IN THE CASE OF:
BOARD DATE: 9 July 2015
DOCKET NUMBER: AR20140016325
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 correction of his records to show he elected not to participate in the Survivor Benefit Plan (SBP).
2. The applicant states:
a. His DD Form 2656 (Data for Payment of Retired Personnel) was "sent in" with his retirement packet but the Defense Finance and Accounting Service (DFAS) bills him for SBP coverage.
b. He elected no coverage; therefore, his DD Form 2656 must have been entered into the system incorrectly or was not received at all.
c. His DD Form 2656 should be entered into the system correctly.
3. The applicant provides:
* Self-authored Statement, dated 3 September 2014
* DD Form 2656, dated 21 March 2014
* DFAS Letter with Direct Remittance Account Computation Sheets, dated 11 June 2014
* DFAS Letter with SBP/Retired Serviceman's Family Protection Plan Premium Bill, dated 18 August 2014
CONSIDERATION OF EVIDENCE:
1. The applicant enlisted in the U.S. Army Reserve for 8 years on 29 January 2007. He enlisted in the Regular Army for 3 years and 16 weeks on 15 February 2007.
2. After completing 3 years, 8 months, and 1 day of net active service this period, the applicant was released from active duty on 15 October 2010, upon completion of his required active service. He was transferred to the USAR Control Group (Reinforcement) to complete his reserve obligation.
3. On 20 November 2013, Orders D324-03 were published releasing the applicant from his assignment and duty, due to physical disability rated at 50 percent and placing him on the Retired List effect 30 December 2013.
4. On 21 March 2014, the applicant completed a DD Form 2656 electing not to participate in SBP coverage. He indicated that he did have an eligible dependent under the plan and listed a daughter now 3 years old. However, in the "Remarks" section of the DD Form 2656 he stated that he receives Department of Veterans Affairs (VA) compensation at 80 percent. He stated that he did not have a spouse and that he did not elect to participate in SBP.
5. The applicant provides a self-authored statement in which he states that he received a retirement packet including a DD Form 2656 to fill out and he returned it by mail to the U.S. Army Reserve Command. He states he elected not to participate in SBP coverage of any kind. He provides a letter from DFAS dated 11 June 2014, informing him that an audit of his SBP account has been completed and that there is a balance due the Government. He also provides a copy of the bill he received from DFAS.
6. 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. However, surviving children are only entitled to SBP payments until reaching age 22 in certain cases.
Changes in SBP options are not authorized except in specific instances or as authorized by law.
7. Public Law 99-145, enacted 8 November 1985 but effective 1 March 1986, required a spouse's written concurrence for a retiring member's election that provided less than maximum spouse coverage.
8. An election to decline to participate in the SBP must be made prior to the effective date of retirement or else coverage automatically defaults to full spouse-only or child(ren)-only coverage.
DISCUSSION AND CONCLUSIONS:
1. The applicant's contentions have been noted. His supporting evidence has been considered.
2. The available evidence shows that the applicant made his SBP election after he had already been placed on the Retired List. According to the applicable law, an election to decline to participate in the SBP must be made prior to the effective date of retirement or else coverage automatically defaults to full spouse-only or child(ren)-only coverage.
3. Based on the statements made by the applicant, he did not receive his retirement packet until sometime in February 2014 and he was placed on the Retired List on 30 December 2013. It is reasonable to presume that because his election was made after he retired the election he made was not accepted and the coverage defaulted to child only.
4. Clearly, the applicant had no desire to participate in the SBP and he was prevented from making a timely declination because he was placed on the retired list prior to having an opportunity to complete his DD Form 2656. His records should be corrected to reflect his desire.
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 that he made an election not to participate in the SBP prior to the date of his retirement and releasing him from any financial liability to the Government that was incurred as a result of the SBP.
_______ _ 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) AR20140016325
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ABCMR Record of Proceedings (cont) AR20140016325
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