IN THE CASE OF: BOARD DATE: 11 September 2020 DOCKET NUMBER: AR20190006253 APPLICANT REQUESTS: * remission of debt for Service Members Group Life Insurance (SGLI) from July 2017 to June 2018 * refund for payments made APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * DA HQs, 63rd Readiness Division Orders 18-157-00012 (Discharge Orders), dated 6 June 2018 * Defense Finance and Accounting Service (DFAS )Statement for Debt payment, dated 4 March 2019 * Self-Authored Memo, dated 20 March 2019 FACTS: 1. The applicant states: a. She would like forgiveness of the debt in collections for her SGLI. The time frame for the debt in question is from July 2017 through June 2018. She made a partial payment of $50 for her debt bringing it down from $419.75 to $369.80. She states she was not receiving pay nor attending Battle Training Assemblies during the July 2017 through June 2018 timeframe. b. Her discharge orders reflect it was not her fault that she was kept in the U.S. Army Reserve (USAR) beyond her expiration of term of service. The applicant was informed by DFAS if she continued to make payments, her debt would not be sent to collections. The debt was placed in collections on 28 November 2018. Her credit score was drastically affected for this unfair reason. She would like to request a correction to her record in order to get her credit report/score cleared. She would like a refund for the payment she made once this unnecessary situation is finalized. 2. A review of the applicant’s record shows: a. On 2 October 2009, she enlisted in the USAR with an 8 year USAR commitment. b. Orders 045-0001, dated 14 February 2013, released her from active duty with an effective date of 19 March 2013. The orders reflected a terminal date of reserve obligation as 1 October 2017. c. The applicant’s DA Form 5016 (Chronological Statement of Retirement Points) reflect her membership points each year from 2 October 2009 through 6 June 2018. The applicant did not receive the required 50 points to be eligible for a good retirement year for the periods 3 October 2016 to 6 June 2018. She received the minimum 15 membership points required for a membership year during the period 3 October 2016 to 2 October 2017. She received 10 membership points for the period 3 October 2017 to 6 June 2018. 3. The applicant provides: a. Orders 18-157-00012 published by Headquarters, 63rd Readiness Division, reflecting she was honorably discharged from the USAR on 6 June 2018. Additional instructions state “Soldier was held beyond normal discharge date through no fault of the Soldier.” b. DFAS Debt statement dated 3 March 2019 indicating she had a total balance due on her SGLI policy in the amount of $369.80. 4. See REFERENCES below. BOARD DISCUSSION: 1. After reviewing the application and all supporting documents, the Board found that relief is warranted. 2. The Board agreed that the applicant should not have been charged for SGLI once she stopped attending battle assemblies. The Board found that if she had been transferred to the Individual Ready Reserve when she became an inactive member of the USAR and discharged in a timely manner, she would not have incurred the debt for SGLI. Based on a preponderance of evidence, the Board determined that the record should be corrected to show her debt based on SGLI has been cancelled and any monies she has paid toward that debt should be returned to her. 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 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 cancelling her debt based on SGLI and returning to her any monies she has paid toward that debt. 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 37-104 (Military Pay and Allowances Policy states under Chapter 26 (Service member's Group Life Insurance, Family SGLI (FSGLI), and Tricare Family Member Dental Program (TFMDP) (CONUS only), paragraph 2, says all Soldiers will automatically receive the maximum basic serviceman’s group life insurance coverage upon accession unless they decline coverage, elect reduced coverage, or elect supplemental coverage. 2. Army Regulation 37-104 (Military Pay and Allowances Policy) under Chapter 33-4 (In-processing Reserve Soldiers) states SGLI starts automatically. 3. DoD Financial Management Regulation, Volume 7A, Chapter 47 states a. Paragraph 4702 (General) states a member who is active duty, active duty for training or inactive duty training with the Uniformed Services (officer, warrant or enlisted) who receives basic pay for 1 or more days per month is responsible for SGLI premiums (coverage listed in section 4703) unless they waive coverage. b. Paragraph 4703 (Basic Coverage) – Effective 6 April 1991, this program automatically insures eligible Members against death. All Selected Reservists and any other Ready Reserve members who are assigned or attached to a unit or position that may require performing active duty or active duty for training and that will require at least 12 scheduled periods of inactive duty for training annually are also covered. c. Paragraph 4707 (Deductions (SGLI Premiums) When a member is eligible for full-time coverage, the monthly deduction (effective 1 July 1994) is $.90 for each $10,000 of coverage. The deduction will be made even though the member may have paid the yearly premium as a Reservist covered on a part time basis (paragraph 570702). For rules concerning starting and stopping deductions, see table 47-1. Monthly deductions are not prorated for partial months of service. Deduct the full month’s premium for any month in which a member is covered for at least one day. During months in which coverage amounts change, deduct the full month’s premium for the higher coverage rate d. Paragraph 4707 (Refunds) – Refunds shall not be made of amounts deducted before the effective date of any election for reduced or waived coverage. When a request for reinstatement of coverage or for increased coverage is rejected by the Office of Servicemembers’ Group Life Insurance (OSGLI), any increase in premiums withheld pending OSGLI rejection shall be credited to the member's pay account. 4. (AR) 600-4 (Remission or Cancellation of Indebtedness) states a Soldier’s debt may be remitted or cancelled in cases arising from debts incurred while serving on active duty or in an active status as a Soldier, and debts acknowledged as valid. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20190006253 4 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1