IN THE CASE OF:	  

		BOARD DATE:	  19 July 2012

		DOCKET NUMBER:  AR20120001999 


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 his records to show he elected Option C (Immediate Coverage) for the Reserve Component Survivor Benefit Plan (RCSBP).

2.  The applicant states he completed and submitted the DD Form 2656-5 (RCSBP Election Certificate) without adequate counseling about the cost differential versus the benefit.  He did not know that if anything happened to him prior to age 60 his son would not be covered under RCSBP.  If he had Option C coverage he would have peace of mind knowing his son would receive a portion of his retired pay through an annuity.  Also, in the event he remarried, he would want to be able to change his election to Option C for spouse and child coverage to ensure his spouse would be covered in the event of his passing.

3.  The applicant provides a memorandum, DD Form 2656-5, an email, and a statement of support.

CONSIDERATION OF EVIDENCE:

1.  The applicant's records show he was born on 8 October 1963.  Having had prior enlisted service in the Army National Guard (ARNG), his records show he was appointed as a Reserve officer in the ARNG and executed an Oath of Office on 8 August 1992.  He served in staff and leadership positions and attained the rank of lieutenant colonel (LTC).  On 29 September 2010, he transferred to the U.S. Army Reserve (USAR).
2.  On 10 March 2011, the U.S. Army Human Resources Command (HRC) issued him a Notification of Eligibility for Retired Pay at Age 60 (Twenty-Year Letter).  This memorandum notified him that he had completed the required years of service and he would be eligible for retired pay upon application at age 60. Enclosed with this letter was a DD Form 2656-5 which notified him that he was entitled to participate in the RCSBP and that "by law" he had only 90 calendar days from the date he received this letter to submit his RCSBP election. 

3.  On 7 June 2011, he completed a DD Form 2656-5, wherein he indicated he was unmarried at the time with one dependent child, born on 12 April 1994.  This form also shows he elected "child only" full coverage under Option B (deferred annuity).

4.  The applicant provides:

	a.  An email, dated 18 November 2011, wherein an official at HRC stated the applicant contacted HRC in August 2011 requesting that his RCSBP election be changed to Option C.  His request was made outside of the 90 day window; therefore, it was denied.

	b.  A statement of support, undated, from LTC KC, a USAR Retirement Services Officer, wherein she stated she met with the applicant in June 2011 to counsel him on the implications of his RCSBP election options, but it was after he had submitted his DD Form 2656-5.  She further stated the applicant was 48 years of age and his son was 17 years of age.  The applicant did not understand that by electing Option B (deferred annuity) his son would never draw an annuity because he would not be eligible to do so at the time after the applicant would have turned 60 years of age.  In addition, she shared with him that should he get remarried or have another child, he could fill out a DD Form 2656-6 (Survivor Benefit Plan Election Change Certificate) and add coverage for a spouse or update information on other children.

5.  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.  A member must have made the


election within 90 days of receiving the notification of eligibility to receive retired pay at age 60.  Once a member elects either Options B or C in any category of coverage, that election is irrevocable. 

6.  Children are eligible for SBP payments as long as they are unmarried, under age 18, or under age 22 if still in school.  A child who is disabled and incapable of self-support remains eligible if the disability occurred before age 18 (or before age 22 if a full time student). 

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows upon receipt of his 20-year letter, the applicant executed a DD Form 2656-5 on 7 June 2011, electing "child only" coverage under Option B (deferred annuity).  At the time, he was unmarried and had a child who was 17 years of age.  

2.  It appears he did not fully understand the ramifications of electing Option B coverage at the time he executed the DD Form 2656-5 on 7 June 2011 and was not properly advised on the option most beneficial to his child prior to making his election.  It is irrational to believe he would have elected Option B if he knew that by the time he would have turned age 60 his child would not be eligible to receive an annuity.

3.  Therefore, as a matter of equity, it would be appropriate to correct his records to show he elected "child only" coverage under Option C (immediate coverage) on 7 June 2011.

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 by showing he elected "child only" full coverage under Option C (immediate coverage) when he completed his DD Form 2656-5 on 7 June 2011.



      _______ _   __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)                                         AR20120001999



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ABCMR Record of Proceedings (cont)                                         AR20120001999



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