RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        7 September 2006
      DOCKET NUMBER:  AR20060000893


      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:

|     |Ms. Susan A Powers                |     |Chairperson          |
|     |Mr. David K. Haasenritter         |     |Member               |
|     |Mr. Jonathan K. Rost              |     |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, in effect, that his records be corrected to
show that he declined to participate in the Reserve Component Survivor
Benefit Plan (RCSBP) and that he be refunded all premiums paid.

2.  The applicant states that his (and his wife’s) decision not to
participate in the SBP was clearly indicated on his DD Form 2656 (Data for
Payment of Retired Pay).  Their decision not to participate in the SBP has
been completely ignored by the Defense Finance and Accounting Service
(DFAS).  Finally, a supervisor at DFAS told him he had to apply to this
Board.  He respectfully requests that the deductions for the SBP cease
immediately and that all SBP premiums wrongfully collected from his retired
pay be reimbursed to him without further delay.  His application to this
Board is dated 14 January 2006.

3.  The applicant provides pages 1 and 2 of his DD Form 2656.

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 21 June 1942.  He was commissioned in the U.
S. Army Reserve in July 1965.

2.  The applicant was issued his notification of eligibility for retired
pay (his       20-year letter) on 18 May 1992.  On 10 June 1992, he
completed a DD Form 1883 (Survivor Benefit Plan Election Certificate) on
which he indicated that he elected to participate in the RCSBP for spouse
coverage, option C, full base amount.  This document stated, “IMPORTANT:
The decision you make with respect to participation in this Survivor
Benefit Plan is a permanent irrevocable decision.  Please consider your
decision and its effect very carefully.”

3.  The applicant provided pages 1 and 2 of his DD Form 2656.  He completed
this form on 13 August 2001 and indicated he elected not to participate in
the SBP.  His wife concurred with his decision.  Page 4 of the DD Form 2656
would have informed him that, since he had previously elected to
participate in the RCSBP, that the SBP section should not be completed.

4.  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 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.

5.  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 contention that his (and his wife’s) decision not to
participate in the SBP was clearly indicated on his DD Form 2656 has been
carefully considered.

2.  However, the evidence of record shows that the applicant elected to
participate in the RCSBP in June 1992.  His DD Form 1883 clearly informed
him that his decision was a permanent and irrevocable decision.  In
addition, page    4 of his DD Form 2656 would have informed him that, since
he previously elected to participate in the RCSBP, that the SBP section
should not be completed.

3.  Nevertheless, the applicant’s spouse twice indicated that she concurred
with his decision not to participate in the standard SBP.

4.  It would not be equitable to correct the applicant’s records to show
that he elected not to participate in the RCSBP.  His first opportunity to
elect to terminate his participation in the SBP would have occurred on 1
July 2004, the second anniversary of the first month he received retired
pay.  However, he did not apply to this Board for termination of his SBP
until January 2006.  His spouse received the protection offered by the SBP
during that time frame.

5.  It would be equitable, however, to correct the applicant’s records to
show that he elected to terminate his participation in the SBP effective 1
June 2005, the last month of the one-year withdrawal period.  No premiums
will be refunded for the SBP protection his spouse received during that
period.  Also, since he elected an option under the RCSBP, he will continue
to have the Reservist Portion cost deducted from his retired pay for the
protection his spouse received between June 1992 and July 2002.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

__sap___  __dkh___  __jkr___  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to
warrant a recommendation for partial relief.  As a result, the Board
recommends that all Department of the Army records of the individual
concerned be corrected by showing that he requested, with his spouse’s
concurrence, termination of his participation in the SBP and that his
request was received in time to be effective 1 June 2005.

2.  The Board further determined that the evidence presented is
insufficient to warrant a portion of the requested relief.  As a result,
the Board recommends denial of so much of the application that pertains to
correcting his records to show he declined to participate in the RCSBP or
that any premiums other than those due as a result of the above correction
be refunded to him.




                                  __Susan A. Powers_____
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060000893                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20060907                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schneider                           |
|ISSUES         1.       |137.03                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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