MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           11 February 2000                   
	DOCKET NUMBER:   AR1999030475

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Ms. Margaret K. Patterson		Chairperson	
	Mr. George D. Paxson		Member	
	Mr. Thomas B. Redfern, III		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  In effect, that his records be corrected to show he declined to participate in the Survivor Benefit Plan (SBP).

APPLICANT STATES:  That he was told he could make an SBP election when he applied for retired pay, which he did in February 1998.  However, the Defense Finance and Accounting Service (DFAS) informed him that he elected the SBP on 24 January 1986.  He knew he had a 90-day time limit to make his election and this date is 98 days past the notification date.  He and his wife have no recollection whatsoever of making an SBP election in 1986.  He only became aware of this selection when he declined SBP coverage at the time he applied for retired pay and DFAS informed him he had already elected it.

EVIDENCE OF RECORD:  The applicant's military records show:

He was born on 6 December 1938.  After having had prior enlisted service in the U. S. Army Reserve (USAR), he was appointed a commissioned officer in the USAR in 1967.  

The applicant’s notification of eligibility for retired pay at age 60 (his 20-year letter) is dated 19 October 1985.  On 16 January 1986, the applicant completed DD Form 1883, Survivor Benefit Plan Election Certificate electing to participate in the Reserve Component SBP (RCSBP) for spouse only coverage, option B, full base amount.  His spouse also signed the DD Form 1883.  The front of the form clearly states “IMPORTANT:  The decision you make with respect to participation in this Survivor Benefit Plan is a permanent irrevocable decision.  Please consider your decision and its effect very carefully.”  The three options available are clearly explained on the reverse side of the form, just above the signature blocks.

On 6 February 1998, the applicant completed DD Form 2656, Data for Payment of Retired Personnel and checked item 28g electing not to participate in the SBP. SBP costs were taken out of his retired pay, he queried DFAS about it and DFAS informed him he could not change the coverage he had elected on 24 January 1986.

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 (and participate in SBP), 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 (costs for option C being the more expensive).  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 should the member have died prior to age 60.

Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation.  Retirees have a one-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.  Reservists who elected an option under the RCSBP will continue to have the Reservist Portion cost deducted from their retired pay.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:

1.  The applicant probably was told he could make his SBP selection when he applied for retired pay.  However, he would have had to elect RCSBP option A or not make an RCSBP election within 90 days in order for this to occur.  The evidence of records shows he elected option B, not option A, and that he made his election on 16 January 1985, within 90 days of the date of his 20-year letter.  (The Board presumes that the 24 January 1986 date mentioned by DFAS is the date DFAS processed his election.)  The options are clearly explained on the reverse side of the DD Form 1883.  An RCSBP election of either options B or C, once made, is irrevocable and rolls over into the SBP.

2.  However, as the applicant became eligible to draw retired pay on 6 December 1998, he will have a one-year period in which to terminate his SBP enrollment beginning on 6 December 2000.  He is encouraged to contact the nearest Retirement Services Officer prior to making his decision for more information.

3.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

__mkp___  __gdp___  __tbr___  DENY APPLICATION

Karl F. Schneider
Director, Army Review Boards Agency

INDEX

CASE ID	AR1999030475	
SUFFIX		
RECON		
DATE BOARDED	20000211	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	137.03	
2.		
3.		
4.		
5.		
6.