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B-242964 1 (1991-08-14)

handle is hein.gao/gaobadnxx0001 and id is 1 raw text is: N I CCowtm r Genral oft me U, ted sw Wflb~u, DC. hf4 Decision Matter of: Conflicting Claims for SBP Annuity Incident to th.e Death of Technical Sergeant Marvin B. Prince, USAF File: B-242964 Date: August 14, 1991 DIGEST A service member made a Survivor Benefit Plan (SBP) election in favor of his ex-spouse as a natural person with an insurable interest, When they remarried, he attempted to change his SBP election to provide for her as his spouse. However, since the Air Force failed to notify her of the attempted change, she retained coverage as a person with an insurable interest despite their subsequent divorce and his remarriage and became entitled to an SBP annuity upon his death. The Air Force must collect from her the increased cost of coverage for a person with an insurable interest from March 1983 until the member's death. DECISION We have been asked to settle the competing claims of Mrs. Shirley M. Prince and Mrs. Sharon F. Prince for a Survivor Benefit Plan (SBP) annuity based on the military service of the late Technical Sergeant Marvin B. Prince, USAF. For the reasons presented below, Shirley Prince is entitled to an SBP annuity, subject to an initial deduction for the increased cost of coverage for a natural person with an insurable interest. Sergeant Prince married Shirley Prince in 1954. They were divorced Way 15, 1983.. They remarried February 22, 1983, and divorced again September 10, 1985. Sergeant Prince then married Sharon Prince on November 15, 1985. He died September 21, 1990, leaving Sharon as his widow. Sergeant. Prince declined SBP coverage when it first became available in 1972. However, he elected coverage for Shirley on September 15, 1982, during an open enrollment period. Since Shirley was his former spouse at that time and since former-spcoase coverage was not then available, Sergeant Prince elected coverage for her as a natural person with an insurable interest. After they remarried, he requested that the

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