PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           6 July 2000                   
	DOCKET NUMBER:   AR2000040847

	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.  

	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Calvin M. Fowler		Chairperson	
	Mr. Ernest M. Willcher		Member	
	Mr. John P. Infante		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 requested, in a Board case dated 10 February 2000, that the records of her deceased spouse, a former service member (FSM), be corrected to show he elected to participate in the Survivor Benefit Plan (SBP) based on his full retired pay.

3.  On 27 March 2000, the Defense Finance and Accounting Service (DFAS) informed the Board that while the FSM did request SBP spouse coverage at a reduced amount in 1997, his account was established with a 1995 Reserve Component SBP (RCSBP) election of spouse only coverage, option B, reduced amount.  DFAS requested that his records be corrected to show either that he declined to make an election under the RCSBP and elected SBP spouse only coverage based on his full gross pay or corrected to show he elected RCSBP spouse only coverage, option B, based on his full gross pay.

4.  DFAS provided a copy of a DD Form 1883, Survivor Benefit Plan Election Certificate that shows that the FSM elected RCSBP spouse only coverage, option B, reduced amount on 4 July 1995.

5.  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.  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.

CONCLUSIONS:

1.  At the time of the Board’s decision in this case, it was the intent of the Board to make the FSM’s record as administratively correct as it should properly have been at the time.

2.  New evidence shows that the FSM elected RCSBP spouse only coverage, option B, reduced amount on 4 July 1995.  Since RCSBP coverage automatically rolls over into SBP coverage at age 60, his SBP election on 1 July 1997 was invalid.  Had the Board been aware of the evidence at the time of the decision in the applicant’s case, it would have directed that the FSM’s record be corrected to show he elected RCSBP spouse only coverage, option B, full base amount on    4 July 1995.

3.  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 FSM elected RCSBP spouse only coverage, option B, full base amount on 4 July 1995.

2.  That the applicant be advised that the Defense Finance and Accounting Service will be instructed to collect any RCSBP/SBP costs due.

3.  That the applicant be paid an annuity based on the aforementioned corrections.

BOARD VOTE:  

__cmf___  __emw___  __jpi___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Calvin M. Fowler
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2000040847	
SUFFIX		
RECON		
DATE BOARDED	20000706	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	137.04	
2.		
3.		
4.		
5.		
6.