ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 3 May 2019 DOCKET NUMBER: AR20160016303 APPLICANT REQUESTS: Disenrollment from the Survivor’s Benefit Plan (SBP) and cancellation of his SBP debt. APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Self-authored letter * Spouse’s letter * Orders Number 237-1022, dated 25 August 2015 * DD Form 2656 (Data for Payment of Retired Personnel), dated 11 September 2015 * DD Form 214 (Certificate of Release or Discharge from Active Duty), dated 22 November 2015 * Veterans Affairs claim adjudication, dated 4 February 2016 * Defense Finance and Accounting Service (DFAS) letter, dated 18 March 2016 * fax cover sheets FACTS: 1. The applicant states in pertinent part: * on 11 Feb 2016, his wife was informed after faxing necessary information to DFAS and numerous phone calls that everything that was sent in was enough for the SBP to be canceled, and a representative told her it was cancelled * his wife needed to request a letter in writing from DFAS via fax that was sent on 16 March 2016 to receive a letter back stating there was a $0.00 balance after receiving another bill * they followed up with a phone call and was told nothing was on file for the conversation with the representative and nothing could be done * when he was discharged he initially filled out the forms and was never informed he would have to pay for SBP coverage and he was under the impression it was at no cost to him and his family * his spouse was not available to sign the declined coverage form because she was residing at their residence in Florida while he was still located at Fort Drum, NY and he was discharged a few days later * at the time of his discharge, he was focused on and still coping with his disabilities in which he suffers from PTSD, TBI, bilateral hearing loss, and numerous areas of intense pain on a daily basis. He is 100% permanent and total disability unemployment * he cannot afford the premiums as there is no flexibility in his budget and it is an immense strain on his family * the SBP program is also not beneficial to himself and his family due to his age of 30 years vice 55 years, and his wife would have to outlive him for over 6 years to see a possible break even in all of the payments submitted * he greatly appreciates the Board’s help so he can have a peace of mind and relief not to have the dwelling SBP bill and issue constantly over his head which causes more stress and anxiety and does not help with his medical condition 2. A review of the applicant’s service records show the following on: * 31 August 2009 – enlisted in the Regular Army and served through multiple reenlistments * 25 August 2015 – Orders Number 237-1022, issued by Headquarters, U.S. Army Garrison, Fort Drum, NY discharged the applicant from active duty by reason of permanent physical disability, effective 22 November 2015 * 1 November 2016 – U.S. Army Human Resources Command approved the applicant’s claim for Combat Related Special Compensation (CRSC) * his record is void of a DD Form 2656 indicating a SBP election prior to his medical retirement 3. The applicant provides: * notarized letter authored by his spouse wherein she expresses her desire to terminate the SBP because it was not feasible for their family, and they do not have the means to pay for it * DD Form 2656 showing the following in: * section 8 (Dependency Information) he listed his spouse and 2 children, 5 years of age and 10 months of age respectively at the time of application (the children were not permanently disabled) * section 9 (SBP Election): * item 26 (Beneficiary Categories) he elected coverage for spouse and children * item 27 (Level of Coverage) he elected coverage based on full gross pay * he endorsed this form with a witness on 11 September 2015 * DD Form 214 showing he was discharged by reason of permanent disability * VA claim adjudication showing his service connected disabilities and percentages of disability awarded * DFAS letter wherein he was informed his SBP request could not be processed because his account was established with automatic SBP coverage at the time of retirement due to an incomplete scan of his DD Form 2656 making his election illegible, and his election choice was spouse and child coverage * Fax cover sheets wherein multiple faxes were sent between the applicant and DFAS 4. On 12 October 2018, DFAS provided Case Management Division the applicant’s complete SBP packet wherein the second page of the DD Form 2656 was illegible. Additionally, it contains the applicant’s faxed documents wherein the applicant attempted disenrollment from the SBP and to cancel the SBP debt. He was further informed by DFAS in order to take action, he would have to complete, sign, and return enclosed forms and sign DD Form 2656-8 (SBP – Automatic Coverage fact Sheet). He was also informed by DFAS that effective April 2018, DFAS would start deducting SBP premiums from CRSC and he had a SBP debt of $1,781.98. 5. See REFERENCES below on SBP legislation and CRSC. BOARD DISCUSSION: After review of the application and all evidence, the Board determined there is sufficient evidence to grant relief. The applicant’s contentions were carefully considered. He elected full SBP coverage upon his retirement for permanent disability. He contends he was unware there were premiums to pay for SBP coverage. Once he was made aware of the requirement to pay for 30 years, he and his wife elected not to participate. The record shows DFAS did not process his request to terminate coverage as the second page of a fax was illegible. The Board agreed to correct the record to show he elected not to participate in SBP with the concurrence of his spouse effective upon the date of his retirement. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 :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 properly declined the Survivor Benefit Plan (SBP) on 21 November 2015, with proper spousal concurrence, and his election was received and processed in a timely manner by the appropriate DFAS office. Such relief should result in the repayment of any previously paid SBP premiums. 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. ADMINISTRATIVE NOTE(S): Not Applicable REFERENCES: 1. Public Law 92-425, the SBP, enacted 21 September 1972, 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. 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. An election, once made, was irrevocable except in certain circumstances, or authorized by law. 2. Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation. Retirees have a one-year period, beginning on the second anniversary of the date on which their retired pay started, to withdraw from SBP. 3. Title 10 U.S. Code (USC), section 1448, required notice to a spouse if a member elected not to participate in the SBP. The statute also provided for automatic enrollment for spouse coverage at the full base amount unless a member affirmatively declined to participate in the SBP prior to receiving retired pay. 4. DFAS website provides the following guidance related to SBP deductions from CRSC. a. The normal method of paying for SBP coverage is by an automatic deduction from your retirement pay. The vast majority of retired members with SBP coverage pay through this means. It is implemented automatically if you elect SBP coverage at the time you retire. b. Beginning with the SBP monthly premiums due in April of 2018, DFAS started deducting SBP recurring monthly premiums from CRSC when retired pay is not sufficient to cover the full amount of the monthly premiums. This new deduction is due to a change in the law, which requires DFAS to deduct SBP recurring monthly premiums from CRSC. c. The change in the law only affects SBP recurring monthly premiums, beginning with the monthly premium due in April of 2018. It does not affect past due SBP premium amounts. DFAS is not deducting past due premiums from CRSC pay. Retirees who have past due SBP premiums are still responsible for paying the past due SBP premium amount and any interest accrued through direct remittance. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20160016303 4 1