IN THE CASE OF:	  

		BOARD DATE:	  16 October 2012

		DOCKET NUMBER:  AR20120006736 


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, correction of his records to show he elected not to participate in the Reserve Component Survivor Benefit Plan (RCSBP).

2.  The applicant states he submitted a DD Form 2656 (Data for Payment of Retired Personnel) approximately 9 months before his retirement date (wherein he declined the SBP for his spouse) with the appropriate signatures and notarization stamp.  When he received his Twenty-Year Letter (Notification of Eligibility for Retired Pay at Age 60) it came with no additional documents.  He was not told any action was required upon receipt of the letter until almost 6 years later.  At the time, no mention was made that a DD Form 2656 was supposed to have been filed within 90 days of receipt of his Twenty-Year Letter.

3.  The applicant provides his Twenty-Year Letter, DD Form 2656, a Retiree Account Statement, and a Family Coverage Election form.

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 27 March 1952.  Having had prior active and Reserve service, the applicant's records show he enlisted in the Oregon Army National Guard (ORARNG), on 8 March 1991, and he held military occupational specialties 19D (Cavalry Scout) and 11B (Infantryman).

2.  On 12 April 2007, the ORARNG issued him a 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.  The memorandum also notified him that he was entitled to participate in the RCSBP and had 90 days from receipt of the letter to make his election; failure to meet the requirement would result in full coverage for his spouse and children.  It informed him a DD Form 2656-5 (RCSBP Election Certificate) was enclosed.

3.  His records contain a DD Form 2656-5, dated 16 May 2007, wherein he indicated he was married at the time with no dependent children.  This form shows he elected "spouse only" full coverage under Option C (Immediate Coverage).  The applicant and his spouse both signed this form on 16 May 2007.

4.  He was honorably discharged from the ARNG on 27 March 2012 and transferred to the Retired Reserve.  He completed 21 years and 20 days of net service during this period of service and had 28 years, 1 month, and 8 days of total service for pay.

5.  The applicant provides a DD Form 2656, dated 14 June 2011, wherein he indicated he was married at the time with no dependent children.  This form shows he elected not to participate in SBP.  The applicant signed this form on 14 June 2011 and his spouse signed the form on 15 June 2011. 

6.  The applicant also provides a Retiree Account Statement, dated 1 May 2012, wherein it shows he began receiving retired pay on 27 March 2012, and effective 1 May 2012 he was paying $69.64 per month in SBP premiums.

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 (and participate in SBP), 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.  If death does not occur before age 60, the RCSBP costs for options B and C are deducted from the member’s retired pay (costs for option C being the more expensive).  

8.  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 should the member have died prior to 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.  Reservists who elected an option under the RCSBP will continue to have the Reservist Portion cost deducted from their retired pay.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record confirms that upon receipt of his Twenty-Year Letter the applicant elected "spouse only" coverage under Option C (Immediate Coverage), full base amount, on 16 May 2007.  This is the election certificate that is filed in his record.  As he elected Option C coverage at the time he received his Twenty Year Letter, he was not entitled to change his RCSBP election at the time he turned age 60.  Therefore, he is not entitled to the requested relief.

2.  Retirees have a 1-year period, beginning on the second anniversary of the date on which their retired pay started to withdraw from SBP by submitting the appropriate request to the Defense Finance and Accounting Service - Retired Pay.  The spouse’s concurrence is required, if the member is married at the time.  No premiums will be refunded to those who opt to disenroll from the program.

3.  The applicant is advised to contact his nearest Retirement Services Officer (RSO) for information and assistance.  An online listing of RSOs by country, state, and installation is available on the following website at http://www.armyg1.army.mil/RSO/rso.asp.

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)                                         AR20120006736



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ABCMR Record of Proceedings (cont)                                         AR20120006736



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