PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           16 December 1999                   
	DOCKET NUMBER:   AR1999027536

	I certify that hereinafter is recorded the true and complete record of the proceedings 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. Fred K. McCoy		Chairperson	
	Mr. Raymond V. O’Connor, Jr.		Member	
	Mr. Stanley Kelley		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

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

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect, that his Survivor Benefit Plan (SBP) election be changed to show he requested spouse and children coverage.

3.  The applicant states that he was married at the time the DD Form 1883, Survivor Benefit Plan Election Certificate was completed.  Due to time constraints, he was instructed by the company clerk to sign a blank form so it  could be completed at a later time.  He tried to pursue this matter several times but was told that once he made an election it was irrevocable.

4.  The applicant’s military records show that he was born on 12 May 1935.  He married his spouse on 3 January 1958.  The evidence of record shows he was still married to the same spouse in January 1979.  In October 1981, while in the Army National Guard, he received his notification of eligibility for retired pay at age 60 (his 20-year letter).  

5.  The applicant’s DD Form 1883 is dated 22 November 1981.  It shows he was not married, he did have a dependent child, and he elected child only Reserve Component SBP (RCSBP) coverage.  

6.  The applicant applied for retired pay in 1995 upon reaching age 60.  Records at the Defense Finance and Accounting Service (DFAS) show that he was married to the same spouse at that time.  The applicant also attempted to change his SBP coverage to spouse coverage at this time.

7.  Public Law 95-397, the Reserve Component SBP (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:  (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. 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. 

CONCLUSIONS:

1.  Although the applicant should have known better than to sign a blank form no matter what his company clerk told him, especially in a matter that would affect the financial affairs of his family, the Board concludes an injustice did occur.

2.  The applicant was married at the time he elected RCSBP coverage.  The DD Form 1883 should have at least acknowledged his marital status in block 6 and listed his spouse in section III.  He did try to provide for spouse coverage at the time he applied for retired pay, but by law his previous election was irrevocable.

3.  The Board concludes that a Government error did occur at the time he elected RCSBP coverage, thereby causing an injustice to the applicant.

4.  In view of the foregoing, it would be in the interest of justice to correct the applicant’s records as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case be corrected by showing that the individual concerned elected to participate in the RCSBP, full base amount, Option C with “spouse and child” coverage on           22 November 1981.  

2.  That the applicant be advised that DFAS will be instructed to collect any RCSBP/SBP costs due. 

BOARD VOTE:  

__fkm___  __rvo___  __sk____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Fred K. McCoy
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR1999027536	
SUFFIX		
RECON		
DATE BOARDED	19991216	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	137.04	
2.		
3.		
4.		
5.		
6.