BOARD DATE: 6 February 2018 DOCKET NUMBER: AR20160004704 BOARD VOTE: ____x_____ ___x____ ___x_____ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration BOARD DATE: 6 February 2018 DOCKET NUMBER: AR20160004704 BOARD DETERMINATION/RECOMMENDATION: The Board determined the evidence presented is 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: a. showing he submitted a request to change his Survivor Benefit Plan annuity base amount to $4,000.00 during the open enrollment season from 1 October 2005 through 30 September 2006 and b. showing his request was timely received and processed by the Defense Finance and Accounting Service. _____________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. BOARD DATE: 6 February 2018 DOCKET NUMBER: AR20160004704 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 correction of his military records to show his Survivor Benefit Plan (SBP) annuity base amount as $4,000.00. 2. The applicant states: a. He served 29 years in the Regular Army, retiring on 1 June 2003 at the request of the Army National Guard so he could be appointed as a general officer in the Indiana Army National Guard. At the time he retired, he elected the minimum SBP retired pay base amount with the understanding he would be able to adjust it when he retired from the Army National Guard. b. He served in the Army National Guard from 18 April 2004 to his final retirement on 31 October 2015. At that time, his Regular retirement was converted to Army National Guard Non-Regular retirement. In conjunction with that action, he requested adjustment of his SBP retired base pay to $4,000.00, submitting a request through his retirement services office. By the end of December 2015, his retirement status and pay had been adjusted appropriately, but the SBP deduction did not show up. He waited an additional month to see if the deduction would show up, but it did not. c. The Defense Finance and Accounting Service indicated he would have to submit a request to the Army Board for Correction of Military Records to have the SBP base amount adjusted. 3. The applicant provides: * memorandum to the U.S. Army Human Resources Command, dated 29 October 2015 * DD Form 2656 (Data for Payment of Retired Personnel), dated 27 October 2015 CONSIDERATION OF EVIDENCE: 1. The applicant was born on 8 November 1952. 2. His records show he entered active duty as a commissioned officer in the Regular Army on 11 May 1974. 3. On an unknown date, presumably in conjunction with his Regular retirement, he elected SBP coverage for spouse only. 4. On 31 May 2003 at age 50, he retired in the rank of colonel after completing 29 years and 2 days of creditable active service. 5. He was appointed as a Reserve commissioned officer in the Indiana Army National Guard on 18 April 2004. 6. He was promoted to major general effective 26 May 2011. 7. He provided a memorandum to the U.S. Army Human Resources Command, dated 29 October 2015, requesting voluntary conversion of his Regular retirement in order to receive Army National Guard Non-Regular retirement benefits. The memorandum states: a. He requested conversion of his active duty Regular retirement to an Army National Guard Non-Regular retirement in the rank of major general effective 1 November 2015. b. He is not subject to the 2-year active service requirement following eligibility which is not required for members who received a Regular retirement after 27 October 2009. c. He completed 20 years of active Federal service as of 2003 and received his retired pay. He also entered the Army National Guard on 18 April 2004 and continued to serve as a Reserve commissioned officer until 31 October 2015. d. He and his spouse were again counseled about SBP coverage and made their election again. 8. He provided a DD Form 2656, dated 27 October 2015, showing he elected spouse coverage with a reduced base amount of $4,000.00. His spouse concurred with his SBP election. 9. On 31 October 2015 at age 62, he separated from the Indiana Army National Guard in the rank of major general and was assigned to the Retired Reserve. 10. He also provided a retiree account statement, dated 30 June 2017, showing his SBP annuity base amount as $758.52 for spouse coverage. 11. There is no evidence showing he received a 20-year letter. REFERENCES: 1. Title 10, U.S. Code, section 12731a, provides that Reserve Component Soldiers who complete the eligibility requirements will be notified in writing within 1 year after completion of the required service in accordance with Army Regulation 140-185 (Army National Guard and Army Reserve – Retirement for Non-Regular Service) or National Guard Regulation 680-2 (Automated Retirement Points Accounting Management). The Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter) will be issued to Soldiers credited with 20 years of qualifying service and should be issued prior to discharge or transfer to the Retired Reserve. 2. Title 10, U.S. Code, section 12741 (Retirement for Service in an Active Status Performed in the Selected Reserve of the Ready Reserve after Eligibility for Regular Retirement), states a person may elect to receive retired pay under this chapter instead of receiving retired or retainer pay if the person served in an active status in the Selected Reserve of the Ready Reserve after becoming eligible for retirement under chapters 65, 367, 571, or 867 of this title (without regard to whether the person actually retired or received retired or retainer pay under one of those chapters) and completed not less than 2 years of satisfactory service (as determined by the Secretary concerned) in such active status (excluding any period of active service). The Secretary concerned may reduce the minimum 2-year service requirement in the case of a person who completed at least 1 year of service in a position of adjutant general required under section 314 of Title 32 or in a position of assistant adjutant general subordinate to such a position of adjutant general; and failed to complete the minimum years of service solely because the appointment of the person to such position was terminated or vacated as described in section 324(b) of Title 32. 3. Department of Defense Financial Management Regulation 7000.14-R, Volume 7B (Military Pay Policy and Procedures – Retired Pay), chapter 7 (Active/Reserve Duty After Retirement), states a member who is entitled to Regular retired pay or retainer pay based on years of active service (without regard to whether the member actually retired or received retired or retainer pay for Regular service) and who serves in an active status as a member of a Reserve Component may apply for Reserve (Non-Regular) retired pay if the member has attained the Reserve retired pay eligibility age of 60 years and has performed at least 20 years of service qualifying for Reserve (Non-Regular) retirement. 4. Public Law 92-425, enacted 21 September 1972, established the SBP. The SBP provided that military members on active duty could elect to have their retired pay reduced to provide for an annuity after death to surviving dependents. 5. Public Law 95-397, the Reserve Component Survivor Benefit Plan, enacted 30 September 1978, provided a way for those who 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; and (C) elect that a beneficiary receive an annuity immediately upon their death if before age 60. 6. Public Law 108-375, enacted 28 October 2004, established an open enrollment season from 1 October 2005 through 30 September 2006. This law required that enrollees live 2 years from the effective date of election for beneficiaries to be eligible for an annuity. The retiree must have paid monthly premiums starting on the date of enrollment and a buy-in premium covering all the costs that would have been paid for the election if it had been made at the first opportunity to do so. Extensive publicity was given in Army Echoes, the official newsletter for retired Soldiers, surviving spouses, and families. DISCUSSION: 1. The applicant's retiree account statement shows his SBP annuity base amount is $758.52 for spouse coverage. He contends he elected the minimum SBP base amount with the understanding he could adjust it when he retired from the Army National Guard. He requests correction of his military records to show his SBP annuity base amount as $4,000.00. 2. The evidence shows: a. At age 50, he retired from the Regular Army on 31 May 2003 in the rank of colonel after completing 29 years and 20 days of active service. b. He was appointed as a Reserve commissioned officer in the Indiana Army National Guard on 18 April 2004 and he was promoted to major general effective 26 May 2011. c. On 31 October 2015 at age 62, he separated from the Indiana Army National Guard in the rank of major general and was assigned to the Retired Reserve. 3. He served 2 years as a State Adjutant General and by law he was eligible to convert from Regular retirement to Non-Regular retirement. 4. Since he was not a member of a Reserve Component until after he completed over 29 years of active service, he was never issued a 20-year letter. 5. As a member of a Reserve Component over the age of 60, he would be eligible to make an SBP election upon application for retired pay since he didn't make an RCSBP election at the 20-year point. 6. The Board may determine it would be equitable under these circumstances to correct his records to show he submitted a request to change his election during the open enrollment season from 1 October 2005 through 30 September 2006 and his request was received and approved in a timely manner. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20160004704 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20160004704 5 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2