MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           18 April 2002                   
	DOCKET NUMBER:   AR2001065902

	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.

	Mr. Carl W. S. Chun		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Ms. Barbara J. Ellis		Member	
	Mr. Ronald E. Blakely		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 did not enroll in the Reserve Component Survivor Benefit Plan (RCSBP).

APPLICANT STATES:  That he recently retired from the U. S. Army Reserve (USAR).  When he received his first Retiree Account Statement, he noticed there was a sizable deduction for SBP costs.  This surprised him since he had declined SBP two years previously when he received his retirement packet.  When he made inquiries, the Defense Finance and Accounting Service informed him that he had enrolled in the RCSBP ten years previously.  He remembered sending some form in but was under the impression it was part of his military insurance.  He had absolutely no idea it was some kind of irrevocable enrollment or he would never, never have signed it.  He was not in a troop unit then and had no one to call or have this explained to him.  The accompanying literature was vague at best and never indicated this program was irrevocable.  He provides his Data for Payment of Retired Personnel, DD Form 2656, and his September 2001 Retiree Account Statement as supporting evidence.

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

He was born on 12 September 1941.  After having had prior enlisted service in the Regular Army and the USAR, he was appointed a warrant officer in the USAR on 24 January 1981.  He was promoted to Chief Warrant Officer Three in military occupational specialty 351B (Counterintelligence Technician) on 3 April 1990.  His notification of eligibility for retired pay at age 60 (his 20-year letter) is dated 6 February 1991 and was sent to him by the Retired Activities Office, U. S. Army Reserve Personnel Center.

On 20 March 1991, the applicant completed and signed a Survivor Benefit Plan Election Certificate, DD Form 1883, electing to participate in the RCSBP for spouse and children coverage, full base amount, option C.  Section II of the DD Form 1883 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.”

On 13 October 1999, the applicant completed a DD Form 2656.  In section IX, item 26g, he checked that he did not elect to participate in the SBP.  His spouse signed in section XI concurring in his decision.

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 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.  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.  The effective date of termination is the first day of the first calendar month following the month in which the election is received by the Secretary concerned.

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 evidence of record shows that the applicant did complete a DD Form 1883 in 1991 enrolling in the RCSBP for spouse and children coverage.  The DD Form 1883 clearly stated that his decision with respect to participation in the SBP was a permanent irrevocable decision.  Although the applicant may not have been in troop unit at the time, he could have contacted a retirement services officer at the nearest military installation or contacted the Retired Activities Office, U. S. Army Reserve Personnel Center for information prior to completing the form.

2.  Had the applicant died after completing the DD Form 1883, his family would have received the benefits of the RCSBP.  He is bound by his election and must pay the cost of that coverage.  However, as he became eligible to draw retired pay on 12 September 2001, he will have a one-year period in which to terminate his SBP enrollment beginning on 12 September 2003.  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

__fne___  __bje___  __reb___  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2001065902	
SUFFIX		
RECON		
DATE BOARDED	20020418	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	137.03	
2.		
3.		
4.		
5.		
6.