RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER:  BC-2021-01369

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 coverage for his adopted child.

APPLICANT’S CONTENTIONS

At the time of his 26-year retirement decision, his son was 8-years old, and he chose Spouse/Child only coverage at that time.  Upon his age 60 retirement, his son was 22-years old and not in college, making him ineligible for RCSBP coverage.  He has, since that time, adopted a child and wants to add her to his RCSBP.   He submitted a new DD Form 2656, Data for Payment of Retired Personnel, to the Defense Finance and Accounting Service (DFAS), on 2 Sep 20.  He received a letter from DFAS, dated 6 Oct 20, denying his request.  He believes this decision is incorrect based upon the fact that at the time of his actual retirement at age 60, he did not have an eligible child to decline; therefore, he still had the option to add a child in the future.

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air Force Reserve chief master sergeant (E-9) receiving retired pay.

On 23 Aug 95, ARPC/DPTT sent the applicant the standard Notification of Eligibility 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 Nov 95, according to ARPC Form 123, Reserve Component Survivor Benefit Plan Election Certificate, the applicant responded that he was not married, had no children, and elected Option C (Immediate Annuity for Natural Person with Insurable Interest) based on full retired pay.

On 20 Jan 97, according to ARPC Form 64, Reserve Component Survivor Benefit Plan Election Change, the applicant terminated coverage for his insurable interest, changed his marital status to “Yes”, his dependent children to “Yes”, and elected coverage under Option C (Immediate Annuity, for Spouse Only), at the Full Retired Pay level.

On 1 Mar 01, according to Reserve Order XXXX, dated 12 Jan 01, the applicant was assigned to the Retired Reserve Section and placed on the Air Force Reserve Retired List.  

On 18 Jun 15, according to DD Form 2656, Data for Payment of Retired Personnel, the applicant elected coverage for Spouse Only (marked “do not have dependent children”), based on full gross pay.  

On 20 Jul 20, according to documentation provided by the applicant, in the Probate County Court, the applicant’s Amended Final Decree of Adoption was approved.

On 6 Oct 20, according to documentation provided by the applicant, DFAS notified the applicant he was unable to enroll his dependent child for RCSBP coverage as he previously elected to exclude his dependent from the plan.

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 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 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 Instruction (DoDI) 1332.42, Survivor Benefit Plan, Section 4. Notification and Election, paragraph 4.4. Making or Changing an Election After Retirement or NOE, subparagraph e. Electing Coverage for Newly Acquired Child:

(1) A member who does not have a dependent child when the member initially became eligible to participate in SBP or RCSBP, but later acquires a dependent child, may elect to participate in SBP or RCSBP.  If the Service member or retiree is already an SBP or RCSBP participant, he or she may elect to add child coverage, by submitting a signed, written election on the DD Form 2656-6.  This election must be received by the Secretary concerned within the 1-year period immediately after acquiring the dependent child.

(2) A member who did not elect child coverage for a dependent child, either at the time of becoming eligible for retired pay (if applicable) or within one year of acquiring the first dependent child, may not elect child coverage for subsequently acquired dependent children unless otherwise provided by law. 
AIR FORCE EVALUATION

ARPC/DPTT recommends denying the applicant’s request to add a recently adopted child as his Survivor Benefit Program beneficiary.  The applicant was sent a certified letter of his eligibility for RCSBP and an explanation of the program cost and guidance on making elections.

On 16 May 95, the applicant completed 20 satisfactory years of service.  On 4 Sep 95, he received notification of RCSBP eligibility and election materials.  The applicant returned the ARPC Form 123 with his desired election, within the 90-day timeframe prescribe by law, electing Option C – provide an immediate survivor annuity beginning on the day after death for natural person with insurable interest, effective 24 Nov 95.

A covered participant who did not have a spouse when they were initially eligible for RCSBP, who later marries, may elect within one year of marriage to cover their new spouse.  If the previous election was for an insurable interest beneficiary, that coverage must be terminated in order to cover the new spouse.  On 15 Jun 96, the applicant married his current spouse, and on 20 Jan 97, he completed the ARPC Form 64, electing to cancel insurable interest coverage and add coverage for his spouse only.

Program participants may elect to add child coverage, by submitting a signed, written election within the 1-year period immediately after acquiring the dependent child.  However, in accordance with DoDI 1332.42, Section 4, paragraph 4.4(e)(2), service members that decline coverage for a dependent child, either at the time of becoming eligible for retired pay or within one year of acquiring the first dependent child, may not elect child coverage for subsequently acquired dependent children.

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 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 changed his coverage election from insurable interest to spouse only on his ARPC Form 64, dated 20 Jan 97; thereby, declining coverage for any eligible dependent child and subsequently acquired dependent children.  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-2021-01369 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 11 Jan 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 20 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.