IN THE CASE OF: BOARD DATE: 12 November 2020 DOCKET NUMBER: AR20200002724 APPLICANT REQUESTS: remission of debt associated with payments made towards Servicemembers Group Life Insurance (SGLI). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * DD Form 214 (Certificate of Release or Discharge from Active Duty) dated 10 May 2016 * Defense Finance Accounting Services (DFAS) letter dated 20 December 2019 FACTS: 1. The applicant states that the Army continued to make SGLI payments on his behalf after he was discharged. He contests that he was not eligible for SGLI nor did he request continued coverage. 2. A review of the applicant’s available service records reflects the following: a. On 24 April 2003 he enlisted in the United States Army Reserve (USAR). b. On 5 January 2009 he was commissioned in the Regular Army. c. On 21 January 2016 his separation was approved under the provisions of Army Regulation (AR) 600-8-24, Chapter 3 Section II provided that this separation was not in contravention of AR 600-8-2. This document further provides that he was not entitled to separation pay and his separation code should indicate “MBK” (Completion of Required Active Service) in accordance with AR 635-5-1. This notification was provided to constitute his acceptance of a USAR appointment. d. On 27 January 2016 (Order 027-0004) he was reassigned to the transition point pending his release from active duty effective 10 May 2016. His published orders reflect that he was not entitled to separation pay in accordance with Title 10 United States Code (U.S.C.) 1174. e. On 8 February 2016 he acknowledged that the separation code on his DD Form 214 would be “JCC” (Early Separation). He further acknowledged that in order to receive separation pay he would be required to be appointed within the USAR for a period of 3 years. If he failed to do so, he would not be entitled to separation pay. f. On 18 March 2016 he was selected for involuntary discharge as a result of the Fiscal Year (FY) 2014 Captain Officer Separation Board in accordance with AR 600-8-24, paragraph 5-9(d)(g). This document further provides that he was entitled to separation pay and his separation code should indicate “JCC” in accordance with AR 635-5-1. In result of his non-selection for promotion, he requested to be involuntarily discharged on 10 May 2016. Due to his remaining military service obligation (MSO) he was required to continue his service within the USAR. g. On 25 March 2016 (Order 085-0003) Order 027-0004 was revoked. Then, (Order 085-0004) he was reassigned to the transition point pending his release from active duty effective 10 May 2016. His published order reflects entitlement to separation pay in accordance with Title 10, U.S.C. 1174. h. On 10 May 2016 he was honorably discharged from the Regular Army under the provisions of AR 600-8-24, paragraph 2-7 (Voluntary Release from Active Duty due to Expiration of Active Duty Commitment) and transferred into the USAR (Reinforcement). His separation code indicates “MBK”. i. On 11 May 2016 he was commissioned in the USAR. j. His available records are void of service within the USAR (Annual Training) as a drilling Reservist. 3. The applicant provides a Defense Finance Accounting Service (DFAS) letter dated 20 December 2019 reflective of a $272.00 debt due to continued SGLI payments made on his behalf covering the period of May – December 2016. The document further provides that these payments were made because the system reflected an active payroll account that had not been separated by his previous unit/finance office. In dispute of this debt he was required to provide a copy of his discharge orders showing that he was separated in a status that prohibited from SGLI coverage. 4. The Department of the Army, Deputy Chief, Compensation and Entitlements Division (G-1) provided an advisory opinion recommending disapproval of the applicant’s request citing that the applicant was released from active duty on 10 May 2016 and incurred a Reserve obligation with a termination date of 4 January 2017. This period of obligation in a drilling reserve unit was for a minimum period of 8 months. Upon completion the applicant would then be eligible for transfer to the Inactive Ready Reserve (IRR). During this obligated period in the Ready Reserve, Soldiers are eligible for SGLI and may elect to reduce/decline this coverage. There is no evidence of declination/reduction of SGLI within the applicant’s records. Without record of declination/reduction, Soldiers are auto-enrolled for the maximum SGLI coverage. The applicant was aware of this Reserve obligation as evidenced in his separation documents and orders issued. 5. On 30 October 2020 the applicant was provided with a copy of the advisory opinion and given 10 days to provide a response. As of 9 November 2020 the applicant had not responded. 6. See applicable regulatory guidance below under REFERENCES. BOARD DISCUSSION: 1. After reviewing the application and all supporting documents, the Board found relief is not warranted. 2. The Board concurred with the conclusion of the advisory official that, without an election to reduce or decline SGLI coverage, the applicant would have been given a default election of maximum coverage. The Board found insufficient evidence of mitigating circumstances to support a recommendation for relief. The Board determined the debt the applicant incurred as a result of SGLI premiums payed on his behalf was not in error or unjust. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING :XX :XX :XX DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. 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. REFERENCES: 1. Army Regulation (AR) 600-8-1 (Army Casualty Program) AR 600-8-1 (Army Casualty Operations/Assistance/Insurance) paragraph 11-29g provides that the designation of all SGLI beneficiaries will remain in effect until properly changed by the Soldier or until the SGLI is automatically canceled or terminated. SGLI coverage is provided for all soldiers in the Army National Guard (ARNG) and United States Army Reserve (USAR) in the categories below: a. Unit soldiers of the ARNG and USAR and - (1) Unit Soldier in pay status (2) Nonprior service (NPS) unit Soldiers attending drills in a nonpay status (part- time coverage), and delayed entry soldiers (full-time coverage). b. Soldiers of the Individual Ready Reserve (IRR) or Individual Mobilization Augmentees (IMA) attached for training in a non-pay status to units that are scheduled for at least 12 periods of inactive duty training (IDT) annually, i.e., reinforcement training unit, mobilization designation detachment, or an Army Reserve Forces School student detachment. c. Soldiers of the IRR or IMA, not included in b above, during annual training (AT), ADSW, or ADT for a period of less than 31 days (part-time coverage only). Premiums will be automatically deducted from the Soldiers pay as shown below. It will continue to be deducted unless the members waives the insurance or reduces coverage: (1) Those assigned to ARNG and USAR in pay status (2) Those on AD, ADSW, TTAD, or ADT under call or order for not less than 31 days. 2. DODFMR chapter 47 (SGLI) provides: a. The SGLI Program is administered by the Department of Veterans Affairs (VA). Eligible members, who receive basic pay for 1 or more days per month or members of the Ready Reserves who drill for points, are responsible for the payment of SGLI and FSGLI premiums, unless the eligible member elects to waive coverage. b. Full-Time Coverage. Full-time coverage automatically insures eligible members against death in the amount of $400,000 when a member is performing active duty or active duty for training for an ordered period of more than 30 days, or while on full-time duty as a cadet or midshipman at a Service Academy. All members of the Ready Reserve and National Guard, who are assigned or attached to a unit or position that may require performing active duty or active duty for training, and will be scheduled to perform at least 12 periods of IDT annually, are also eligible for full-time SGLI coverage. 3. Title 38 USC, section 1969(a)(3) (Deductions; payment; investment; expenses) states during any fiscal year, or portion thereof, that a member is on active duty or active duty for training under a call or order to such duty that specifies a period of less than thirty-one days, or is authorized or required to perform IDT scheduled in advance by competent authority, and is insured under SGLI, the Secretary concerned shall collect from the member (by deduction from pay or otherwise) an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy. 4. Title 10 USC 1174 (Separation Pay Upon Involuntary Discharge or Release from Active Duty) provides that: a. A regular officer who is discharged who has completed six or more, but less than twenty, years of active service immediately before that discharge is entitled to separation pay. b. A regular commissioned officer of the Army who is discharged who has completed six or more, but less than twenty, years of active service immediately before that discharge or separation is entitled to separation pay as determined by the Secretary of the military department concerned, unless the Secretary concerned determines that the conditions under which the officer is discharged or separated do not warrant payment of such pay. c. Notwithstanding paragraphs (a) and (b), an officer discharged for twice failing of selection for promotion to the next higher grade is not entitled to separation pay under this section if either (or both) of those failures of selection for promotion was by the action of a selection board to which the officer submitted a request in writing not to be selected for promotion or who otherwise directly caused his nonselection through written communication to the Board. 5. As a condition of receiving separation pay under this section, a person otherwise eligible for that pay shall be required to enter into a written agreement with the Secretary concerned to serve in the Ready Reserve of a reserve component for a period of not less than three years following the person’s discharge or release from active duty. If the person has a service obligation that is not completed at the time the person is discharged or released from active duty, the three-year obligation under this subsection shall begin on the day after the date on which the person completes the person’s obligation under such section or other provision of law. 6. Army Regulation 600-4 (Remission or Cancellation of Indebtedness) in accordance with the authority of Title 10 USC, section 4837, the Secretary of the Army may remit or cancel a Soldier’s debt to the U.S. Army if such action is in the best interests of the United States. Indebtedness to the U.S. Army that may not be canceled under Title 10 USC, section 4837 when the debt is incurred while not on active duty or in an active status. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20200002724 4 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1