ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 8 April 2019 DOCKET NUMBER: AR20160012772 APPLICANT REQUESTS: Disenrollment from the Survivor Benefit Plan (SBP). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * DD Form 1883 (Survivor Benefit Plan Election Certificate) * DD Form 2656-6 (SBP Election Change Certificate) FACTS: 1. The applicant did not file within the three year time frame provided in Title 10, United States Code (USC), section 1552 (b); however, the Army Board for Correction of Military Records conducted a substantive review of this case and determined it is in the interest of justice to excuse the applicant's failure to timely file. 2. The applicant states: * in 2000, while in the Army National Guard, she enrolled for SBP Option B (Age 60) – insurable interest * without receiving any briefings or explanation regarding SBP or costs, she thought she needed to pick someone to receive her retirement pay * the document she signed to select her elections does not fully explain the costs * during her retirement briefs she learned the specific costs associated with electing the Insurable Interest coverage * she has terminated the Option B election, but wants to have the election nullified and voided from the DD Form 2656-6 and be absolved of any obligations to costs * had she been fully informed, she would have chosen option A instead, since she had no eligible dependents 3. The applicant received from the California Army National Guard her 20-year letter on 6 Aug 2000. 4. A DD Form 1883 signed by the applicant on 9 September 2000, shows: * in section II – Marital, Dependency, and Election Status, the applicant checked the boxes that stated she was not married and did not have dependent children * in item 8 of section II, she selected the type of coverage for insurable interest * in item 9c, she elected Option B (age 60) * in section IV – Insurable Interest Coverage, the applicant listed her sister 5. On 21 June 2016, the applicant requested to suspend her coverage for SBP on a DD Form 2656-6 (SBP Election Change Certificate). She endorsed and a witness signed. The DD Form 2656-6 (SBP Election Change Certificate) is in the applicant’s service records. 6. Orders Number 16-181-00020, dated 29 June 2016, shows the applicant was honorably released from the U.S. Army Reserves on 1 September 2016 and was placed in the retired reserve. 7. Public Law 95-397, enacted 30 September 1978, provided a way for Reserve Component (RC) members who qualified for Reserve retirement, but were not yet age 60 and eligible to participate in the SBP, to provide an annuity for their survivors should they die before reaching age 60. The applicant elected Option B – Insurable Interest, which allows a beneficiary receive an annuity if the RC member dies before age 60, but delay payment of it until the date of the member's 60th birthday. 8. 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. BOARD DISCUSSION: After review of the application and all evidence, the Board determined there is sufficient evidence to grant relief. The applicant’s contentions were carefully considered. The applicant requested to suspend her insurable interest coverage prior to retirement. NIP coverage can be terminated by the member at any time. Based upon the preponderance of evidence, the Board agreed the applicant’s SBP election should be terminated as requested. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 :X :X :X GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION 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 showing she made a timely request to terminate SBP coverage, and it was approved prior to her placement in the Retired Reserve. 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. ADMINISTRATIVE NOTE(S): Not Applicable REFERENCES: 1. Title 10, USC, section 1552(b), provides that applications for correction of military records must be filed within three years after discovery of the alleged error or injustice. This provision of law also allows the Army Board for Correction of Military Records (ABCMR) to excuse an applicant's failure to timely file within the three-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so. 2. Public Law 95-397, enacted 30 September 1978, provided a way for Reserve Component members who qualified for Reserve retirement, but were not yet age 60 and eligible to participate in the SBP, to provide an annuity for their survivors should they die before reaching age 60. a. Three options were available: • Option A - elect to decline enrollment and choose at age 60 whether to start SBP participation • Option 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 • Option C - elect that a beneficiary receive an annuity immediately upon their death if before age 60 b. Once a member elects either option B or option 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 - the options automatically roll 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. 3. 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. //NOTHING FOLLOWS//