, 1994, Changed Provisions of the Uniformed Services Survivor Benefit Plan (SBP), provided that SBP premiums will no longer apply as of the effective date of termination of NIP coverage except if the participant terminating insurable interest coverage is a participant...
ARMY | BCMR | CY1995 | 9511209C070209
The applicant elected RC-SBP for spouse with surviving children, full retired pay, option C. Public Law 95-397, effective 1 October 1978, extended eligibility for coverage under the SBP to members and former members of the Reserve Components (RC) who had 20 or more years of qualifying service, but had not reached age 60, the age at which they would be eligible for retired pay. The evidence of record shows that in 1979, the applicant elected RC-SBP participation for his spouse with children.
ARMY | BCMR | CY2007 | 20070018491
Public Law 103-337, enacted 5 October 1994, allowed SBP insurable interest participants whose beneficiary is not their former spouse to voluntarily terminate their participation in the SBP. Office of the Assistant Secretary of Defense (Force Management Policy) memorandum, subject: Sections 637 and 638 of the National Defense Authorization Act for Fiscal Year 1995, Public Law 103-337, October 5, 1994, Changed Provisions of the Uniformed Services Survivor Benefit Plan (SBP), dated 17 March...
ARMY | BCMR | CY1996 | 9609615C070209
The applicant requests correction of his military records by reimbursing him for SBP (Survivor Benefit Plan) premiums deducted for his spouse who died on 12 July 1980. He states, that he elected immediate SBP coverage for his spouse in 1979 when he was notified of his eligibility for retired pay at age 60; that at the time of his retirement at in 1983 he elected SBP coverage for his adult daughter; that he did not discover until 1995 that the premiums deducted from his retired pay were for...
ARMY | BCMR | CY2011 | 20110002077
The applicant requests, in effect, her military records be corrected to show she terminated her Reserve Component Survivor Benefit Plan (RCSBP) coverage for a natural interest person (NIP) on 7 August 1997. A letter, dated 12 December 2008, from DFAS states: a. on 15 August 1985, she elected NIP coverage under the RCSBP for her daughter. Option B and C participants do not make a new SBP election at age 60.
ARMY | BCMR | CY2014 | 20140021344
In a letter dated 2 February 2001, the applicant was notified of his eligibility to receive retired pay at age 60 (20 Year Letter). A DFAS Summary of Retired Pay Account, dated 12 March 2014, states in regard to SBP that DFAS had not received the applicant's SBP election certificate; therefore, automatic SBP coverage was provided effective 26 February 2014. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by: a. showing he...