Are Chapter 61 Retirees eligible for SBP(Survivor Benifits Plan)?

theoot

PEB Forum Regular Member
PEB Forum Veteran
I have 6 working days left before terminal and must elect this coverage prior to retiring, but I can't seem to get any answer on if a medical retiree is eligible for it. Anyone have an answer?
 
Yes, you are eligible for SBP. In fact, it is your spouse's choice to accept anything less than full coverage.

Mike
 
No only 80%. Sad part is I have asked the VA rep here, PSD, on the seps people and none of them could answer this.
 
ColtonMD,

I'm rated 100% VA medically retiring with18 years and going through a divorce. Does this mean that I will have to pay from my VA pay for SBP for my spouse or soon to be former spouse? What does offset by their insurance mean?
 
Pittpan2005,

Thank you but, I'm still lost. I realize what DIC is and that the current spouse would be entitled to that but, once one select the SBP before retirement and divorce after retirement and sbp coverage is court ordered to the former spouse, will one have to pay out of the 100% VA pay if under 20 years of service?
 
ColtonMD,

I'm rated 100% VA medically retiring with18 years and going through a divorce. Does this mean that I will have to pay from my VA pay for SBP for my spouse or soon to be former spouse? What does offset by their insurance mean?
SBP Suspension or Termination

Coverage for a former spouse is suspended if he/she remarries while under 55, during the period of the remarriage. The premiums are also suspended, effective the first day of the month after remarriage, as long as DFAS is provided with written notification and a copy of the former spouse's marriage certificate.
If the former spouse's remarriage ends by death or divorce, the coverage and premiums resume the first day of the month after the marriage ends. Theservicemember must provide DFAS with written notification and a copy of the divorce decree or death certificate terminating the former spouse's remarriage.
Remarriage by a former spouse over 55 does not affect coverage or premiums.
Only a former spouse's death terminates SBP coverage. Since federal law preempts state law, any decree which purports to terminate, rather than suspend, coverage upon a former spouse's remarriage is unenforceable.

Changing Former Spouse Coverage

DFAS can change former spouse coverage only under following circumstances:
  1. If election was made pursuant to court order, provide DFAS with a certified copy of a subsequent court order relieving the servicemember of the obligation to cover the former spouse.
  2. If the election was made by written agreement between the parties not adopted by a divorce court, provide DFAS with the former spouse's written acceptance of the change.
  3. If the election was made voluntarily by the servicemember, and not as part of an agreement or dissolution, the servicemember can change it without the consent of the former spouse. However, DFAS will provide the former spouse with notice of the change.
  4. Upon the death of the former spouse, provide DFAS with a copy of the former spouse's death certificate.

Contact DFAS

DFAS
U.S. Military Retirement Pay
PO Box 7130
London, KY 40742-7130
FAX: 1-800-469-6559​
 
Pittpan2005,

Thank you but, I'm still lost. I realize what DIC is and that the current spouse would be entitled to that but, once one select the SBP before retirement and divorce after retirement and sbp coverage is court ordered to the former spouse, will one have to pay out of the 100% VA pay if under 20 years of service?
http://www.dfas.mil/retiredmilitary/provide/sbp/payment.html
Paying for SBP​

There are four methods of paying for your SBP coverage if you elect it:
  • Deductions from your retired pay
  • Deductions from your VA pay
  • Direct remittance
  • Paid Up Status
Deductions from your Retired Pay (Normal Payment Method)​

The normal method of paying for SBP coverage is by an automatic deduction from your retirement pay. The vast majority of retired members with SBP coverage pay through this means. It is implemented automatically if you elect SBP coverage at the time you retire.​
Deductions from your VA Pay​

If you have been ruled severely disabled by the Department of Veterans Affairs (VA) and your VA compensation exceeds your retired pay, you don't receive retired pay from DFAS. As a result, we cannot automatically deduct SBP premiums from your monthly pay. (See Disability Entitlements for information about the Branch of Service/VA offset),
In this case, the best way to pay for your SBP coverage is to have your payments deducted from your VA compensation and forwarded to DFAS Retired and Annuitant Pay by the VA. Thousands of retirees take advantage of this process.If you are interested in taking part, please have the VA help you complete an Authorization for SBP Cost Deduction (DD 2891) and mail or fax it to the Direct Remittance address listed below.​
Direct Remittance​

Members who cannot or do not choose to have their SBP payments deducted from their retired pay or VA pay must remit SBP premium payments directly to:
Defense Finance and Accounting Service, DFAS-CL
SBP and RSFPP Remittance
P.O. Box 979013
St. Louis, MO 63197-9000
Payments sent to any other location, including Retired and Annuitant Pay offices at DFAS Cleveland, will not be received. Any delinquent amounts carried over into a new billing month will accrue an interest fee calculated at 6 percent Annual Percentage Yield.​
Paid Up Status​

Beginning Oct. 1, 2008, any retiree who has paid 360 months of SBP premiums and has reached the age of 70 is no longer be required to make monthly payments for their SBP coverage. If you meet these requirements, your SBP election and account will remain active, and benefits to annuitants will be uninterrupted, but there will be no further cost to you. To help you track your status, Retiree Account Statements (RAS) include a "premium counter" indicating the number of months of paid premiums credited to your account.​
Learn more about SBP​

  • Advantages & disadvantages - Things to consider before enrolling
  • Enroll - How to set up your SBP account
  • Eligible beneficiaries - Find out who can be covered
  • Cost - What SBP costs at the different coverage levels
  • Update beneficiary - How to update beneficiaries or update contact information
  • Change or stop coverage - When you can change coverage or beneficiary
  • Educate your beneficiaries - What your beneficiary needs to know
  • What happens when you die - Next steps for your beneficiary
Read about these topics at SBP overview
 
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