IN THE CASE OF: 

		BOARD DATE: 3 March 2015

		DOCKET NUMBER:  AR20140010758 


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 records to show he elected enrollment in the Reserve Component Survivor Benefit Plan (RCSBP) under Option C (Immediate Coverage) instead of Option A (Deferred Coverage). 

2.  The applicant states that on 28 July 1999 he was told that the RCSBP would be $25.00 per month.  He does not believe he received adequate SBP counseling at that time.  He wants RCSBP coverage in case something happens to him.  If he had been properly counseled he would have chosen Option C.
 
3.  The applicant provides:

* DD Form 1883 (Survivor Benefit Plan Election Certificate), dated 28 July 1999 
* Kentucky Army National Guard (KYARNG) memorandum, dated 11 June 2014

CONSIDERATION OF EVIDENCE:

1.  The applicant was born in October 1960. 

2.  The applicant enlisted in the KYARNG on 19 May 1979.  He served through multiple extensions or reenlistments and he attained the rank/grade of sergeant first class (SFC)/E-7. 

3.  On 21 June 1999, the KYARNG issued the applicant a Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter).  This letter notified him that he had completed the required years of service and would be eligible for retired pay, upon application, at age 60.  This letter further informed him:

By law, you have only 90 calendar days from the date you receive this letter to submit your Survivor Benefit Plan Election Certificate (DD Form 1883).  If you do not submit your election within 90 calendar days, you will not be allowed to obtain survivor benefit coverage until you apply for retired pay at age 60.  If you do not elect coverage, should you die before age 60, there will be no benefits for your survivors.  More detailed information concerning participation in the RCSBP and a blank DD Form 1883 were enclosed. 

4.  On 28 July 1999, he completed a DD Form 1883 wherein he elected Option A (Defer).  He indicated he was married and had a daughter.  He listed their information on the form.  He further initialed indicating that he declined to participate in the RCSBP.  The DD Form 1883 states:

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

	b.  If the retiree does not elect Option B or C at this time, and should die before age 60, the survivors will not receive benefits under Public Law   95-397.

5.  He was transferred to the Retired Reserve on 29 May 2014.  

6.  He will turn 60 years of age in October 2020.  

7.  He provides a memorandum from Staff Sergeant (SSG) D____ D____, G-1, KYARNG, who relates the applicant discussed his "M-Day retirement benefits" with her.  The applicant and his spouse did not realize that the RCSBP would be taken out at age 60.  They were told from his unit back in 1999 that he would have to start paying $25.00 at that moment monthly.  He and his spouse understand that if the Board grants his petition they would be paying for the RCSBP along with SBP at age 60.  This would give them comfort to know that she would receive some type of benefits if something happens to him. 

8.  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.  Since its creation, it has been subjected to a number of substantial legislative changes.

9.  Public Law 95-397, enacted 30 September 1978, provided a way for RC members who qualified for Reserve retirement, but were not yet age 60 and eligible to participate in the SBP, to provide an annuity for their survivors should they die before reaching age 60.  Three options were 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

10.  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.

DISCUSSION AND CONCLUSIONS:

1.  When the applicant received his 20-year letter, he submitted a DD Form 1883 wherein he indicated that he declined to participate in the RCSBP.  He elected Option A to decline enrollment and choose at age 60 whether to start SBP participation.  The DA Form 1883 clearly informed him he was making an irrevocable and permanent election and advised him of the cost of that election. The options were clear.  The decision to participate in or disenroll from the RCSBP/SBP is a personal decision. 

2.  He is authorized to elect participation in the SBP at age 60.

3.  In view of the above, his request should be denied.


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)                                         AR20140013176



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ABCMR Record of Proceedings (cont)                                         AR20140010758



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