DEPARTMENT OF THE NAVY
BOARD FOR CORRECTION OF NAVAL RECORDS
701 §, COURTHOUSE ROAD, SUITE 7 004
ARLINGTON, VA 22204-2490
pyc
Docket No. 8345-12
27 Aug 13
From: Chairman, Board for Correction of Naval Records
To: Secretary of the Navy
x
Ref: {a) Title 10 U.9.c. 1552
Encl: (1) DD Form 149 w/attachments
(2) NPC Memo dtd 29 Jul 13
(3) DFAS Hunt system printout dtd 2 Oct 12
(4) DD Form 2656 (SBP election) signed 1 Feb 98
(5) DD Form 214 (Cert of Rel or Dis) eff 30 Apr 98
(6) DEERS printout
(7) DFAS E-mail dtd 3¢ Jul 13
(8) DFAS E-mail dtd 27 Aug 13
(9) DFAS 10903185 Ltr
(10) SBP affidavit signed on 20 Jun 13
411) DFAS E-mail dtd 28 Aug 13
(12) Subject’s naval record
1. Pursuant to the provisions of reference (a) Subject, hereinafter
referred to as Petitioner, filed enclosure (1) with this Board
requesting, in effect, that the applicable naval record be corrected
to show enroilment in the Survivor Benefit Plan (SBP) child only
coverage. .
2. The Board, consisting of Mr. Pfeiffer, Mr. Zsaiman, and Mr.
George, reviewed Petitioner’s allegations of error and injustice on 26
Bugust 2013 and, pursuant to its regulations, determined that the
corrective action indicated below should be taken on the available
evidence of record. Documentary material considered by the Board
consisted of the enclosures, naval records, and applicable statutes,
regulations and policies.
3. The Board, having reviewed all the facts of record pertaining to
Petitioner's allegations of error and injustice, finds as follows:
a st ioner alll married on fay
see enclosure :
b. Petitioner and (EP §s<° DD Form 2656 (Survivor
Benefit Plan (SBP) election), electing coverage for children only,
based on full gross retired pay, on See enclosure
(4).
Docket No. 8345-12
c. Petitioner transferred to Retired List on 30 April 1998, and
premiums were started for SBP child only coverage. See enclosures (4)
and (5).
a. PL 105-261 dat
enrollment period
participating to the
enroil* in the program.
stablished an SBP open
ullest possible extent. The member did not
e. PL 108-375 da
enrollment period
participating to the fullest poss
enroll in the program.
ge and premiums for Petitioner’s youngest child
were automatically suspended upon her attaining
age effective fo See enclosures (6) and (8).
ished an SBP open
Guy for members not
The member did not
ible extent.
g. On or about ny the Defense Finance and Accounting
Service (DFAS) system generated a report through which an election
discrepancy was identified; records were adjusted to show Petitioner
was automatically enrolled in the SBP with maximum spouse and child
category coverage, and a debt (SBP premiums) was created to the
Petitioner's retirement account. See enclosure (7).
h. The diserepancy went uncovered for fourteen years. Shortly
after the discrepancy was discovered, DFAS Mailed a letter to the
member explaining the circumstances, the amount of the debt
($20,056.33), and che += date of the deductions. See
enclosure (9). ,
i. Petitioner submitted an application for correction of
Military Record (DD Form 149) on or about See
enclosure (1).
j. Petitioner submitted to BCNR a notarized SBP affidavit
declining SBP coverage with spousal concurrence dated 20 June 2013.
See enclosure {10).
k. Per enclosure (2), the Navy Personnel Command provided an
advisory opinion concluding that the evidence proffered by the
Petitioner ig insufficient to support the requested record change.
The advisory opinion points out the followingfAssue: after DFAS’
review of the Petitioner’s financial record, it was concluded that his
SBP election was invalid. This was based on a discrepancy between the
dates associated with the Petitioner and ‘Spouse signatures, and their
witness.
“
2656 (Survivor Benefit Plan (SBP) election) .
CONCLUSION:
Upon review and consideration of all the evidence oe ‘record,
notwithstanding the opinion expressed in enclosure (2) , the Board
finds the existence of an injustice warranting corrective acTZon. The
Board relied heavily on the following: The Petitioner,and hig spouse
concurred and elected SBP coverage for children onlyprior tozghis
retirement. Furthermore, since his retirement the - itioner paid SBP
child only premiums for 14 years prior to DFAS’s sB djustme cL .
ww iG petitioner did not elect SBP spouse. coverage ¢ ugh ing the.
and Oo. en seasons. . See.-englosure-- i . The
Board accepted Petitioner’s claim that he and his s ouse weresunder
the belief that she was not covered by the SBP. ‘The ‘Board al © noted
that no changes to his SBP election were made during-the SB “open
seasons available to the Petitioner. Additionally,the Board also
noted that the Petitioner and his spouse provided BCNR with a
notarized SBP affidavit declining SBP coverage with: ‘spousal .
concurrence eliminating any doubt and reinforcing their initial
decision (DD Form 2656). Accordingly, the Board concluded that the
record should be changed to show that the Petitioner and his spouse
made a proper SBP election. child only coverage prior to his ae
retirement, and that their child is thereby designated as the SBP
beneficiary. so
RECOMMENDATION :
That Subject’s naval record be corrected, where appropriate, ‘to show
that: =.
a. Prior to his CES 222280: to the Retired List, he
enrolled in SBP for child only coverage, at the full base amount. Any
other election or declination executed by Petitioner is null and void.
b. Petitioner is responsible for any unpaid SBP costs that would
have been deducted if‘he enrolled at the time of -his transfer to the
Retired List. No waiver of unpaid costs will be granted.
c. A copy of this Report of Proceedings will be filed in
Petitioner's naval record.
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