IN THE CASE OF:	  

		BOARD DATE:	        12 AUGUST 2008

		DOCKET NUMBER:  AR20080007028 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that Reserve Component Survivor Benefit Plan (RC-SBP) premium deductions for insurable interest coverage from his retired pay for the months of February, March, and April 2008 be refunded to him.  

2.  The applicant essentially states that he did not understand what his RC-SBP costs would be, as he was never told how much was going to be deducted from his retirement pay.  He also states that if he would have known how much it cost, he would never have agreed to it.  He further states that he was never told the amount that would be taken from his retirement pay because the leadership and staff at the personnel office who processed his DD Form 2656 (Data for Payment of Retired Personnel) did not know themselves what his RC-SBP costs would be. 

3.  The applicant provides a self-authored statement, dated 8 April 2008; a self-authored letter, dated 24 June 2008; his DD Form 2656, dated 11 December 2007; a self-authored letter, dated 20 March 2008, which was addressed to a member of the Defense Finance and Accounting Service (DFAS); a two-page Summary of Retired Pay Account, dated 31 January 2008; three Retiree Account Statements, effective 31 January 2008, 3 March 2008, and 2 May 2008; and an unofficial copy of his stipulated final decree of dissolution of marriage in support of this application.  




CONSIDERATION OF EVIDENCE:

1.  The applicant's military records show that he was honorably released from the New Mexico Army National Guard on 31 January 2008 and transferred to the Retired Reserve after completing more than 38 years of military service.  In conjunction with his retirement, the applicant completed a DD Form 2656 on 
11 December 2007.  In Section IX (SBP Election), he elected coverage for his daughter Bethany; the person named in Item 28 (Insurable Interest Beneficiary).  In item 27 (Level of Coverage), he elected coverage based on full gross pay.

2.  Prior to his retirement, the applicant divorced his wife, K------n D------o, on an unknown date.  The terms of his divorce decree appear to have required the applicant to pay his former spouse (KD) a portion of his military retired pay and obtain Former Spouse Coverage under the Survivor Benefit Program.  It appears that the former spouse’s share of the applicant’s retired pay is being so deducted automatically by DFAS. 

3.  The applicant provided his Retiree Account Statements effective 31 January 2008, 3 March 2008, and 2 May 2008, which essentially show that RC-SBP premiums were being deducted from his retired pay.  During a telephone conversation with the applicant on 13 July 2008, he confirmed that his SBP premiums were stopped after he notified the DFAS that he wished to cancel his SBP insurable interest coverage.  It was noted that the applicant was paying a monthly RC-SBP premium of $913.77 for an annuity which only amounted to $923.58 or, in other words, an annuity only $9.81 more than the cost of his 
RC-SBP premiums.  

4.  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.  Any such termination shall be made by a participant by the submission to the Secretary concerned of a written request to discontinue participation in the SBP.  Such participation shall be discontinued effective on the first day of the first month following the month in which the request is received.  Once participation is discontinued, benefits may not be paid in conjunction with the earlier participation in the SBP and premiums paid may not be refunded.

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends that RC-SBP premium deductions for insurable interest coverage from his retired pay for the months of February, March, and April 2008 should be refunded to him.  

2.  It is obvious the applicant cancelled his RC-SBP insurable interest coverage because the benefit of an annuity for his daughter barely exceeded the monthly cost to provide it.  However, the DD Form 2656, with instructions, warned that under Public Law 103-337, he was permitted to withdraw from insurable interest coverage at any time and no refund of SBP costs collected before the effective date of the withdrawal would be paid.  Regrettably, in view of the foregoing, there is no basis for granting relief to the applicant in this case.

3.  The applicant’s RC-SBP insurable interest premiums from February, March, and April 2008 totaled more than $2,700.00.  During the telephone conversation between the analyst for these proceedings and the applicant on 13 July 2008, the analyst advised the applicant to inquire about obtaining relief through Army Emergency Relief (AER) in the form of a grant or no-interest loan.  The applicant was provided AER's website information as well.

4.  It appears from the copy of the undated divorce provided by the applicant, that he is obligated to provide former spouse coverage under the RC-SBP for his former spouse (KD).  Unless the terms of his decree were amended, the applicant is advised that he may apply to this Board for a correction to show that he made a timely election upon his retirement for former spouse coverage under the SBP.  The applicant may ask for an additional correction to show that he only made a former spouse SBP election.  The latter request, if granted by the Board, would result in a refund of his SBP premiums by offset for former spouse premiums due the same date of his retirement.  

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

__XXX __  __XXX__  __XXX__   DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.

2.  While the Board regrets that a more favorable response could not be accomplished, it wants to thank the applicant for the sacrifices he made in service to the United States throughout his military career.  The applicant and all Americans should be justifiably proud of his honorable service in arms.




      ___        XXX                ___
                CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.

ABCMR Record of Proceedings (cont)                                         AR20080007028



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ABCMR Record of Proceedings (cont)                                         AR20080007028



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