IN THE CASE OF:	  

		BOARD DATE:	    21 July 2015

		DOCKET NUMBER:  AR20140016884 


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 records to show she declined participation in the Survivor Benefit Plan (SBP).

2.  The applicant states when she completed the 1996 DD Form 1883 (Survivor Benefits Plan Election Certificate) she was not married.  At that time, she was told she needed to mark Option C and select a next of kin as a beneficiary.  In 1998, she married but was not made aware of any time requirement to make a re-election or opt out of the program.  The Army did not properly educate or counsel her on the proper way to complete the SBP election.  She has committed 36 years to the service and was not told of the lifelong impact this decision would have on the quality of life for herself and her husband.  She and her husband would like to elect to not participate in SBP.

3.  The applicant provides copies of a 4 September 1996 DD Form 1883, her 10 June 1998 marriage certificate, a 17 September 2014 DD Form 2656 (Data for Payment of Retired Personnel), and a 17 September 2014 DD Form 2656-6 (SBP Election Change Certificate).

CONSIDERATION OF EVIDENCE:

1.  The applicant, a career U.S. Army Reserve (USAR) lieutenant colonel, was issued a "Notification of Eligibility for Retired Pay at Age 60," (commonly referred to as the 20-year letter) on 21 November 1995.

2.  On 4 September 1996, the applicant submitted a DD Form 1883 - SBP election.  The form shows she was unmarried and had no children at this time.  She listed her mother as beneficiary as an insurable interest electing to provide full annuity (at item 9a) with immediate coverage (at item 9c).  The form was witnessed by the man who later became her husband.

3.  The applicant married on 16 June 1998 and is shown to have served on active duty 5 times since qualifying for retirement.

4.  On 17 September 2014, the applicant submitted a DD Form 2656.  At item 26g the applicant marked that she elected not to participate in the SBP and that she did not have any eligible dependents.  Her husband concurred with the SBP election.  At this time she also submitted a DD Form 2656-6 electing to change her SBP election – 

* Item 7 was checked to show her current coverage as insurable interest coverage
* Item 8 was checked to show she was married
* Item 9 was checked as suspend coverage

5.  The applicant retired and was placed on the Retired List effective 16 March 2015.  She will become eligible to receive retired pay effective on attaining age 60 in June of 2016.

6.  The available record does not contain any information as to when the applicant first notified the Army of her marriage or that she elected any change in her SBP/RC coverage prior to September 2014.

7.  Public Law 95-397, the Reserve Component SBP, 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.  A person who is not married and does not have a dependent child upon becoming eligible to participate in the SBP may elect to provide an annuity to a natural person with an insurable interest in the member.  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; (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 member’s 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.

8.  Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation.  Retirees have a one-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.  Reservists who elected an option under the RCSBP will continue to have the Reservist Portion cost deducted from their retired pay.

DISCUSSION AND CONCLUSIONS:

1.  Based on the available records it cannot be determined what, if any, counseling the applicant received at the time of her initial SBP election in 1996 or at the time of her second submission in 2014.

2.  The applicant elected SBP coverage for her mother, as an insurable interest.  This election was in effect from that date until revoked.  SBP would have been paid to her mother had the applicant died prior to attaining age 60 or until the time she asked for the insurable interest coverage to be suspended.

3.  The applicant has the right to drop insurable coverage at any time.  She has the right to add a new spouse, after one year, if she so desires.  She invoked both of these options and with the concurrence of her spouse has elected to decline spousal coverage.  It would be appropriate to correct her record to show these changes.

4.  However, since the applicant had coverage in effect from 1996 through the current time, whether the coverage was for an insurable interest (her mother) or her spouse it does not matter, the coverage was in effect and has to be paid for. Because of this she is still obligated for the cost the Reservist Portion based on her earlier election.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

____X____  ___X_____  ___X_____  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to warrant a recommendation for partial relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by:

   a.  showing the applicant requested and was granted a suspension of coverage for her mother as an insurable interest with her 17 September 2014 DD Form 2656 submission; and
   
   b.  she, with her spouse's concurrence, elected not to be covered under SBP, effective 17 September 2014.

2.  The Board further determined that the evidence presented was insufficient to warrant a portion of the requested relief.  As a result, the Board recommends denial of so much of the application that pertains to waiving the cost of the Reservist Portion of SBP.



      ____________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)                                         AR20140016884



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ABCMR Record of Proceedings (cont)                                         AR20140016884



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