RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        12 September 2006
      DOCKET NUMBER:  AR20060000802


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mrs. Nancy L. Amos                |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Allen L. Raub                 |     |Chairperson          |
|     |Ms. Linda M. Barker               |     |Member               |
|     |Mr. Qawiy A. Sabree               |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests that his participation in the Survivor Benefit
Plan (SBP) be cancelled.

2.  The applicant states the SBP was not properly explained to him prior to
his retirement.  The plan was to terminate [the SBP] upon his initial
retirement from the service.  He does not require, nor does he need, the
SBP.  He has sufficient life insurance in effect.

3.  The applicant provides a DD Form 2656-5 (Reserve Component Survivor
Benefit Plan (RCSBP) Election Certificate) and two pages of his DD Form
2656 (Data for Payment of Retired Personnel).

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 13 July 1944.  He enlisted in the Army
National Guard on an unknown date.

2.  The applicant’s notification of eligibility for retired pay (his 20-
year letter) is dated 1 January 2004.  Attached as an enclosure to his 20-
year letter was a Survivor Benefit Summary.  The letter also informed him
that a DD Form 2656-5 was provided which he must complete if he elected to
remain covered under the automatic provision of the RCSBP law.  He was
informed that detailed information concerning the RCSBP program and cost
was enclosed.  He was also informed that he should contact the State of
Maryland Military Department for answers to specific individual RCSBP
questions.

3.  On 16 January 2004, the applicant completed the DD Form 2656-5 and
checked that he elected to participate in the RCSBP for spouse only
coverage, option C, full retired pay with no supplemental coverage.

4.  The first page of the DD Form 2656-5 informed the applicant that a
decision to participate was permanent and could not be changed unless
authorized by law, such as the opportunity to terminate his participation
during the period between his 62d birthday and the day before he reaches
age 63, at which time he could elect to discontinue participation.  He was
informed to review the program details carefully and consider the effects
of his decision before making an election.  Section VI (Supplemental SSB
(SSBP) Coverage (Optional)) of the DD Form 2656-5 described the SSBP.

5.  On 7 February 2004, the applicant completed a DD Form 2656.  On this
form, he indicated that he elected not to participate in the SBP.  (Pages 3
and 4 of this document were instructions.  Page 4 would have instructed him
that, since he previously elected to participate in the RCSBP, he was not
to complete the SBP section.)

6.  In the processing of this case, an advisory opinion was obtained from
the Retirement and Annuities section, Transition and Separations Branch, U.
S. Army Human Resources Command – St. Louis.  That office stated it could
not withdraw the applicant’s request for the RCSBP, but he could cancel the
RCSBP between the 24th month and 36th month of his receiving retired pay.

7.  A copy of the advisory opinion was provided to the applicant for
comment or rebuttal.  He did not respond within the given time frame.

8.  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.

9.  Once a member elects either Options B or C in any category of RCSBP
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.

10.  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 the SBP.  The spouse’s concurrence is required.  No premiums
will be refunded to those who opt to disenroll.  Reservists who elected an
option under
the RCSBP will continue to have the Reservist Portion cost deducted from
their retired pay.  The effective date of termination is the first day of
the first calendar month following the month in which the election is
received by the Secretary concerned.

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s contentions have been carefully considered.  However,
his   20-year letter informed him that detailed information concerning the
RCSBP was enclosed and that he should contact his command for answers to
specific questions.  The DD Form 2656-5 informed him that an election to
participate in the RCSBP was permanent and could not be changed unless
authorized by law. The form advised him to review the program details
carefully before making an election.  The applicant then elected to
participate in the RCSBP.

2.  A month later, the applicant applied for retired pay by completing a DD
Form 2656.  He indicated on this form that he elected not to participate in
the SBP.  However, the instructions to the form informed him that, because
he had previously elected to participate in the RCSBP, he was not to
complete the portion of the form pertaining to the standard SBP (because
his RCSBP election rolled over into the standard SBP).

3.  The applicant provides insufficient evidence to show the RCSBP/SBP was
improperly explained to him.  He will have a one year window of
opportunity, from 1 August 2006 through 31 July 2007, in which he can
terminate his SBP participation.  His DD Form 2656 advised him of this
opportunity.  He should contact his nearest Retirement Services Officer for
more information.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

__alr___  __lmb___  __qas___  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.




                                  __Allen L. Raub_______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060000802                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20060912                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |DENY                                    |
|REVIEW AUTHORITY        |Mr. Chun                                |
|ISSUES         1.       |137.03                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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