RECORD OF PROCEEDINGS AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS IN THE MATTER OF: DOCKET NUMBER: BC-2012-02275 COUNSEL: NONE HEARING DESIRED: NO ________________________________________________________________ THE APPLICANT REQUESTS THAT: His Survivor Benefit Plan (SBP) premiums for child only coverage be terminated. ________________________________________________________________ THE APPLICANT CONTENDS THAT: He was not properly counseled on the cost of the premiums when he made his election for child only coverage. He was never informed of a charge for SBP when he talked to officials at the Defense Finance and Accounting Service (DFAS) and cannot afford the premium payments, which is around $60.00 a month. In support of his appeal, the applicant provides a personal statement and a copy of his DFAS Form 7220/148, Retiree Account Statement, dated 17 May 12. The applicant’s complete submission, with attachments, is at Exhibit A. ________________________________________________________________ STATEMENT OF FACTS: The relevant facts pertaining to this application, extracted from the applicant’s military records, are contained in the letter prepared by the appropriate office of the Air Force. Accordingly, there is no need to recite these facts in this Record of Proceedings. ________________________________________________________________ THE AIR FORCE EVALUATION: AFPC/DPSIAR recommends denial, noting, in part, there is no evidence of Air Force error or injustice in this case and no basis in law to approve this request. It is each SBP participant's responsibility to determine future available options regarding their SBP coverage, and to seek information if they do not understand those options. Based upon the fact that child only coverage may not be terminated or reduced, and a child acquired after the member's retirement may not be denied coverage, the applicant had no option to prevent his new children from being covered by the SBP when he acquired them. Since his step-daughter (currently age 20) remains an eligible child beneficiary, the monthly premium would not have changed when his other daughter was born, and the applicant's debt would be approximately $3,520 (plus interest) vice $5,755. The monthly cost for child only coverage is based upon a formula established by the Department of Defense (DoD) Office of the Actuary. The actuarial factors are determined by the dates of birth (DOB) of the member and the member's youngest child at the time of retirement. The monthly SBP premiums do not change if the member acquires a younger child after retiring, as long as one of the originally-covered children remains eligible. However, if all of the member's originally-covered children have lost eligibility before a new child is acquired; the costs will be recalculated based upon the current DOBs. There is no provision in Title 10 USC Section 1447 to permit a member, who elects SBP coverage for a child at the time of retirement, to deny coverage for a dependent child acquired after retirement. In addition, the DoD Financial Management Regulation 7000.14-R, Volume 7B, Chapter 43.4.2., "Survivor Benefit Plan – Elections and Election Changes,” describes processes for participants with child coverage, and states that child coverage may not be reduced nor eliminated. The complete DPSIAR evaluation, with attachments, is at Exhibit B. ________________________________________________________________ APPLICANT'S REVIEW OF THE AIR FORCE EVALUATION: A copy of the Air Force evaluation was forwarded to the applicant on 17 Jul 12 for review and comment within 30 days. As of this date, no response has been received by this office (Exhibit C). ________________________________________________________________ THE BOARD CONCLUDES THAT: 1. The applicant has exhausted all remedies provided by existing law or regulations. 2. The application was not timely filed; however, it is in the interest of justice to excuse the failure to timely file. 3. Insufficient relevant evidence has been presented to demonstrate the existence of error or injustice. We took notice of the applicant's complete submission in judging the merits of the case; however, the Air Force office of primary responsibility has conducted an exhaustive review of the available evidence and we are in agreement with its opinion and recommendation. Therefore, we adopt the rationale expressed as the basis for our conclusion the applicant has not been the victim of an error or injustice. Therefore, in the absence of evidence to the contrary, we find no basis to recommend granting the relief sought in this application. ________________________________________________________________ THE BOARD DETERMINES THAT: The applicant be notified the evidence presented did not demonstrate the existence of material error or injustice; the application was denied without a personal appearance; and the application will only be reconsidered upon the submission of newly discovered relevant evidence not considered with this application. ________________________________________________________________ The following members of the Board considered AFBCMR Docket Number BC-2012-02275 in Executive Session on 19 December 2012, under the provisions of AFI 36-2603: The following documentary evidence pertaining to AFBCMR Docket Number BC-2012-02275 was considered: Exhibit A. DD Form 149, dated 25 May 12, w/atchs. Exhibit B. Letter, AFPC/DPSIAR, dated 3 Jul 12. Exhibit C. Letter, SAF/MRBR, dated 17 Jul 12.