MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           28 October 1999                   
	DOCKET NUMBER:   AR1999021879

	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. Thomas D. Howard, Jr.		Chairperson	
	Mr. Thomas N. Kuhn		Member	
	Mr. James P. Steuve		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:  That his records be corrected to show he elected not to participate in the Reserve Component Survivor Benefit Plan (RCSBP).

APPLICANT STATES:  That in February 1998, prior to his retirement on              1 September 1998, he and his spouse sent a letter to the Army Reserve Personnel Command requesting that his RCSBP election be changed to “decline coverage.”  He never received a response until he received his first Summary of Retired Pay Account letter, which showed he was being charged for RCSBP.
Supporting evidence is as listed on the attachment to the DD Form 149.

EVIDENCE OF RECORD:  The applicant's military records are not available.

The applicant was born on 1 September 1938.  He was a reserve component soldier who apparently received his notification of eligibility for retired pay at age 60 (his 20-year letter) in 1991.  On 10 March 1991, he completed DD Form 1883, SBP Election Certificate and elected spouse only coverage, full base amount, option C.

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 (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 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.

Public Law 105-85, enacted 18 November 1997, established an option to terminate SBP participation.  Members retired less than two years on the effective date of this law may terminate participation (with the spouse’s concurrence) during the one-year period commencing on the second anniversary of their receipt of retired pay.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:
1.  When the applicant elected to participate in the RCSBP in 1991, he made an irrevocable election.  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.

2.  However, the law now provides a one-year opportunity to cancel SBP participation commencing on the second anniversary of receipt of retired pay.  The applicant will be eligible to cancel his RCSBP/SBP participation during the period 1 September 2000 – 30 August 2001.  

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

__tdh___  __tnk___  __jps___  DENY APPLICATION

						Loren G. Harrell
						Director

INDEX

CASE ID	AR1999021879	
SUFFIX		
RECON		
DATE BOARDED	19991028	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	137.03	
2.		
3.		
4.		
5.		
6.