BOARD DATE: 8 March 2011
DOCKET NUMBER: AR20100021525
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 his Survivor Benefit Plan (SBP) coverage be terminated.
2. He states at the time of his original election, he was unaware of how the program worked and the affect it would have on his Reserve retirement pay. He adds he submitted a change to the Defense Finance and Accounting Service (DFAS), prior to his 60th birthday, once he realized how the program worked.
3. He provides Orders P03-921494, dated 5 March 2010, and a DD Form 2656 (Data for Payment of Retired Personnel), dated 6 April 2010, with a fax transmittal sheet.
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 31 May 1950.
2. On 22 January 2003, he received his notification of eligibility for retired pay at age 60 (his 20-year letter). His 20-year letter notified him, in pertinent part, that upon receipt of this letter, a qualified Reserve Component (RC) married member would automatically be enrolled in the RC Survivor Benefit Plan (RCSBP) under Option C, Spouse and Child(ren) coverage based on full retired pay, unless his spouse's concurrence was provided to allow for a different election. The letter further stated that the cost for his participation would commence upon his receipt of retired pay at age 60. "Detailed information concerning the RCSBP program and cost is enclosed." He was also provided a contact number at the command for answers to specific individual questions.
3. On 27 February 2003, he completed a DD Form 1883 (Survivor Benefit Plan Election Certificate) for immediate spouse only coverage. 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."
4. Orders P03-921494, dated 5 March 2010, show he was retired from the
U.S. Army Reserve and placed on the retired list effective 31 May 2010.
5. He provided a copy of a DD Form 2656, dated 6 April 2010, showing he and his spouse elected not to participate in the SBP. The fax transmittal sheet indicated that this document was faxed to DFAS.
6. Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. Changes in SBP options are not authorized except in specific instances as authorized by law.
7. 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. 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 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.
8. 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.
DISCUSSION AND CONCLUSIONS:
1. The applicants DD Form 1883 informed him that his RCSBP election was an irrevocable decision. The fact that he argues he was not aware of the cost of RCSBP coverage is not sufficient justification to terminate his RCSBP/SBP coverage. He was provided information on the SBP and could have sought counseling/training on the RCSBP by contacting the number that was provided in his 20-year letter prior to making an election. Further, had the applicant died in the 7 years between his RCSBP election and reaching age 60 his wife was covered and she would have received an annuity.
2. In view of the foregoing, there is no basis for granting his requested relief.
3. He is advised that Public Law 105-85 provides him an opportunity to withdraw from the SBP, beginning on the second anniversary of the date on which his retired pay started. However, he is also advised that no premiums will be refunded to those who opt to disenroll.
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.
_______ _x _______ ___
CHAIRPERSON
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military in this case.
ABCMR Record of Proceedings (cont) AR20100021525
3
ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
RECORD OF PROCEEDINGS
1
ABCMR Record of Proceedings (cont) AR20100021525
3
ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
RECORD OF PROCEEDINGS
1
ARMY | BCMR | CY2014 | 20140019212
The applicant states: * Army regulations in effect at the time the FSM submitted his retired pay application required the submission of a DD Form 2656 (Data For Payment of Retired Personnel) * After an exhaustive search with the U.S. Army Human Resources Command (HRC), the Defense Finance and Accounting Service (DFAS) advised her that they could not find this document * She was never counseled or provided any documentation to sign for or notarize to relinquish of the SBP * She was married to...
ARMY | BCMR | CY2009 | 20090004423
IN THE CASE OF: BOARD DATE: 26 August 2009 DOCKET NUMBER: AR20090004423 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. The applicant requests his military records be corrected by changing his Survivor Benefit Plan (SBP) election for spouse coverage, option C (Immediate coverage) to spouse coverage, option B (Age 60). The applicant states, in effect, that he received his retirement papers in the mail, that the retirement packet included the ARPERCEN (Army Reserve Personnel Center) Pamphlet...
ARMY | BCMR | CY2007 | 20070005016C071029
John G. Heck | |Member | The Board considered the following evidence: Exhibit A - Application for correction of military records. His wife is a Master Sergeant in the U. S. Army Reserve and will have her own retired pay. Once a member elects either Options B or C in any category of coverage, that election is irrevocable.
ARMY | BCMR | CY2008 | 20080014058
Therefore, the applicant is not entitled to correction of his records to show that he rescinded his election to participate in the RCSBP or SBP. The evidence of record shows that the applicant attained age 60 and eligibility for retired pay on 15 July 2008. In support of that effort, a copy of DD Form 2656-2 (Survivor Benefit Plan (SBP) Termination Request) is being provided to the applicant, along with this Record of Proceedings.
ARMY | BCMR | CY2009 | 20090010144
IN THE CASE OF: BOARD DATE: 12 January 2010 DOCKET NUMBER: AR20090010144 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. The applicants DD Form 2656-11 shows that on 8 January 2009 he verified that he had been notified by DFAS of the requirement to have 360 plus months toward Paid-Up SBP. Effective 1 October 2008, no reduction may be made in the retired pay of a participant in the SBP for any month after the later of : (1) the 360th month for which the participants retired pay is...
ARMY | BCMR | CY2009 | 20090004444
The applicant requests, in effect, that his military records be corrected by canceling his Survivor Benefit Plan (SBP) election for spouse and children coverage. The applicant states, in effect, that when he applied for retirement on 18 June 2008 he enrolled in the SBP only after being assured that he could opt out of this program at any time by submitting a DD Form 2656-2 (Survivor Benefit Plan Termination Request). In support of his claim, the applicant provided a DD Form 2656, dated 18...
ARMY | BCMR | CY2014 | 20140010758
The applicant requests correction of his records to show he elected enrollment in the Reserve Component Survivor Benefit Plan (RCSBP) under Option C (Immediate Coverage) instead of Option A (Deferred Coverage). Once a member elects either option B or option C in any category of coverage, that election is irrevocable. When the applicant received his 20-year letter, he submitted a DD Form 1883 wherein he indicated that he declined to participate in the RCSBP.
ARMY | BCMR | CY2008 | 20080005868
IN THE CASE OF: BOARD DATE: 3 February 2009 DOCKET NUMBER: AR20080005868 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. 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. Title 10, U.S. Code, section 1452(b)(3) states, in the case of an RCSBP participant who provided child-only coverage during a period before the...
ARMY | BCMR | CY2004 | 2004102499C070208
The applicant provides a letter from the U. S. Army Reserve Personnel Command (AR-PERSCOM, formerly ARPERCEN); his Retiree Account Statement effective 25 July 2003; his DD Form 1883; his DD Form 2656; his divorce decree; and his marriage license. Public Law 99-661, dated 14 November 1986, permitted divorce courts to order SBP coverage (without the member’s agreement) in those cases where the member was participating in the SBP or was still on active duty and had not yet made an SBP...
ARMY | BCMR | CY2008 | AR20080017777
The applicant requests that either his 1990 RCSBP (Reserve Component Survivor Benefit Plan) election be changed from Option C-Spouse Only-Reduced Annuity to Option A-Defer or that he be permitted to increase his Survivor Benefit Plan (SBP) coverage to an annuity based on the full amount of retired pay effective upon reaching age 60 without a concurrent change to the RCSBP coverage. The applicant states that when he submitted his retirement package at age 60 he elected full SBP benefits. He...