RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2019-04131

XXXXXXXXXX	COUNSEL: NONE

	HEARING REQUESTED: NO

APPLICANT’S REQUEST

ARPC Form 123, Reserve Component Survivor Benefit Plan Election Certificate, be changed to eliminate his election of Option C (Immediate Annuity for Natural Person with Insurable Interest).

APPLICANT’S CONTENTIONS

According to DD Form 2656, Data for Payment of Retired Personnel, dated 29 Oct 18, he selected Option G (I elect not to participate in SBP).  His retirement pay is being assessed at approximately $600 per month.  His previous election in 2007 was in error as the documentation provided was not clearly understood or explained.  In support of his request, the applicant provides a letter, not dated, addressed to the Defense Finance Accounting Service (DFAS) requesting he be discontinued in the RCSBP in accordance with Title 10, United States Code, Section 1448a (Title 10 U.S.C § 1448a).  In this letter, he states the erroneous RCSBP election in 2007 was a misinformed choice.  To the best of his knowledge, he submitted the form while deployed and without knowledge there was any cost associated to the benefit program.  If anything, he thought he had to select someone as a beneficiary to any remaining pay funds.  He is single and has no dependents.  

The applicant’s complete submission, with attachments, is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air Force colonel (O-6) awaiting retired pay at age 60.

On 16 Jul 07, the applicant received his 20-year letter informing him that he was eligible to participate in the RCSBP.  

On 5 Sep 07, according to ARPC Form 123, the applicant elected Option C (Immediate Annuity for Natural Person with Insurable Interest) for his sister.

On 29 Oct 18, per DD Form 2656, Data for Payment of Retired Personnel, the applicant selected Option G (I Elect Not to Participate in SBP). 

For more information, see the excerpt of the applicant’s record at Exhibit B and the advisory at Exhibit C.

APPLICABLE AUTHORITY

Title 10 U.S.C. §1448(b)(1), Coverage for person with insurable interest

(a) General rule.  A person who is not married and does not have a dependent child upon becoming eligible to participate in the Plan may elect to provide an annuity under the Plan to a natural person with an insurable interest in that person.

(b) Termination of coverage.  An election under subparagraph (a) for a beneficiary who is not the former spouse of the person providing the annuity may be terminated.  Any such termination shall be made by a participant by the submission to the Secretary concerned of a request to discontinue participation in thehttps://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=10-USC-2490185-128516310&term_occur=999&term_src= Plan, and such participation in thehttps://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=10-USC-2490185-128516310&term_occur=999&term_src= Plan  shall be discontinued effective on the first day of the first month following the month in which the request is received by the Secretary concerned.

AIR FORCE EVALUATION

ARPC/DPTT recommends denying the application.  There is no evidence of an error or injustice. On 5 Sep 07, the applicant made his initial RCSBP election on ARPC Form 123, selected Option C, and named his sister as his beneficiary.  However, under Title 10 U.S.C. §1448(b)(1)(b) the applicant may voluntarily terminate SBP insurable interest coverage.  The deductions will be prorated based on the number of months the coverage was in effect.  Insurable interest coverage may be arbitrarily discontinued at any time by submitting a written request to DFAS.  

The complete advisory opinion is at Exhibit C.

APPLICANT’S REVIEW OF AIR FORCE EVALUATION

The Board sent a copy of the advisory opinion to the applicant on 20 Feb 20 for comment (Exhibit D), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was timely filed.

2.  The applicant did not exhaust all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is not the victim of an error or injustice.  The Board concurs with the rationale and recommendation of AFPC/DPTT and finds a preponderance of the evidence does not substantiate the applicant’s contentions.  As noted in the ARPC/DPTT advisory, insurable interest coverage may be arbitrarily discontinued at any time by submitting a written request to DFAS.  Therefore, the Board recommends against correcting the applicant’s records.

RECOMMENDATION

The Board recommends informing the applicant the evidence did not demonstrate material error or injustice, and the Board will reconsider the application only upon receipt of relevant evidence not already presented.

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2019-04131 in Executive Session on 28 May 20:

, Panel Chair
, Panel Member
, Panel Member

All members voted against correcting the record.  The panel considered the following:

Exhibit A:	Application, DD Forms 149, w/atchs, dated 22 Aug 19.
Exhibit B:	Documentary evidence, including relevant excerpts from official records.
Exhibit C:	Advisory opinion, ARPC/DPTT, dated 28 Jan 20.
Exhibit D:	Notification of advisory, SAF/MRBC to applicant, dated 20 Feb 20.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings, as required by AFI 36-2603, paragraph 4.11.9.