RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:			DOCKET NUMBER:  BC-2015-04665

		COUNSEL:  NONE

						HEARING DESIRED:  YES

APPLICANT REQUESTS THAT:

His child-only Survivor Benefit Plan (SBO) coverage be reestablished with an effective date of 1 August 2001.

APPLICANT CONTENDS THAT:

He created a Special Needs Medicaid Payback Trust for his daughter.  He was under the impression that the funds in the trust could be used to pay for delineated items that could improve his daughter’s life over and above the basic level provided by Medicaid.  He and his wife thought they could have his daughter’s SBP payments directed into the trust, and the funds would not impact her Medicaid eligibility.  However, the Defense Finance and Accounting Service (DFAS) informed him that the SBP payments could only be made to the named individual, or representative payee.  The payments could not be made to a trust and would impact his daughter’s eligibility for Medicaid.

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

STATEMENT OF FACTS:

Prior to his 1 August 2001, retirement the applicant elected child only SBP coverage for his incapacitated daughter.

By application dated 5 May 2013, the applicant requested he be allowed terminate his child only SBP coverage.

On 2 June 2014, the applicant‘s record was corrected to show he declined to elect Survivor Benefit Plan (SBP) coverage prior to his 1 August 2001 retirement and his spouse concurred with the decision.

The remaining relevant facts pertaining to this application are described in the memorandum prepared by the Air Force office of primary responsibility (OPR), which is included at Exhibit C.

AIR FORCE EVALUATION:

AFPC/DPFFF recommends granting the applicant’s request, indicating there is evidence of an error or injustice.  

The National Defense Authorization Act for Fiscal Year 2015 (FY15 NDAA), Public Law 113-291, 31 December 2016, authorized military members and retirees the option to direct payment of a disabled dependent child’s SBP annuity directly to a SNT as an add-on election to a member or retiree’s SBP election for coverage of a dependent child.  Prior to the FY15 NDAA legislative change, SBP annuities could be paid to a disabled child’s conservator or trustee, but could not be paid to a SNT.

It is reasonable to assume the applicant would not have requested a change to his election for child only coverage if the SBP annuity payments for his daughter could have been designated to the SNT he had already established.

Therefore, in the interest of justice, DPFFF recommends the applicant’s initial election for child only coverage based on full retired pay, naming his disabled daughter as the eligible SBP beneficiary, be reinstated.  The correction should be contingent upon recovery of appropriate retroactive cost.

A complete copy of the AFPC/DPFFF evaluation is at Exhibit C.

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to the applicant on 12 April 2016, for review and comment within 30 days (Exhibit D).  As of this date, no response has been received by this office.

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 injustice.   Having carefully reviewed this application, we agree with the recommendation of the Air Force office of primary responsibility and adopt the rationale expressed as the basis for our decision that the applicant has been the victim of either an error or an injustice.  Therefore, we recommend the applicant's records be corrected as indicated below.

4.  The applicant’s case is adequately documented and it has not been shown that a personal appearance with or without counsel will materially add to our understanding of the issues involved.  Therefore, the request for a hearing is not favorably considered.

THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to the APPLICANT be corrected to show that:

a.  The Memorandum for the Chief of Staff, AFBCMR BC-2013-02340, issued on 2 June 2014, indicating he declined to elect Survivor Benefit Plan (SBP) coverage prior to his 1 August 2001 retirement be declared void.

	b.  His 22 June 2001, election for child only coverage under the Survivor Benefit Plan, based on full retired pay, naming his daughter as the eligibility beneficiary be reinstated, contingent upon recoupment of any applicable premiums. 

The following members of the Board considered AFBCMR Docket Number BC-2015-04665 in Executive Session on 4 November 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 pertaining to AFBCMR Docket Number BC-2015-04665 was considered:

	Exhibit A.  DD Form 149, dated 29 Oct 15, w/atchs.
	Exhibit B.  Applicant's Master Personnel Records.
	Exhibit C.  Memorandum, AFPC/DPFFF, dated 6 Apr 16.
	Exhibit D.  Letter, SAF/MRBR, dated 12 Apr 16.

Pursuant to paragraph 1 of AFI 36-2603 (Title 32 Code of Federal Regulations, Part 865.1), it is certified that a quorum was present at the Board's review and deliberations, and that the foregoing is a true and complete record of the Board's proceedings in the above entitled matter.