ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


	IN THE CASE OF:  

	BOARD DATE:  18 October 2019

	DOCKET NUMBER:  AR20170010685

APPLICANT REQUESTS:  correction of her military records to terminate her Survivor 
Benefit Plan (SBP) coverage.

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), dated 20 May 2017
*	DD Form 1883 (Survivor Benefit Plan Election Certificate)
*	DD Form 2656 (Data for Payment of Retired Personnel)

FACTS:

1.  The applicant states:

	a.  She chose to retire from the Texas Army National Guard (TXARNG) upon her 
acceptance of a consulting job that required her to travel out of town on Sunday and 
return home on Friday every week.  The travel made her weekend drill and annual 
training attendance extremely difficult.  

	b.  When making her SBP election a unit representative advised her:

*	Reserve Component Survivor Benefit Plan (RCSBP) provided her an 
opportunity to cover her husband through her “gray” retirement years, the 
years upon her release from military service to her 60th birthday, when she 
would begin collecting retired pay
*	her election was irrevocable through the “gray” period only
*	she was required to designate a permanent SBP election upon completion of 
her application for retired pay at age 60

	c.  She elected full SBP coverage because she was at a higher risk of death due to 
her weekly travel by air and because her she earned a higher income, to prevent her 
spouse from suffering significant financial hardship, in the event of her death.

	d.  She never intended to continue SBP at age 60 for the following reasons that were 
clearly communicated to her unit representative.
*	her husband would collect his own retirement prior to the time she was 
required to make a permanent SBP election
*	her husband is ten years her senior and it was statistically unlikely that she 
would predecease him, if she survived to reach 60 years of age

	e.  She declined SBP coverage upon completion of her retirement packet in 2016. 
Her husband signed the DD Form 2656 and it was notarized, clearly indicating they did 
not want this coverage.

	f.  Upon receipt of her first retirement payment she saw a SBP premium deduction 
and began to clarify her attentions to stop this coverage and premiums.  She was 
ultimately advised by DFAS personnel to appeal to this Board.

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

	a.  She was born on 24 August 1956, and initially enlisted Army on 28 January 1976.  
The available record does not identify the specific component.

	b.  She and her husband were married on 

	c.  On 26 April 1996, the Director, Military Personnel, Adjutant General’s 
Department, TXARNG, issued the applicant a Notification of Eligibility for Retired Pay at 
Age 60 (20-year Letter).

	d.  On 1 June 1996, the applicant completed a DD Form 1883 (Survivor Benefit Plan 
Election Certificate) which shows she elected to participate in the RCSBP for spouse 
only coverage at the full rate under Option C (Immediate coverage).  Section II (Marital, 
Dependency, and Election Status) concludes with final inscription:  "IMPORTANT:  The 
decision you make with respect to participation in this Survivor Benefit Plan is a 
permanent irrevocable decision.  Please consider your decision and its effect very 
carefully." Both the applicant and her spouse authenticated this document with their 
signatures on 1 June 1996.

	e.  U.S. Army Human Resources Command (HRC), published Orders
Number C07-696994, dated 29 July 2016.  It directed the applicant’s retirement and 
placement on the Retired List in the rank of MSG with an effective date of 24 August 
2016.



BOARD DISCUSSION:

After reviewing the application and all supporting documents, the Board found relief was 
warranted.  The applicant’s contentions were carefully considered.  Evidence of record 
shows she requested retired pay at age 60, and elected not to participate in the SBP in 
which her spouse concurred.  The form was completed before her 60th birthday on 24 
May 2016.  However, her SBP election was not terminated.  The Board agreed to 
terminate the SBP election and provide reimbursement of fees.

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 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 she properly 
declined the Survivor Benefit Plan (SBP) on 24 May 2016, with proper spousal 
concurrence, and her election was received and processed in a timely manner by the 
appropriate DFAS office.  Such relief should result in the repayment of any previously 
paid SBP premiums.  

	  
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.





REFERENCES:

1.  Public Law 92-425, enacted on 21 September 1972, established the SBP.  The SBP 
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, enacted 30 September 1978, established the RCSBP.  The 
RCSBP provided a way for those who had qualified for reserve retirement but were not 
yet age 60 (and eligible to participate in SBP), to provide an annuity for their survivors 
should they die before reaching age 60.  Three options are available.  If death occurs 
before age 60, the RCSBP costs for options B and C are deducted from the annuity.

*	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

3.  Title 10 of the United States Code, section 11452(a) (1)(B), provides the legal 
authority for reduction in retired pay for RCSBP participants.  It states, in pertinent part, 
that in the case of a participant in the RCSBP who provided coverage for an eligible 
beneficiary during a period before becoming entitled to receive retired pay, the retired 
pay of the participant shall be reduced by an amount prescribed under regulations by 
the Secretary of Defense to reflect the coverage provided under the Plan during the 
period before the participant became entitled to receive retired pay.  

4.  Public Law 105-85, enacted 18 November 1997, established the option to terminate 
SBP participation.  Retirees have a 1-year period, beginning on the second anniversary 
of the date on which their retired pay started to withdraw from SBP.  The spouse’s 
concurrence is required.  No premiums will be refunded to those who opt to disenroll.

//NOT APPLICABLE//

ABCMR Record of Proceedings (cont)	AR20170010685

4

1