IN THE CASE OF:
BOARD DATE: 10 July 2014
DOCKET NUMBER: AR20130017267
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 her record to show that she and her spouse elected not to participate in the Survivor Benefit Plan (SBP).
2. The applicant states her spouse concurred with the declination of SBP.
3. The applicant provides copies the final page of her DD Form 2656 (Data for Payment of Retired Personnel) and the Defense Finance and Accounting Service (DFAS) Summary of Retired Pay Account, dated 31 June 2013.
CONSIDERATION OF EVIDENCE:
1. The applicant, a U.S. Army Reserve command sergeant major, retired on 14 June 2013.
2. There is no DD Form 2656 filed in the applicant's integrated Personnel Electronic Records Management System.
3. The applicant provides the back page of a DD Form 2656 showing
* the applicant indicated in block 25g, "I elect not to a participate in SBP" and in block 26a, "I elect coverage based on the full gross pay"
* "Section XII SBP Spouse Concurrence (Required when the member is married and elects child(ren) only coverage, does not elect full spouse coverage or declines coverage. The date of the spouse's signature in item 32b MUST NOT be before the date of the members signature in item 30b above). The spouse's signature must be notarized"
* Her spouse concurred
* the signatures were both witnessed and the spouse's signature was notarized
4. The DFAS Summary of Retired Pay Account shows, in part:
a. Reserve Component Survivor Benefit Plan (RCSBP).
b. You elected RCSBP on 21 April 1998. RCSBP became effective 14 June 2013. Charges commenced on 01 July 2013 as follows:
c. Coverage: Spouse and Children with supplemental percent of base for annuitant at age 62: 35% + 20% = 55%. Current Base Amount $1,299.00.
d. Annuity payable $694.38.
e. RCSBP Cost $109.40.
5. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. An election, once made, was irrevocable except in certain circumstances. This law also provides that every member having a spouse and/or child(ren), who retired/transfers to the retired list on or after that date, is automatically covered under SBP at the maximum rate unless he/she elected otherwise before retirement or transfer to the retired list.
6. 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 members 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 members 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.
7. 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. 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 retired on 14 June 2013. Prior to retirement, in 1998, she made an RCSBP election. Once she made the RCSBP election the premiums would have to be recovered from her retired pay when she started to draw it. A new election upon reaching age 60 is authorized to be made (notwithstanding the fact the SBP election she made on her DD Form 2656 is contradictory - she checked that she elected not to participate in the SBP but also checked that she elected coverage based on the full gross pay - which would have led to a default coverage).
2. Public Law 105-85 provides that retirees have a 1-year period beginning on the second anniversary of the date on which their retired pay started to withdraw from SBP. However, the spouse's concurrence is required. Because she made the RCSBP election in 1998, there is no basis for granting the applicant's request.
3. No premiums will be refunded and the premiums for the RCSBP will continue to be withheld.
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) AR20130017267
3
ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
RECORD OF PROCEEDINGS
1
ABCMR Record of Proceedings (cont) AR20130017267
2
ARMY BOARD FOR CORRECTION OF MILITARY RECORDS
RECORD OF PROCEEDINGS
1
ARMY | BCMR | CY2013 | 20130016893
Both believed that they made the correct election on the form not to participate in the SBP; however, SBP premiums are being deducted from her Army retired pay. Section IX (SBP Election), item 26 (Beneficiary Category(ies)), the applicant failed to make an election in any of the categories (i.e., a through g), although she did indicate in block g (I Elect Not to Participate in SBP) with an "X" that, "I Do Have Eligible Dependents Under The Plan"; c. Section XI (Certification), item 30...
ARMY | BCMR | CY2013 | 20130010128
The applicant provides: * Letter from DFAS, dated 4 April 2013 * DD Form 2656-2, dated 5 March 2013 * Letter from DFAS, dated 10 May 2013 * Notification of Eligibility for Retired Pay at Age 60 (20-year letter) * DD Form 1883 (SBP Election Form) CONSIDERATION OF EVIDENCE: 1. Public Law 106-398, dated 30 October 2000, requires that upon receipt of the 20-year letter, a qualified Reserve Component member who is married will automatically be enrolled in the RCSBP under option C (spouse and...
ARMY | BCMR | CY2014 | 20140009410
She elected not to participate in the SBP. Three options are available: * Option A, elect to decline enrollment and choose at age 60 whether to start SBP participation * Option 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 * Option C, elect that a beneficiary receive an annuity immediately upon their death if before age 60 8. The evidence of record does not support the applicant's request for...
ARMY | BCMR | CY2013 | 20130009884
The applicant requests correction of her records to show she elected enrollment in the Reserve Component Survivor Benefit Plan (RCSBP) under Option A (defer to age 60) versus Option C (automatic immediate spouse and children coverage). Public Law 106-398, dated 30 Oct 2000, requires that upon receipt of a 20-year letter, a qualified Reserve Component Soldier who is married will automatically be enrolled in the RCSBP under Option C (Spouse and Child(ren) coverage based on Full Retired Pay)...
ARMY | BCMR | CY2014 | 20140017069
On 18 October 2008, he completed a DD Form 2656-5 (RCSBP Election Certificate) electing "Option C (IMMEDIATE ANNUITY) at full retired pay." In order for DFAS to activate his retired pay and establish his retired pay account, he was required to complete DD Form 2656 (Data for Payment of Retired Personnel). The evidence further shows on 1 June 2012, the U.S. Army Physical Disability Agency notified him of his permanent retirement due to disability and his requirement to complete DD Form 2656...
ARMY | BCMR | CY2013 | 20130007159
Section IV (Coverage), she elected Option A - I decline to make an election until age 60; c. Section VIII (Member Signature), the applicant and a witness signed the document on 11 April 2013; d. Section IX (Spouse Concurrence): (1) item 20 (Spouse), "I hereby consent in my spouse's RCSBP election as indicated. However, it appears the applicant's spouse was not notified of the applicant's election to decline SBP because there is no evidence of record that shows a spouse concurrence letter...
ARMY | BCMR | CY2014 | 20140010035
The applicant provides: * Previous application to this Board and a failure to exhaust letter * Letter dated 23 May 2014 from DFAS to her Member of Congress * DD Form 2656, dated 15 November 2012 * DD Form 2656-6, dated 7 January 2014 * Copy of her military identification card * Letter, dated 6 February 2014, to an RSO in Monterey, CA * Letter from the National Personnel Records Center * Notification of Eligibility for Retired Pay at Age 60 * Letter from DFAS-Retired and Annuity Pay,...
ARMY | BCMR | CY2013 | 20130020233
She also states "I was not married to [Applicant] when in February 2006 when his election started." Although he previously provided a statement from his spouse who stated she was not married to the applicant in February 2006, the Complaint for Divorce indicated they were married on 28 August 2006, and his DD Form 2656 shows he married her on 25 April 1998 and at the time of his election on 14 February 2006 they were still married. In the absence of the primary document (i.e., the marriage...
ARMY | BCMR | CY2013 | 20130002294
He elected spouse only coverage based on the full amount of retired pay with RCSBP Option B (coverage at age 60). Records show that in December 2001 the applicant was notified of his eligibility for retired pay upon application at age 60. He elected spouse only coverage based on the full amount of retired pay with RCSBP Option B (coverage at age 60) and the applicant, his spouse, and a witness signed the document.
ARMY | BCMR | CY2010 | 20100021525
BOARD DATE: 8 March 2011 DOCKET NUMBER: AR20100021525 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). His 20-year letter notified him, in pertinent part, that upon receipt of this letter, a qualified Reserve Component (RC) married member would automatically be enrolled in the RC Survivor Benefit Plan (RCSBP) under Option C, Spouse and Child(ren) coverage based on full retired pay, unless his...