ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


                   IN THE CASE OF:

                   BOARD DATE:  4 March 2019

                   DOCKET NUMBER:  AR20160013693


APPLICANT REQUESTS:  termination of her participation in the Reserve Component Survivor Benefit Plan (RCSBP) for "insurable interest."

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD:

* DD Form 149 (Application for Correction of Military Record Under the Provisions of Title 10, U.S. Code, Section 1552)
* DD Form 2656-5 (Reserve Component Survivor Benefit  Plan (RCSBP) Election Certificate)
* DD Form 2656-6 (SBP Election Change Certificate)

FACTS:

1.  The applicant states she requests her RCSBP be corrected to reflect her actual status, and avoid unnecessary charges upon her retirement.  After she received her 20 year letter, she assumed her fiancé' qualified as an insurable interest.  Therefore, she made that selection, believing they would be married by the time she retired (he is also her Power of Attorney).  However, they are not married, and it was never brought to her attention until a recent retirement briefing that she only qualified for "Option A" under the SBP.

2.  A review of the applicant’s service record shows:

	a.  She was born in XXXXXXXX and will reach 60 years of age in November 2023.  

	b.  She was appointed as a Reserve commissioned officer of the Army on 21 July 1988, for service in the Army National Guard (ARNG).  She attained the rank of lieutenant colonel (LTC).  

	c.  She received her Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter) on 23 September 2013. 

	d.  She completed a DD Form 2656-5 on 2 November 2013, wherein she indicated she was not married and had no dependent children.  She elected RCSBP coverage for "insurable interest," Option C (immediate annuity), based on the full amount of her retired pay.  She named her fiancé “Mih___” as the person who had insurable interest in her. 

		(1)  She authenticated the DD Form 2656-5 with her signature

		(2)  She acknowledged her understanding of the section that states "the decision you make with respect to participation in the SBP is permanent irrevocable decision.  Please consider your decision and its effects very carefully."

	e.  She was transferred to the Retired Reserve on 6 May 2016.

3.  The applicant provides a DD Form 2656-6, dated 19 July 2016.  She indicated she wanted to suspend her previously selected RCSBP coverage for "insurable interest," Option C (immediate annuity), based on the full amount.

4.  By law an insurable interest coverage for a beneficiary who is not a former spouse may be voluntarily terminated at any time by making a signed written request.  Requests to terminate insurable interest may be addressed to Defense Finance and Accounting Service (DFAS) at any time. There is no evidence she communicated her intent to terminate this coverage to DFAS.  

5.  The applicant's current application to this Board, dated 18 July 2016, could be accepted as sufficient to show she properly requested termination of SBP for a natural person with insurable interest.  

BOARD DISCUSSION:

After review of the application and all evidence, the Board determined there is sufficient evidence to grant relief.  The Board agreed the applicant will have the option to elect coverage if she marries in the future.



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 her DD Form 2656-6, dated 19 July 2016 was processed and approved in a timely manner to suspend her previously selected RCSBP coverage for "insurable interest," Option C (immediate annuity).

SIGNATURE:

								 			___________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.

ADMINSTRATIVE NOTES:  N/A

REFERENCES:

1.  Public Law 95-397, enacted 30 September 1978, provided a way for 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.  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

2.  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.  Since 5 October 1994, insurable interest coverage for a beneficiary who is not a former spouse may be voluntarily terminated at any time by making a signed written request via DD Form 2656-2 (SBP Termination Request) to do so that identifies a member by name and social security number.  Requests to terminate insurable interest may be addressed to DFAS at any time.

ABCMR Record of Proceedings (cont)	 AR20160013693
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