IN THE CASE OF:	  

		BOARD DATE:	  2 August 2012

		DOCKET NUMBER:  AR20120001827 


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 the level of coverage she chose for her Reserve Component Survivor Benefit Plan (RCSBP) election was the "threshold amount."

2.  The applicant states, in effect, while on active duty as an Active Guard Reserve Soldier, she received a Notification of Eligibility for Retired Pay at Age 60 (20-year letter), dated 9 December 2004.  The letter indicated that, at the time of retirement, she would be enrolled in Option C unless written correspondence signed by the applicant and her spouse before a notary or retirement services officer was received.  After attending a retirement benefits class at Fort Knox in June 2011, the applicant and her spouse elected the "threshold amount" level of SBP coverage on the DD Form 2656 (Data for Payment of Retired Personnel) on 15 June 2011, in conjunction with her impending retirement.  After being placed on the Retired List, she contacted Military Retired Pay and learned her RCSBP was calculated at 55% and not the $18.00 per month she had requested.

3.  The applicant provides:

* a self-authored statement
* Summary of Retired Pay Account
* Retiree Account Statement
* DD Form 2656 
* Memorandum, dated 9 December 2004


CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 16 October 1947.  She and her husband were married on 27 December 1965.

2.  She was appointed as a Reserve commissioned officer in the rank of first lieutenant and executed an oath of office on 6 November 1984.  

3.  On 9 December 2004, while serving in the rank of colonel (COL), the U.S. Army Human Resources Command issued the applicant a 20-year letter.  This letter notified her that she had completed the required years of service and would be eligible for retired pay upon application at age 60.

4.  This letter also notified her that she was entitled to participate in the RCSBP and that "by law, she had only 90 calendar days from the date she received this letter to submit a DD Form 2656-5 (RCSBP Election Certificate) or DD Form 1883 (SBP Election Certificate).  It also informed her that a qualified Reserve Component member, who is married, will automatically be enrolled in the RCSBP under Option C, Spouse and children coverage based on full retired pay, unless spouse concurrence is provide to allow for a different election.

5.  There is no indication she made an RCSBP election with 90 days of receiving her 20-year letter.

6.  On 15 June 2011, in connection with her upcoming retirement, she completed a DD Form 2656.  She indicated she was married and elected coverage based on the threshold amount in effect on the date of her retirement.

7.  She was placed on the Retired List in the rank of COL on 1 December 2011.  

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 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.  

9.  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.

10.  Public Law 106-398, dated 30 October 2000, requires that upon receipt of the 20-year letter, a qualified Reserve Component member who is married will automatically be enrolled in the RCSBP under option C (spouse and children coverage) based on the full amount unless the spouse's concurrence is provided to allow one of the following elections:

* option A (defer enrollment to age 60)
* option B (enroll and pay annuity when member would have been age 60 for spouse or spouse and children at less than maximum amount or enroll children only)
* option C (enroll and pay annuity immediately upon death, but enroll spouse or spouse and children at less than maximum amount or enroll children only)

DISCUSSION AND CONCLUSIONS:

1.  By law and regulation, Soldiers who complete 20 or more years of qualifying service are issued a 20-year letter that informs them of their retirement eligibility and are offered the opportunity to enroll in the RCSBP.  The law required the Soldier to make an election and return the enrollment form within 90 days of receipt.  The law also stipulates that a qualified Reserve Component member who is married will automatically be enrolled in the RCSBP under option C (spouse and children coverage) based on the full amount unless the spouse's concurrence is provided for a different option.

2.  There is no evidence in the applicant's records and she did not provide any evidence to show she made an election when she received her 20-year letter.  Therefore, she was automatically enrolled in option C (immediate coverage).  This means she did not have the option to make another election at age 60.

3.  The fact that she submitted a notarized DD Form 2656 at her retirement out-processing is not relevant since she did not have the option to make an election at that time.

4.  Nevertheless, 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 request may be submitted directly to the Defense Finance and Accounting Service.  
5.  In view of the foregoing evidence, there is insufficient evidence to support granting her the requested relief at this time.

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)                                         AR20120001827



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ABCMR Record of Proceedings (cont)                                         AR20120001827



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