RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  BC-2002-03709
		INDEX CODE: 128.14 

		COUNSEL:  NONE

		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

She be reimbursed for the amount of Servicemembers’ Group Life Insurance (SGLI) deducted from her pay.

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APPLICANT CONTENDS THAT:

Her husband is joint spouse on active duty in the Air Force.  When her spouse’s SGLI was implemented they were led to believe that they were not part of the automatic coverage.  This was verified by not having the $9.00 monthly deduction appear in their statements when they had a permanent change of station (PCS) to Laughlin AFB.  The fee appeared along with a back pay amount.  Apparently, Mountain Home AFB had failed to enter a code in their records to show joint spouse and exemption from SGLI spouse coverage.

In support of her appeal, the applicant provided a personal statement, Form SGLV 8286 (Servicemembers’ Group Life Insurance Election and Certificate), dated 29 August 2002, 
Form SGLV 8286A (Family Coverage Election), dated 7 October 2002, and other documentation.

Applicant’s complete submission, with attachments, is at Exhibit A.

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STATEMENT OF FACTS:

The applicant is currently serving in the Air Force in the grade of captain.

Title 38 U.S.C., Section 1965(5)(B) and Section 1967(a) states that a member who is assigned to a participating position shall be automatically insured under SGLI for an automatic coverage for $250,000, unless the member reduces or declines coverage.  Member’s Leave and Earnings Statement (LES) shows her coverage was for $250,000 and she was being charged for the coverage.  There is no declination statement in the member’s record.

On 5 June 2001, President Bush signed the Veterans’ Survivor Benefits Improvement Act of 2001 (Public Law 107-14) into law, which was the enabling legislation for the FSGLI program.  FSGLI, which was implemented DOD (Department of Defense) wide on 1 November 2001, made it possible for servicemembers to take out low cost insurance on their spouse for up to $100,000 (premium charged) and $10,000 life insurance for dependent children (no cost) through the Office of Servicemembers’ Group Life Insurance.  The law mandated that coverage for spouses (to include military married to military couples) and dependent children automatically go into effect on the date of implementation so long as the member was insured under the Servicemembers’ Group Life Insurance (SGLI) program.

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AIR FORCE EVALUATION:

AFPC/DPW recommended denial.  They indicated that the Mountain Home AFB leadership took adequate steps as directed to inform all members of this new program and that the applicant had adequate time between 1 November and 31 December 2001 to make an election decision.  Additionally, the applicant did not provide any documentation to indicate that she was not aware of this change and her responsibility to make an election decision.  In accordance with public law, the applicant’s spouse was insured for $100,000 for the period 1 November 2001 through 30 September 2002.  Had her spouse become a fatality during this period, the proceeds of the $100,000 coverage would have been paid to her IAW 38 U.S.C. 1970.

The evaluation, with attachments, is at Exhibit C.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

The applicant reviewed the evaluation and indicated that she does not contest the fact that comments were made in the remarks section of her LES from August until September 2001.  Her issue is with the non-charging of the premium.  Individuals in her squadron had the premium deducted from their pay statements starting in the fall of 2001.  She did not.  No premiums were deducted from her pay until she arrived at Laughlin AFB in September 2002.  If she had seen the $9.00 deduction from her pay she would have immediately contacted finance to resolve the problem.  She had no opportunity to correct the situation until after she had been charged $99.00 for FSGLI - $90.00 more than if finance had handled her records properly.  The advisory opinion indicates that there was an article in the Mountain Home base paper specifically addressing military couples with FSGLI in September 2002.  This finding is irrelevant since she PCS’d from Mountain Home in May 2002.

Applicant’s complete response is at Exhibit E.

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THE BOARD CONCLUDES THAT:

1.	The applicant has exhausted all remedies provided by existing law or regulations.

2.	The application was timely filed.

3.	Insufficient relevant evidence has been presented to demonstrate the existence of an error or an injustice.  We took notice of the applicant's complete submission in judging the merits of the case; however, we agree with the opinion and recommendation of the Air Force and adopt their rationale as the basis for our conclusion that the applicant has not been the victim of an error or injustice.  The applicant had adequate time between 1 November and 31 December 2001 to make an election decision.  She did not provide any documentation to indicate that she was not aware of this change.  In accordance with public law, the applicant’s spouse was insured for $100,000 for the period 1 November 2001 - 30 September 2002.  Had the applicant’s spouse become a fatality during this period, the proceeds of the $100,000 coverage would have been paid to her IAW 38 U.S.C. 1970.    Therefore, in the absence of evidence to the contrary, we find no compelling basis to recommend granting the relief sought.

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THE BOARD DETERMINES THAT:

The applicant be notified that the evidence presented did not demonstrate the existence of an error or an injustice; that the application was denied without a personal appearance; and that the application will only be reconsidered upon the submission of newly discovered relevant evidence not considered with this application.

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The following members of the Board considered AFBCMR Docket Number BC-2002-03709 in Executive Session on 15 April 2003, under the provisions of AFI 36-2603:

The following documentary evidence was considered:

   Exhibit A.  DD Form 149, dated 16 November 2002, w/atchs.
   Exhibit B.  Letter, AFPC/DPW, dated 18 February 2003, w/atchs.
   Exhibit C.  Letter, SAF/MRBR, dated 21 February 2003.
   Exhibit D.  Letter, Applicant, dated 11 March 2003.