IN THE CASE OF:
BOARD DATE: 13 January 2015
DOCKET NUMBER: AR20140004682
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 reimbursement of his medical premiums and the portion of Survivor Benefits Plan (SBP) benefits premiums and interest for the period from the date of his separation to the date his records were corrected to show he was medically retired.
2. The applicant states he was unable to utilize his medical benefits as a retiree between the date of his separation and the date the Physical Disability Review Board of Review (PDBR) granted him medical retirement. He had to purchase and utilize civilian medical services and insurance at a significant cost to himself and his family. With the PDBR findings he elected SBP, and the Defense Finance and Accounting Service (DFAS) made the effective date of payments the date of his separation and charged him for 11 years of premiums for coverage he in fact did not have. If he had died during the past 11 years his wife would have not been able to receive any benefits under the SBP. He should not be made to pay for a period he was not covered. He has sent all of his medical bills and insurance premium information to Tricare seeking reimbursement based on the May 2013 PDBR decision.
3. The applicant provides copies of:
* a personal statement
* a 2002 Medical Evaluation Board (MEB)/Physical Evaluation Board (PEB) determination
* DD Form 214 (Certificate of Release or Discharge from Active Duty), for the period ending 25 December 2002
* 2013 revised retirement orders
* DD Form 215 (Correction to the DD Form 214), dated 23 May 2013
* a December 2013 DFAS bill for retroactive payment
* a spread sheet showing his civilian medical premiums 2003 - 2013
* documentation of his insurance premiums from January 2003 - May 2013
* documentation of a lawsuit of medical bills
* collection of a Children's Hospital bill
* negative credit report due to medical bills
CONSIDERATION OF EVIDENCE:
1. The ABCMR does not have the authority to address the issue of reimbursement of monies paid for civilian medical premiums and care. Therefore, this aspect of the applicant's request will not be further addressed.
2. The applicant was discharged with disability severance pay on 25 December 2002.
3. On 19 April 2013, the PDBR determined his medical condition was more severe than the initial 20-percent evaluation and recommended correction of his records to show a 30-percent disability evaluation. It was also recommended his separation be reclassified to a medical disability retirement.
4. On 29 April 2013, the Deputy Assistant Secretary of the Army (Review Boards) approved the recommendation and directed that all of his records be corrected to show he was medically retired effective 25 December 2002.
5. Upon receipt of the favorable notification, he applied for and was granted SBP coverage.
6. Upon receipt of the notification of correction of his status, DFAS audited his pay records and found he was entitled to gross retired pay in the amount of $142,144.883, had a Department of Veterans Affairs offset of $141,985.00, and a retroactive total due for SBP premiums of $8,136.66. This resulted in a $7,976.83 SBP debt.
7. On 28 December 2013 DFAS notified the applicant that he had a debt for unpaid SBP premiums in the amount of $8,117.97 plus interest, for a total debt of $8,229.13, due immediately.
8. The website Military.com provides the most succinct information available on the SBP:
a. The SBP provides for a monthly annuity for the lifetime of the beneficiary. The amount of the benefit is a percentage of the retirement benefit based on the election option selected.
b. Enrollment is not automatic; however, at retirement, full basic SBP for spouse and children will take effect automatically if no other valid election is made. The retiree may not reduce or decline spouse coverage without their spouse's written consent.
c. If enrolled, the retiree will be required to pay a monthly premium for SBP coverage effective the date of their retirement.
d. A member participating in SBP may submit a request to voluntarily discontinue participation in SBP during a one-year period beginning on the second anniversary of the date of commencement of retired pay.
e. For the purposes of SBP, the date of commencement of retired pay is defined as the date the retiree became entitled to receive retired pay. This is the date utilized for payment of premiums.
9. Public Law 92-425, the SBP, enacted 21 September 1972, 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.
DISCUSSION AND CONCLUSIONS:
1. A retiree becomes eligible for participation in SBP effective the date they are placed on retired list. If SBP was elected, premiums are required to be paid effective the date of eligibility.
2. There is no provision in the law allowing for a waiver of SBP premiums from the date of entitlement even in cases where the applicant's date of entitlement is retroactive.
BOARD VOTE:
________ ________ ________ GRANT FULL RELIEF
________ ________ ________ GRANT PARTIAL RELIEF
________ ________ ________ GRANT FORMAL HEARING
____X____ ___X_____ ___X_____ DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:
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.
____________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) AR20140004682
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ABCMR Record of Proceedings (cont) AR20140004682
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