McFarlane v. Secretary of the Air Force

867 F. Supp. 405, 1994 U.S. Dist. LEXIS 16597
CourtDistrict Court, E.D. Virginia
DecidedNovember 16, 1994
DocketCiv. A. 94 CV 692-A
StatusPublished
Cited by4 cases

This text of 867 F. Supp. 405 (McFarlane v. Secretary of the Air Force) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McFarlane v. Secretary of the Air Force, 867 F. Supp. 405, 1994 U.S. Dist. LEXIS 16597 (E.D. Va. 1994).

Opinion

MEMORANDUM OPINION

ELLIS, District Judge.

This is an appeal from a decision of the Air Force Board for Correction of Military Records (“the Board”) denying as untimely Patsy McFarlane’s application for correction of her late husband’s military records. At issue is whether Ms. McFarlane’s application was filed “within three years after [s]he discovered] the error or injustice” in the military record, as required by 10 U.S.C. § 1552(b).

I.

Ms. McFarlane is the widow of Colonel Larimer C. McFarlane, a career Air Force officer who died in 1984. As a member of the armed services, Colonel McFarlane was eligible to participate in the Survivor Benefit Plan (the “Plan”), an annuity program designed to provide financial security for a servicemember’s spouse after the member’s death. See 10 U.S.C. §§ 1447-60. Participation in the Plan at the maximum level is automatic for a servicemember who is married or has dependent children at the time of retirement, unless before that time the member affirmatively elects to reduce the annuity payments or opt out of the Plan altogether. In the event a servicemember makes either of these elections, the spouse must be notified of the election and informed of its effects on his or her financial future. 10 U.S.C. §§ 1448(a)(6)(C), 1455. 1

Prior to his retirement on January 1,1976, Colonel McFarlane elected to reduce the amount of retired pay that he would contribute to the Plan. Specifically, he executed a Survivor Benefit Plan Election Certificate (“Election Certificate”) on December 11, 1975 that changed the base annuity amount to be withdrawn from his monthly retired pay from the maximum level of approximately $1500.00 to the reduced amount of $300.00. 2 Yet, contrary to the Plan’s requirements, the Air Force never notified Ms. McFarlane of her husband’s reduced election. 3 And although Ms. McFarlane signed her name as a witness to her husband’s signature on the Election Certificate, she *409 stated in support of her application to the Board that “[a]t the time of my husband’s retirement, I had no knowledge of the Survivor Benefit Plan or what he was doing in that regard.” (P. McFarlane Deck, Admin.R. at 25). Precisely when Ms. McFar-lane actually discovered that she was receiving less than the maximum annuity payment is unclear from the record. What is clear is that Ms. McFarlane did not learn of the Air Force’s obligation to have notified her of the election until 1990, when an informal meeting with other armed forces widows brought the notification requirement to her attention. Shortly thereafter, in June 1991, she submitted to the Board an application to correct her husband’s reduced annuity election. Arguing that the reduced annuity payments were in error given the lack of spousal notification and counseling, Ms. McFarlane requested that her husband’s records be changed to reflect participation in the Plan at the maximum level. 4 The Board rejected the application, contending that it “was not filed within three years after the alleged error or injustice was discovered, or reasonably could have been discovered, as required by [10 U.S.C. § 1552].” (Admin.R. at 13). Ms. McFarlane now appeals this decision, contending that her application was timely since she did not actually discover the error until 1990, when she first learned of the Air Force’s obligation to have notified her of her husband’s reduced annuity election. The Board counters that Ms. McFarlane discovered the error, or reasonably should have discovered the error, back in 1975, when she witnessed her husband’s signature to the Election Certificate, or, at the latest, in 1984, when she began receiving the reduced annuity payments. On these opposing grounds, both parties have moved for summary judgment.

II.

Analysis properly begins with a statement of the appropriate standard of review. This case is governed by the Administrative Procedures Act (“APA”), 5 U.S.C. §§ 701-06. Under the APA, courts may overturn the Board’s decision only if it was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. § 706(2)(A). See also, Voge v. Secretary of the Navy, No. 93-2346, slip op. at 3,1994 WL 474837, at *1, 1994 U.SApp. LEXIS 23956, at *3 (4th Cir. Sept. 2, 1994) (unpublished); Mickens v. United States, 760 F.2d 539, 541 (4th Cir.1985) (also may overturn Board decision if not supported by “substantial evidence”), cert. denied, 474 U.S. 1104, 106 S.Ct. 889, 88 L.Ed.2d 923 (1986). The question presented, then, is whether the Board’s denial of Ms. McFarlane’s correction application as untimely was arbitrary, capricious, or contrary to law.

III.

At the outset, it is worth noting that the Air Force’s failure to notify and counsel Ms. McFarlane regarding her husband’s Plan election nullifies the election and gives rise to a claim for reinstatement of maximum annuity benefits. In k string of cases involving service widows who were not notified of their husbands’ elections to opt out of the Plan, the Court of Claims and its successor, the Federal Circuit, have held that such an election is not binding on the surviving spouse unless the statutory notice requirement was satisfied. See, e.g., Barber v. United States, 230 Ct.Cl. 287, 676 F.2d 651, 657 (1982); Trone v. United States, 230 Ct.Cl. 904, 1982 WL 25268 (1982); Kelly v. United States, 826 F.2d 1049 (Fed.Cir.1987). See also, Dean v. United States, 10 Cl.Ct. 563 (1986). 5 This sound conclusion gives sub *410 stance to the notification and counseling requirements, which otherwise might be effectively ignored. Thus, the Air Force acted contrary to law when it accepted and gave effect to Colonel McFarlane’s Election Certificate without having notified Ms. McFar-lane of the election or counseled her regarding its effects. Had Ms. McFarlane known of her husband’s election and had she been apprised of its consequences, she would have had the opportunity to confer with her husband and possibly influence this important decision. And even had Colonel McFarlane decided nonetheless to limit his participation in the Plan, Ms. McFarlane would then have had the opportunity to plan for her financial future in light of the election. By failing to provide Ms.

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Bluebook (online)
867 F. Supp. 405, 1994 U.S. Dist. LEXIS 16597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcfarlane-v-secretary-of-the-air-force-vaed-1994.