DEPARTMENT OF THE NAVY 

BOARD FOR CORRECTION OF NAVAL RECORDS 
701 S. COURTHOUSE ROAD, SUITE 1001 
ARLINGTON, VA 22204-2490 

Docket No. 1427-17 

From: Chairman, Board for Correction ofNaval Records 
To: Secretary of the Navy 

Subj: REVIEW OF NAVAL RECORD

Ref: (a) Title 10 U .S.C. 1552 

Encl: (1) DD Form 149 w/attachments 
(2) Subject's naval record 

1. Pursuant to the provisions of reference (a) Subject, hereinafter referred to as Petitioner, filed 
enclosure (1) with this Board requesting, in effect, that the applicable naval record be corrected 
to show that he did not terminate Survivor Benefit Plan (SBP) child coverage for his 
incapacitated dependent. 

2. The Board, consisting of        , reviewed Petitioner's 
allegations of error and injustice on 30 March 2017 and, pursuant to its regulations, determined 
that the corrective action indicated below should be taken on the available evidence of record. 
Documentary material considered by the Board consisted of the enclosures, naval records, and 
applicable statutes, regulations and policies. 

3. The Board, having reviewed all the facts of record pertaining to Petitioner's allegations of 
error and injustice, finds as follows: 

a. Before applying to this Board, Petitioner exhausted all administrative remedies available 
under existing law and regulations within the Department ofthe Navy. 

b. On 31 March 2006, Petitioner transferred to the Fleet Reserve and elected maximum child 
SBP coverage. 

c. On 27 April 2009, the Board for Correction of Naval Records BCNR granted the 
Petitioner's request to terminate SBP child coverage for his incapacitated dependent. Note: At 
that time, an SBP annuity could only be paid out to the beneficiary rather than a trust, resulting in 
the possible loss of federal and state disability aid. 

d. Public Law 113-291 of December 2014 established that a service member could elect 
SBP coverage for an incapacitated dependent child (who is "disabled" as defined in 42 U.S.C. § 
1382c(a)(3)) and direct payment of the SBP annuity to a Special Needs Trust (SNT) rather than 
to the individual outright. 

e. On 7 September 2016, a Special Needs Trust was prepared by     on behalf of 

CONCLUSION 

Upon review and consideration of all the evidence of record, and especially in light of the recent 
law change which allows a SBP annuity payment to be directed to a SNT, the Board finds the 
existence ofan injustice warranting the following corrective action. 

RECOMMENDATION: 

That Petitioner's naval record be corrected, where appropriate, to show that: 

a. Petitioner did not terminate Survivor Benefit Plan (SBP) child coverage for his 
incapacitated dependent on 1 April 2009. 

b. Petitioner is responsible for unpaid SBP costs that would have been deducted since the 
time child SBP coverage was terminated on 1 April 2009. No waiver ofunpaid premiums will 
be granted. 

c. A copy ofthis Report of Proceedings will be filed in Petitioner's naval record. 

4. It is certified that a quorum was present at the Board's review and deliberations, and that the 
foregoing is a true and complete record of the Board' sin the hove entitled matter. 

5. Pursuant to the delegation ofauthority set out in Section 6(e) of the revised Procedures of the 
Board for Correction ofNaval Records (32 Code of Federal regulations, Section 723.6(e)) and 
having assured compliance with its provisions, it is hereby announced that the foregoing 
corrective action, taken under the authority ofreference (a), has been approved by the Board on 
behalf ofthe Secretary ofthe Navy. 

Executive Director