RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF: 			DOCKET NUMBER: BC-2015-01929

 						COUNSEL:  NONE

						HEARING DESIRED:  NO 

APPLICANT REQUESTS THAT:

His spouse be reinstated as his Survivor Benefit Plan (SBP) beneficiary.  

APPLICANT CONTENDS THAT:

His military retirement pay was suspended because his Veterans Affairs (VA) benefits were more than his retired pay.  However, he continued to get bills for the SBP premiums.  

He was advised by the Defense Finance and Accounting Service (DFAS) that his wife would not receive SBP benefits until he turned age 60 since his military retirement pay was suspended.  He was told to complete the SBP waiver form to stop the SBP premiums.  He was not told this would remove her from the program.

He has since learned that he has been told a lot of things that were wrong and requests his spouse be put back on the SBP program and the deduction be taken out of his VA disability pay.

In support of his request, he provides a letter to DFAS dated 15 September 2014.

The applicant’s complete submission, with attachment, is at Exhibit A.  

STATEMENT OF FACTS:

The applicant retired effective 29 November 2011 in the grade of Technical Sergeant (TSgt, E-6) with compensable percentage of physical disability of 30 percent.  He was credited with 18 years of active service for retirement.  

The remaining relevant facts pertaining to this application are contained in the memorandum prepared by DFAS which is attached at Exhibit C.    

DFAS EVALUATION:

DFAS-JFBEB/CL states according to law they cannot reinstate the applicant’s SBP since he previously withdrew from the SBP.  However, if the Board should correct the record to reflect that the applicant did not submit DD Form 2656-2, Survivor Benefit Plan Termination Request, to withdraw from SBP, his SBP will be reinstated for his spouse.  Since the applicant indicates he would like to have the monthly premiums deducted from his VA disability pay, DFAS provides a DD Form 2891, Authorization for SBP Costs Deduction, used to obtain authorization to deduct the costs for SBP from his VA monthly compensation or pension payment.  These payments are to be sent to DFAS by the VA.  Should the Board approve the applicant’s request to reinstate SBP, DFAS will reinstate the SBP and the applicant will be responsible for the monthly premiums not collected while his SBP was terminated.  

The applicant began receiving retirement pay on 29 November 2011.  His monthly SBP premium effective 1 December 2011 was $90.58 and premiums were deducted through 1 March 2014.  On 1 March 2014, his VA entitlement became greater than his military retirement pay and his retirement pay was placed in a suspended status.  During the time when his retirement pay was suspended, a monthly bill was sent to the applicant in order to remit his monthly SBP premiums.  On 5 May 2014, DFAS received DD Form 2656-2 requesting termination of SBP.  This form is used between the 25th and 36th month of retirement to withdraw from SBP.  His SBP coverage was terminated effective 5 May 2014.  

A complete copy of the DFAS evaluation is at Exhibit C.

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

He provides a copy of the letter he sent to DFAS dated 15 September 2014 requesting an audit of his retirement account.  As reflected in the letter, he was provided erroneous information which caused him to make an uninformed decision.  He was not given an opportunity have the SBP payment taken out of his VA benefits.  He is an Operation DESERT STORM veteran and has severe health issues.  Having his wife back on his SBP would provide him a sense of relief should anything happen to him.

The applicant’s complete submission, with attachment, is at Exhibit E.

THE BOARD CONCLUDES THAT:

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

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented to demonstrate the existence of an error or injustice.  After a thorough review of the evidence of record and the applicant’s complete submission, to include his additional response, we believe the applicant is the victim of an error or injustice.  In this respect, it is our opinion the applicant has sustained his burden of proof that he was not properly made aware he could continue to participate in the SBP with the monthly premiums deducted from his VA disability pay upon the suspension of his military disability retirement pay.  We recommend the applicant complete the DD Form 2891, Authorization for SBP Costs Deduction, provided by DFAS, and also available on-line, to obtain authorization to deduct the costs for SBP from his monthly VA payment.  Therefore, we recommend the applicant’s records be corrected as indicated below.

THE RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to the APPLICANT be corrected to show that his DD Form 2562-2, Survivor Benefit Plan Termination Request, effective 5 May 2014 terminating his enrollment in the Survivor Benefit Program (SBP) be void and his participation in the SBP program be reinstated, contingent on the recoupment of the monthly premiums while his SBP was terminated.  

The following members of the Board considered AFBCMR Docket Number BC-2015-01929 in Executive Session on 11 May 2016 under the provisions of AFI 36-2603:

	 , Panel Chair
	 , Member
	 , Member

All members voted to correct the records as recommended.  The following documentary evidence in AFBCMR Docket Number BC-2015-01929 was considered:

	Exhibit A.  DD Form 149, dated 5 May 2015, w/atch.
	Exhibit B.  Applicant's Master Personnel Records.
	Exhibit C.  Memorandum, DFAS-JFBEB/CL, dated 22 January 
			  2016.
	Exhibit D.  Letter, AFBCMR, dated 24 February 2016.
	Exhibit E.  Letter, Applicant, dated 5 March 2016.