RECORD OF PROCEEDINGS
IN THE CASE OF:
BOARD DATE: 7 August 2007
DOCKET NUMBER: AR20070001714
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.
Ms. Catherine C. Mitrano
Director
Ms. Jeanne Marie Rowan
Analyst
The following members, a quorum, were present:
Ms. Linda Simmons
Chairperson
Ms. Ernestine Fields
Member
Mr. Randolph Fleming
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 cancellation of the Survivor Benefit Plan (SBP). He also requests a total refund of SBP payments made as a payroll deduction.
2. The applicant states that he declined SBP in September 2005 when he submitted his finance retirement paperwork to the Defense Finance and Accounting System (DFAS). DFAS withdrew SBP payments from his retirement pay. He further states he elected the Reserve Component Survivor Benefit Plan in 1991.
3. The applicant did not provide any additional documentary evidence.
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 21 November 1946. Records show the applicant entered military service on 1 July 1970 and served in the Army National Guard, United States Army Reserves and active duty. He retired as a lieutenant colonel/pay grade O-5.
2. On 23 February 1991, he was forwarded his notification of eligibility for retired pay at age 60 (his 20-year letter) from the U. S. Army Reserve Personnel Center, St. Louis, Missouri.
3. On 21 June 1991, he elected Reserve Component SBP (RCSBP); option C, immediate coverage for his survivors on Survivor Benefit Plan Election Certificate, DD Form 1883.
4. On 18 September 2005, the applicant applied for retired pay. At that time, he elected to decline coverage in the SBP. His spouse gave her concurrence by signing the DD Form 2656 also on 18 September 2005 with a witness present.
5. 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 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 as 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.
6. 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. The spouses concurrence is required. No premiums will be refunded to those who opt to disenroll. Reservists who elected an option under the RCSBP may 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. In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust. The applicant has failed to submit evidence that would satisfy this requirement.
2. The applicants election to participate in the RCSBP was an irrevocable decision which rolled over into the SBP upon his reaching age 60. No changes could be made upon his application for retired pay.
3. The applicant will have a one-year window of opportunity to terminate SBP coverage between the second and third year anniversary following the date the applicant started to receive retired pay. No premiums will be refunded and no annuity will be payable upon the applicant's death. The spouse must consent in writing to withdrawal from SBP. Termination is permanent and participation may no be resumed under any circumstance. The Reservist Portion cost may continue to be deducted from the applicant's retirement pay.
4 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
__LS____ ___EF __ ___RF___ 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.
_____ Linda Simmons_______
CHAIRPERSON
INDEX
CASE ID
AR20070001714
SUFFIX
RECON
YYYYMMDD
DATE BOARDED
20070807
TYPE OF DISCHARGE
(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)
DATE OF DISCHARGE
YYYYMMDD
DISCHARGE AUTHORITY
AR . . . . .
DISCHARGE REASON
BOARD DECISION
DENY
REVIEW AUTHORITY
ISSUES 1.
137.03
2.
3.
4.
5.
6.
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