IN THE CASE OF: BOARD DATE: 16 February 2016 DOCKET NUMBER: AR20150007906 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests, in effect, correction of her record to show she elected not to participate in the Reserve Component Survivor Benefit Plan (RCSBP). 2. The applicant states, in effect: a. She received her Twenty Year Letter in October 2000. She went to her local Retirement Services Office and completed the DD Form 1883 (SBP Election Certificate). She selected option A, which would enable her to defer making a decision until age 60. The form was completed by her and her spouse on 30 October 2000. b. In February 2014, she turned in her retirement packet. She and her spouse rejected SBP and completed the documents in front of a notary at her local bank. The Reserve Center and the Defense Finance and Accounting Service (DFAS) were late processing her paperwork and she did not receive her retirement orders until January 2015. c. When she was finally paid in March 2015, she received a summary of her retired pay account, which showed DFAS was charging her for SBP and erroneously states that she elected RCSBP on 6 November 2000. 3. The applicant provides: * a self-authored statement * Retiree Account Statement * Notification of Eligibility for Retired Pay at Age 60 (Twenty Year Letter) * DD Form 1883 * SBP Fact Sheet * Orders C01-590269 * 3-page Summary of Retired Pay Account CONSIDERATION OF EVIDENCE: 1. The applicant served as a commissioned officer in the U.S. Army Reserve (USAR) from 30 May 1976 until she was transferred to the Retired Reserve effective 2 August 2004. 2. On 12 October 2000, the U.S. Army Reserve Personnel Command (AR-PERSCOM) issued a Twenty Year Letter to the applicant informing her she had completed the required years of qualifying service to be eligible for retired pay upon application at age 60. The letter stated: * she was entitled to participate in the RCSBP * she had 90 calendar days from the date she received the letter to submit a DD Form 1883 * if she did not submit her election within 90 calendar days, she would not be entitled to SBP coverage until she applied for retired pay at age 60 3. Effective 26 November 2014, she was placed on the Army of the United States Retired list upon reaching 60 years of age. 4. She provides a DD Form 1883, dated 29 October 2000. Section II (Marital, Dependency, and Election Status) shows she was married, had no dependent children, and selected Option A (Defer), which notes that she declined to make an election at the time. Section VI (Signatures) shows her spouse signed the form indicating he concurred with her election on 29 October 2000. 5. She also provides: a. a Retiree Account Statement, dated 12 March 2015, showing SBP costs in the amount of $638.58 were deducted from her retired pay for spouse-only SBP coverage and b. a Summary of Retired Pay Account, dated 12 March 2015, which shows she elected RCSBP on 6 November 2000. 6. Her records also contain a DD Form 2656 (Data for Payment of Retired Personnel), notarized 18 February 2014, which shows she elected not to participate in SBP and her spouse authenticated this action with his signature indicating he too concurred with the election not to participate in SBP. 7. 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. 8. Public Law 106-398, enacted 30 October 2000, required written spousal consent for a Reserve service member to be able to delay making an RCSBP election until age 60. The law is applicable to cases where a 20-year letter was issued after 1 January 2001. In other words, failure to elect an option now results in the default election of option C. DISCUSSION AND CONCLUSIONS: 1. The evidence of record shows the applicant completed a DD Form 1883, on 29 October 2000. Section II (Marital, Dependency, and Election Status) shows she was married, had no dependent children, and that she selected Option A (Defer), which notes that she declined to make an election at the time. Section VI (Signatures) shows her spouse signed the form indicating he concurred with her election on 29 October 2000. 2. Based on her completion of the DD Form 1883, she made the reasonable assumption that she had no RCSBP election. When she applied for retired pay, she confirmed her decision not to participate in the program via DD Form 2656, and her spouse concurred. Because members of the Reserve components do not pay RCSBP premiums until they begin to receive retired pay, she was not aware she was being charged the premium until she began to receive retired pay. 3. In view of the foregoing, it is evident the applicant and her spouse elected not to participate in the RCSBP and that her paperwork was mishandled by government officials. As a result, her RCSBP/SBP spousal coverage should be terminated and any RCSBP/SBP costs that have been deducted from her retired pay should be refunded to her. BOARD VOTE: ____X____ ___X_____ ___X_____ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined that the evidence presented was sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by showing that on 29 October 2000 she deferred her RCSBP/SBP election until reaching age 60 and that on 14 February 2010 she declined SBP coverage with her husband properly concurring in both decisions. Any RCSBP/SBP costs that have been deducted from her retired pay should be refunded. ____________X___________ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. ABCMR Record of Proceedings (cont) AR20150007906 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20150007906 4 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1