BOARD DATE: 23 March 2017 DOCKET NUMBER: AR20150017095 BOARD VOTE: _________ _______ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING __x______ __x______ __x_ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration BOARD DATE: 23 March 2017 DOCKET NUMBER: AR20150017095 BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. _________________________ 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. BOARD DATE: 23 March 2017 DOCKET NUMBER: AR20150017095 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: a. verification of his Reserve Component Survivor Benefit Plan (RCSBP) cost and b. correction of his military records to show he terminated his RCSBP coverage for a natural interest person (NIP) and elected Survivor Benefit Plan (SBP) spouse coverage. 2. The applicant states: a. His first issue is the amount he is being charged for SBP coverage. The RCSBP cost is $50.14 and the SBP cost is $436.00, for a total of $486.14. When he received his 20-year letter in 1994, he did not have a spouse or dependent children and he was advised by the unit administrator that he could provide the coverage to his father who was 71 years of age at that time. He was never advised of the exact amount of the cost, only that it wouldn't be much. Now he is being charged the base amount of 10 percent for every 5 years of age difference, up to the maximum allowed of 40 percent. His retired base pay is $1,090.00. Based on his research, the additional 30 percent should only be charged if his NIP is younger than him, not older. He wants his account reviewed for an error in the computation of the RCSBP and SBP costs. b. His second issue pertains to changing his SBP coverage from NIP to spouse coverage. At the time of his marriage in 1998, he took his marriage license and certificate to his unit administrator to make appropriate changes. The same unit administrator reviewed his DD Form 1883 (SBP Election Certificate) and told him he was enrolled and nothing more had to be done to transfer the coverage from his father to his spouse. On 4 September 2014, when he applied for his retired pay, he elected spouse coverage because that's the coverage he thought he had. Now he is being charged an extreme amount and has been told by the Defense Finance and Accounting Service that he can drop the coverage for his father (age 92), but he can't add his spouse because the action is not being requested within 1 year of his marriage. c. He questions why he is being charged so much for a person 31 years older than he is. If his father passes before him, which is more likely to happen, he questions why he can't he add his spouse as an annuitant if he continues to pay the SBP premium, or a more reasonable amount, for coverage for his father until he passes. d. He requests reduction of the charge for the current coverage to a more appropriate amount of his retired pay and authority to transfer the coverage to his spouse now or when his father passes. He notes that he has never had, nor does he now have, any health issues. In 1998, the Reserve Components did not have knowledgeable individuals in the units to provide accurate advice for the provisions of the RCSBP/SBP and he feels a fully trained Retirement Services Officer would have made certain the above-mentioned errors would have been avoided and he wouldn't be so unjustly treated. 3. The applicant provides: * retiree account statement, dated 19 December 2014 * DD Form 1883 * marriage license * DA Form 5960 (Authorization to Start, Stop, or Change Basic Allowance for Quarters, and/or Variable Housing Allowance) * Internal Revenue Service Form W-4 (Employee's Withholding Allowance Certificate) * DD Form 2656 (Data for Payment of Retired Personnel) CONSIDERATION OF EVIDENCE: 1. The applicant was born on 1 December 1954. 2. He enlisted in the Army National Guard on 14 September 1973. 3. On 26 October 1993, he was issued his Notification of Eligibility for Retired Pay at Age 60 (20-year letter). 4. His DD Form 1883, dated 7 July 1994, shows he elected RCSBP coverage for his father, as an NIP. 5. He married on 12 February 1998. 6. There is no evidence showing he submitted an election for SBP spouse coverage within 1 year of his marriage. 7. On 13 September 2005, he was honorably discharged from the Army National Guard and transferred to the U.S. Army Reserve Retired Reserve. 8. He provided a DD Form 2656, dated 4 September 2014, showing he elected SBP coverage for spouse and children. 9. He reached age 60 and he was placed on the Retired List effective 1 December 2014. 10. He provided a retiree account statement prepared on 19 December 2014, showing his SBP and RCSBP costs. REFERENCES: 1. Public Law 92-425, the SBP, enacted 21 September 1972, provided that military members could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. 2. 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 until the date of the member's 60th birthday; and (C) elect that a beneficiary receive an annuity immediately upon their death if before age 60. 3. Title 10, U.S. Code, section 1448(a)(5), provides that a person who is not married and has no dependent child upon becoming eligible to participate in the RCSBP, but who later marries or acquires a dependent child, may elect to participate in the SBP. Such an election must be written, signed by the person making the election, and received by the Secretary concerned within 1 year after the date on which that person marries or acquires that dependent child. 4. Public Law 103-337, enacted 5 October 1994, allowed SBP insurable interest participants whose beneficiary is not their former spouse to voluntarily terminate their participation in the SBP. Any such termination shall be made by a participant by the submission to the Secretary concerned of a written request to discontinue participation in the SBP. Such participation shall be discontinued effective on the first day of the first month following the month in which the request is received. Once participation is discontinued, benefits may not be paid in conjunction with the earlier participation in the SBP and premiums paid may not be refunded. DISCUSSION: 1. The applicant's request for verification of his RCSBP costs was noted. However, this is not a records correction and does not fall under the purview of this Board. Such a request should be directed to the Defense Finance and Accounting Service. 2. He requests to transfer his existing SBP NIP coverage to his spouse now or when his father passes. 3. The evidence of record shows he elected RCSBP coverage for his father, a person with insurable interest, on 7 July 1994. He was not married at the time. 4. The law provides that an RCSBP/SBP election for an insurable interest beneficiary may be terminated at any time without the concurrence of the beneficiary. 5. Although he would no longer be charged SBP NIP premiums upon termination of this coverage, he would continue to be charged RCSBP NIP premiums. These premiums pay for the protection afforded to his father from his July 1994 election through his termination of that election more than 21 years later. 6. In 1998 when he married, he had a 1-year period in which to submit an SBP election to provide coverage for his spouse. There is no available evidence showing he attempted to submit an election or that such an election was received or processed within 1 year of his marriage. There is also no independent evidence to show he was given incorrect advice by the unit administrator. The evidence shows only that he submitted a DD Form 2656 on 4 September 2014, 16 years following the date of his marriage. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20150017095 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20150017095 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2