BOARD DATE: 19 October 2010
DOCKET NUMBER: AR20100009860
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 to be shown to have declined participation in the Survivor Benefit Plan (SBP).
2. The applicant states he and his wife completed the necessary documentation to decline participation; however, upon receipt of his retirement check he found SBP premiums were being deducted. Upon contacting the Defense Finance and Accounting Service (DFAS) he was advised that the wrong form was used for the declination. DFAS has not accepted the resubmission of the declination on the correct version of the form.
3. The applicant provides copies of two DD Forms 2656 (Data for Payment of Retired Personnel), his retirement orders, and four DFAS Forms 7220 (Retiree Account Statement).
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 23 June 1947. He was released from active duty, as a lieutenant colonel, on 30 September 1994 and was transferred to the U.S. Army Reserve.
2. The applicant's notification of eligibility for retired pay (his 20-year letter), was dated 18 October 1991. He apparently did not make a Reserve Component SBP (RCSBP) election at that time.
3. On 22 October 2009, he completed and forwarded to DFAS a copy of an April 2006 version of a DD Form 2656, declining participation in SBP. His spouse signed the form.
4. U.S. Army Human Resources Command Orders P11-911662, dated 20 November 2009, retired the applicant and placed him on the retired list effective 23 June 2007.
5. His Retiree Account Statements show withholding for Spouse Only coverage under the SBP.
6. On 14 January 2010, the applicant completed an April 2009 version of the DD Form 2656, again indicating a declination of SBP. This version contains a section for a notary to certify the document not included on the earlier version. His spouse signed the form.
7. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. The election must be made prior to the effective date of retirement, otherwise coverage defaults to spouse coverage.
DISCUSSION AND CONCLUSIONS:
1. The applicant received his retirement orders on 20 November 2009, over two years after his date of eligibility for retired pay. At this time he applied for receipt of retired pay and completed a 2006 version of the DD Form 2656.
2. The specific reason DFAS did not accept this form is not documented in the available records. However, due to the unusual fact that the applicant had a retroactive retirement, he was most likely enrolled in the SBP because he did not/could not decline participation prior to the effective date of his retirement. It appears likely that, for this reason, no version of the DD Form 2656 would have been acceptable.
3. Therefore, the applicant's records should be corrected to show the applicant submitted a correct and complete DD Form 2656 in a timely manner. The applicant, with his wife's notarized concurrence, should be shown to have declined participation in the SBP and DFAS should remitted all SBP premiums withheld.
BOARD VOTE:
___x____ ___x____ ___x____ 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 to:
a. show the applicant submitted, with his wife's notarized concurrence, a correct, timely, and complete DD Form 2656 declining participation in SBP; and
b. DFAS should remit all SBP premiums withheld.
_______ _ x _______ ___
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) AR20100009860
3
ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
RECORD OF PROCEEDINGS
1
ABCMR Record of Proceedings (cont) AR20100ARMY | BCMR | CY2008 | 20080011314
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ARMY | BCMR | CY2009 | 20090019404
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