RECORD OF PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           24 February 2004   
	DOCKET NUMBER:   AR2003089568

	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	
	Ms. Wanda L. Waller		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O'Connor		Chairperson	
	Ms. Margaret V. Thompson		Member	
	Mr. Lawrence Foster		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).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:  

1.  The applicant requests that his military records be corrected by canceling his Reserve Component Survivor Benefit Plan (RCSBP) participation for “person with insurable interest."  He also requests, in effect, that he be refunded all premiums paid.

2.  The applicant states that when he filled out the form he was told he needed a survivor listed to receive his last check and any insurance.  He contends that he listed his sister because he had no wife or children.

3.  The applicant does not provide any evidence in support of his application.

CONSIDERATION OF EVIDENCE: 

1.  The applicant is requesting correction of an error which occurred on 
6 August 1990.  The application submitted in this case is dated 3 April 2003.  

2.  Title 10, U.S. Code, Section 1552(b), provides that applications for correction of military records must be filed within 3 years after discovery of the alleged error or injustice.  This provision of law allows the Army Board for Correction of Military Records (ABCMR) to excuse failure to file within the 3-year statute of limitation if the ABCMR determines that it would be in the interest of justice to do so.  In this case, the ABCMR will conduct a review of the merits of the case to determine if it would be in the interest of justice to excuse the applicant’s failure to timely file.

3.  The applicant was born on 29 December 1942.  He enlisted in the Utah Army National Guard on 8 December 1963.  

4.  The applicant's notification of eligibility for retired pay at age 60 (his 20-year letter) was prepared on 2 February 1984.  On 17 February 1984, he completed a DD Form 1883 (Survivor Benefit Plan Election Certificate) electing to participate in the RCSBP with coverage for his sister as a person with insurable interest, option B, full base amount.  Section II (Marital, Dependency, and Election Status) of the DD Form 1883 lists the available coverage options, including "None."

5.  On 6 August 1990, the applicant was honorably discharged from the Army National Guard and transferred to the U.S. Army Reserve Control Group (Retired).      

6.  On 29 December 2002, the applicant turned age 60.  On 3 April 2003, he applied to this Board for termination of his RCSBP coverage and reimbursement of his paid premiums.

7.  Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members 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.  Premiums for insurable interest coverage are generally higher than for any other category of coverage.

8.  Title 10, U. S. Code, section 1448(b)(1)(B) provides that an SBP election of insurable interest may be terminated.  Participation in the SBP shall be discontinued effective on the first day of the first month following the month in which the request for termination is received by the Secretary concerned.  Section 1448(b)(1)(E) provides that premiums may not be refunded.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows that in February 1984, while serving in the rank of staff sergeant, the applicant elected RCSBP coverage for his sister, a person with insurable interest.  There is no evidence of record, and the applicant has provided no evidence, which shows that he elected this coverage based upon erroneous guidance or improper counseling.  One of the RCSBP coverage options available to him was "None."

2.  The law provides that an SBP election for an insurable interest beneficiary may be terminated at any time without the concurrence of the beneficiary.

3.  The applicant applied to this Board on 3 April 2003 to terminate his SBP coverage.  It would be equitable to correct his records to show he requested termination of his SBP coverage on that date and to refund to him paid premiums retroactive to the first day of the first month following that date (i.e., 1 May 2003).
  
4.  It would not be equitable to correct the applicant's records to show he never enrolled in the SBP.  Had he died prior to making this request, his beneficiary could have used the DD Form 1883 to lay claim to the SBP annuity. 

BOARD VOTE:

RVO____  MVT____  LF______  GRANT RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to warrant a recommendation for partial relief and to excuse failure to timely file.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by:

	a.  correcting his records to show he requested termination of his SBP coverage on 3 April 2003 and that such termination became effective on 1 May 2003; and

	b.  refunding to the applicant all paid SBP premiums retroactive to 1 May 2003.

2.  The Board further determined that the evidence presented is insufficient to warrant a portion of the requested relief.  As a result, the Board recommends denial of so much of the application that pertains to correcting his records to show he declined to participate in the SBP.  

		__Raymond V. O'Connor___
		        CHAIRPERSON

INDEX

CASE ID	AR2003089568	
SUFFIX		
RECON		
DATE BOARDED	20040224	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.	137.0000	
2.		
3.		
4.		
5.		
6.