IN THE CASE OF:	   

		BOARD DATE:	  27 January 2015

		DOCKET NUMBER:  AR20140009410 


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 termination of her participation in the Survivor Benefit Plan (SBP). 

2.  The applicant states:

* in June 1999, when she received her 20-year letter, she was required to make a decision concerning SBP
* she was married and elected SBP for her spouse
* when she divorced in January 2004, she reported it to her unit administrator
* she believed that since she elected SBP for her spouse and was divorced that the election was no longer applicable
* she was never informed of anything to the contrary
* when she remarried, she was not aware that she needed to make an election for SBP

3.  The applicant provides:

* a self-authored statement
* DD Form 1883 (SBP Election Certificate)
* DD Form 2656 (Data for Payment of Retired Personnel)
* Reserve Component Supplemental SBP Certificate (RC-SSBP)



CONSIDERATION OF EVIDENCE:

1.  Having had prior commissioned service in the U.S. Army Reserve, she was appointed as a Reserve officer of the Alabama Army National Guard (ALARNG) and executed an oath of office on 20 October 1986.  She served in a variety of assignments and she was promoted to colonel (COL). 

2.  On 11 April 1999, the ALARNG issued her a Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter). 

3.  On 20 June 1999, she completed a DD Form 1883.  She indicated she was married to M_ _ _ _ _ _ K_ __ _ _ _ _ _ and they had no dependent children.  She elected "spouse only" RCSBP coverage, under Option C (immediate coverage), based on the full amount.  This form shows the entry: 

Important: The decision you make with respect to participation in the SBP is a permanent irrevocable decision.  Please consider your decision and its effects very carefully. 

4.  A DD Form 2656, dated 11 November 2013, indicated she was married to   D_ _ _ _ S_ _ _ _ _ _, and they had no dependent children.  She elected not to participate in the SBP.  Her spouse concurred with her election.

5.  Orders C04-493472, issued by the U.S. Army Human Resources Command, dated 25 April 2014, shows she was placed on the retired list with an effective date of 4 April 2014.  

6.  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.

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 to provide an annuity for their survivors should they die before reaching age 60.  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.  Once a member elects either option B or option 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 - the options automatically roll 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.

9.  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 evidence of record does not support the applicant's request for correction of her record to show cancellation of her participation in the SBP.

2.   When the applicant received her 20-year letter in 1999, she submitted a     DD Form 1883 wherein she elected enrollment in the RSCBP, spouse coverage, under Option C.  RCSBP elections are by category, not by name.  This means in the event she died before reaching age 60, her beneficiary would have been entitled to an annuity.  

3.  The options were clear and are clearly stated on the form she executed in 1999 with an important warning to consider her permanent, irrevocable decision wisely.  The decision to participate in or disenroll from the RCSBP/SBP is a personal decision.  She made a choice.  Had she died before age 60, her beneficiary would have been entitled to the annuity. 



4.  Once a member elects either option B or option 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 - the options automatically roll into SBP coverage.  

5.  The DD Form 2656 she submitted in 2013 in conjunction with her application for retired pay was an invalid election. 

6.  Additionally, 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.  This cost is the cost of coverage the applicant enjoyed between the date she made the election in 1996 and the date she turned 60.  Again, had she died during this period, her spouse would have been entitled to the annuity.  

7.  However, by law, 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.  The applicant retired on 4 April 2014.  She may write directly to DFAS to request termination during the period of eligibility.  She should also be advised that even if she terminates coverage during the period of eligibility, the RCSBP portion of the premiums continues for life.

8.  After a review of her records, there does not appear to be a Government error and there is no injustice.  She is not entitled to relief either due to law or inequity. 

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)                                         AR20140009410



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ABCMR Record of Proceedings (cont)                                         AR20140009410



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