IN THE CASE OF:  	  

		BOARD DATE:  12 November 2014	  

		DOCKET NUMBER:  AR20140003177 


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, cancellation of a debt she incurred as a result of erroneously being charged for Family Servicemembers' Group Life Insurance (FSGLI) coverage for her spouse.  

2.  She states she specifically declined FSGLI.  She started getting charged for the coverage, and she contacted her unit for resolution.  The debt was suspended and then reinstated.  She has documentation showing she never asked for the coverage.  

3.  She provides:

* two SGLV Forms 8286A (Family Coverage Election)
* Army National Guard (ARNG) Retirement Points History Statement
* Defense Finance and Accounting Service (DFAS) Form 702 (Military Leave and Earnings Statement (LES))
* DD Form 2789 (Waiver/Remission of Indebtedness Application)
* correspondence between her and DFAS

CONSIDERATION OF EVIDENCE:

1.  The applicant had prior service in the Iowa ARNG, California ARNG, and U.S. Army Reserve.  From 16 November 2002 through 1 March 2012, she served in the Virginia ARNG (VAARNG).  On 1 March 2012, she was discharged from the VAARNG and transferred to the Retired Reserve after completing 20 years, 2 months, and 16 days of total service for retired pay.  
2.  Review of her record shows she was married during her VAARNG service.

3.  Records in her Official Military Personnel File (OMPF) show she had full SGLI coverage.  Her OMPF is void of documentation related to FSGLI.  

4.  She provides the following documents:

	a.  An SGLV Form 8286A signed by the applicant on 11 January 2004 shows she declined FSGLI coverage for her spouse.  Her signature was witnessed and the form was received by a specialist/E-4 in the 183rd Personnel Service Detachment.  

	b.  Her LES for her paycheck dated 28 May 2008 lists a $27.00 deduction for spouse SGLI.  The remarks block of the LES shows, in part:

* she had an FSGLI debt balance of $792.00
* she had spouse SGLI coverage in the amount of $100,000.00

	c.  An SGLV Form 8286A signed by the applicant on 1 April 2008 also shows she declined FSGLI coverage for her spouse.  The form was received by an administrative clerk in the 229th Military Police Company on 15 June 2008.

	d.  A DD Form 2789, dated 15 June 2008, shows she requested a waiver of the $792.00 FSGLI debt.  She stated she was not aware of the debt until she saw it on her LES on 28 May 2008.  She also stated she had requested no spouse coverage on 16 November 2002.  Her commander recommended approval of the waiver without comment.  

	e.  A letter from DFAS, dated 21 June 2013, responded to her inquiry regarding an audit of her debt in the principal amount of $732.60.  The letter stated the debt remained valid and was due to SGLI premiums paid on her behalf but not deducted from the National Guard pay account at discharge.  The debt of $732.60 was for the period April 2008 to March 2012 when she was not performing duty and SGLI premiums were paid on her behalf.  She had not earned sufficient entitlements from which the premiums could be deducted, which caused the debt.  The letter stated the debt was transferred to DFAS by her former National Guard unit, and DFAS was unable to reduce or cancel the debt until she provided a letter from her unit stating the debt was not her fault or an SGLI Form 8286 (SGLI Election and Certificate) declining coverage dated prior to her date of separation.  

	f.  A letter to DFAS, dated 12 July 2013, shows she disputed the claimed indebtedness in the principal amount of $732.60.  She described the steps she took to resolve the issue, including submission of a DD Form 2789 with supporting documentation, and she stated that in January 2011 she noticed the debt was being taken from her drill pay.  Her unit told her they would take care of the problem, but when she retired in March 2012 the problem had not been resolved.  She noted that, contrary to the information in the 21 June 2013 letter from DFAS, she had served in the VAARNG without a break from “2004” to 2012.  She stated she had enclosed the SGLV Forms 8286A she had completed on 
11 January 2004 and 15 June 2008 electing not to have FSGLI coverage for her spouse.

	g.  A letter from DFAS, dated 24 October 2013, responded to her application for waiver of a $792.00 debt ($732.60 less interest and fees not eligible for waiver).  The letter stated that an application for waiver of erroneous payment must be received within 5 years after the date on which the erroneous payment was discovered.  A review of her record showed the debt was posted to her April 2009 LES and waiver consideration could not be given as her request was not received until 17 July 2013.  She was advised that she could apply to this Board to request correction of her military records.

5.  SGLI is a program that provides low-cost term life insurance coverage to eligible Service members, including members of the Ready Reserve.  FSGLI coverage provides life insurance coverage for the spouses and dependent children of all service members who have full-time SGLI coverage.  Prior to 2 January 2013, spouse FSGLI coverage was automatic for service members with full-time SGLI coverage.  If no coverage or less than maximum coverage for a spouse was desired, the member was required to complete an SGLV Form 8286A.  The service member pays premiums for the spouse coverage.  Dependent child coverage is free.  

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant opted out of FSGLI coverage for her spouse on 11 January 2004 and again on 1 April 2008.  It appears the SGLV Forms 8586A she submitted were not properly filed, which resulted in a $732.60 debt ($792.00 with fees and interest) for FSGLI premiums.  

2.  In light of the available evidence, it would be appropriate to correct her record to show the SGLV Forms 8286A she submitted were properly filed in a timely manner.  As a result of this correction, any debt based on FSGLI premiums incurred after 11 January 2004 should be cancelled and any amounts collected against that debt should be returned to her.  


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 by showing the SGLV Forms 8286A she signed on 11 January 2004 and on 1 April 2008 were properly filed in a timely manner.  As a result of this correction, any debt based on FSGLI premiums incurred after 11 January 2004 should be cancelled and any amounts collected against that debt should be returned to her.



      __________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)                                         AR20140003177





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ABCMR Record of Proceedings (cont)                                         AR20140003177



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