PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           16 December 1999                   
	DOCKET NUMBER:   AR1999026420

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

	Mr. Loren G. Harrell		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Fred K. McCoy		Chairperson	
	Mr. Raymond V. O’Connor, Jr.		Member	
	Mr. Stanley Kelley		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

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

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect, that his debt for back Survivor Benefit Plan (SBP) premiums be cancelled.

3.  The applicant’s counsel states that the applicant is a quadriplegic who was not married at the time he was medically retired.  Eleven years after his separation, the Army Finance charged him with $9,000 in back premiums.  $627.00 was collected monthly from his pension.  The applicant is on a fixed income and this is an injustice.  

4.  The applicant’s military records show that he enlisted in the Regular Army on 27 February 1980.  After being injured in an automobile accident, he was medically retired on 25 March 1982 with a 100 percent disability rating.  He was unmarried and had no children at this time.  On the DA Form 4240, Data for Payment of Retired Army Personnel on file in his personnel records, he declined SBP coverage.  Block 23, signature of member block is annotated “unable to sign – quadriplegic.”

5.  On an unknown date, the applicant’s coverage was changed to natural person with an insurable interest.  Effective 1 July 1997, the Defense Finance and Accounting Service (DFAS) changed his coverage to no beneficiary.

6.  Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. 

7.  DFAS has on file a DD Form 4240 dated 14 April 1982.  This DD Form 4240 shows the applicant elected natural person with insurable interest SBP coverage, his mother is listed as the beneficiary, his mother signed for the applicant in block 23, and his mother witnessed the form in block 24.  The form clearly states “Witness to Signature (May not be anyone listed above).”

CONCLUSIONS:

1.  The Board concludes that an error occurred in this case.

2.  At the time the applicant was medically retired, he was unmarried, had no children and he declined SBP coverage.  The next month, another DD Form 4240 was prepared showing the applicant elected SBP coverage for a natural person with insurable interest, his mother was the beneficiary, his mother signed the form for the applicant and she also signed as a witness, which she was not authorized to do.  It appears that this illegally-prepared form initiated the deduction of SBP payments from the applicant’s VA disability pension.

3.  DFAS changed his SBP coverage to “no beneficiary” on 1 July 1997 and changed his SBP costs to $0.00 but provided no refund.
4.  In view of the foregoing, it would be in the interest of justice to correct the applicant’s records as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by:

     a.  showing the applicant declined to elect SBP coverage effective 23 March 1982;

     b.  canceling any debt owed by the applicant for back SBP deductions; and

     c.  Refunding to the applicant any and all SBP deductions taken from his retired pay/disability pension retroactive to the date of his retirement.

BOARD VOTE:  

__fkm___  __rvo___  __sk____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Fred K. McCoy
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR1999026420	
SUFFIX		
RECON		
DATE BOARDED	19991216	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	137.04	
2.		
3.		
4.		
5.		
6.