MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:       

	BOARD DATE:            24 June 1999      
	DOCKET NUMBER:   AR1999026337

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mr. Loren G. Harrell		Director	
	Ms. Deborah L. Brantley		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O'Connor, Jr.		Chairperson	
	Mr. Gary C. Miller		Member	
	Mr. Curtis L. Greenway		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  In effect, that the records of her brother, a deceased former servicemember, be corrected to show that he transferred to the Retired Reserves on 26 April 1996 vice 4 October 1995.

APPLICANT STATES:  In effect, that because of errors in the processing of her brother’s release from the Army National Guard, he allowed his Serviceman’s Group Life Insurance (SGLI) to lapse and as such when he died on 13 March 1996 she was denied insurance benefits.  She notes that her brother was notified in January 1996 that he was eligible for retirement and had the option of converting his SGLI to Veteran’s Group Life Insurance (VGLI).  In February 1996 she states he was advised that “his eligibility retirement had been certified effective 26 April 1996.”  However, after her brother died she states that she was denied insurance benefits and informed that the “SGLI coverage lapsed on February 1, 1996, or 120 days after [her brother’s] contract with the National Guard expired.”  She indicates that as of the date of her application she had not been provided with evidence that “her brother was advised that the 120-day conversion period started to run from October 4, 1995” and that she can “only conclude that a gross error was made resulting in the lapse of insurance coverage on the life of her brother.”

COUNSEL CONTENDS:  Nothing beyond that submitted by the applicant.

EVIDENCE OF RECORD:  The former servicemember’s military records show:

He served an initial period of active duty between 1966 and 1968 and completed his statutory service obligation 4 years later, in 1972.  On 5 October 1976 he enlisted in the Army National Guard and on 10 August 1989 extended his National Guard enlistment an additional 6 years, which established his scheduled separation date as 4 October 1995.

On 4 October 1995, the former servicemember’s scheduled separation date, he was transferred to the Retired Reserves with 25 years of total service.

A 26 February 1996 memorandum from the District of Columbia National Guard headquarters informed the servicemember that he had been denied retention by a “qualitative retention board” and was required to transfer to the Individual Ready Reserve or the Retired Reserves not later than 26 April 1996.  A hand written notation on the bottom of the memorandum indicates it was certified and retrieved from the post office on 15 March 1996.  (Note:  A copy of the memorandum was provided by the applicant as part of her application.)

The former servicemember died on 13 March 1996.

In a 30 April 1996 letter to the former servicemember’s sister (the current applicant) the District of Columbia National Guard headquarters informed her that her brother’s enlistment contract with the Guard expired on 4 October 1995 and that he elected to be placed in the Retired Reserve at that time.  The letter informed the applicant that while documents certifying her brother’s eligibility for retirement were not finalized until January 1996, he was informed that he was eligible to convert his SGLI to VGLI within 120 days of his retirement date 
[4 October 1995].  The letter indicated that the servicemember declined to take advantage of the conversion option. Unfortunately, because of the delay in completing his retirement certification letter an administrative oversight resulted in his records being referred to the Qualitative Retention Board.

The letter concluded that at the time the former servicemember died more than 120 days had lapsed since his name was placed on the retired rolls and he “was not paying the monthly premiums to keep the” VGLI policy active and as such was ineligible for coverage.  (Note:  The 30 April 1996 letter was provided by the applicant as part of her application but contained only the front page of what appears to be a two page letter.)

By law the SGLI program provides up to $200,000 of full-time life insurance coverage.  Coverage is in effect throughout an individual’s period of service and for 120 days following separation.

The VGLI program is a conversion option for the SGLI following release from an active status (including Reserve and National Guard members).  VGLI may be issued in multiples of $10,000 to a maximum of $200,000.  However, no one may be issued VGLI in excess of the amount of SGLI carried at the time of separation from service.  Individuals making application within 120 days of separation are not required to obtain medical evidence of insurability.  However, individuals are allowed an additional year to apply for SGLI but those beyond the 120 days are required to submit medical evidence of insurability.  Premiums for SGLI are based on an individual’s age (i.e. $200,000 of SGLI coverage for an individual aged 55 to 59 is $176.00 per month, $100,000 of coverage for that same individual costs $88.00).

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:

1.  The evidence indicates the former servicemember was transferred to the Retired Reserve on 4 October 1995, at the time his enlistment contract with the National Guard expired.  Notwithstanding the fact that his “eligibility” for retirement was not certified until January 1996, by law his entitlement to continued coverage under the SGLI expired on 1 February 1996, 120 days after his enlistment contract expired.

2.  The evidence also clearly indicates that an administrative oversight resulted in the applicant’s records being referred to a Qualitative Retention Board.  The fact that the servicemember may have been inadvertently notified via a 
26 February 1996 memorandum that he had been denied retention in no way impacted on his original 5 October 1995 separation action.  The Board contends the former servicemember was well aware, or should have been aware, that his service contact expired on 5 October 1995.  Additionally, the Board notes the hand written notation on the memorandum indicates it was retrieved from the post office on 15 March 1996, two days after the servicemember died.  As such it could not have been, as the applicant contends, a basis for any confusion on the part of the servicemember regarding the time frame for conversion of his SGLI to VGLI.

3.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy the aforementioned requirement.

4.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

___rvo__  __gcm___  ___clg__  DENY APPLICATION

						Loren G. Harrell
						Director

INDEX

CASE ID	AR1999026337	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	19990624	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1. 110.00		
2.		
3.		
4.		
5.		
6.