MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:            5 May 1999 
	DOCKET NUMBER:   AR1998012842

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mr. Loren G. Harrell		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. James M. Alward		Chairperson	
	Mr. John Saputo		Member	
	Mr. Roger W. Able		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  In effect, that his Reserve Component Survivor Benefit Plan (RCSBP) costs be discontinued and his records show he elected SBP “spouse only” coverage.

APPLICANT STATES:  At the time he elected RCSBP, no one informed him that it would continue in effect after retirement.  He wants SBP “spouse only” coverage.

EVIDENCE OF RECORD:  The applicant's military records show:

He was born on 31 August 1937.  He initially enlisted in the U. S. Army Reserve and was ordered to active duty in 1958.  

On 24 March 1994, at the time the applicant received is 20-year letter (became eligible for retired pay at age 60), he completed DD Form 1883, Survivor Benefit Plan Election Certificate.  He elected to participate in the SBP for “spouse only” coverage, full base amount, option C (immediate coverage should he die before age 60).

On 3 May 1997, when the applicant applied for retired pay, he elected SBP coverage for “spouse only.”

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.  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 occur before age 60, the RCSBP costs for options B and C are deducted from the annuity (costs for option C being the more expensive).  SBP premiums and benefits are each a percentage of the elected “base amount.”  The costs for the RCSBP are not paid until the participant begins receiving his/her retired pay at age 60.  All RCSBP elections have a basic SBP cost.  If RCSBP option B or C is elected, there is a Reservist Portion cost added to the basic cost to cover the additional benefit and assured protection should the participant have died prior to age 60.  The total cost will be the sum of the basic cost plus the Reservist Portion cost.  The closer to age 60 the participant is upon electing RCSBP coverage, the lower the Reservist Portion of the cost per $100.00 of coverage.  For example, if the applicant was 56 years old at the time he elected RCSBP coverage, and his wife was 7 years younger, the Reservist Portion cost per $100.00 coverage would be $1.52.

In the processing of this case, a staff advisory opinion was obtained from the Retirement Team, U. S. Army Reserve Personnel Command (SEE ATTACHED).

A copy of this opinion was provided to the applicant.  He did not respond within the given time frame.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion, it is concluded:

1.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy the aforementioned requirement.

2.  The applicant is correct in believing that RCSBP does not continue after retirement.  However, it is the RCSBP coverage that stops at retirement.  The payment for the cost of the RCSBP coverage, which the applicant and his beneficiary enjoyed from 1994 until his receipt of retired pay in August 1997, does not even begin until he receives his retired pay.  Whether or not the applicant understood this when he elected RCSBP coverage in 1994, he did receive the benefit of coverage for three years and now it must be paid for.

3.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

__jma___  __js____  __rwa___  DENY APPLICATION

						Loren G. Harrell
						Director

INDEX

CASE ID	AR1998012842	
SUFFIX		
RECON		
DATE BOARDED	19990505	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	137.00	
2.		
3.		
4.		
5.		
6.