Description: The Survivor Benefit Plan cost depends on the level of coverage you choose. SBP coverage is supplied at no cost while you are in active service. During your retirement, however, a monthly deduction is taken from your pay to pay for your SBP coverage. This can be no more than 6.5 percent of your gross retired pay. Review the coverage levels below.
Description: The amount of the benefit is a percentage of your retirement benefit based on your election. Enrollment in an annuity plan is not automatic and there are costs. If you are enrolled you will pay premiums for your SBP coverage.
Description: For existing SBP-electing retirees, it increases with future COLAs. If you became a member of a uniformed service on or after March 1, 1990, and you are retiring for length of service (not for disability), and you are not retiring under reserve retirement, SBP costs will be calculated only under the formula in (1) above.
Description: SBP spouse coverage costs 6.5% of the desired coverage. You can elect full or partial SBP coverage. DFAS will withhold 6.5% of your retirement pay for surviving spouse coverage.
Description: Think of the Survivor Benefit Plan (SBP) as an insurance policy, focused on protecting a survivor's income flow from the military retirement if the retiree dies first. It has a premium, and a payout in the form of a monthly payment from DFAS. Without SBP, if the retiree dies, the military retirement stops as well.
Description: At retirement, full basic SBP for spouse and children is automatic if you make no other valid election. You may not reduce or decline spouse coverage without your spouse's written consent. If you have a former spouse, it may affect your options. Select one of the SBP options for specifics on costs and benefits for that option: Spouse; Former Spouse
Description: SBP premiums are deducted from retired pay and since April of 2018, DFAS will deduct SBP premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the premiums. This deduction is due to a change in the law which requires DFAS to deduct SBP premiums from CRSC.
Description: regular retirement. For these Soldiers, two SBP spouse cost methods are available. The most advantageous one is used by DFAS. Note 1.SBP Cost Threshold Method: 2.5% of threshold amount + 10% of the remainder of base amount. Note 2.SBP Cost 6.5% Base Amount Method: 6.5% of the base amount.
Description: The 2020 Military National Defense Authorization Act has brought many changes to the Survivor's Benefit Plan. We are working on providing updated information about these changes and how they will impact the work service providers do with military families. Please check here for an updated post to be published July 28, 2020. By Carol Church.…
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