RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2021-00478

XXXXXXXXXXXX	COUNSEL: NONE

	HEARING REQUESTED: NO 

APPLICANT’S REQUEST

His election of benefits under the Reserve Component Survivor Benefit Plan (RCSBP) be changed.  Specifically, to show he made a timely election for immediate spouse coverage.

APPLICANT’S CONTENTIONS

Upon his retirement from the Air Force Reserve at age 60 on 23 December 2020, he noticed that his retirement pay statement did not show he made an RCSBP election. He did indicate on his retirement application that his default RCSBP election is Option C, which is full immediate coverage for his spouse. He always planned on participating in the RCSBP and is sure he never declined coverage.  

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air Force Reserve lieutenant colonel (O-5).

On 12 May 2009, according to ARPC Form 64, Reserve Component Survivor Benefit Plan Election Change, the applicant elected Option C, Immediate Annuity for spouse, based on full retired pay.  The option changed the annuity from his former spouse #1 (Divorced on                26 November 2008) to former spouse #2, he married on 28 March 2009 [Divorced on 13 October 2011].

On 25 Jun 13, according to a Certificate of Marriage, provided by the applicant, he married his current spouse #3.

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

APPLICABLE AUTHORITY

10 U.S.C. § 1448(a)(2)(B).  “Participants in the plan.  The Plan applies to the following persons, who shall be participants in the Plan: … Reserve-component annuity participants.  A person who (i) is eligible to participate in the Plan under paragraph (1)(B), and (ii) is married or has a dependent child when he is notified under section 12731(d) of this title that he has completed the years of service required for eligibility for reserve component retired pay, unless the person elects (with his spouse's concurrence, if required under paragraph (3)) not to participate in the Plan before the end of the 90-day period beginning on the date on which he receives that notification.”  

DoD 7000.14-R, Volume 7B, paragraph 540402.  “A member electing to participate must designate an immediate election, a deferred election, or indicate a decision to delay the election until reaching retirement age. These are described as Options A, B, or C.” 

DoD 7000.14-R, Volume 7B, paragraph 5408.  “The Government does not subsidize the cost of providing RCSBP coverage under the immediate or deferred annuity option, but the members and beneficiaries who potentially will benefit from the coverage share the cost.   The cost to the retiree, known as the Reserve Component Premium, is in the form of an additional deduction from his or her retired pay beyond the Standard Premium.  The RCSBP, unlike SBP, requires a reduction in the survivor annuity.  That reduction, known as the Survivor’s Annuity Premium Deduction, begins when the survivor begins to receive an annuity.  The Reserve Component Premium and the Survivor’s Annuity Premium Deduction increase at the same time and by the same percentage that retired pay increases by cost-of-living adjustments.”  

AIR FORCE EVALUATION

ARPC/DPTT recommends granting the application. RCSBP extends eligibility to the Survivor Benefit Plan (SBP), to Reserve Component members, who would otherwise be eligible to receive retired pay, except they have not yet reached retirement age. RCSBP allows members to provide an annuity based on their retired pay, to qualified survivors, upon the death of a member. Members of the Air Force Reserve and Air National Guard are sent a certified letter of their eligibility for RCSBP and an explanation of the program and guidance on making elections.

The applicant completed 20 satisfactory years on 13 March 2006, and received notification of RCSBP eligibility and election materials on or around 18 May 2006. The applicant’s personnel record does not include the PS Form 3811, Domestic Mail Receipt, or ARPC Form 123, Reserve Component Survivor Benefit Plan Election Certificate; however, the election of Option C, Provide an immediate survivor annuity beginning on the day after death for spouse, effective    21 June 2006, in the member’s Military Personnel Data System (MilPDS) record, supports the applicants claim of returning election materials within the timeframe prescribed by law. Additionally, the applicant updated his election on 12 May 2009, to add his current [former] spouse as a beneficiary, and acknowledged making a previous election in Section III, Block 14, of ARPC Form 64.

 On 5 December 2008, the applicant divorced his spouse. According to the final divorce decree and a qualified domestic relations order in the applicant’s personnel record, a provision to provide former spouse coverage was not ordered by the court. The spousal coverage which was elected by the applicant on 21 June 2006, remained in effect, but in a suspended status due to his beneficiary losing eligibility upon divorce. The applicant remarried on 28 March 2009, and submitted ARPC Form 64 on 12 May 2009, which was within the one year timeframe prescribed by-law. This election was made to resume coverage at the previous elected level for his newly acquired spouse.

On 13 October 2011, the applicant divorced his spouse. According to the final divorce decree and a qualified domestic relations order in the applicant’s personnel record, a provision to provide former spouse coverage was not ordered by the court. The applicant did not notify the Air Reserve Personnel Center (ARPC) to make changes to his coverage which resulted in the spousal coverage elected at notification of eligibility to remain in effect, but in a suspended status and the applicant’s former spouse in an ineligible beneficiary status, effective 13 October 2011.

The applicant married his current spouse on 25 June 2013, and did not notify ARPC to make changes to his election within one year immediately following remarriage, which resulted in the applicant’s new spouse automatically becoming an eligible beneficiary, as though the member had made an election to resume the previously suspended coverage. Coverage for the applicant’s new spouse resumed on 25 June 2014, at the level in effect before the remarriage, Option C, Provide an immediate survivor annuity beginning on the day after death for spouse, and costs began accruing on the same date.
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 6 May 2021, for comment (Exhibit D), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was timely filed.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.   After reviewing all Exhibits, the Board concludes the applicant is the victim of an error or injustice.  The Board concurs with the rationale and recommendation of ARPC/DPTT and finds a preponderance of the evidence substantiates the applicant’s contentions.  Therefore, the Board recommends correcting the applicant’s records as indicated below.

RECOMMENDATION

The pertinent military records of the Department of the Air Force relating to APPLICANT be corrected to show:

a. He elected Option C, Provide an immediate survivor annuity beginning on the day after death for spouse, effective 21 June 2006.

	b. Premiums should be calculated to account for periods when spouse coverage was suspended and he did not have an eligible beneficiary.

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-2021-00478 in Executive Session on 22 July 2021:

, Panel Chair
, Panel Member
, Panel Member

All members voted to correct the record.  The panel considered the following:

Exhibit A:	Application, DD Form 149, w/atchs, dated 11 February 2021.
Exhibit B:	Documentary Evidence, including relevant excerpts from official records.
Exhibit C:	Advisory, ARPC/DPTT, dated 20 April 2021.
Exhibit D:	Notification of Advisory, SAF/MRBC to Applicant, dated 6 May 2021.

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.