IN THE CASE OF:
BOARD DATE: 7 August 2012
DOCKET NUMBER: AR20120000029
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, his military records be corrected by canceling his Reserve Component Survivor Benefit Plan (RCSBP) participation for spouse coverage.
2. The applicant states per his DD Form 2656 (Data for Payment of Retired Personnel), dated 25 February 2011, he and his wife elected not to participate in the SBP. However, upon receiving his first retiree account statement he noticed the finance center is withholding money for SBP coverage.
3. The applicant provides a DD Form 2656.
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 13 November 1951. Having prior active commissioned service in the Regular Army, he was appointed a captain in the U.S. Army Reserve (USAR) on 8 June 1979.
2. His notification of eligibility for retired pay at age 60 (his 20-year letter) was prepared on 25 October 1994. His DD Form 1833 (SBP Election Certificate), dated 17 January 1995, shows he enrolled in the RCSBP for spouse coverage, option B (Age 60), full base amount. Section II of this form stated, "IMPORTANT: The decision you make with respect to participation in this Survivor Benefit Plan is a permanent irrevocable decision. Please consider your decision and its effect very carefully.
3. He was placed on the Retired list effective 13 November 2011 in the rank of major.
4. He provided a DD Form 2656, dated 25 February 2011, which shows he elected not to participate in the SBP. His spouse concurred with this election.
5. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents.
6. 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, or (C) elect that a beneficiary receive an annuity immediately upon their death if before age 60. 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, and RCSBP coverage automatically rolls into SBP coverage.
7. Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation. Retirees have a 1-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. 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. Extensive publicity was provided in Army Echoes, the Army bulletin published and mailed to retirees to keep them abreast of their rights and privileges and to inform them of developments in the Army.
DISCUSSION AND CONCLUSIONS:
1. The applicants DD Form 1883 shows he enrolled in the RCSBP for spouse coverage, option B (Age 60), on 17 January 1995. That was an irrevocable election that rolled over into the standard SBP upon reaching age 60. Therefore, there is no basis for granting the applicant's request.
2. The law provides that retirees have a 1-year period beginning on the second anniversary of the date on which their retired pay started (1 December 2013 for this applicant) to withdraw from the SBP.
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 Records in this case.
ABCMR Record of Proceedings (cont) AR20120000029
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ABCMR Record of Proceedings (cont) AR20120000029
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