IN THE CASE OF:	  

		BOARD DATE:	  4 June 2013

		DOCKET NUMBER:  AR20120019672 


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 military records to show he and his current spouse elected not to participate in Survivor Benefit Plan (SBP) coverage.

2.  The applicant states:

* during his pre-separation counseling he was provided a worksheet showing the cost of SBP and an estimation of his retirement pay
* he was not made aware of reduced SBP rates or alternate civilian survivor programs
* he was given his SBP documents during final out-processing 
* he has purchased Veterans Group Life Insurance (VGLI)

3.  The applicant provides:

* An Estimate of Retired Pay Worksheet
* his Retiree Account Statement 
* two pages of a five-page United Services Automobile Association (USAA) Life Insurance Policy
* two undated, unnotarized personal statements

CONSIDERATION OF EVIDENCE:

1.  The applicant's military service records show he enlisted in the Regular Army on 18 September 1986 and he retired on 31 December 2011.
2.  The applicant submitted:

	a.  an undated, unnotarized Estimate of Retired Pay Worksheet wherein SBP was calculated to cost $334.00.  It also shows the annuity would be 55 percent of his base pay;

   b.  a Retiree Account Statement, dated 9 April 2012, which shows in the SBP Coverage section he checked "you have paid 3 months towards 360 months of paid up RC/SBP coverage.  Once you have paid at least 360 months towards your coverage and turn age 70, your cost will be terminated but your coverage will remain active";

	c.  a DD Form 2656 (Data for Payment of Retired Personnel), dated 1 August 2011, which he signed and submitted indicating that he elected full SBP coverage for his spouse and children;

	d.  item 30a (Spouse Signature) of the applicant's DD Form 2656 does not contain the signature of the applicant's spouse indicating that she concurred with the SBP election he made.  However, her concurrence was not required because the applicant opted for full SBP coverage;  

	e.  two pages of a five-page USAA Life Insurance Policy which is signed and dated 3 August 2012.  It also shows the death benefit and premiums. 

	f.  an unnotarized, undated statement from the applicant to Mr. H---h, indicating that he had alternate coverage in the form of VGLI which was effective 
1 May 2012 and a USAA policy which was purchased on 3 August 2012; and 

	g.  an undated, unnotarized statement from his spouse, requesting SBP coverage be terminated in favor of commercially available insurance coverage being available.

3.  Public Law 92-425, enacted 21 September 1972, established the SBP.  The SBP provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. 

4.  Public Law 99-145, enacted 8 November 1985 but effective 1 March 1986, required a spouse’s written concurrence for a retiring member’s election that provides less than the maximum spouse coverage.

5.  Department of Defense Financial Management Regulation, volume 7B, chapter 43, provides guidance on SBP elections.  This chapter states, in pertinent part, that effective 1 March 1986, a married member is enrolled with spouse coverage on full retired pay at the time of retirement unless that spouse has concurred in writing to another election requested by the member.  When the spouse’s concurrence is required, the signature indicating concurrence must be corroborated by one or more witnesses.  This chapter also states, in pertinent part, that the Secretary of the Military Department concerned (or designee) may correct any election or any change or revocation of an election when the Secretary considers it necessary to correct an administrative error.

6.  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 the 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.

DISCUSSION AND CONCLUSIONS:

1.  The applicant's request to be disenrolled from SBP due to his misunderstanding of the program’s costs and benefits was carefully considered and found to be insufficient in merit.

2.  The evidence shows, on 1 August 2011, the applicant elected to participate in the SBP and to provide full coverage for his spouse and children as evidenced by the absence of the spouse's signature.  The spouse's concurrence is required when the retiring service member elects less than full coverage, which means the spouse’s concurrence, was not required in the applicant's case.  

3.  The evidence of record shows the applicant's coverage began on 1 January 2012.  However, he did not attempt to disenroll until he obtained VGLI and USAA insurance policies, in May 2012 and August 2012, respectively.  

4.  The applicant became eligible to draw retired pay on 1 January 2012.  Therefore, he will have a 1-year period beginning on 1 January 2014 in which to terminate his SBP enrollment.  He is encouraged to contact the nearest Retirement Services Officer prior to making his decision for more information.  

5.  In view of the above, the applicant’s request should not be granted.  





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)                                         AR20120019672



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ABCMR Record of Proceedings (cont)                                         AR20120019672



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