MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           14 September 2000                   
	DOCKET NUMBER:   AR2000042402

	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. Carl W. S. Chun		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O’Connor, Jr.		Chairperson	
	Ms. Margaret K. Patterson		Member	
	Mr. Elzey J. Arledge, Jr.		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 records be corrected to show he did not enroll in the Reserve Component Survivor Benefit Plan (RCSBP).

APPLICANT STATES:  In a letter to his Congressman, that he finds his monthly contribution to the RCSBP provides no benefit now or in the future.  Therefore, he is being taxed with an unfair charge and no benefit.

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

He was born on 19 April 1935.  After having had prior enlisted service, he was commissioned a second lieutenant in the U. S. Army Reserve in 1960.  His notification of eligibility for retired pay at age 60 (20-year letter) is dated 30 March 1979.  

On 27 October 1979, the applicant enrolled in the RCSBP.  He was unmarried and had no children at the time.  He elected coverage for his sister as a natural person with insurable interest, option C.

On 2 March 2000, the Defense Finance and Accounting Service (DFAS) responded to a Congressional inquiry.  In their reply, DFAS noted that the applicant enrolled in the RCSBP in 1979 for natural person with insurable interest coverage.  He terminated that coverage in 1995.  In accordance with the Department of Defense Financial Management Regulation, a participant who voluntarily terminates coverage for a natural person with insurable interest will continue to pay the Reserve add-on premium through his or her lifetime.  Any SBP premium portion terminates effective the first day of the month after the member terminates coverage.  The applicant elected to discontinue his participation in SBP on 31 March 1995.  Effective 1 April 1995, he is only being charged the RCSBP add-on premium.

Public Law 92-245, the SBP, enacted 21 September 1972, provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents.  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.

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 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.  An Open Season was established from 1 October 1978 – 30 September 1979; later extended to         31 March 1980.

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.  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 this requirement.

2.  In October 1979, the applicant enrolled in the RCSBP and elected natural person with insurable interest coverage for his sister, option C, immediate coverage should he die before age 60.  For 16 years, from 1979 until 1995, his sister received RCSBP protection and during those 16 years the applicant paid no premiums.  When he turned age 60 and began to receive retired pay, that past RCSBP protection had to be paid for.  That is the reason RCSBP premiums are being deducted even though he has since terminated his sister’s RCSBP coverage.

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

__rvo___  __mkp___  __eja___  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2000042402	
SUFFIX		
RECON		
DATE BOARDED	20000914	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	137.04	
2.		
3.		
4.		
5.		
6.