RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF: 			DOCKET NUMBER: BC-2016-02327 

   						COUNSEL:  NONE

HEARING DESIRED:  NO

APPLICANT REQUESTS THAT:

1.  His Survivor Benefit Plan (SBP) be corrected to show his daughter was not a disabled dependent for purposes of SBP on the date he applied for SBP. 

2.  The Barring Act (Title 31, United States Code (USC) § 3702(b)) be waived so he can collect that portion of his SBP benefits he has been denied. 

APPLICANT CONTENDS THAT:

The person who prepared the DD Form 2656, Data for Payment of Retired Personnel, which he signed on 31 Aug 95, typed YES in paragraph 27e, Disabled?, erroneously identifying one of his daughters as being disabled, but he (the applicant) did not catch the error.  He elected spouse-only SBP.  He was unaware of this error until the death of his wife.  His other daughter is currently on active duty in the US Navy.  However, DFAS notified him his (non-Navy) daughter was listed as disabled on the DD Form 2656.  He submitted a letter from the family doctor of the daughter in question stating she is not, nor has she ever been disabled, along with her marriage certificate.  

The Defense Finance and Accounting Service (DFAS) told him he would receive no refund because he had signed the DD Form 2656, even though he had selected the “spouse-only” option.  He estimates DFAS took over $26,000 in monthly deductions from his retired pay. 

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

STATEMENT OF FACTS:

The applicant retired from active duty in the grade of colonel on 1 Sep 95.

On 31 Jan 14, his wife passed away.  

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

AIR FORCE EVALUATION:

DFAS-JFBEB/CL does not make a clear recommendation, but indicates an error occurred in the processing of the applicant’s SBP paperwork.  The applicant had two daughters.  During his retirement processing he signed an inaccurate DD Form 2656, indicating one of his daughters was a disabled child.  Therefore, his SBP coverage was for “spouse and child.”  

However, on 31 Aug 95, the day before his retirement, the applicant completed a corrected DD Form 2656 electing “spouse only.”  When the corrected DD Form 2656 was received the applicant’s SBP should have been corrected to reflect spouse only coverage, and a refund of the child portion of the premium which had been deducted should have been refunded to him.  The correction did not occur. 

When the applicant informed DFAS his spouse had passed away on 13 Jan 14, he requested his SBP coverage be suspended.  However, due to the DD Form 2656 showing he had a disabled child, his SBP coverage was changed from “spouse and child” to “child-only” coverage.  On 12 Apr 16, the applicant supplied DFAS a letter from his daughter’s physician indicating the daughter in question has never been and is not currently disabled, and his DD Form 2656 was in error.  Therefore, DFAS changed his SBP election to “no beneficiary,” effective 13 Jan 14. 

Due to the Barring Statute, Title 31, USC 3702(b), the applicant was not entitled to the full refund of child SBP premiums.  He was issued a payment representing the refund of the child portion of his SBP premiums covering the period 11 Mar 08 through 31 Jan 14.  The “barred” portion of the child SPB premiums covers the period 1 Sep 97 through 28 Feb 08.  When SBP coverage changes from “spouse and child” to “child only,” the child portion of the premium increases.  The applicant’s “spouse and child” SBP premium, effective 1 Dec 13, was $430.75 (The spouse portion was $430.35, and the child portion of the premium was 40 cents.)  After the re-computation, effective 13 Jan 14, the SBP coverage was changed to child-only coverage, which was $113.88 per month.  If the AFBCMR waives the Barring Statute, DFAS will refund the applicant the barred portion of the premium not yet refunded.

A complete copy of the DFAS-JFBEB/CL evaluation, with attachment, is at Exhibit C.

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to the applicant on 10 May 17 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 error or injustice.  We took notice of the applicant's complete submission in judging the merits of the case and believe that relief is warranted.  While DFAS-JFBEB/CL does not make a discrete recommendation, they do indicate that errors occurred in the applicant’s records.  Therefore, we agree with the opinion of DFAS that the applicant’s records should have been corrected to reflect spouse only coverage in 1995 with a refund of the child portion of the premiums that were deducted.  Accordingly, in the interest of justice, we recommend the applicant's records be corrected as indicated below.

THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to the APPLICANT be corrected to show on 1 September 1995, he elected spouse-only coverage under the Survivor Benefit Program based on full retired pay.  

The following members of the Board considered AFBCMR Docket Number BC-2016-02327 in Executive Session on 12 Mar 18 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-2016-02327 was considered:

	Exhibit A.  DD Form 149, dated 3 Jun 16, w/atchs.
	Exhibit B.  Master Personnel Records [Excerpts].
Exhibit C.  Memorandum, DFAS-JFBEB/CL, dated 29 Mar 17, w/atch.
	Exhibit D.  Letter, SAF/MRBR, dated 10 May 17.

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