BOARD DATE: 8 March 2011 DOCKET NUMBER: AR20100021525 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests his Survivor Benefit Plan (SBP) coverage be terminated. 2. He states at the time of his original election, he was unaware of how the program worked and the affect it would have on his Reserve retirement pay. He adds he submitted a change to the Defense Finance and Accounting Service (DFAS), prior to his 60th birthday, once he realized how the program worked. 3. He provides Orders P03-921494, dated 5 March 2010, and a DD Form 2656 (Data for Payment of Retired Personnel), dated 6 April 2010, with a fax transmittal sheet. CONSIDERATION OF EVIDENCE: 1. The applicant was born on 31 May 1950. 2. On 22 January 2003, he received his notification of eligibility for retired pay at age 60 (his 20-year letter). His 20-year letter notified him, in pertinent part, that upon receipt of this letter, a qualified Reserve Component (RC) married member would automatically be enrolled in the RC Survivor Benefit Plan (RCSBP) under Option C, Spouse and Child(ren) coverage based on full retired pay, unless his spouse's concurrence was provided to allow for a different election. The letter further stated that the cost for his participation would commence upon his receipt of retired pay at age 60. "Detailed information concerning the RCSBP program and cost is enclosed." He was also provided a contact number at the command for answers to specific individual questions. 3. On 27 February 2003, he completed a DD Form 1883 (Survivor Benefit Plan Election Certificate) for immediate spouse only coverage. The DD Form 1883 stated "IMPORTANT: The decision you make with respect to participation in the Survivor Benefit Plan is a permanent irrevocable decision. Please consider your decision and its effect very carefully." 4. Orders P03-921494, dated 5 March 2010, show he was retired from the U.S. Army Reserve and placed on the retired list effective 31 May 2010. 5. He provided a copy of a DD Form 2656, dated 6 April 2010, showing he and his spouse elected not to participate in the SBP. The fax transmittal sheet indicated that this document was faxed to DFAS. 6. Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. Changes in SBP options are not authorized except in specific instances as authorized by law. 7. Public Law 95-397, the RCSBP, enacted 30 September 1978, provided a way for those who had qualified for reserve retirement but were not yet age 60 to provide an annuity for their survivors should they die before reaching age 60. Three options are available: (A) elect to decline enrollment and choose at age 60 whether to start SBP participation; (B) elect that a beneficiary receive an annuity if they die before age 60 but delay payment of it until the date of the member’s 60th birthday; (C) elect that a beneficiary receive an annuity immediately upon their death if before age 60. If death does not occur before age 60, the RCSBP costs for options B and C are deducted from the member’s retired pay. Once a member elects either Options B or C in any category of coverage, that election is irrevocable. Option B and C participants do not make a new SBP election at age 60. They cannot cancel SBP participation or change options they had in RCSBP – it automatically rolls into SBP coverage. If RCSBP Option B or C is elected, there is a Reservist Portion cost added to the basic cost of the SBP to cover the additional benefit and assured protection had the member died prior to age 60. 8. Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation. Retirees have a one-year period, beginning on the second anniversary of the date on which their retired pay started, to withdraw from SBP. The spouse’s concurrence is required. No premiums will be refunded to those who opt to disenroll. DISCUSSION AND CONCLUSIONS: 1. The applicant’s DD Form 1883 informed him that his RCSBP election was an irrevocable decision. The fact that he argues he was not aware of the cost of RCSBP coverage is not sufficient justification to terminate his RCSBP/SBP coverage. He was provided information on the SBP and could have sought counseling/training on the RCSBP by contacting the number that was provided in his 20-year letter prior to making an election. Further, had the applicant died in the 7 years between his RCSBP election and reaching age 60 his wife was covered and she would have received an annuity. 2. In view of the foregoing, there is no basis for granting his requested relief. 3. He is advised that Public Law 105-85 provides him an opportunity to withdraw from the SBP, beginning on the second anniversary of the date on which his retired pay started. However, he is also advised that no premiums will be refunded to those who opt to disenroll. BOARD VOTE: ________ ________ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ___x____ ___x_____ ___x____ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. _______ _x _______ ___ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military in this case. ABCMR Record of Proceedings (cont) AR20100021525 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20100021525 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1