IN THE CASE OF:
BOARD DATE: 26 November 2013
DOCKET NUMBER: AR20130005442
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, cancellation of insurable interest coverage under the Reserve Component Survivor Benefit Plan (RCSBP).
2. The applicant states he was not prepared for this option upon his retirement and he no longer wishes to participate.
3. The applicant provides no additional evidence.
CONSIDERATION OF EVIDENCE:
1. The applicant was born on 2 April 1951.
2. He enlisted in the Louisiana Army National Guard (LAARNG) on 24 August 1997 after having prior Regular Army enlisted service. He completed training and was awarded military occupational specialty 19K (armor crewmember).
3. On 15 August 2002, he extended his term of enlistment in the LAARNG for a period of 1 year. His new expiration of term of service date was established as 23 August 2003.
4. On 23 August 2010, he was issued a memorandum from the LAARNG, subject: Notification of Intent to Separate for Failure to Meet Medical Retention Standards.
5. On 31 August 2010, he concurred with the separation action and acceptance of early retirement with 15 or more years of qualifying service and requested to be transferred to the Retired Reserve.
6. On 31 August 2010, he was issued a Notification of Eligibility for Retired Pay at Age 60 (20-year letter). The letter advised him that a qualified Reserve Component member who was married would automatically be enrolled in the RCSBP under option C (spouse and child(ren) coverage) based on full retired pay unless different coverage was selected within 90 days of receipt of the
20-year letter. Written spousal concurrence was required in order to decline full and immediate coverage for annuitants. He acknowledged receipt of the 20-year letter.
7. He was honorably discharged from the LAARNG effective 1 September 2010 and was transferred to the Retired Reserve effective 2 September 2010.
8. A Statement of Counseling, dated 3 September 2010, shows he acknowledged he understood counseling pertaining to the RCSBP elections and effects of each and he would begin paying for the RCSBP coverage when he reached age 60 and began receiving his retired pay.
9. On 3 September 2010, he completed a DD Form 2656-5 (RCSBP Election Certificate). This form shows in:
* Section II (Marital, Dependency, and Election Status) he was not married and did not have any dependent children
* Section IV (Coverage) he elected "Option C (Immediate Annuity)"
* item 13 (Type of Coverage) he elected "Natural Person with an Insurable Interest"
* Section V (Level of Coverage) he elected coverage based on full retired pay
* Section VI (Insurable Interest Coverage) he named his sister
10. The DD Form 2656-5 was signed by the applicant and witnessed on 3 September 2010.
11. He reached age 60 on 2 April 2011.
12. On 4 November 2013, a staff member of the Defense Finance and Accounting Service (DFAS) verified the applicant was currently enrolled in the automatic SBP coverage with a monthly cost of $33.11. The DFAS official stated she did not see any evidence that he ever previously contacted DFAS to cancel this coverage.
13. Public Law 103-337, enacted 5 October 1994, allowed SBP insurable interest participants whose beneficiary is not their former spouse to voluntarily terminate their participation in the SBP. Any such termination shall be made by submission of a written request to the Secretary concerned to discontinue participation in the SBP. Such participation shall be discontinued effective the first day of the first month following the month in which the request is received. Once participation is discontinued, benefits may not be paid in conjunction with the earlier participation in the SBP and premiums paid may not be refunded.
DISCUSSION AND CONCLUSIONS:
1. The applicant elected to participate in SBP on 3 September 2010 for insurable interest coverage for his sister. Public Law 103-337 permits an individual to withdraw from insurable interest coverage at any time and specifies that no refund of SBP costs collected before the effective date of the withdrawal will be paid.
2. Insurable interest SBP coverage may be terminated at any time. It is unclear why the applicant did not communicate directly with DFAS regarding this termination. Nevertheless, in view of his request to the Board, it would be appropriate to terminate his SBP coverage for insurable interest effective 3 March 2013, the date of his application to the Board. There will be no refund of SBP costs collected before the effective date of the withdrawal.
BOARD VOTE:
____x___ ____x___ ___x____ GRANT FULL RELIEF
________ ________ ________ GRANT PARTIAL RELIEF
________ ________ ________ GRANT FORMAL HEARING
________ ________ ________ DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:
The Board determined the evidence presented is 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
terminating the applicant's RCSBP 2010 election effective 3 March 2013 with entitlement to refund of all applicable premiums collected after this effective date.
____________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) AR20130005442
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ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
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ABCMR Record of Proceedings (cont) AR20130005442
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