IN THE CASE OF

		BOARD DATE:	  2 September 2014

		DOCKET NUMBER:  AR20140000270 

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 changed his Reserve Component Survivor Benefit Plan (RCSBP) coverage with respect to the individual he designated as a natural person with an insurable interest (hereinafter referred to as a natural interest person (NIP)). 

2.  The applicant states he initially designated his brother (Steve A. R-------), an NIP, as a beneficiary for his RCSBP.  He states the designated NIP has threatened his life and is no longer a responsible person whom he can trust and who will honor the instructions he has established relating to his personal affairs.  Consequently, he now requests that his NIP designation be changed to his two sisters (Ernsel B---- and Sheila F-----).

3.  The applicant indicates that he provides a copy of a U.S. Virgin Islands Police Department Report; however, the report was not included with his application.

CONSIDERATION OF EVIDENCE:

1.  The applicant was born on 8 May 1963.  Having prior honorable active duty enlisted service in the Regular Army from 11 October 1983 through 9 November 1998, he enlisted in the Army National Guard (ARNG) of the United States (ARNGUS) and Virgin Islands ARNG (VIARNG) on 10 November 1998.

2.  On 30 June 2005, the Director of Human Resources, VIARNG, Joint Force Headquarters, Christiansted, VI, notified the applicant that his eligibility for retired pay had been established upon attaining age 60 (20-Year Letter).  The notification informed the applicant, in pertinent part, of the following:

* having completed the required years of service, he would be eligible for retired pay upon application at age 60
* he was entitled to participate in the RCSBP
* he must provide written correspondence, a DD Form 2656-5 (RCSBP Election Certificate), stating whom he designates as annuitant(s)
* the cost for participation would commence upon his receipt of retired pay at age 60

3.  On 15 September 2005, he completed a DD Form 2656-5 and indicated that he was not married and he did not have any dependent children.  It also shows he elected RCSBP coverage for his brother (Steve A. R-------) as an NIP, option C (Immediate Annuity), based on his full retired pay.  It also shows the applicant and a witness signed the form.

4.  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.

5.  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 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; or (C) elect that a beneficiary receive an annuity immediately upon their death if before age 60.  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, and RCSBP coverage automatically rolls into SBP coverage.

6.  Title 10, U.S. Code, section 1448(G)(i) (Application of the SBP), provides for the election of a new beneficiary upon death of the previous beneficiary.  If the reason for discontinuation in the SBP is the death of the beneficiary, the participant in the SBP may elect a new beneficiary.  Any such beneficiary must be a natural person with an insurable interest in the participant.  Such an election may be made only during the 180-day period beginning on the date of the death of the previous beneficiary.  Such an election shall be in writing, signed by the participant, and made in such form and manner as the Secretary concerned may prescribe.  Such an election shall be effective the first day of the first month following the month in which the election is received by the Secretary. 

7.  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 a participant by the submission to the Secretary concerned of a written request to discontinue participation in the SBP.  Such participation shall be discontinued effective on 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.  Participation in the SBP may not be later resumed except as provided by law.

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends his military records should be corrected to show he changed his RCSBP beneficiary from his brother to his two sisters.

2.  The law provides that an RCSBP/SBP election for an insurable interest beneficiary may be terminated at any time without the concurrence of the beneficiary; however, absent death, there are no provisions under the law that provide for changing the designated NIP beneficiary to another NIP beneficiary.
Thus, there is no basis for granting the requested relief.

3.  If it is the applicant's desire to voluntarily terminate his participation in the SBP, he should submit a written request to the Defense Finance and Accounting Service (DFAS), U.S. Military Retirement Pay, P.O. Box 7130, London, KY  40742-7130, to discontinue his participation in the SBP.  However, the applicant is advised that, 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.  Therefore, he may first want to contact DFAS for additional information regarding any such request at 800-321-1080 or (216) 522-5955.

4.  The applicant is also advised that he may contact the nearest Retirement Services Officer (RSO) for additional information and assistance regarding this matter.  A listing of RSOs by country, state, and installation is available on the Internet 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)                                         AR20140000270



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ABCMR Record of Proceedings (cont)                                         AR20140000270



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