IN THE CASE OF:	  

		BOARD DATE:	  30 August 2012

		DOCKET NUMBER:  AR20110021862 


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, in effect, correction of his records to show he elected to decline participation in the Survivor Benefit Plan (SBP) with spouse concurrence and his election was timely received and processed.

2.  The applicant states no one explained that he would have to pay retroactive premiums. 

3.  The applicant provides a copy of an SBP/Reserve Component SBP (RCSBP) bill from the Defense Finance and Accounting Service (DFAS) for premiums and interest in the amount of $1,463.36.

CONSIDERATION OF EVIDENCE:

1.  On 10 December 2006, the applicant was discharged from the Regular Army, due to a physical disability, with severance pay, in the rank of sergeant.

2.  On 6 May 2011, the Department of Defense, Physical Disability Board of Review reviewed the applicant's disability rating accompanying the medical separation action and recommended that his separation action be recharacterized to reflect a permanent disability retirement with a combined disability rating of 40% rather than 10%.  On 19 May 2011, the Director, Army Review Boards Agency accepted the recommendation and directed that the applicant's records be corrected.
3.  The U.S. Army Physical Disability Agency advised the applicant of the decision and directed him to go to the nearest Retirement Services Officer (RSO) for help with pay and SBP issues.  

4.  The U.S. Army Garrison, Walter Reed Army Medical Center, Washington, DC, was tasked with making the required changes.  Retirement orders were issued and the DD Form 214 was corrected.  Orders 165-0137, from U.S. Army Garrison, Walter Reed, dated 14 June 2011, show the applicant was retired on 10 December 2006 and placed on the retirement list on 11 December 2006.

5.  The applicant visited the RSO at Fort McCoy, Wisconsin, on 18 July 2011, and elected full SBP coverage for his spouse and children.

6.  In a telephone conversation the applicant indicated that, although he and his spouse were surprised by the requirement to pay back-dated premiums, they really wanted to withdraw from the SBP for other reasons.  He had been required to make an uninformed decision on-the-spot.  But, upon investigation, they decided that SBP does not meet their financial needs.

7.  The applicant's spouse, in a notarized statement, indicated that she was in agreement with the decision to withdraw from SBP.

DISCUSSION AND CONCLUSIONS:

1.  Due to unusual circumstances involving the applicant's case he had to make an uninformed decision about the SBP.

2.  Although there was no SBP coverage available to the applicant until 2011, he is being required to pay back-dated premiums from December 2006 forward because he was separated in 2006.  

3.  In view of the foregoing it would be appropriate to correct the applicant's record as recommended below. 

BOARD VOTE:

____x___  ____x___  ____x___  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:

The Board determined the evidence presented is 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: 

	a.  showing the applicant and his spouse appropriately elected not to participate in the SBP in a timely manner and 

	b.  voiding or cancelling the applicant's debt to the U.S. Government in the amount of $1,463.36, to include all additional SBP premiums or interest that may have been incurred due to the premiums not being paid.



      _____________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)                                         AR20110021862



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ABCMR Record of Proceedings (cont)                                         AR20110021862



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