RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  3 January 2008
	DOCKET NUMBER:  AR20070010501 


	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.


Ms. Catherine C. Mitrano

Director

Mr. Mohammed R. Elhaj

Analyst


The following members, a quorum, were present:


Ms. Ann M. Campbell

Chairperson

Mr. Dean A. Camerella

Member

Mr. Rodney E. Barber

Member

	The Board considered the following evidence:

	Exhibit A - Application for correction of military records.

	Exhibit B - Military Personnel Records (including advisory opinion, if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests termination of his enrollment in the Survivor Benefit Plan (SBP) based on his initial election to enroll in the SBP during the Open Season and subsequent request to discontinue enrollment due to financial hardship.

2.  The applicant states that he enrolled his current spouse in the SBP during the Open Season and that after the finance center received his election, he was never notified of the amount owed.  Instead, it turned into a collection action.  He further states that he called the Defense Finance and Accounting Service (DFAS) and was told to send a letter requesting the SBP costs to stop due to financial hardship.  He concludes that he sent a letter to DFAS, but the collection has not stopped. 

3.  The applicant provides a copy of:

	a.  DD Form 2656-9 Instructions [Survival Benefit Plan (SBP) and Reserve Component Survival Benefit Plan (RCSBP) Open Enrollment Election];

	b.  DFAS letter, dated 10 April 2007, informing the applicant of the amount owed;

	c.  Undated applicant's letter to DFAS requesting disenrollment from the SBP; and

	d.  DD Form 2656-6 [(Survival Benefit Plan (SBP) Election Change Certificate], dated 17 July 2007.

CONSIDERATION OF EVIDENCE:

1.  The applicant is a retired Regular Army staff sergeant (SSG)/E-6 who entered military service in the Regular Army on 7 October 1952.  He was relieved from active duty on 31 October 1972 and placed on the retired list effective 1 November 1972.  

2.  The applicant was married to his current spouse on 24 November 1989.  

3.  On an unknown date in September 2006, the applicant enrolled his current spouse in the SBP during the open enrollment period, 1 October 2005 through 30 September 2006.
4.  On 10 April 2007, the applicant received a letter from DFAS informing him that an adjustment was made in the SBP portion of his retired pay account based on his marriage and that this adjustment in his coverage from "no beneficiary" to "spouse coverage" based on the full amount was effective on the first anniversary of his marriage, 24 November 1990.  The letter also advised the applicant that since his election was a retroactive change, he was undercharged and owed a debt of $15,528.66.  

5.  On an unknown date, the applicant sent a letter requesting DFAS discontinue withdrawal of any money towards the SBP premiums, effective April 2007.  He explained that he was no longer financially able to participate in the program and that he was not aware the cost would be retroactive to one year after he was married.

6.  The applicant submitted a DD Form 2656-6, dated 17 July 2007, requesting to suspend coverage and not resume any SBP coverage for his new spouse.  A witness, other than his spouse, authenticated the form on 17 July 2007.

7.  Public Law 92-425, enacted 21 September 1972, established the SBP.  The SBP 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. An election, once made, was irrevocable except in certain circumstances.  It declared a 12-month Open Season for those members who retired prior to enactment of the law.

8.  Public Law 108-375, enacted 28 October 2004, established an SBP Open Season from 1 October 2005 through 30 September 2006.  To apply, members were required to complete a DD Form 2656-9 (SBP and RCSBP Open Enrollment Election).  Elections must have been submitted to the Service designated agent [Director, DFAS-US Military Retired Pay, PO Box 7130, London, KY 40742-7130] indicated in the instructions on the DD Form 2656-9.  All elections were required to be postmarked by 30 September 2006.  Members would be notified of any amount owed and could void the election within 30 days of receipt.

9.  Army Echoes is an Army Bulletin for the Army Retiree published three times a year and mailed to Army retirees to keep them abreast of their rights and privileges and to inform them of developments in the Army.  These Bulletins consistently contain a reminder to retirees that they are responsible for updating their accounts within one year of marriage, remarriage, divorce or upon the death of a spouse and that they may need to make or update a SBP election.  Periodically, these Bulletins contain articles explaining the SBP and the importance of keeping accounts up to date.  For instance, Army Echoes,
Issue 3, September-December 2005, listed an example of Open Enrollment period costs for first time participants who elect spouse/former spouse coverage. The newsletter recommended retirees check their cost on line or inquire with the nearest Retirement Service Office (RSO).

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends that his SBP enrollment should be terminated because he was not sent a notification of the amount owed based on his enrollment during the Open Season.

2.  Evidence of record shows that although the applicant elected to enroll his current spouse in the SBP, he did not know that the cost would be retroactive the first of the month following the effective date, one year after he was married.  The instructions on the DD Form 2656 do not specifically state that the cost would be retroactive. 

3.  Still, this retroactive cost clearly caused a substantial debt and financial hardship to the applicant and his family.  He attempted in good faith to void his enrollment in the SBP very shortly after receiving the April 2007 DFAS letter, and sent a letter to DFAS in that regard.  In view of the foregoing, it would be equitable to void the applicant's enrollment effective April 2007, as he requested.

BOARD VOTE:

__amc___  __dac___  __reb___  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION








BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant a recommendation for relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by voiding the applicant's enrollment in the SBP by showing he notified DFAS in writing, within 30 days of being notified of the amount owed, that he desired to void the SBP open enrollment and that his request was timely processed and granted.





							Ann M. Campbell
______________________
          CHAIRPERSON



INDEX

CASE ID
AR20070010501
SUFFIX

RECON

DATE BOARDED
20080103
TYPE OF DISCHARGE

DATE OF DISCHARGE

DISCHARGE AUTHORITY

DISCHARGE REASON

BOARD DECISION
(GRANT)
REVIEW AUTHORITY

ISSUES         1.
137.0000
2.

3.

4.

5.

6.