BOARD DATE: 2 May 2017 DOCKET NUMBER: AR20150018864 BOARD VOTE: _________ _______ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ___x_____ __x______ _x___ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration BOARD DATE: 2 May 2017 DOCKET NUMBER: AR20150018864 BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined 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. . BOARD DATE: 2 May 2017 DOCKET NUMBER: AR20150018864 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 termination of his participation in the Survivor Benefit Plan (SBP). 2. He states his request for termination is based on the medical condition of his wife. He explains his wife suffers from myotonic dystrophy and has reoccurring doctor and medical bills. He states all but $84.24 from his monthly annuity from the Federal Technician Program goes toward their medical insurance. He adds when he and his wife enrolled in the SBP prior to his retirement, they believed his wife's medical conditions would be controlled. However, since his retirement, the medical tests indicate problems with her heart and arteries. 3. He provides: * Self-authored statement * Medical document, dated 26 January 2015 * DD Form 2656 (Data for Payment of Retired Personnel), dated 8 February 2015 * National Guard Bureau (NGB) Form 22 (National Guard Report of Separation and Report of Service) * DD Form 2656-2 (SBP Termination Request), dated 5 November 2015 CONSIDERATION OF EVIDENCE: 1. On 2 January 2002, the applicant received his Notification of Eligibility for Retired Pay at Age 60 (20-year letter). 2. On 8 February 2005, he completed a DD Form 2656 electing coverage for spouse based on his full gross pay. He signed the form in Section XI (Certification) acknowledging, "I have been counseled that I can terminate SBP participation, with my spouse's written concurrence within one year after the second anniversary of commencement of retired pay." 3. The applicant's date of birth is 15 August 1955. 4. On 1 August 2015, he was honorably retired and placed on the retired list in the grade of major. 4. The applicant's record is void of a Reserve Component (RC) SBP election made at the time of his 20-year letter. 5. The applicant provides: a. A medical document, dated 26 January 2015, that shows his spouse was diagnosed with myotonic muscular dystrophy. b. A DD Form 2656-2, dated 5 November 2015, requesting termination of SBP. His spouse signed the form indicating "I concur with the decision to terminate participation in SBP and have signed this statement of my free will. I further understand that once my spouse/former spouse discontinues participation in SBP, he/she cannot reenter the Plan." REFERENCES: 1. 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. 2. 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 not occur before age 60, the RCSBP costs for options B and C are deducted from the member’s retired pay. 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 had the member died prior to age 60. 3. 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: 1. The evidence of record shows on 2 January 2002, the applicant received his 20-year letter. Although there is no indication he made a RCSBP election at that time, on 8 February 2015, he completed a DD Form 2656 electing coverage for his spouse based on his full gross pay. 2. The evidence further shows the applicant's spouse was diagnosed with myotonic muscular dystrophy prior to his election of SBP. At the time he made his election, the applicant assessed his personal situation and made the choice he believed was appropriate for his family. He signed the SBP certification acknowledging that he had been counseled that he could terminate SBP participation, with his spouse's written concurrence within one year after the second anniversary of commencement of retired pay. 3. It is unfortunate that the applicant is experiencing financial difficulties based on his spouse's changed medical condition; however, there is no evidence to show a Government error or an injustice occurred. 4. As cited above, the applicant has a 1-year period to withdraw from SBP beginning on the second anniversary of the date on which his retired pay started. A notarized statement from his spouse is required. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20150018864 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20150018864 4 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2