Description: FullIf you elect full coverage, the cost of SBP coverage will be based on your full gross pay. For example, if you receive $1,000 of retired pay each month, and elect full SBP coverage, your monthly cost to cover your spouse under the plan will be $65 each month. Reduced You can also elect a lower level of SBP coverage.
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: 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: Example: After a 12-year marriage, a court divides a military retirement with 70% to the military member and 30% to the former spouse, but orders the spouses to share the SBP premium costs equally. The member is effectively paying 70% of the premium because it is deducted from the retirement prior to receiving his/her share.
Description: Monthly SBP costs are not included in your taxable Federal income. The true cost for SBP is therefore less than the amount deducted from retired pay because less Federal tax will be paid. As an example, if you are in the 28 percent Federal and State tax bracket, the true cost of a $100 SBP premium is $72.
Description: In most cases, costs to participate are deducted from the retiree's monthly pay and are based on the amount of coverage a retiree elects. The SBP election does not entitle the beneficiary named for SBP to Arrears of Pay (AOP).
Description: The SBP premium for spouse coverage is the lower of either: (1) 6.5 percent of the designated base amount ... A cost computation can be obtained by contacting an SBP counselor at the nearest military installation. ... SBP costs for insurable interest coverage are 10 percent of the member's gross .
Description: The law establishing Paid-up SBP does not allow for refunds of premiums paid before October 1, 2008, even though a retiree may have reached age 70 and made 360 or more premium payments. Those ...
Description: The SBP/RCSBP cost refund will be applied to any SBP/RCSBP overpayment or other indebtedness, and a check for the remaining balance, if any, will be forwarded to the annuitant. The SBP/RCSBP cost refund may be taxable if the retiree paid the SBP/RCSBP costs from the retired pay taxable income.
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