IN THE CASE OF:	  

		BOARD DATE:	 6 January 2011 

		DOCKET NUMBER:  AR20100014935 


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 her record to show she elected spouse-only Survivor Benefit Plan (SBP) coverage.

2.  The applicant states her spouse will not receive survivor benefits upon her death.

3.  The applicant provides a Summary of Retired Pay Account.  

CONSIDERATION OF EVIDENCE:

1.  The applicant accepted an appointment as a Reserve commissioned officer of the Army on 27 March 1980 and served as an active member of the U.S. Army Reserve (USAR) until her transfer to the Retired Reserve effective 1 May 2002.  

2.  On 27 April 2000, the applicant was notified she had completed the required years of service to be eligible for retired pay at age 60 and that she was entitled to participate in the Reserve Component Survivor Benefit Plan (RCSBP).  She was also informed that if she did not submit her RCSBP election certificate within 90 days of receipt of the notification she would not be entitled to survivor benefit coverage until she applied for retired pay at age 60.

3.  A DD Form 1883 (Survivor Benefit Plan Election Certificate) shows the applicant elected spouse-only RCSBP coverage and Option B.  The form was signed by the applicant and her spouse on 19 July 2000.  Instructions on the form directed members of the USAR to mail the form to the U.S. Army Reserve Personnel Command (ARPERSCOM), St. Louis, MO.

4.  The DD Form 1883 also shows the applicant checked the box for reduced coverage in item 9a, scratched out that entry and checked the box for full coverage.  The corrections are initialed by the applicant and dated 27 September 2000.  Item 9b asked the applicant to indicate the amount of retired pay upon which she wanted a reduced RCSBP annuity computed.  This item is blank.  

5.  The DD Form 1883 shows two date stamps:  26 July 2000 and 5 October 2000.

6.  Orders P09-909906, issued by the U.S. Army Human Resources Command, dated 9 September 2009, placed the applicant on the Army of the United States Retired list effective 4 February 2010.

7.  The Summary of Retired Pay Account from the Defense Finance and Accounting Service (DFAS) provided by the applicant, dated 19 February 2010, confirms she is receiving retired pay and shows she did not elect SBP coverage.  

8.  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 to include persons of insurable interest should the Reservist die before reaching age 60.  Three options are available:  

	a.  Option A allows a Reservist to decline enrollment upon notification of retirement eligibility and allows the Reservist to elect coverage at age 60; 

	b.  Option B allows a Reservist to elect to provide an annuity beginning on the 60th anniversary of their birth should they die before age 60 or on the day after the date of death should they die after their 60th birthday; and

	c.  Option C allows a Reservist to elect to provide an annuity immediately upon their death whether before or after age 60.  

9.  Public Law 95-397 further provides that 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 for it automatically rolls into SBP coverage.  If death does not occur before age 60, the RCSBP costs for options B and C are deducted from the member’s retired pay.  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.

10.  Army Regulation 135-180 (Qualifying Service for Retired Pay Nonregular Service) implements statutory authorities governing the granting of “retired pay” to Soldiers and former Reserve components Soldiers.  It explains that retired pay is pay granted Soldiers and former Reserve components Soldiers who have completed 20 or more years of qualifying service and have attained age 60.  Orders will be issued announcing the effective date eligible persons are entitled to retired pay.  Chapter 3 describes the RCSBP.  It clearly states that members who receive their 20-year letter have 90 days to elect to participate in the RCSBP and return the DD Form 1883.  Should they fail to do so, they may subsequently elect coverage under the SBP with their application for retired pay upon reaching age 60.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record indicates the applicant elected spouse-only coverage and Option B under the RCSBP, but her election was not entered in her DFAS record.  

2.  A date stamp shows her DD Form 1883 was received at ARPERSCOM on 26 July 2000, which was within her 90-day window for making an RCSBP election.  It appears, however, that the form was returned for correction of an error.  The form shows she initially elected RCSBP coverage based on a reduced portion of retired pay, but she failed to indicate the amount of retired pay upon which she wanted the annuity computed.  She corrected the form on 27 September 2000, electing RCSBP coverage based on her full retired pay.  A second date stamp indicates the corrected form was received at AR-PERSCOM on 5 October 2000.  

3.  The evidence of record shows the applicant's DD Form 1883 was submitted in a timely manner and, after correction, was accepted into Government channels.  In view of the foregoing, she is entitled to correction of her record to show she made a valid and timely election of spouse-only RCSBP coverage under Option B based on her full retirement pay.  


BOARD VOTE:

____X____  ___X_____  ___X_____  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 to show she made a valid and timely election of spouse-only RCSBP coverage under Option B based on her full retirement pay.




      _______ _   X_______   ___
       	   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)                                         AR20100014935





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ABCMR Record of Proceedings (cont)                                         AR20100014935



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