RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER:  BC-2021-01189

XXXXXXXXXXXXX	COUNSEL:  NONE
	
	HEARING REQUESTED:  NO

APPLICANT’S REQUEST

His election of benefits under the Reserve Component Survivor Benefit Plan (RCSBP) be changed.  Specifically, to add current spouse coverage.  

APPLICANT’S CONTENTIONS

The applicant married his current spouse in Aug 11, at which time he made the mistake of not changing his RCSBP plan to his spouse instead of his daughter, who will fall off the plan in Sep 21.  He made this mistake, not the Air Force, but he would like for his spouse to receive his benefits if she is left alone.

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is an Air Force Reserve master sergeant (E-7) receiving retired pay.

On 5 Nov 04, ARPC/DPTT sent the applicant the standard Notification of Eligibility (NOE) for retired pay (20-year letter) informing him that he had completed the required years under the provisions of Title 10, United States Code, Section 12731 (10 U.S.C § 12731), and was entitled to retired pay upon application prior to age 60.  In addition, he was eligible to participate in the RCSBP and should receive detailed RCSBP information by certified mail within 60 days.  The letter included an attachment with information on RCSBP and instructions to reply within 90 days of receipt.  

On 24 Dec 04, according to ARPC Form 123, Reserve Component Survivor Benefit Plan Election Certificate, the applicant was unmarried and elected Option C (Immediate Annuity for Children Only) based on full retired pay.

On 2 Aug 18, according to DD Form 2656, Data for Payment of Retired Personnel, the applicant was married, had dependent children, and elected Spouse Only coverage.  

On 23 Dec 18, according to Reserve Order XXXXX, dated 15 Feb 19, the applicant was assigned to the Retired Reserve Section and placed on the Air Force Reserve Retired List.  

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

APPLICABLE AUTHORITY

DoD 7000.14-R, Volume 7B, paragraph 540404.  “Any Reserve member who does not have an eligible beneficiary when becoming eligible to participate in the RCSBP, who later marries or acquires a dependent child, may elect to participate in the RCSBP, if the election is completed within one year of acquiring a spouse or dependent child.”

DoD 7000.14-R, Volume 7B, paragraph 440202.   “The child is an eligible beneficiary only if the child is unmarried, and under age 18 (including a child serving on active duty in the Uniformed Services); at least 18 but under 22 and pursuing a full-time course of study in a recognized educational institution…”  

DoD 7000.14-R, Volume 7B, paragraph 540213.  “When a Reserve member participates in the RCSBP after first becoming eligible based on 20 qualifying years of satisfactory service, coverage for the member’s survivors commences but premiums are not paid until the member first becomes actually entitled to retired pay (usually age 60). Note: See also Chapter 1, subparagraphs 010208.F.1 through 5 which reduces the eligibility age below 60 years of age for a reservist to receive retirement pay. At that time, reductions in the member’s retired pay are made that are specifically related only to the RCSBP coverage that was already provided while the member awaited the requisite age of entitlement to retired pay. These reductions are the Reserve Component Premium. They are made after the member begins receiving retired pay for the RCSBP coverage that was provided before the member received retired pay. They are distinct from the Standard Premium (in paragraph 540212) which are reductions made for the SBP coverage that is provided after the member becomes entitled to retired pay. They are also distinct from the Survivor’s Annuity Premium Deduction.”

Public Law 105-261, Division A – Department of Defense Authorizations. Title VI – Compensation and Other Personnel Benefits. Subtitle D – Retired Pay, Survivor Benefits, and Related Matters. Section 642. Survivor Benefit Plan Open Enrollment Period. (d) Open Enrollment Period Defined. “The open enrollment period is the 1-year period beginning on March 1, 1999.”

Public Law 108-375, Division A – Department of Defense Authorizations. Title VI – Compensation and Other Personnel Benefits. Subtitle D – Retired Pay and Survivor Benefits. Section 645. One-Year Open Enrollment Period for Survivor Benefit Plan Commencing October 1, 2005. (f) Open Enrollment Period. “The open enrollment period under this section is the one-year period beginning on October 1, 2005.”

AIR FORCE EVALUATION

ARPC/DPTT recommends denying the applicant’s request to name his spouse as his RCSBP beneficiary.  The applicant did not elect coverage for his spouse within the one-year timeframe after they were married on 29 Sep 11.  Additionally, the applicant was afforded the opportunity to upgrade his election during two open enrollment seasons.

On 11 Aug 04, the applicant completed 20 satisfactory years of service, and on 5 Nov 04, he received notification of the RCSBP eligibility and election materials.  The applicant returned documentation with his desired election within the 90-day timeframe prescribed by law and was automatically enrolled based on his eligible beneficiaries, which resulted in Option C, provide an immediate survivor annuity beginning on the day after death for child only, effective 24 Dec 04.

A dependent child is the child of the member covered by RCSBP, who is unmarried and under 18 years of age, or at least 18 but under 22 years of age, and pursuing a full-time course of study or training in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution.  The applicant’s youngest child lost eligibility for SBP on 23 Sep 20.

All elections are irrevocable after the date the member is placed on the retired list or the passing of 90 days following NOE, with the exception of a few scenarios authorized by law.  A retired member who did not have a spouse or dependent child at retirement who acquires a spouse or dependent child after retirement or NOE, may change their election by notifying the Secretary concerned within one year after acquiring a spouse or dependent child.  If the previous election was for child RCSBP coverage, the member may elect to add spouse coverage, resulting in spouse and child coverage, with a recalculation of the premium effective as of the date of the first anniversary of the marriage.

Additionally, a retiree who qualifies and enrolls during an open enrollment period may change their election.  Congress declared 1 Mar 99 through 29 Feb 00 and 1 Oct 05 through 30 Sep 06 SBP Open Enrollment Seasons.  Members, who had previously elected less than full coverage or no coverage for their spouse/children, were afforded the opportunity to change their election to cover their families.

Service members are not billed for this program until they reach age 60 and start drawing retired pay.  If RCSBP Option C is elected, there is a Reservist portion cost added to the basic cost to cover the additional benefit and assured protection should the applicant die prior to age 60.  The applicant must now pay for the Reserve Component Cost in addition to the SBP premium cost. The Reserve Component Cost is the amount currently taken from applicant’s retired pay, used to pay for the premiums incurred prior to his 60th birthday, during the time when the applicant’s children were covered under RCSBP, but he was not paying premiums for the coverage.  The applicant will have premiums withheld from his retired pay account each month until he has paid for the coverage provided from the date of election, 24 Dec 04 until 23 Sep 20, the date the applicant’s children lost eligibility.

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 19 Jul 21 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 not 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 does not substantiate the applicant’s contentions.  The applicant did not make an election to add his spouse to his RCSBP coverage within the one-year anniversary of their marriage, as prescribed by law, nor did he take advantage of the two open enrollment periods approved by Congress.  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-2021-01189 in Executive Session on 28 Oct 21:

, Panel Chair
, Panel Member
, Panel Member

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

Exhibit A:	Application, DD Form 149, w/atchs, dated 27 Feb 21.
Exhibit B:	Documentary Evidence, including relevant excerpts from official records.
Exhibit C:	Advisory, ARPC/DPTT, dated 14 Jul 21.
Exhibit D:	Notification of Advisory, SAF/MRBC to Applicant, dated 19 Jul 21.

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.