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Decision Text

ARMY | BCMR | CY1996 | 9609965C070209
Original file (9609965C070209.txt) Auto-classification: Approved
2.  The applicant requests to cancel participation in the Survivor Benefit Plan (SBP). 

3.  The applicant’s military records show that he was born on 1 September 1934.  He was a member of the Army National Guard.  The U.S. Army Reserve Personnel Center (ARPERCEN) sent a packet of notification of eligibility for retired pay at age 60.  The applicant for unknown reasons did not complete the DD Form 2656, “Data for payment of retired Personnel, therefor making his SBP election after date of retirement.  The absence of spouse concurrence in this case resulted in an immediate “automatic” full spouse coverage.  There is no DD Form 1883 on file, indicating that he did not participate in the Reserve Component SBP (RCSBP) prior to age 60.

4.  On 19 April 1996, the applicant appealed to this Board for correction of his military records.

5.  Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents.  The election made by the member was irrevocable.

6.  Military members on active duty on 21 September 1972 were to submit forms electing the coverage desired, or electing not to participate, prior to retirement or becoming eligible for retired pay.  If, upon becoming eligible for retired pay, a signed declination or election of reduced coverage had not been submitted, the member would be automatically enrolled in the SBP with full coverage for the spouse.

7.  In the processing of this case, a staff advisory opinion was obtained from the Headquarters Army Retirement Services, in ODCSPER, which recommended approval of the applicant’s request for cancellation of his SBP participation pending his spouse’s concurrence.

CONCLUSIONS:

1.  Government administrative error by the member’s of the National Guard unit is likely based on the dates of the DA FM 3713, retirement orders, and an ARPERCEN letter (all dated after date of retirement).

2.  Therefore, in view of the foregoing, findings, conclusions and the advisory opinion, it would be in the appropriate and in the interest of justice to correct the records as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by changing the applicant’s election to decline enrollment, retroactive to the date of retirement participation from “person with insurable interest” to “spouse only” RC-SBP and by conducting a complete audit of his account in order to determine the correct RC-SBP cost factor and the exact refund or collection amount (with a cost refund paid).  Spousal concurrence is required.

BOARD VOTE:  

                       GRANT AS STATED IN RECOMMENDATION

                       GRANT FORMAL HEARING

                       DENY APPLICATION




		                           
		        CHAIRPERSON

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