IN THE CASE OF: BOARD DATE: 26 October 2023 DOCKET NUMBER: AR20230004374 APPLICANT REQUESTS: in effect – * payment of the death gratuity payable upon death of the Former Service Member (FSM), and waiver of the Title 31, United States Code (USC), section 3702 restriction * a personal appearance before the Board via video/telephone APPLICANT'S SUPPORTING DOCUMENT(S) CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Applicant statements * Applicant's Birth Certificate * Applicant's dependent identification card * Defense Finance and Accounting Service (DFAS) Retired and Annuitant Pay letter, 23 December 2019 * Clinical Record of deceased FSM * Photograph of deceased FSM * DFAS letter, 8 December 2022 FACTS: 1. The applicant did not file within the 3-year time frame provided in Title 10, U.S. Code (USC), section 1552(b); however, the Army Board for Correction of Military Records (ABCMR) conducted a substantive review of this case and determined it is in the interest of justice to excuse the applicant's failure to timely file. 2. The daughter (applicant) of the deceased FSM states she requests the death gratuity payment of $100,000.00 be unbarred, reviewed, and paid to her. Her father (FSM) passed away in the battle zone in 2007 when she was 3 years old. She was the next of kin to receive any death gratuity. However, she was too young to collect the funds even after the 6-year period. Now she is 19 years old and can collect the funds, but they are currently barred. She no longer lives with her mother and does not have access to many of the answers or forms needed to fully answer or apply to these questions. She has included a document showing she is an annuitant and DFAS was sending the payments to her mother for her. 3. A review of the deceased FSM's official military record shows the following: a. The FSM enlisted in the Massachusetts Army National Guard (MAARNG) on 15 July 1999. b. The FSM's record contains a certificate of marriage which shows he married on . c. On 14 July 2005, National Guard Bureau (NGB) Form 22 (Report of Separation and Record of Service) shows the FSM was honorably released from the MAARNG and was transferred to the U.S. Army Reserve Control Group (Annual Training) by reason of "expiration of Active Status (ETS with obligation)." d. On 15 February 2006, the FSM enlisted in the Regular Army. e. On 21 February 2006, Mrs. was sent a Servicemen's Group Life Insurance (SGLI) - Spouse Notification Letter notifying her that, as the current lawful spouse of the FSM, the law provides for spouse notification whenever a service member elects a beneficiary designation for SGLI other than the current lawful spouse or declines or reduces the maximum SGLI coverage for the spouse. This letter was to inform her that on 21 February 2006, the FSM has elected a beneficiary other than current lawful spouse or child. The FSM was entitled to make the above election. While the U.S. Army was not authorized to identify the names of any other beneficiaries (if elected), they were required to notify her of her spouse's [FSM], decision. SGLV 8286 (SGLI Election and Certificate) shows the FSM named his father (Mr. ) as his beneficiary (100 percent lump sum payment option). f. On 16 August 2006, DD Form 93 (Record of Emergency Data) was completed by the FSM and shows the following in: * item 4a (Spouse Name) – Divorced * item 5a (Children Name) – (Applicant) * item 5b (Relationship) – Daughter * item 5c (Date of Birth) – * item 9a (Beneficiary(ies) for Death Gratuity (if no surviving spouse or child)) – (Father) g. On 23 January 2007, DD Form 2064 (Certificate of Death (Overseas)) was completed which shows the FSM was divorced at the time of his death on . h. On 8 February 2007, DD Form 1300 (Report of Casualty) was prepared and completed which shows the FSM died on active duty on 13 January 2007, in Balad, Iraq from hostile action (blast and shrapnel injuries). Item 7 (Interested Persons/Remarks) shows the applicant, "c/o Mrs., (Daughter 2)." 4. On 20 October 2023, an inquiry was made to the Defense Finance and Accounting Service (DFAS) pertaining to the disbursement of a death gratuity payment to an annuitant. On 23 October 2023, a DFAS official replied stating "Regarding the Death Gratuity claim for the applicant () (SM FSM); the claim was denied on 8 December 2022 because of the application of the Barring Act. The denial letter was sent to the applicant on 8 December 2022 explaining the reason for the denial as well as the paths of redress." 5. The applicant provides: a. A Commonwealth of City of birth certificate which shows her birthdate and lists the FSM as her father. b. Department of Defense dependent identification card which shows her as the child of the FSM. c. DFAS Retired and Annuitant Pay letter which shows her as the annuitant of the FSM. d. SF 507 (Clinical Record) listing the FSM's name and Social Security Number (SSN). e. A photograph showing the FSM's name and SSN. f. DFAS letter dated 8 December 2022 wherein she was informed by DFAS her claim for the $100,000.00 death gratuity was denied due to the Barring Act. This letter confirms her status as the proper beneficiary of the death gratuity and further confirms that a claim was not submitted on her behalf. The letter alludes to the possibility that the family was given erroneous information that led them to believe the 6-year statute of limitations for filing a claim would not commence until she reached the age of majority and notes that having received erroneous information does not change the fact that her claim accrued on the date of her father’s death and the claim period expired 6 years later. The letter advised her of three avenues of redress that could result in payment of the barred amount, one of which included the ABCMR, which DFAS advised could correct the record to show she made a timely claim for the barred amounts. BOARD DISCUSSION: 1. After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found relief is warranted. The Board found the available evidence sufficient to consider this case fully and fairly without a personal appearance by the applicant. 2. The Board found the letter from DFAS confirms a timely claim for the death gratuity was not submitted on the applicant’s behalf, possibly because of the family receiving erroneous information. The Board found this to be inequitable and determined the record should be corrected to show a timely request for the death gratuity was submitted on the applicant’s behalf and she should be paid any monies she is due as a result of this correction. 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 showing a request for the death gratuity was submitted on the applicant’s behalf within 6 years of the FSM’s death. The applicant should be paid any monies she is due as a result of this correction. 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. Title 10, USC, section 1552(b), provides that applications for correction of military records must be filed within 3 years after discovery of the alleged error or injustice. This provision of law also allows the ABCMR to excuse an applicant's failure to timely file within the 3-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so. 2. Title 31, USC, section 3702, is the 6-year barring statute for payment of claims by the government. In essence, if an individual brings a claim against the government for monetary relief, the barring statute says that the government is only obligated to pay the individual 6 years from the date of approval of the claim. Legal challenges to the barring statute have resulted in litigation in the U.S. Court of Federal Claims. In the case of Pride versus the United States, the court ruled that the Board for Correction of Military Records (BCMR) is not bound by the barring act, and the BCMR decision creates a new entitlement to payment and the 6 years starts running over again, and that payment is automatic and not discretionary when a BCMR decision creates an entitlement. 3. Department of Defense Financial Management Regulation 7000.14, Volume 7A, chapter 36 (Payment on behalf of Deceased Members) states: a. Death gratuity will be paid, regardless of whether death occurred in the line of duty or as the result of a member's misconduct, to eligible beneficiaries. A member may designate one or more persons, to receive a portion of the amount payable under paragraph 360206. If a member provides conflicting information regarding designation of beneficiaries and their proportionate shares of the death gratuity in blocks 11 and 14 of the DD Form 93, then payment will be made only to the extent that there are unambiguous designations. b. Distribution. If a member does not make a designation under subparagraph 360203.A, or designates only a portion of the amount payable, then the remaining amount of the death gratuity not covered by a designation will be paid as follows: * To the surviving spouse of a member * If no surviving spouse, then the child or children of the member and descendants of deceased children, by representation c. Determination of an eligible beneficiary may be established by the original or certified copy of the birth certificate. If the death gratuity is in excess of $10,000.00, then payment may only be made to the guardian or conservator appointed by a court to receive such payments for the minor's benefit, thereby providing the government a means of obtaining a good acquittance. d. Section 360206 (Amounts payable and Exemptions) the amount of death gratuity is $100,000.00 4. Army Regulation 15-185 (ABCMR), states that the ABCMR begins its consideration of each case with the presumption of administrative regularity. It will decide cases based on the evidence of record and it is not an investigative body. The applicant has the burden of proving an error or injustice by a preponderance of the evidence. Paragraph 2–11 states that applicants do not have a right to a hearing before the ABCMR. The Director or the ABCMR may grant a formal hearing whenever justice requires. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20230004374 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1