General facts about Survivor Benefit Program - little known benefit for troops February 06 2018, 0 Comments

THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE. YOU SHOULD STRONGLY CONSIDER THE BENEFITS OF CONSULTING WITH A TRAINED LEGAL PROFESSIONAL 

Here is what DFAS has to say:

https://www.dfas.mil/retiredmilitary/provide/sbp.html

Survivor Benefit Plan

Enrollment in an annuity plan is a decision that requires careful consideration. If you are considering enrolling in an annuity plan, you should review the:

• advantages
• Eligibility
• costs

The Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RC-SBP) and Retired Serviceman's Family Protection Plan (RSFPP) provide eligible beneficiaries with a form of benefit called an "annuity." An annuity is a monthly payment for the lifetime of the beneficiary. 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. In addition you can only leave an annuity to eligible beneficiaries.

Election to participate in these programs is generally made at the time of retirement, although some situations allow a retiree to add coverage after retirement. 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). A separate AOP designation has to be made in order to designate the desired individual.