RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        8 May 2007
      DOCKET NUMBER:  AR20070000105


      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      |
|     |Mrs. Nancy L. Amos                |     |Analyst              |


      The following members, a quorum, were present:

|     |Ms. Linda D. Simmons              |     |Chairperson          |
|     |Mr. Jerome L. Pionk               |     |Member               |
|     |Mr. Eddie L. Smoot                |     |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 Survivor Benefit Plan (SBP) coverage be
cancelled.

2.  The applicant states that his son is no longer a dependent.  He did not
know about the 1-year rule.  He discovered the error in 2005.

3.  The applicant provides no additional evidence.

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 2 December 1945.  After having had prior
service, he enlisted in the Army National Guard on 20 October 1981.  He was
promoted to Sergeant, E-5 on 6 December 1986.

2.  The applicant’s notification of eligibility for retired pay at age 60
(his 20-year letter) is dated 14 November 2000.

3.  On 4 February 2001, the applicant completed a DD Form 1883 (Survivor
Benefit Plan Election Certificate).  On this form, he indicated that he was
not married and had no dependent children.  He elected to participate in
the Reserve Component SBP (RCSBP) for natural person with insurable
interest (NIP) coverage (his son, age 28, born on 9 June 1972), option C.
The front side of 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.”  The reverse of the DD Form 1883 explained that the
cost of NIP coverage would be 10 percent of full retired pay, plus an
additional 5 percent of full retired pay for each full five years that his
age exceeded that of the natural interest person (total cost not to exceed
40 percent of retired pay).

4.  Effective 19 October 2001, the applicant was discharged from the Army
National Guard and assigned to the Retired Reserve.

5.  The applicant applied for retired pay around August 2005.  He was
placed on the retired list effective 2 December 2005.

6.  Around December 2005, the Defense Finance and Accounting Service (DFAS)
provided the applicant a retired pay account summary.  This summary
indicated his monthly retired pay would be $374.00 with deductions of
$16.21 for taxes and $140.92 for RCSBP costs.

7.  The only DD Form 2656 (Data for Payment of Retired Personnel) available
is dated 6 April 2006.  On the DD Form 2656, the applicant indicated in
item 26g that he elected not to participate in the SBP.

8.  On 7 September 2006, the applicant attempted to terminate his
participation in the SBP by completing a DD Form 2656-2 (Survivor Benefit
Plan (SBP) Termination Request).  Because this form is used to request
termination under a specific provision of the law, DFAS did not accept it
as a request for termination of the applicant’s NIP coverage.

9.  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.  A
person who is not married and does not have a dependent child upon becoming
eligible to participate in the SBP may elect to provide an annuity to a
natural person with an insurable interest in the member.  Premiums for
insurable interest coverage are generally higher than for any other
category of coverage.

10.  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.

11.  Public Law 103-337, enacted 5 October 1994, allowed SBP insurable
interest participants whose beneficiary is not their former spouse to
voluntarily terminate their participation in the SBP.  Any such termination
shall be made by a participant by the submission to the Secretary concerned
of a written request to discontinue participation in the SBP.  Such
participation shall be discontinued effective on the first day of the first
month following the month in which the
request is received.  Once participation is discontinued, benefits may not
be paid in conjunction with the earlier participation in the SBP and
premiums paid may not be refunded.

12.  Title 10, U. S. Code, section 1452c(1) states the retired pay of a
person who has elected to provide an annuity to a person under section
1450(a)(4) (i.e., NIP coverage) shall be reduced as follows:

      Subsection 1452c(1)(B):  in the case of a person providing a reserve
component annuity, the reduction shall be by an amount prescribed under
regulations of the Secretary of Defense.

13.  Office of the Assistant Secretary of Defense (Force Management Policy)
memorandum, subject:  Sections 637 and 638 of the National Defense
Authorization Act for Fiscal Year 1995, Public Law 103-337, October 5,
1994, Changed Provisions of the Uniformed Services Survivor Benefit Plan
(SBP), dated 17 March 1995, provided that SBP premiums will no longer apply
as of the effective date of termination of NIP coverage except if the
participant terminating NIP coverage is a participant of a Reserve
Component annuity.  In such case, the Reserve Component premium add-on will
apply for life.

DISCUSSION AND CONCLUSIONS:

1.  The applicant elected to participate in the RCSBP in February 2001 for
NIP coverage for his adult son.  The DD Form 1883 warned him to consider
his decision and its effect very carefully.  The form also provided him
information concerning the costs of the coverage.

2.  The applicant could have made a written request to terminate his SBP
NIP coverage at any time.  The available evidence shows he made his first
attempt to terminate the coverage when he completed a DD Form 2656 on 6
April 2006.  It appears this form was not received by DFAS.  DFAS did
receive another request for termination of the applicant’s SBP NIP
coverage, in the form of a DD Form 2656-2.  However, because the form is
used specifically for a termination of the SBP under another provision of
the law, DFAS did not accept it as a request for termination of his SBP NIP
coverage.

3.  There is no specific form to be used when requesting termination of SBP
NIP coverage.  Any clear written request should be acceptable.  Therefore,
the applicant’s 6 April 2006 DD Form 2656 is accepted as sufficient to show
he properly requested termination of his SBP NIP coverage.

4.  The applicant is advised that the Reserve Component premium add-on will
be deducted from his retired pay for life.



BOARD VOTE:

__lds___  __jlp___  __els___  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant
a recommendation for relief.  As a result, the Board recommends that all
Department of the Army records of the individual concerned be corrected by
showing that he made a proper, written request to terminate his SBP NIP
coverage on 6 April 2006 and that it was received and processed by the
appropriate office in a timely manner to be effective 1 May 2006.




                                  __Linda D. Simmons_
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |ARd20070000105                          |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20070508                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schwartz                            |
|ISSUES         1.       |137.03                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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