DEPARTMENT OF THE NAVY BOARD FOR CORRECTION OF NAVAL RECORDS 701 S. COURTHOUSE ROAD, SUITE 1001 ARLINGTON, VA 22204-2490 Docket No. 292-16 Dear This is in reference to your application for correction of your naval record pursuant to the provisions of 10 USC 1552. A three-member panel of the Board for Correction of Naval Records, sitting in executive session, considered your application on 14 March 2016. Your allegations of error and injustice were reviewed in accordance with administrative regulations and procedures applicable to the proceedings of this Board. Documentary material considered by the Board consisted of your application, together with all material submitted in support thereof, your naval record and applicable statutes, regulations and policies. In regard to your request for a personal appearance, Board regulations state that a personal appearance before the Board is not granted as a right, but only when the Board determines that such an appearance will serve some useful purpose. The Board determined that a personal appearance was not necessary and considered your case based on the evidence of the record. After careful and conscientious consideration of the entire record, the Board found that the evidence submitted was insufficient to establish the existence of probable material error or injustice. Per the Department of Defense Financial Management Regulation, Volume 7B, Chapter 42-46, a.service member must elect or decline coverage under the Survivor Benefit Plan (SBP) before retired pay becomes payable, or if there is no eligible beneficiary at that time, within 1-year of acquiring an eligible beneficiary. An election is irrevocable until an eligible beneficiary loses their eligibility. Written spousal concurrence is required when the member elects to decline coverage or provide the spouse with less than the maximum SBP coverage available. The signature of the spouse must be notarized to certify that the spouse knowingly signed the form. On 18 September 1982, you elected child only SBP coverage with spouse consent. Your disabled daughter remains an eligible SBP beneficiary. Accordingly, your application has been denied. The names and votes of the members of the panel will be furnished upon request. In your petition, you expressed concern that your daughter would lose federal and state benefits if she were to become the recipient of the SBP annuity. Section 624 of the Fiscal Year 2015 National Defense Authorization Act (FY 15 NDAA), Public Law 113-291, provides that a member who has made a SBP election for coverage of a dependent child who is "disabled" as defined in 42 U.S.C. § 1382c(a) (3)), and who has established a.Special Needs Trust (SNT), can direct payment of a dependent child SBP annuity directly to the SNT. Under the new legislation, a member who seeks to direct payment of a dependent child SBP annuity directly to a SNT must first establish an SNT in accordance with either 42 U.S.C. § 1396p(d) (4) (A) or (C). To direct annuity payments to the SNT as opposed to your daughter outright, you must contact the Navy Personnel Command (NPC) SBP Program Manager to ensure that a SNT has been established in compliance with legislative requirements and ensure the necessary documentation is on file with the Defense Finance and Accounting Services (DFAS) . The SBP Program Manager is , available at or at . It is regretted that the circumstances of your case are such that favorable action cannot be taken. You are entitled to have the Board reconsider its decision upon submission of new evidence within one year from the date of the Board's decision. New evidence is evidence not previously considered by the Board prior to making its decision in this case. In this regard, it is important to keep in mind that· a presumption of regularity attaches to all official records. Consequently, when applying for a correction of an official naval record, the burden is on the applicant to demonstrate the existence of probable material error or injustice. Sincerely, Executive Director