IN THE CASE OF:
BOARD DATE: 16 October 2012
DOCKET NUMBER: AR20120002746
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 that he be refunded all Survivor Benefit Plan (SBP) premiums.
2. The applicant states that he has never been married and the Defense Finance and Accounting Service (DFAS) has deducted premiums from his retired pay for 42 months. He goes on to state that he went to Tinker Air Force Base, Oklahoma on 1 February to see how to have his deceased brothers name removed as one of his beneficiaries because he passed away and to have his address changed. He continues by stating that because he did not have a beneficiary his premiums should be refunded to him.
3. The applicant provides a Reserve Component SBP (RCSBP) printout showing that he had paid premiums for 43 months in the amount of $2,708.19. His application was received on 6 February 2012.
CONSIDERATION OF EVIDENCE:
1. The applicant enlisted in the Oklahoma Army National Guard (OKARNG) on 25 May 1967 and continued to serve through a series of continuous reenlistments. He was promoted to the pay grade of E-6 on 4 June 1974 and on 19 April 1990, he was issued his 20-Year Letter.
2. On 5 May 1990, he made his RCSBP election and designated his brother, who was born in 1943, as a natural person with insurable interest as his beneficiary. He elected full coverage.
3. On 1 April 1991, he was transferred to the U.S. Army Reserve (USAR) Control Group (Retired).
4. On 11 May 2006, in connection with his application for retired pay, the applicant again elected his brother as his beneficiary under the SBP.
5. On 27 April 2008, the applicant was placed on the Army of the United States (AUS) Retired List. He had over 22 creditable years of service for retired pay purposes.
6. A review of his official records failed to show any indication of the applicants brothers death. However, records available from the Social Security Administration list his brothers date of death as 22 November 2011.
7. Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. A person who is not married and does not have a dependent child upon becoming eligible to participate in the SBP may elect to provide an annuity to a natural person with an insurable interest in the member. Premiums for insurable interest coverage are generally higher than for any other category of coverage.
8. Title 10, U. S. Code, section 1448(b)(1)(B) provides that an SBP election of insurable interest may be terminated. Participation in the SBP shall be discontinued effective on the first day of the first month following the month in which the request for termination is received by the Secretary concerned. Section 1448(b)(1)(E) provides that premiums may not be refunded.
DISCUSSION AND CONCLUSIONS:
1. The evidence of record shows that in May 1990 the applicant elected RCSBP coverage for his brother, a person with insurable interest.
2. The law provides that an SBP election for an insurable interest beneficiary may be terminated at any time without the concurrence of the beneficiary.
3. Given that the applicants brother died in November 2011 and he therefore had no covered beneficiary, his participation in the SBP should be terminated effective 1 December 2011 and any premiums deducted from that date refunded to the applicant.
4. The applicant is not entitled to repayment of premiums paid while his brother was alive as he, in fact, was the eligible beneficiary during that time. Accordingly, there is no basis to grant relief on that matter.
BOARD VOTE:
________ ________ ________ GRANT FULL RELIEF
___X____ ____X __ ____X___ GRANT PARTIAL RELIEF
________ ________ ________ GRANT FORMAL HEARING
________ ________ ________ DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:
1. The Board determined that the evidence presented was sufficient to warrant a recommendation for partial relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by terminating his participation in the SBP effective 1 December 2011 and refunding all premiums paid from that date.
2. The Board further determined that the evidence presented was insufficient to warrant a portion of the requested relief. As a result, the Board recommends denial of so much of the application that pertains to refunding of all SBP premiums paid from 27 April 2008 to 30 November 2011.
`
__________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) AR20120002746
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