ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


	IN THE CASE OF:  

	BOARD DATE:  22 August 2019

	DOCKET NUMBER:  AR20170019545


APPLICANT REQUESTS:  his record be corrected to show he did not elect Survivor 
Benefit Plan (SBP) coverage or, in the alternative, that the coverage be terminated as 
soon as possible

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: 

*	DD Form 149 (Application for Correction of Military Record)
*	A letter from the Defense Finance and Accounting Service (DFAS)
*	A Retiree Account Statement (RAS)
*	An SBP Termination Request form
*	Miscellaneous identity documents

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:

     a.  When he retired from the Army at Fort Huachuca, Arizona, he and his wife did not 
understand nor were they informed that the SBP program was an “annuity life 
insurance” base program for thirty years of payments at $318.47 per month, which 
would cost them in total over $114,649.  They have now paid into the program for 
seventy-seven months costing them over $24,522 thus far and understand they have 
been covered since retiring.  

     b.  They do not want nor do they need this SBP program.  He is ninety percent 
disabled through the Department of Veterans Affairs (VA) and they have other life 
insurance coverage.  Also, due to their ages, they would be into their eighties before 
monthly payments stop coming out of his retirement check.  The cost and benefit is not 
worth it to them.  He asks that the Board please stop the monthly cost from coming out 
of his retirement check now.  
3.  The applicant provides:

     a.  A RAS, dated 20 September 2017, showing that he has spouse and child 
coverage under SBP.

     b.  A DD Form 2656-2 (SBP Termination Request), dated 11 October 2017, showing 
he attempted to terminate his SBP coverage.  His wife signed the form concurring in the 
termination request before a Retirement Services Officer also vested with the powers of 
a notary public.

     c.  A letter from DFAS, dated 9 November 2017, denying his request to terminate 
SBP coverage because his request was submitted too late.

     d.  Miscellaneous identification cards for him and his wife, including driver’s licenses, 
retiree cards, and a VA Healthcare Enrollee card.

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

     a.  He enlisted in the United States Army Reserve on 3 June 1980.

     b.  A DD Form 2648 (Preseparation Counseling Checklist for Active Component 
Service Members), dated 31 March 2010, in which the applicant accepted preseparation 
counseling, including mandatory counseling regarding SBP. 

     c.  He retired for length of service on 30 June 2011.

5.  By law, a person who is married when he becomes entitled to retired pay is an SBP 
participant to the maximum extent authorized unless he elects, with his spouse’s 
concurrence, not to participate in the SBP or participate at a reduced level before the 
first day for which he is eligible for that pay. 

6.  Soldiers may, with spousal concurrence, discontinue SBP coverage at any time 
during the one-year period beginning on the second anniversary of the date on which 
payment of retired pay began.  No premiums are refunded.  
    
BOARD DISCUSSION:

After reviewing the application and all supporting documents, the Board determined 
relief was not warranted.  Based upon the first general instruction within Section I of DD 
Form 2656-2, the Board concluded that the applicant failed to discontinue participation 
within the permissible time period.  For that reason, the Board recommended denying 
the applicant’s requested relief.


BOARD VOTE:
Mbr 1	Mbr 2	Mbr 3

:	:	:	GRANT FULL RELIEF

:	:	:	GRANT PARTIAL RELIEF

:	:	:	GRANT FORMAL HEARING

X	X	X	DENY APPLICATION


BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or 
injustice.  Therefore, the Board determined the overall merits of this case are insufficient 
as a basis for correction of the records of the individual concerned.
	  
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.  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.  Title 10, USC, section 1448, addresses the application of the Survivor Benefit Plan 
(SBP) and Reserve Component Survivor Benefit Plan (RCSBP).  It states, in pertinent 
part:

     a. Eligible participants include persons entitled to retired pay (standard annuity 
participants) and persons who would be eligible for reserve component retired pay but 
for the fact that they are under 60 years of age (reserve component annuity 
participants).       

     b.  A married person who is entitled to retired pay shall be a participant unless he 
elects (with his spouse’s concurrence) not to participate in the Plan before the first day 
for which he is eligible for that pay.  

     c.  A person who is eligible to provide a standard annuity may not without the 
concurrence of the person’s spouse elect -- 

          (i)   not to participate in the Plan;
          (ii)  to provide an annuity for the person’s spouse at less than the maximum level; 
                or
          (iii) to provide an annuity for a dependent child but not for the person’s spouse

3.  Title 10 USC, section 1448a, states, in pertinent part, a participant in the Plan may 
elect to discontinue participation in the Plan at any time during the one-year period 
beginning on the second anniversary of the date on which payment of retired pay to the 
participant commences.  A married participant may not make such an election without 
the concurrence of the participant’s spouse.  

4.  The Department of Defense Financial Management Regulation directs statutory and 
regulatory financial management requirements, systems, and functions for all 
appropriated and non-appropriated, working capital, revolving, and trust fund activities. 
Volume 7B, Chapter 43, addresses SBP elections and election changes.  Paragraph 
430702 E states no premiums are refunded as a result of terminating coverage.  No 
premiums will be charged after the effective date of termination unless the member had 
RCSBP coverage.

//NOTHING FOLLOWS//

ABCMR Record of Proceedings (cont)	 AR20170019545

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