PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           11 October 2001                   
	DOCKET NUMBER:   AR2001060858

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

  The following members, a quorum, were present:

	Ms. Joann H. Langston		Chairperson	
	Mr. Mark D. Manning		Member	
	Mr. Jose A. Martinez		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 that his records be corrected to show he declined to participate in the Reserve Component Survivor Benefit Plan (RCSBP).

3.  The applicant states that when he completed the Survivor Benefit Plan Election Certificate, DD Form 1883, he mistook section IV for Veterans Group Life Insurance coverage.  The error was discovered when the Alaska Army National Guard Retirements Noncommissioned Officer was calculating his estimated retired pay.

4.  The applicant’s military records are not available.  Information contained herein was obtained from alternate sources.

5.  The applicant was born on 13 July 1941.  On an unknown date, he enlisted in the Army National Guard.  His notification of eligibility for retired pay at age 60 (his 20-year letter) is dated 14 September 2000.  On 24 September 2000, he completed a DD Form 1883.  He checked that he was not married and had no dependent children and that he desired to enroll in the RCSBP for insurable interest coverage for a friend, option B.  

6.  The applicant became eligible for retired pay on 13 July 2001.  His application to the Board is dated 26 July 2001.

7.  Public Law 92-425, 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.  An eligible beneficiary is normally a relative more closely related than cousin or a business associate with a financial interest in the soldier.  As a rule, an election once made is irrevocable after the effective date of retirement except under specific circumstances.  However, an insurable interest election may be terminated at any time with discontinuance effective on the first day of the first month following the month in which the request is received by the Secretary concerned.

8.  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. 

CONCLUSIONS:

1.  It appears that the applicant was improperly counseled concerning RCSBP options and completion of the DD Form 1883.  

2.  The applicant’s effective date of retirement was 13 July 2001.  He requested correction of his RCSBP election on 26 July 2001, a very reasonable period of time after discovering the error.  It would be appropriate to correct his records to show he declined to enroll in the RCSBP and to refund any premiums thus far deducted from his retired pay.

3.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case be corrected by showing that on 24 September 2000 the applicant completed a DD Form 1883 and declined to enroll in the RCSBP.

2.  That any RCSBP/SBP premiums deducted from the applicant’s retired pay be refunded to him based upon the above correction.

BOARD VOTE:  

__jhl___  __mdm___  __jam___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Joann H. Langston
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2001060858	
SUFFIX		
RECON		
DATE BOARDED	20011011	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	137.04	
2.		
3.		
4.		
5.		
6.