BOARD DATE: 1 July 2014 DOCKET NUMBER: AR20130017291 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests his military records be corrected to show he elected not to participate in the Survivor Benefit Plan (SBP). 2. The applicant states: a. in August 2013, his account was placed in automatic spouse only coverage. He received a letter requesting payment of $8,728.81 to cover SBP premiums due for the period 1 June 2006 through 31 July 2013. A monthly payment of $122.96 would be due every month thereafter. In September 2013, he received a bill from the Defense Finance and Accounting Service (DFAS) in the amount of $8,974.73. b. his wife died in 2011. He does not want or need a beneficiary. c. the SBP is not wanted nor does he have a wife to receive the benefits in the event of his death. d. his retirement from the military has only been activated in recent months. 3. The applicant provides: * Spouse's death certificate * Retiree account statements * DFAS letters, dated 19 August 2013 and 28 August 2013 * Adjustment audit * SBP bill CONSIDERATION OF EVIDENCE: 1. Having prior service in the Arkansas Army National Guard (ARARNG), the applicant again enlisted in the ARARNG on 31 July 2002. He was ordered to active duty on 12 October 2003 in support of Operation Iraqi Freedom. He served as an infantryman in Iraq from 3 March 2004 to 2 December 2004. 2. On 5 May 2006, he was discharged by reason of disability, severance pay. 3. He was honorably discharged from the ARARNG on 5 May 2006 due to being medically unfit for retention. 4. His wife died on 3 May 2011. 5. In 2012, his records were corrected to show he was retired on 5 May 2006 and placed on the Temporary Disability Retired List (TDRL) the following day with a disability rating of 50%. He was subsequently transferred to the Permanent Disability Retirement List (PDRL) with a disability rating of 70% effective 6 November 2006. 6. The available records are void of an SBP election form. 7. In August 2013, he received a letter from DFAS stating: * this letter is in response to recent corrections to his retired pay account * their records reflect that he had not made an SBP election * that office placed his account in automatic spouse only coverage based on full base amount * since his retired pay account is suspended due to a total Department of Veterans Affair waiver, they require a remittance of $8,728.81 to cover his premiums for the period 1 June 2006 through 31 July 2013 8. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP 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. DISCUSSION AND CONCLUSIONS: 1. Evidence shows the applicant was discharged on 5 May 2006 by reason of disability (severance pay) and he was honorably discharged from the ARARNG on 5 May 2006 for being medically unfit for retention. 2. In 2012, his military records were corrected to show he retired on 5 May 2006, he was placed on the TDRL on 6 May 2006, and he was subsequently transferred to the PDRL effective 6 November 2006. 3. DFAS records show his retroactive retirement resulted in an automatic spouse only coverage SBP election and debt of $8,728.81 to cover premiums for the period 1 July 2006 through 31 July 2013. 4. It would have been impossible for him to have elected spouse coverage in 2012 when his records were corrected to reflect a retirement retroactive to 2006. Since his spouse died in 2011, it would be equitable to correct his military records to show he elected not to participate in the SBP prior to his retirement. BOARD VOTE: __X______ __X______ ___X__ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined that the evidence presented was sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by showing he elected not to participate in the SBP prior to his May 2006 retirement. _______ _ X_______ ___ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. ABCMR Record of Proceedings (cont) AR20130017291 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20130017291 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1