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AFH 1 · Chapter 11 · Section 11.9

Survivor Benefit Plan

Part of Communication · 2 sections · ~779 words · WAPS PFE study material

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Survivor Benefit Plan — Foundation and Line of Duty

What SBP Provides

SBP Foundation
Military pay stops when a member dies.
SBP Function
The survivor benefit plan provides a monthly income to survivors of retired military personnel upon the member's death.

Government Program

SBP Program
The survivor benefit plan is a government program for retiring members to ensure their eligible survivors receive a portion of their military retired pay as a monthly annuity after their death.

Cannot Be Outlived

SBP Spouse Cannot Outlive
The plan was structured so a surviving spouse cannot outlive the annuity, and cost-of-living adjustments are incorporated to offset inflation.

Automatic Coverage

Automatic SBP Coverage
RegAF members with a spouse or dependent children are automatically covered by the survivor benefit plan at no cost while they remain on RegAF status.

Line of Duty — Pre-Retirement Eligible

Pre-Retirement Death LOD
The member's death must be classified in 'line of duty' for an annuity to be payable if the member is NOT yet retirement eligible (has not accrued 20 years of RegAF status) on the date of death.

Annuity Calculation

55% Annuity (Total Disability)
The annuity payable is 55 percent of the retired pay the member would have been entitled to receive if retired with a total disability rating on the date of death.

Not in Line of Duty — Retirement Eligible

Not LOD But Retirement Eligible
An annuity may also be payable if the member's death is classified 'not in line of duty' as long as the member was retirement eligible on the date of death.

Annuity Calculation

55% Annuity (Years of Service)
In this case, annuity payable is 55 percent of the retired pay the member would have been entitled to receive if retired for years of service on the date of death.

Children-Only Election

Children-Only SBP
The surviving spouse of a member who dies in the line of duty while on RegAF status may request the survivor benefit plan be paid only to the member's children, avoiding the reduction caused by a spouse's receipt of dependency and indemnity compensation — the survivor benefits paid by the VA when a member's death is determined to have resulted from a service-connected cause.

Survivor Benefit Plan — Premiums, Coverage, Withdrawal, Paid-Up

Only Way to Pass Retired Pay

Only SBP Path
The survivor benefit plan is the ONLY program that enables a portion of military retired pay to be paid to a member's survivors.

Pre-Retirement Decision

Pre-Retirement SBP Decision
Prior to retiring, each member must decide whether to continue survivor benefit plan coverage into retirement.

Premium Deduction

SBP Premium Deduction
If electing coverage, survivor benefit plan premiums are assessed and automatically deducted from the member's monthly retired pay.

Subsidized and Pre-Tax

Premiums Subsidized + Pre-Tax
Premiums are government-subsidized and deducted from a participating member's retired pay before taxes.

Base Amount

SBP Base Amount Definition
Survivor benefit plan premiums and beneficiary annuity payments depend on what is called the "base amount" elected as the basis of coverage.

Base Amount Range

$300 Minimum Base Amount
A service member's base amount can be:
  • The full monthly retired pay
  • A portion of retired pay, down to $300

Full Coverage Definition

Full Coverage = Full Pay
Full coverage means full retired pay is elected as the base amount.

Cost of Living Connection

Base Amount + COLA
The base amount is tied to a member's retired pay; therefore:
  • When retired pay receives cost-of-living adjustments, so does the base amount
  • As a result, so do premiums and annuity payments

Withdrawal from SBP

One-Year Withdrawal Window
Under limited circumstances, Airmen may withdraw from the survivor benefit plan or change coverage.
Year 2-3 Window
As a survivor benefit plan participant, individuals have a one-year window to terminate survivor benefit plan coverage:

- Between the second and third anniversary following the date beginning receipt of retired pay

Premium Refund Status

No Refund
The premiums paid will not be refunded, and an annuity will not be payable upon death.

Spouse Consent

Spouse Consent Required
The covered spouse or former spouse must consent to the withdrawal.

Permanent Termination

Termination Permanent
Termination is permanent, and participation may not be resumed under any circumstance barring future enrollment.

Paid-Up Feature

Paid-Up at 70 + 360 Months
The survivor benefit plan also has a "paid-up" feature that permits members who:
  • Have attained age 70
  • Have paid survivor benefit plan premiums for 360 months

…to stop paying premiums but remain active participants in the plan.

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