RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2019-03071

XXXXXXXXXXXXXXXXXX	COUNSEL: NONE
	
	HEARING REQUESTED:  NOT INDICATED

APPLICANT’S REQUEST

His Survivor Benefit Plan (SBP) be changed from no coverage to spouse only coverage based on full retired pay.

APPLICANT’S CONTENTIONS

He did not have an SBP beneficiary when he retired in 07.  In Sep 14, he notified finance that he was married in Jul 14 and was informed he did not qualify for SBP because it was not selected at retirement.  However, in 2018, he learned he could have qualified for SBP in Sep 14 because his inquiry was made within one year of the marriage.

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air Force master sergeant (E-7).

On 5 Sep 07, according to Reserve Order EK-5189, dated 27 Apr 07, the applicant was placed on the Air Force Retired List, awaiting pay at age 60 (2013).

Per DD Form 2656, Data for Payment of Retired Personnel, dated 31 Oct 13, Block 26, Beneficiary Categories, the applicant selected “I elect not to participate in SBP and indicated he did not have eligible dependents under the plan.  Block 26 (d) “I elect coverage for the person named in Item 28 who has an insurable interest in me” is not marked.  In Block 28, Insurable Interest Beneficiary, the applicant named his fiancé.  

On 12 Jul 14, according to a certified marriage certificate, provided by the applicant, he married his spouse.

For more information, see the excerpt of the applicant’s record at Exhibit B and the advisory at Exhibit C.

AIR FORCE EVALUATION

ARPC/DPTT recommends granting the application.  Based on the documentation provided by the applicant and analysis of the facts, there is evidence of an error.  There was an administrative oversight with regard to the applicant’s DD Form 2656.  The form should not have been accepted due to the errors that deem the election invalid.  The applicant made several errors when he completed his final SBP election on 31 Oct 13.  He selected “I elect not  to participate in SBP” in Section IX, block 26, Beneficiary Categories, on the DD Form 2656; however, he did not select Block 27, Level of Coverage, and in Block 28, Insurable Interest Beneficiary, the applicant named his fiancé.  A member may make an election for a natural person with an insurable interest when there is no eligible spouse or dependent children.  Gross retired pay must be selected as the base amount under an election for a natural person with an insurable interest and the election must be for Option B or Option C.  A member with insurable interest coverage may elect coverage for the newly acquired spouse if the member completed the election within one year of the marriage.  The errors on the form were cause for the Defense Finance and Accounting Service (DFAS) to reject the election, which resulted in no coverage for the applicant’s beneficiary.

The complete advisory opinion is at Exhibit C.

APPLICANT’S REVIEW OF AIR FORCE EVALUATION

The Board sent a copy of the advisory opinion to the applicant on 13 Aug 20 for comment (Exhibit D), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was not timely filed, but it is in the interest of justice to excuse the delay.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is the victim of an error or injustice.  The Board concurs with the rationale and recommendation of AFPC/DPTT and finds a preponderance of the evidence substantiates the applicant’s contentions.  Therefore, the Board recommends correcting the applicant’s records as indicated below.

RECOMMENDATION

The pertinent military records of the Department of the Air Force relating to APPLICANT be corrected to show that:

a. On 12 Jul 14, he submitted a timely and effective election for spouse coverage under the Survivor Benefit Plan, based on full retired pay, naming SPOUSE as the eligible beneficiary.

b. Approval should be contingent upon recovery of Survivor Benefit Plan premiums.  If applicable, the monthly survivor benefit annuity will be applied to the premium debt until the total amount of premiums owed is recovered.

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2019-03071 in Executive Session on 24 Sep 20:

, Panel Chair
, Panel Member
, Panel Member

All members voted to correct the record.  The panel considered the following:

Exhibit A:	Application, DD Forms 149, w/atchs, dated 29 May 19 and 11 Sep 19.
Exhibit B:	Documentary evidence, including relevant excerpts from official records.
Exhibit C:	Advisory opinion, ARPC/DPTT, dated 28 Apr 20.
Exhibit D:	Notification of advisory, SAF/MRBC to applicant, dated 13 Aug 20.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings, as required by AFI 36-2603, paragraph 4.11.9.