RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2016-01049

XXXXXXXXXXXX	COUNSEL: NONE
	
XXXXXXXXXXXXX	HEARING REQUESTED: NO

APPLICANT’S REQUEST

Her son’s records be corrected to indicate he did not elect to participate in the Survivor Benefit Plan (SBP) and he be refunded all SBP premiums withheld from his retired pay.

APPLICANT’S CONTENTIONS

Her son was unable to understand the impact of his decision and how it would affect his military retired pay and disability pay from the Department of Veterans Affairs.  The Defense Finance and Accounting Service (DFAS) cancelled the SBP election in October 2012, but her son continues to be billed.  Her son was incapable of making this decision and she would have never elected the Insurable Interest option since she is a military widow and is already receiving benefits.

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is the mother of a medically retired United States Air Force Academy Cadet.

On 15 August 2007, according to AF Form 356, Findings and Recommended Disposition of USAF Physical Evaluation Board, the informal Physical Evaluation Board (IPEB) found the applicant unfit due to a diagnosis of Psychotic Disorder and recommended he be placed on the Temporary Disability Retired List (TDRL) with a disability rating of 50 percent.

On 10 September 2007, according to DD Form 2656, Data for Payment of Retired Personnel, the applicant elected Option D (Coverage for Insurable Interest) based on full retired pay, naming his mother as the beneficiary. 

On 21 September 2007, according to Special Order AC-XXXXX, dated 31 August 2007, the former member was placed on TDRL.

On 11 September 2009, the Department of Veterans Affairs determined the applicant’s diagnosis of “Schizophrenia Undifferentiated,” rated at 100 percent, remained unchanged.

On 7 February 2012, according to AF Form 356, the IPEB found the applicant unfit due to a diagnosis of “Undifferentiated Schizophrenia,” and recommended permanent retirement with a disability rating of 50 percent.

On 19 March 2012, according to Special Order ACD-XXXXX, dated 28 February 2012, the applicant was removed from TDRL and permanently retired with a 50 percent disability rating.

For more information, see the excerpt of the service member’s record at Exhibit B and the advisory at Exhibit C.

AIR FORCE EVALUATION

DFAS-JFBEB/CL recommends granting the application. The service member was placed on TDRL effective 21 September 2007.  DFAS received his DD Form 2656, which indicates his SBP election for Insurable Interest, based on full coverage, naming his mother as the beneficiary. As a result, his military retirement account was established with Natural Interest Person (NIP) SBP coverage. Effective 1 July 2008, the service member’s Department of Veterans Affairs compensation exceeded his gross military retired pay. As a result, the monthly premiums for the NIP SBP coverage could no longer be withheld from his military retired pay.  It was at this time the service member began receiving SBP Premium bills.  DFAS received his request to cancel NIP SBP coverage on 3 October 2012 and his SBP was cancelled effective 1 November 2012. However, he is still responsible for the premiums that were not paid for the period his NIP beneficiary was covered under the Plan. His debt for the unpaid premiums continues to accrue interest. The service member did apply for a waiver of the debt through DFAS Remission and Waivers Branch.  A letter was sent to the member on 20 June 2016 from DFAS Remission and Waivers Branch indicating that since he filed with the Board for the Correction of Military Records they are unable to process the waiver submitted.  If the Board should approve the applicant’s request, DFAS can then waive the indebtedness and refund the SBP premiums withheld from the service member’s military retired pay.

The complete advisory opinion is at Exhibit C.

APPLICANT’S REVIEW OF AIR FORCE EVALUATION

The Board sent a copy of the advisory opinion to the applicant on 17 June 2021, for comment (Exhibit D), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was timely filed.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is the victim of an error or injustice.  The Board concurs with the rationale and recommendation of DFAS-JFBEB/CL and finds a preponderance of the evidence substantiates the applicant’s contentions.  Therefore, the Board recommends correcting the applicant’s records as indicated below.

RECOMMENDATION

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

a. On 10 September 2007, he elected not to participate in the Survivor Benefit Plan (SBP).

	b. He be authorized full reimbursement of all SBP premiums withheld from his retired pay.

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2016-01049 in Executive Session on 22 July 2021:
, Panel Chair
, Panel Member
, Panel Member

All members voted to correct the record.  The panel considered the following:

Exhibit A:	Application, DD Form 149, w/atchs, dated 11 March 2016,
Exhibit B:	Documentary Evidence, including relevant excerpts from official records.
Exhibit C:	Advisory, DFAS-JFBEB/CL, w/atchs, dated 3 February 2021.
Exhibit D:	Notification of Advisory, SAF/MRBC to Applicant, dated 17 June 2021.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings, as required by AFI 36-2603, paragraph 4.11.9.