RECORD OF PROCEEDINGS
IN THE CASE OF:
BOARD DATE: 27 February 2007
DOCKET NUMBER: AR20060010875
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. Gerard W. Schwartz
Acting Director
Ms. Anita McKim-Spilker
Analyst
The following members, a quorum, were present:
Mr. Ted S. Kanamine
Chairperson
Mr. Larry C. Bergquist
Member
Ms. LaVerne M. Douglas
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 he declined to participate in the Survivor Benefit Plan (SBP).
2. The applicant states he does not wish to participate in the SBP.
3. The applicant provides a copy of a Defense Finance and Accounting Service (DFAS) Cleveland retired pay statement.
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 1 June 1946. On 1 November 1991, he was honorably discharged from the Oklahoma Army National Guard and transferred to the U. S. Army Reserve (USAR) Control Group Retired.
2. The applicants notification of eligibility for retired pay at age 60 (his 20-year letter) is dated 20 September 1989. On 22 November 1989, the applicant completed DD Form 1883, Survivor Benefit Plan Election Certificate, electing to participate in the Reserve Component SBP (RCSBP) for spouse and children coverage, option C, full base amount. His spouse also signed the DD Form 1883. The front of the form clearly states, 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. The three options available are clearly explained on the reverse side of the form, just above the signature blocks.
3. The applicant's DFAS retired pay statement shows he became eligible for retired pay on 1 June 2006. The cost of his RCSBP is being deducted from his gross pay. This statement shows that he is married.
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 members 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 members retired pay (costs for option C being the more expensive). Once a member elects either Options B or C in any category of coverage, that election is irrevocable. Option B or 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 should the member have 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 SBP. Members retired for more than two years as of 17 May 1998 were authorized a one-year opportunity (17 May 1998 through 16 May 1999) to disenroll. The spouses 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 evidence of record shows the applicant elected option C on
22 November 1989. The options are clearly explained on the reverse side of the
DD Form 1883. An RCSBP election of either options B or C, once made, is irrevocable and rolls over into the SBP.
2. However, as the applicant became eligible to draw retired pay on 1 June 2006, in accordance with Public Law 105-85, beginning 1 June 2008 he will have a one-year period in which to terminate his SBP enrollment. He is encouraged to contact the nearest Retirement Services Officer for more information prior to making his decision.
3. In view of the foregoing, there is no basis for granting the applicant's request.
BOARD VOTE:
________ ________ ________ GRANT FULL RELIEF
________ ________ ________ GRANT PARTIAL RELIEF
________ ________ ________ GRANT FORMAL HEARING
__tsk___ __lcb___ __lmd___ 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.
Ted S. Kanamine
______________________
CHAIRPERSON
INDEX
CASE ID
AR20060010875
SUFFIX
RECON
DATE BOARDED
20070227
TYPE OF DISCHARGE
DATE OF DISCHARGE
DISCHARGE AUTHORITY
DISCHARGE REASON
BOARD DECISION
(DENY)
REVIEW AUTHORITY
ISSUES 1.
137.0300
2.
3.
4.
5.
6.
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