IN THE CASE OF: BOARD DATE: 10 July 2014 DOCKET NUMBER: AR20130017267 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests correction of her record to show that she and her spouse elected not to participate in the Survivor Benefit Plan (SBP). 2. The applicant states her spouse concurred with the declination of SBP. 3. The applicant provides copies the final page of her DD Form 2656 (Data for Payment of Retired Personnel) and the Defense Finance and Accounting Service (DFAS) Summary of Retired Pay Account, dated 31 June 2013. CONSIDERATION OF EVIDENCE: 1. The applicant, a U.S. Army Reserve command sergeant major, retired on 14 June 2013. 2. There is no DD Form 2656 filed in the applicant's integrated Personnel Electronic Records Management System. 3. The applicant provides the back page of a DD Form 2656 showing – * the applicant indicated in block 25g, "I elect not to a participate in SBP" and in block 26a, "I elect coverage based on the full gross pay" * "Section XII –SBP Spouse Concurrence (Required when the member is married and elects child(ren) only coverage, does not elect full spouse coverage or declines coverage. The date of the spouse's signature in item 32b MUST NOT be before the date of the members signature in item 30b above). The spouse's signature must be notarized" * Her spouse concurred * the signatures were both witnessed and the spouse's signature was notarized 4. The DFAS Summary of Retired Pay Account shows, in part: a. Reserve Component Survivor Benefit Plan (RCSBP). b. You elected RCSBP on 21 April 1998. RCSBP became effective 14 June 2013. Charges commenced on 01 July 2013 as follows: c. Coverage: Spouse and Children with supplemental percent of base for annuitant at age 62: 35% + 20% = 55%. Current Base Amount $1,299.00. d. Annuity payable $694.38. e. RCSBP Cost $109.40. 5. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP 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. An election, once made, was irrevocable except in certain circumstances. This law also provides that every member having a spouse and/or child(ren), who retired/transfers to the retired list on or after that date, is automatically covered under SBP at the maximum rate unless he/she elected otherwise before retirement or transfer to the retired list. 6. 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 (costs for option C being the more expensive). 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. 7. Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation. Retirees have a 1-year period beginning on the second anniversary of the date on which their retired pay started to withdraw from SBP. The spouse's concurrence is required. No premiums will be refunded to those who opt to disenroll. The effective date of termination is the first day of the first calendar month following the month in which the election is received by the Secretary concerned. DISCUSSION AND CONCLUSIONS: 1. The applicant retired on 14 June 2013. Prior to retirement, in 1998, she made an RCSBP election. Once she made the RCSBP election the premiums would have to be recovered from her retired pay when she started to draw it. A new election upon reaching age 60 is authorized to be made (notwithstanding the fact the SBP election she made on her DD Form 2656 is contradictory - she checked that she elected not to participate in the SBP but also checked that she elected coverage based on the full gross pay - which would have led to a default coverage). 2. Public Law 105-85 provides that retirees have a 1-year period beginning on the second anniversary of the date on which their retired pay started to withdraw from SBP. However, the spouse's concurrence is required. Because she made the RCSBP election in 1998, there is no basis for granting the applicant's request. 3. No premiums will be refunded and the premiums for the RCSBP will continue to be withheld. BOARD VOTE: ________ ________ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING _____X___ ____X____ ___X____ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. ______ _ ___X____ ___ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. ABCMR Record of Proceedings (cont) AR20130017267 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20130017267 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1