IN THE CASE OF:	  

		BOARD DATE:	  11 December 2012

		DOCKET NUMBER:  AR20120007344 


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 that he not have any insurable interest costs for the period of 20060211 – 20080118 and that his election be changed to spouse only – option C for immediate coverage effective 20080119.

2.  The applicant states that he was improperly counseled on the Reserve Component Survivor Benefit Plan (RCSBP) at the time of his election on            11 February 2006.  He goes on to state that he was counseled that the RCSBP worked the same way as the Servicemen’s Group Life Insurance (SGLI).  He also states that he was not counseled on there being a 12-month period for election after a life-changing event to add his spouse or about when to add a new dependent to coverage.

3.  The applicant provides a copy of his marriage certificate, a copy of a DD Form 2656-6 (SBP Election Change Certificate) dated 27 March 2012, a DA Form 2556-5 (RCSBP Election Certificate) dated 11 February 2006, a copy of an update screen showing he updated his records to reflect his spouse, a copy of his 20-year letter, and a copy of a memorandum from the Iowa Army National Guard (IAARNG). 

CONSIDERATION OF EVIDENCE:

1.  The applicant was serving as a first sergeant in the IAARNG on 16 December 2005 when he was issued his Notification of Eligibility for Retired Pay at Age 60 (20-year letter).

2.  On 11 February 2006, he made an RCSBP election of option C (immediate annuity) under “Natural person with an insurable interest” for full retired pay and indicated that the person named was his mother.  He also indicated that he was not married. 

3.  On 19 January 2008, the applicant married his current spouse in Mills County, Iowa.  He was promoted to the rank of command sergeant major on 6 November 2009.

4.  On 27 March 2012, the applicant submitted a change in his RCSBP election in which he attempted to change his election from insurable interest to spouse only coverage for full retired pay.

5.  On 28 March 2012, officials at the IAARNG returned the applicant’s request for a change in his RCSBP election without action and advised him that his legal window to change his RCSBP election was 19 January 2008 to 18 January 2009 and that the State of Iowa did not have the authority to change his election.  He was also advised that he could apply to the Board.

6.  There is no evidence in the applicant's official records to show that he ever notified either the Army or the Defense Finance and Accounting Service (DFAS) within the 1-year statutory period, that he was married.  The applicant is currently deployed to Afghanistan. 

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).  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.

8.  Title 10, U.S. Code, section 1448(a)(5) provides that a person who is not married and has no dependent child upon becoming eligible to participate in the SBP but who later marries or acquires a dependent child may elect to participate in the SBP.  Such an election must be written, signed by the person making the election, and received by the Secretary concerned within 1 year after the date on which that person marries or acquires that dependent child.  

9.  Title 10, U.S. Code, section 1448(b)(1)(B) provides that an SBP election of insurable interest may be terminated.  Participation in the SBP shall be discontinued effective on the first day of the first month following the month in which the request for termination is received by the Secretary concerned.  Section 1448(b)(1)(E) provides that premiums will not be refunded.

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s contention that his records should be corrected to change his RCSBP election from insurable interest to spouse-only and that he not accrue any insurable interest costs has been noted and appears to lack merit.

2.  There is no evidence to show that the applicant notified proper officials that he desired to change his SBP election from insurable interest to spouse only within 1 year of his marriage.  While the applicant's position is certainly appreciated, the provisions for enrolling a spouse within 1 year of the marriage are very clear in the laws that govern such enrollment.  The applicant's failure to enroll his spouse within 1 year does not constitute an error or injustice on the part of the Army.

3.  The applicant has failed to show through the evidence of record and the evidence submitted with his application that he was not properly counseled regarding the RCSBP at the time of his election. 

4.  Additionally, the applicant has been covered under the RCSBP since his enrollment in 2006 and thus is responsible for any insurable interest costs that may accrue in the event of death.  Accordingly, there is no basis to grant his request to negate any costs associated with his election.

5.  Although the applicant still has the option of cancelling his election of insurable interest, the applicant's next opportunity to enroll his spouse in the SBP will come if and when Congress next declares an open season.  

6.  Accordingly, there appears to be no basis to grant his request to change his RCSBP election or negate any costs associated with his original election.    



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)                                         AR20120007344





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ABCMR Record of Proceedings (cont)                                         AR20120007344



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