Survivor Benefit Plan (SBP) Frequently Asked Questions

Retiree

1. Must I continue to pay SBP costs if my spouse dies?
2. If my spouse dies before me, do I get a refund for all the years that I paid SBP premiums?
3. I understand that if my spouse dies, SBP premiums are suspended. What are my options if I remarry?
4. If my spouse has passed away and I have not remarried, will my children receive my SBP annuity when I die?
5. If I elected not to participate in the SBP for my spouse when I retired, may I elect spouse coverage now?
6. I wasn't married when I retired, so I did not make an election under SBP. If I get married after retirement, may I elect coverage for my spouse under SBP?
7. My spouse and I didn't have any dependent children when I retired and I didn't elect child coverage. We now have a child. May I cover the child?
8. My divorce decree requires that I keep SBP coverage for my ex-spouse. What do I have to do?
9. I am the former spouse of a military retiree and our divorce decree requires the retiree to provide former spouse SBP coverage for me. Do I need to do anything?
10. Will my former spouse's SBP coverage be stopped, if I remarry, and want to provide coverage for my new spouse?
11. What happens to my former spouse's SBP coverage if my former spouse remarries before age 55?
12. My spouse and I were recently divorced. Will my SBP cost deductions stop?
13. What options do I have if I remarry after my SBP spouse coverage has been suspended due to my divorce?
14. Is there a law which allows a retiree to stop paying his SBP premiums?
15. May I terminate my participation in SBP because I have decided that I no longer need coverage, it will not benefit my spouse, or I just do not want to participate in the plan anymore?

Annuitant

1. How is my monthly SBP annuity payment calculated? Why does it decrease when I reach age 62?
2. My spouse told me in the event of death the military would take care of me. Now that my spouse has passed away, I've discovered that my spouse did not elect SBP coverage for me and you've stopped my spouse's retired pay. Is there anything that can be done?
3. I am an annuitant who has been receiving SBP annuity payments and I want to remarry. What affect will the remarriage have on my annuity payment?
4. My spouse elected spouse and child SBP coverage at retirement. When my spouse died, I was the only one that received an annuity payment. Why does our minor child not receive an annuity payment also?
5. I am the guardian or family member of a minor, mentally incompetent, or legally disabled person who is entitled to receive a SBP annuity. What do I need to do to receive payments on behalf of the minor or legally disabled person?

RETIREE

DEATH OF SPOUSE:

1. Must I continue to pay SBP costs if my spouse dies?

Answer:   No. SBP spouse premiums are not owed for any month that you do not have an eligible spouse beneficiary. SBP spouse coverage is suspended (not terminated) upon receipt of notice that your spouse has died and must include a copy of the death certificate for the spouse. Upon receipt of the death certificate, SBP costs will be stopped effective with the first day of the month after the death of your spouse. SBP costs deducted from your retired pay, after your spouse has died, will be refunded after receipt of your spouse's death certificate. The amount refunded will be limited, if the death certificate is submitted more than 6 years after your spouse's death.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London KY 40742-7130
FAX: 1-800-469-6559

2. If my spouse dies before me, do I get a refund for all the years that I paid SBP premiums?

Answer:   No. By law, SBP spouse premiums cannot be refunded for any period that you had an eligible spouse beneficiary.

3. I understand that if my spouse dies, SBP premiums are suspended. What are my options if I remarry?

Answer:   If your SBP coverage is suspended due to the death of your spouse and you remarry, you have three options.

• Option 1: Resume coverage. Your new spouse automatically becomes the eligible spouse beneficiary on the first anniversary of the marriage or upon the birth of a child of your new marriage, unless within one year after remarriage you elect not to provide spouse coverage, as provided in Option 3 below. You should provide DFAS with the name, social security number, date of birth, and the marriage certificate for your new spouse as soon as possible, in order to update your records and properly deduct SBP costs.


• Option 2: Increase the level of SBP coverage. Upon remarriage you may increase the level of coverage up to and including full-retired pay, if you are currently providing less than maximum coverage. SBP elections become effective when your new spouse becomes an eligible beneficiary, and any increase in premium, plus interest, has been paid. If payment of cost plus interest is not completed before your new spouse becomes an eligible beneficiary, the election to increase the level of coverage becomes null and void and a refund of cost and interest associated with the new election and reinstatement of original election coverage occurs. In addition, if you are participating with maximum spouse coverage, but you are not a participant in the Supplemental Survivor Benefit Plan (SSBP), you may elect SSBP upon remarriage. An election to increase the level of SBP coverage or to add SSBP is irrevocable and must be made within one year after the remarriage.


• Option 3: Terminate coverage. You may elect not to resume spouse coverage. If you elect not to resume SBP participation for your new spouse, your new spouse is notified and any SSBP coverage is terminated. An election to terminate spouse coverage must be made within one year of remarriage and is irrevocable. If your original SBP participation is for spouse and child, and you elect to terminate spouse coverage upon remarriage, your children continue to be covered.

Note:  Any election under Options 2 or 3 must be in written form. Notice of remarriage as well as an election to increase coverage or to terminate spouse coverage may be submitted on DD Form 2656-6. This form can be accessed with the following link:  http://www.dior.whs.mil/forms/DD2656-6.PDF

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London KY 40742-7130
FAX: 1-800-469-6559

SBP FOR CHILDREN IF SPOUSE BENEFICIARY DIES:

4. If my spouse has passed away and I have not remarried, will my children receive my SBP annuity when I die?

Answer:   Your children will receive the SBP annuity if you elected coverage for spouse and children and they are eligible "dependent child" beneficiaries at the time of your death. An eligible dependent child must be:

1. Unmarried;
2. Under age 18, or at least 18 but under 22 and pursuing a full-time course of study in a recognized educational institution, or incapable of self-support because of physical or mental incapacity, which existed before the 18th birthday or was incurred after age 18 but before age 22 while pursuing a full-time course of study; and
3. A child of the member, including an adopted child, stepchild, foster child or recognized natural child. A stepchild, foster child or recognized natural child is eligible, so long as the child lived with you in a regular parent-child relationship.

Note:  There are special rules that may apply to foster children, school attendance for students, and children serving on active duty.

ELECTING SBP AFTER RETIREMENT:

5. If I elected not to participate in the SBP for my spouse when I retired, may I elect spouse coverage now?

Answer:   No. If you were married at retirement and you declined SBP coverage, there is no authority to elect spouse coverage after retirement, unless Congress authorizes an open enrollment period. Your Service's official newsletter (Air Force's Afterburner, Navy's Shift Colors, Army's Echoes, Marine Corps' Semper Fi) will publicize open enrollment information if and when one occurs.

6. I wasn't married when I retired, so I did not make an election under SBP. If I get married after retirement, may I elect coverage for my spouse under SBP?

Answer:   Yes. You may elect SBP spouse coverage for the first spouse you acquire after retirement. However, you must elect the coverage before the first anniversary of your marriage. Send a letter to DFAS (or use DD Form 2656-6, referred to in Question 3 above) requesting SBP coverage for your spouse, and provide your spouse's name, social security number, date of birth and a copy of the marriage certificate. You should also certify that you have not been married from the date that you retired through the day before marriage to your current spouse. A valid election for SBP coverage will become effective on the first anniversary of the marriage. The SBP cost will start effective with the first full month after the first anniversary, if the marriage took place after the first day of the month. The SBP cost will start on the first anniversary, if the marriage took place on the first day of the month.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London, KY 40742-7130
FAX: 1-800-469-6559

7. My spouse and I didn't have any dependent children when I retired and I didn't elect child coverage. We now have a child. May I cover the child?

Answer:   Yes, you may elect to cover a child as long as you elect to cover the first child acquired after you retired, within one year of the child's birth or adoption etc. Subsequent eligible child beneficiaries will automatically be covered under SBP. You must provide DFAS with the child's name, social security number, date of birth, and if adopted, a copy of the adoption papers, within one year after the child is acquired. Evidence of the parent-child relationship is required in order to elect coverage for stepchildren or foster children.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London, KY 40742-7130
FAX: 1-800-469-6559

DIVORCE AND SPB:

8. My divorce decree requires that I keep SBP coverage for my ex-spouse. What do I have to do?

Answer:   It is important to understand that your spouse's coverage under the SBP stops at the date of divorce, since the status as spouse ends on that date. Termination of the divorced spouse's eligibility is automatic under the law, even if the agency is not advised of your divorce. You should provide DFAS with a copy of the divorce decree, and a written request to change coverage to former spouse coverage. You may make a former spouse SBP election whether or not there is a provision in your divorce decree requiring you to do so. Any former spouse SBP election must be made within 1 year of the date of the divorce, whether voluntary or in compliance with a court order.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London, KY 40742-7130
FAX: 1-800-469-6559

9. I am the former spouse of a military retiree and our divorce decree requires the retiree to provide former spouse SBP coverage for me. Do I need to do anything?

Answer:   Yes. Since there is a provision in a court order or an agreement approved by a court order, which requires the member to make a former spouse SBP election, then you or your attorney should submit what is known as a "deemed election" request. In effect, you are asking that an election of SBP coverage be made on your behalf to guarantee compliance with the court order or agreement. The "deemed election" must be made within 1 year from the date of the court order or agreement that requires the military retiree to provide former spouse SBP coverage for you.
Note:  It is not enough for there to be a provision in a court order awarding the former spouse SBP coverage. Either the member or the former spouse must make a request to DFAS within the appropriate 1-year time frame in order for the former spouse coverage to be implemented. In addition, a former spouse may not deem an election if the member did not elect SBP coverage when the member first became eligible to participate in the SBP program. An exception to this rule would apply if the divorce decree and court order requiring former spouse SBP coverage are issued before the member retires. In that case, the deemed election must be submitted to DFAS within 1 year of the relevant court order or agreement even though the member has not yet elected to participate in the SBP.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London, KY 40742-7130
FAX: 1-800-469-6559

10. Will my former spouse's SBP coverage be stopped, if I remarry, and want to provide coverage for my new spouse?

Answer:   It depends. If you voluntarily elected former spouse SBP coverage and there is no court order or agreement requiring former spouse coverage, then you may make a written election to change the coverage to your new spouse or dependent child anytime after you remarry or within one year of acquiring a dependent child. However, former spouse SBP coverage that is based upon a court order or written agreement cannot be stopped at your request alone. Court-ordered former spouse coverage may be changed to spouse coverage, only if you remarry, and you furnish DFAS a certified copy of a court order that modifies the provisions of all previous court orders and removes any requirement to provide former spouse SBP coverage. Former spouse coverage can also be changed if your former spouse dies.
If the former spouse SBP is based on a written agreement that has not been incorporated or ratified or approved by a court order, you must furnish DFAS a statement (in a format prescribed by DFAS), that is signed by you and your former spouse, which evidences your former spouse's agreement to an election change. In addition, you must certify either that the court order is valid and in effect or that the statement is current and in effect.

11. What happens to my former spouse's SBP coverage if my former spouse remarries before age 55?

Answer:   The SBP coverage is suspended and cost deductions from your retired pay are stopped if your former spouse becomes ineligible due to remarriage before age 55. The former spouse's SBP coverage is considered suspended for as long as your former spouse's subsequent marriage remains in effect. If the subsequent, marriage is terminated by death, annulment, or divorce, your former spouse's eligibility is reinstated and SBP cost deductions would resume.

12. My spouse and I were recently divorced. Will my SBP cost deductions stop?

Answer:   Yes. If you no longer have an eligible spouse beneficiary under SBP, upon receipt of a divorce decree, the costs will stop and your spouse coverage will be suspended.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London KY 40742-7130
FAX:1-800-469-6559

13. What options do I have if I remarry after my SBP spouse coverage has been suspended due to my divorce?

Answer:   See question number 8-10 regarding coverage for a former spouse. See question 3 regarding your options should you remarry.

PAID-UP SBP:

14. Is there a law which allows a retiree to stop paying his SBP premiums?

Answer:   Congress has authorized a law which is not effective until October 1, 2008, that will end the payment of SBP premiums when a retiree is age 70 and has paid into the SBP for 360 months (30 years). If a retiree with less than maximum coverage increased the level of coverage during an open enrollment period or after remarriage, the premiums will continue for the portion that represents the increased coverage even after termination of premiums for the for the original coverage.

TERMINATION OF SBP PARTICIPATION:

15. May I terminate my participation in SBP because I have decided that I no longer need coverage, it will not benefit my spouse, or I just do not want to participate in the plan anymore?

Answer:   You may voluntarily elect to discontinue participation in the SBP only during the 25th through the 36th month after commencement of payment of retired pay. If you qualify to discontinue participation in the plan, you must complete the DD Form 2656-2. Spousal concurrence is required, except in limited circumstances when your spouse is unavailable. The termination form is only valid if a service-designated SBP Counselor or Notary Public witnesses your spouse's concurrence. There are no provisions available to you to terminate SBP if you have been retired for more than 36 months, except as provided under Option 3 of Question 3 for a spouse, under Question 10 for former spouse coverage, or for insurable interest coverage.

ANNUITANTS

PAYMENT OF SBP ANNUITY:

1. How is my monthly SBP annuity payment calculated? Why does it decrease when I reach age 62?

Answer:   The SBP is an income maintenance program which is paid for by a combination of retiree and Government contributions. Prior to age 62, you are entitled to a full SBP annuity. At age 62, the SBP annuity is reduced because beneficiaries become eligible for Social Security benefits. If you are a surviving spouse or former spouse under age 62, or a dependent child, the standard survivor annuity is 55 percent of the base amount. The base amount is the full amount of retired pay, under maximum coverage. If the retiree elects a reduced base amount, it cannot be less than $300. For example, if the base amount is $1,000 then the monthly annuity would be $550 (55% X $1,000). If you are age 62 or older (other than a dependent child.), the standard annuity is 35 percent of the base amount. If you are a spouse or former spouse beneficiary and on October 1, 1985 your spouse was a SBP participant or you were already receiving annuity payments, then at age 62 your SBP annuity may be greater than 35 percent of the base amount, if a special Social security offset computation is more favorable to you.

2. My spouse told me in the event of death the military would take care of me. Now that my spouse has passed away, I've discovered that my spouse did not elect SBP coverage for me and you've stopped my spouse's retired pay. Is there anything that can be done?

Answer:   If the retiree did not elect SBP spouse coverage when he first became eligible to participate in the SBP, you are not entitled to receive an annuity now.
More generally, if the retired member retired before March 1, 1986 and was married when he retired, the military service should have notified you if the retiree elected not to participate in the SBP. If the retired member retired on March 1, 1986 or later , you must have signed a written statement concurring in the retiree's election of anything less than maximum spouse SBP coverage.

SBP ANNUITANTS WHO REMARRY:

3. I am an annuitant who has been receiving SBP annuity payments and I want to remarry. What affect will the remarriage have on my annuity payment?

Answer:   If you remarry before age 55, the SBP annuity stops the first of the month in which you remarry and coverage is suspended. If your subsequent marriage ends due to death, annulment or divorce, your annuity will be reinstated. If you remarry after age 55, the SBP annuity will continue to be paid. You should forward a copy of your marriage certificate to DFAS when a remarriage occurs. If you are receiving payments from the Department of Veterans Affairs for Dependency and Indemnity Compensation, you should also notify that agency of your remarriage.

SBP ELECTION FOR SPOUSE AND CHILDREN:

4. My spouse elected spouse and child SBP coverage at retirement. When my spouse died, I was the only one that received an annuity payment. Why does our minor child not receive an annuity payment also?

Answer:   As the spouse, you are the primary beneficiary under the SBP. Your children are only eligible to receive an annuity if you die or become ineligible due to remarriage before age 55 and your children are still dependent children under the law. See Question 4.

SBP PAYMENTS TO REPRESENTATIVE PAYEES:

5. I am the guardian or family member of a minor, mentally incompetent, or legally disabled person who is entitled to receive a SBP annuity. What do I need to do to receive payments on behalf of the minor or legally disabled person?

Answer:   If you are the court-appointed guardian or fiduciary of the annuitant, you should provide a copy of the court order that appoints you to handle the financial affairs of the annuitant. If you are a family member of a minor, mentally incompetent, or other legally disabled person who is entitled to a SBP annuity, but a guardian or fiduciary has not been appointed by a court, you may request to be designated as a representative. DFAS-CL will select a representative payee to receive the annuity who is responsible for the care of the annuitant, depending upon the individual annuitant's circumstances. If you are requesting appointment as a representative payee, you must obtain an application from DFAS-CL, Retired and Annuitant Pay and submit the form to the address below. The form should be accompanied by any documentation that helps to establish the annuitant's status and your relationship to the annuitant. This would include the court order or statement of a physician or psychologist formally determining mental incompetence or medical incapacity or a birth certificate if you are applying on behalf of a minor child.

The mailing address is:
Defense Finance and Accounting Service
U. S. Military Retirement Pay
PO Box 7130
London KY 40742-7130

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