IN THE CASE OF: BOARD DATE: 29 March 2016 DOCKET NUMBER: AR20150007696 BOARD VOTE: ____X_____ ___X____ ___X_____ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration IN THE CASE OF: BOARD DATE: 29 March 2016 DOCKET NUMBER: AR20150007696 BOARD DETERMINATION/RECOMMENDATION: The Board determined that the evidence presented was sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by: * showing she made an RCSBP election for immediate children-only coverage, based on the full amount of retired pay * DFAS received and processed her RCSBP election in a timely manner * returning to the applicant any overpayment of the SBP and RCSBP premiums she has paid based on the difference between spouse-only and children-only coverage ____________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. Enclosure 1 IN THE CASE OF: BOARD DATE: 29 March 2016 DOCKET NUMBER: AR20150007696 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 records to show she did not elect spouse-only on her DD Form 1883 (Survivor Benefit Plan (SBP) Election Certificate) for the Reserve Component Survivor Benefit Plan (RCSBP). She also requests reimbursement of all funds paid as premiums for RCSBP spouse-only coverage. 2. The applicant states, in effect: * she signed her DD Form 1883 on 5 April 1997, and indicated she was not married but had one dependent child; she requested children-only full coverage * when she submitted for her retirement in 2014, the Defense Finance and Accounting Service (DFAS) stated they had only received the second page of the DD Form 1883; on receiving the second page, DFAS presumed she was married and, by default, showed her election as spouse-only coverage * as a result of their action, $111.57 has been deducted each month to pay for spouse coverage * as of this date, both of her children are in their 30's (and are thus no longer eligible for RCSBP) * DFAS advised her to file a DD Form 2656-8 (SBP - Automatic Coverage Fact Sheet); she received no response after submitting this form * when she called, DFAS recommended sending an application to the Board 3. The applicant provides: * first page of her DD Form 1883, signed 5 April 1997 * Retired Pay Department - Summary of Retired Pay Account, dated 2 February 2015 * DD Form 2656-8, signed 23 March 2015 CONSIDERATION OF EVIDENCE: 1. The applicant's records show she was born on 19 December 1954. She turned 60 years of age on 19 December 2014. 2. Having had prior enlisted service in the U.S. Air Force, she enlisted in the Massachusetts Army National Guard (MAARNG) on 23 February 1978. She served in multiple reenlistments and extensions in the MAARNG and attained the rank/grade of sergeant first class/E-7. 3. The MAARNG issued her a Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter) on 26 February 1997. This memorandum notified her she had completed the required years of service and would be eligible for retired pay upon application at age 60. She would also have been advised to complete a DD Form 1883 to either elect or decline participation in RCSBP within 90 days of receipt of her 20-Year Letter. 4. On 5 April 1997, she elected to participate in RCSBP on a DD Form 1883. She affirmed she was not married and chose full coverage for her children only (one child with a birth year of 1984 was listed). The form lists options A (Defer), B (Begin at Age 60), and C (Immediate Coverage), but none of these blocks are checked. 5. Her OMPF contains the following relevant documents: a. Memorandum, dated 26 February 1997, issued by the MAARNG, Subject: Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter). b. The second page only of her DD Form 1883, showing her signature and date, 5 April 1997. Attached with this form is a page titled Reserve Component Supplemental SBP (RC-SSBP) Election Certificate, which indicates she declined to elect coverage under the RC-SSBP. c. National Guard Bureau (NGB) Form 22 (Report of Separation and Record of Service) showing her transfer from the MAARNG to the Retired Reserve effective 21 October 2008. d. Orders C01-590354, dated 14 January 2015, issued by U.S. Army Human Resources Command (HRC), showing, effective 19 December 2014, she was placed on the Retired List. REFERENCES: 1. 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. Elections are made by category, not by name. Children are no longer eligible beneficiaries when they reach age 18, or 22 years of age if a full-time student. 2. Public Law 95-397, the RCSBP, enacted 30 September 1978, provided a way for those who had qualified for reserve retirement and participation in SBP, but were not yet age 60, to provide an annuity for their survivors should they die before reaching age 60. a. Three options are available, elect to: (1) Option A - decline enrollment and choose at age 60 whether to start SBP participation; (2) Option B - have 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; or (3) Option C - have a beneficiary receive an annuity immediately upon their death if before age 60. b. At the time, a member must have made the election within 90 days of being provided the notification of eligibility to receive retired pay at age 60 or deferred election until he or she applied for retired pay and elected to participate in the standard SBP. DISCUSSION: 1. The applicant was issued a 20-year letter on 26 February 1997 based on having completed at least 20 qualifying years of service. Within the required 90-day timeframe, she elected to participate in RCSBP and provide full coverage for her children only, as she was not married. She did not indicate whether this decision was deferred or effective immediately. a. Apparently as a result of administrative error, her election was not properly transmitted to DFAS. This caused DFAS to presume she was married and automatically elect spouse-only coverage on her behalf. As a result, she has had spouse-only premiums inappropriately withdrawn, and her election for her child was not reflected, nor were child-RCSBP premiums deducted. b. At her retirement date, her children were no longer eligible beneficiaries. (1) One child, born in 1984, would have been eligible, however, from the date she signed the DD Form 1883 to at least 2002 (age 18), but not later than 2006 (age 22, if a full-time student). (2) She did not show an election for when coverage would begin on the DD Form 1883, but it appears unlikely she meant to defer or delay this decision as her child only had another 5 to 9 years of eligibility. (3) She requests full reimbursement of premiums paid for spouse-only coverage, for which she was not eligible (by virtue of not being married) and did not want. Given her election to provide coverage for her child, it would nonetheless be appropriate to be charged RCSBP premiums for such coverage during the period the child was an eligible beneficiary. 2. The evidence of record, as well as that submitted by the applicant, supports that she was not married and elected coverage only for her children. Although her children are no longer eligible, they were eligible for a portion of the time between 1997 and 2014 (when she was placed on the Retired List). As such, had DFAS correctly identified the requested coverage and had she passed away during this period, her dependent child would have been paid benefits. 3. Based on the foregoing, it would be appropriate to grant her the requested relief. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150007696 Enclosure 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings AR20150007696 4 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2