IN THE CASE OF:	  

		BOARD DATE:	       18 SEPTEMBER 2008

		DOCKET NUMBER:  AR20080011376 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests correction of his records to show he elected not to enroll in the Reserve Component Survivor Benefit Plan (RCSBP).

2.  The applicant states that when he completed his retirement paperwork, he elected not to participate in the SBP; yet, premiums are being deducted from his retirement pay.  

3.  The applicant provides a copy of the back of the DD Form 2656 (Data for Payment of Retired Personnel), dated 21 June 2007, and a copy of his DFAS-CL 7220 (Retiree Account Statement), dated 1 July 2008, in support of his application.

CONSIDERATION OF EVIDENCE:

1.  The applicant’s records show he was born on 7 May 1948 and enlisted in the Regular Army for a period of 3 years on 10 August 1966.  He was trained in and held military occupational specialty (MOS) 11C (Infantry Indirect Fire Crewman).  He was honorably discharged on 18 September 1967 for the purpose of immediate reenlistment and he reenlisted for a period of 4 years on 
19 September 1967.  He was honorably separated and transferred to the U.S. Army Reserve (USAR) Control Group on 10 September 1971.  

2.  The applicant’s records also show he enlisted in the USAR on 10 December 1974 and subsequently executed a series of extensions and/or reenlistments in the USAR.
3.  On 29 March 1986, the applicant married his spouse, C____.

4.  On 21 July 1990, the US Army Reserve Personnel Center, St. Louis, Missouri, issued the applicant a Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter).  This letter notified the FSM that he had completed the required years of service and would be eligible for retired pay upon application at age 60.  This letter also notified the FSM that he was entitled to participate in the RCSBP and that by law, he had only 90 calendar days from the date he received this letter to submit his election certificate.

5.  On 12 October 1990, the applicant completed a DD Form 1883 (Survivor Benefit Plan Election Certificate).  He elected spouse, full coverage, Option C, immediate coverage.

6.  On 28 October 2004, the U.S. Army Human Resources Command, St. Louis, Missouri, published Orders C10-424889, reassigning the applicant to the Retired Reserve, effective 24 October 2004.  

7.  On 21 June 2007, the applicant submitted his request for retired pay.  He completed a DD Form 2656, elected not to participate in the SBP, and authenticated this form by placing his signature and date in the appropriate blocks.  His spouse, C____, also authenticated this form by placing her signature and date in the appropriate blocks.  Additionally, a witness authenticated this form by placing her signature in the appropriate blocks.  

8.  On 7 May 2008, the applicant was placed on the retired list.

9.  The applicant’s July 2008 Retiree Account Statement shows the applicant continues to pay SBP spouse only coverage cost and RCSBP cost.  

10.  Public Law 95-397, the Reserve Component SBP, enacted 30 September 1978, provided a way for those who had qualified for reserve retirement but were not yet age 60 (and participate in SBP), 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 (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 – it automatically rolls into SBP coverage.  If RCSBP Option B or C is elected, there is a Reserve Component premium add-on to the basic cost of the SBP to cover the additional benefit and assured protection should the member have died prior to age 60.

11.  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 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 Reserve Premium add-on deducted from their retired pay.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows that within 90 days of receipt of his 20-year letter, the applicant elected to participate in the RCSBP, full spouse coverage.  His spouse concurred with that decision in writing.  By law, 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.  Additionally, 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.

2.  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 spouse’s concurrence is required.  No premiums will be refunded to those who opt to disenroll.  If the applicant elects to terminate his SBP participation at that time, he is advised that despite his action, the Reserve Component premium add-on will be deducted from his retired pay for life.  This deduction is the cost of the SBP coverage or protection the applicant's spouse enjoyed from the date the applicant made an election.

3.  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 did not submit evidence that would satisfy this requirement.   Therefore, he is not entitled to relief.






BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

__XXX __  __XXX__  __XXX__   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.




      ___        XXX                ___
                CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.

ABCMR Record of Proceedings (cont)                                         AR20080011376



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ABCMR Record of Proceedings (cont)                                         AR20080011376



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