IN THE CASE OF:	  

		BOARD DATE:	      23 JUNE 2009

		DOCKET NUMBER:  AR20090003383 


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, in effect, correction of her military records to show that she declined the Reserve Component Survivor Benefit Plan (RCSBP) to include designation of an "insurable interest" beneficiary.  The applicant also requests, in effect, a refund of her SBP payments.

2.  The applicant states, in effect, that in March 2003, when she completed the DD Form 2656 (Data for Payment of Retired Personnel), the words "insurable" and "beneficiary" in item 28 prompted her to enter her son's name.  She contends that there were no guidelines on the DD Form 2656 to help her make an informed decision on how to complete the form.  She states she had no way of knowing that 7 percent of her retired pay would be deducted for making an "insurable interest" election.  She completed the DD Form 2656 based on her own resources and in the midst of a most hectic phase of her career.  

3.  The applicant further states that the last 10 years have entailed 60-hour work weeks and three career tracks, to include military family counseling and serving as a national resource for the National Guard Bureau Family Support Program, nursing professor, and wellness educator.  Her work hours did not coincide with the Reserve Personnel Center hours of availability for consultation and/or questions on completing the DD Form 2656.  It was early in 2008 that the applicant seriously started to consider retirement in her civilian career and closely examined her retirement resources.  In April 2008, the applicant called the retirement services representative to inquire about a discrepancy between her retiree point value and the monthly pay scale.  It was at that time she was advised that her retired pay was being reduced by approximately $800.00 per month as a result of her insurable interest election.  The applicant contends that this was the first time she knew of the deduction.  Since then she has spoken to several persons and wrote a letter in September 2008 requesting cancellation of her insurable interest election.

4.  The applicant provides copies of her NGB Form 22 (Report of Separation and Record of Service); DD Forms 2656, dated 7 March 2003 and 7 May 2008; ARPC Form 385-4 (Reserve Component Supplemental Survivor Benefit Plan Election Certificate), dated 7 November 1999; Wisconsin Army National Guard (WIARNG) Form 75-E (Acknowledgment of Receipt of Letter of Notification of Eligibility for Retired Pay at Age 60); DFASCL-1900/10 (Reserve Special Separation Pay Earnings Statement), dated 30 November 2001; DD Form      108 (Application for Retired Pay Benefits), dated 8 July 2005; and a letter from her to the Defense Finance and Accounting Service (DFAS), dated 24 September 2008, requesting cancellation of the insurable interest beneficiary in support of her application.

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 26 March 1945.  At the time of her application, she was a retired member of the United States Army Reserve in the rank of colonel, pay grade O-6.

2.  On 7 November 1999, the applicant signed an ARPC Form 385-4 electing to decline coverage under the supplemental RCSBP.

3.  On 30 November 1999, the applicant was involuntarily separated from the WIARNG due to unit inactivation/reorganization.  She was immediately transferred to the United States Army Reserve Control Group (Retired Reserve).  The applicant had completed a total of 26 years, 11 months, and 18 days of credit service for pay.

4.  On 15 December 1999, the applicant completed a DD Form 1883 (SBP Election Certificate) electing option A to defer her SBP election until she reached 60 years of age.

5.  On 7 March 2003, the applicant completed a DD Form 2656 indicating that she had no spouse or dependent children.  She elected coverage for her son indicating that he had an insurable interest in her.  The form was signed by the applicant and witnessed.

6.  On 26 March 2005, the applicant reached 60 years of age and became eligible to receive retired pay.
7.  On 7 May 2008, the applicant completed another DD Form 2656 wherein she deleted the insurable interest beneficiary.

8.  On 24 September 2008, the applicant wrote a letter to DFAS requesting cancellation of the insurable interest beneficiary.

9.  On 8 June 2009, the applicant stated in a telephonic conversation with a member of the Army Board for Correction of Military Records staff that the insurable interest beneficiary was cancelled effective October 2008.

10.  Public Law 92-425, enacted 21 September 1972, established the SBP.  The SBP provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents.

11.  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.  

12.  An insurable interest beneficiary, under the SBP/RCSBP, is defined as a person who has a financial benefit or advantage from the continued life of the member.  Insurable interest beneficiaries may be designated when a member is unmarried and has no eligible child.  The unmarried member with a sole dependent child may also elect this option for that child regardless of the child's age or dependency status.  Insurable interest persons include, but are not limited to, relatives no more distant than a cousin and business associates when approved by the Service Secretary.

13.  Public Law 103-337, enacted 5 October 1994, provided for the withdrawal of insurable interest beneficiaries at any time.  It does not provide for refund of paid premiums.

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends, in effect, that she was not counseled regarding her election of an insurable interest beneficiary.  Furthermore, the last 10 years have entailed 60-hour work weeks that did not coincide with the Reserve Personnel Center hours of availability for consultation and/or questions.  The applicant desires a refund of paid premiums.
2.  The available evidence clearly shows that the applicant elected an insurable interest beneficiary in 2003 and that she requested cancellation of this election in 2008.

3.  The applicant has not provided any documentary evidence showing that she was improperly counseled or misled regarding the completion of DD Form 2656.

4.  There are no provisions in law or regulation providing for the refund of paid premiums for SBP benefits as a result of voluntary termination of election.

5.  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 the aforementioned requirement.

6.  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

___X_____  _____X___  ___X_____  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)                                         AR20090003383



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ABCMR Record of Proceedings (cont)                                         AR20090003383



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