The spouse, who was originally denied benefits, nearly 30 years ago, has been approved benefits and they backdated them! What would happen if they do not pay the 360 months? SBP payments to survivors are taxable, but spouses usually receive benefits when their total income is less and the extra tax exemption for being over age 65 is applicable. Gloria, the SBP premium refund is calculated using the total premiums paid vs. the portion of SBP that is offset by DIC. In addition my mother has suggested that my father put in his will that my younger sister (50 years old) be the beneficiary of this benefit. I am nearing my 5 year mark and received a notice from the VA that I was eligible for the SBP-DIC offset. Id definitely keep an eye on it, though! I think this benefit sounds good but is paying for 2 different policies common? Please keep me updated! You can use the formula from the Office of the Actuary to determine real costs. It is very important that retiring service members and their spouses understand all the aspects of SBP so that they can make the right election at the time of retirement. And this all happened a long time ago. I gave too many briefings to widows of recent retirees who didnt elect SBP or VGLI and a $400,000 insurance policy usually is not enough to pay off a mortgage, other bills and future college. Lourdes, I am unaware of any way to circumvent the requirements that SBP election be made within one year of marriage. Instead of throwing my hands up I am considering trying to get some kind of life coach training to be able to assist other military wives that are transitioning into retirement-it feels like it is more difficult than it needs to be and I often wish there were more people like you to turn to for questions that just dont make you want to call the assigned number, talk to a computer, be transferred ten times and annoy someone until they are finally willing to help. This category is very helpful for couples who choose not to marry, yet want to provide benefits to their partner. If he dies before the 360 payments i receive nothing? As a general rule, High-36 pension payments to former military spouses terminate if the former spouse remarries. I understand payback for dollar for dollar. This post is part ofThe Comprehensive Military Retirement Checklist. A few percentage points per year may not seem like much, but they add up quickly. "Your surviving spouse may remarry after age 55 and continue to receive SBP payments for life. A request to withdraw from SBP coverage due to disability requires the written consent of the spouse or other beneficiary. Hello Shellie. Thank you for your explanations- These matters can be so confusing. My husband was medically retired 5 years ago. It is my understanding this must be filed within one year of the divorce in order to officially initiate the SBP coverage for the former spouse. how does it work for veterans who were Medically retired at 8 years. If the veteran marries after retirement, the marriage must last for at least a year before death or result in children for the spouse to be eligible. The chief complaint about SBP is the Dependency and Indemnity Compensation (DIC) offset. Website developed in accordance with Web Content Accessibility Guidelines 2.1. He was 90 years old and his wife, my mother died a few years before he did. They also send a claim form for SBP for me to fill out. Her claim was denied because my father never set up ex-spouse SBP. Just be sure if you do marry or have a child that you make those changes within one year. My husband recently passed, after reporting to dfas etc, they have sent a letter saying that my Husband made an sbp election but payments had not been being deducted from his reitrement pay as elected at time of retirement. If married, the spouse is required to agree with the service members SBP choice to elect anything less than full SBP. She said she was denied SBP payments because he hadnt paid in long enough. Assuming the eligible beneficiaries are still eligible, the only window to terminate SBP coverage is between the 25th and 36th payment. The. Heres the complete list of posts. Depending on the contract, the annuity may pay 100 percent of the payments upon the death of the first annuitant or a lower percentage typically 50 or 75 percent. As discussed in a. Could you please email me at kate at katehorrell.com? I read your post with interest and have a question for you. If you are rated as totally disabled, you may withdraw from SBP if you meet either of these two criteria: 1. I have been paying into SBP for 25 years and 6 months. When a Social Security beneficiary dies, his or her surviving spouse is eligible for survivor benefits. He is fighting the SBP situation because he paid the full amount and now has been fighting for 6 yrs. They informed me he was paying into SBP with an invalid beneficiary from 2007 to 2018. Or is it just the military running it? I found out immediately afterwards that I was 100% permanent and total with the VA so SBP serves me no purpose as far as I undsdstand it. I did some further digging into the matter after I asked here. If the coverage is required by the divorce settlement, then the spouse must provide DFAS with a copy of the court order. Please let me provide my thoughts. She received a check for backpack and I dont understand y. I do wonder about the amount youve chosen. I am a retired US Army NCO. Can you please help us? She faxed the Army to ask for an extension of time (this also was allowed). However, if your spouse remarries after age 55, SBP will continue for the rest of his or her life. My husband is paying about $270.00 in a month now. Itand also applies retroactively to retirees who were previously unable to transfer their benefits after their ex-spouse died. Divorced 1992 with SBP required in divorce decree. If military retirement pay is a small part of your overall income strategy, then SBP may not be right for you. Others: Service members who do not have a spouse or children may elect SBP coverage for people who have an insurable interest. This is limited to one individual family member or non-family member who falls within certain criteria. What happens to all the years worth of payments I have made into the program (7 years worth) since Ive retired? http://www.moaa.org/uploadedFiles/MOAA_Main/Main_Menu/Publications/Books_and_Guides_-_MOAA_Info_Exchange%C2%AE/Former_Spouse_Benefits/formerspouse_final.pdf. According to statement something was deducted. So, if he withdraws next year, does he have to contact his first wife in order to do that? Great question! You are entitled to a refund of the premiums made, pro-rated if not all of SBP is offset. 1-Spouse: The surviving spouse is the beneficiary of RCSBP upon the death of the Soldier/Retired Soldier. Speak with a qualified military divorce attorney if you have questions about military divorce. Thank you for this excellent information. She went to the site and reapplied. The next question is, what in your plan provides for income for your survivors? Unless this was an extraordinarily complicated case, I would review that bill pretty darn carefully.) In particular, life insurance/survivor benefits and renting a house. The only thing that happens at 360 payments is that he does not make any more SBP premium payments. Thank you for your time. Now Im just waiting on the denial letter from DFAS for my claim so I can appeal. How do I prove he paid into SBP and get proof of who the beneficiary is? The number for Casualty Affairs Headquarters for your husbands branch of service can be found on Google. Problem is you have no legal rights and hence no recourse if they deny benefits in error or arbitrarily. 10+ Places To Learn About The Survivor Benefit Plan. Am I still required to pay until I die or reach the paid-up status? I did see that you anticipate a second career after the military. If you could find a comparable insurance policy or annuity, I guarantee you that it would cost many times the cost of SBP. The SBP cost factors displayed are based on spouse-only coverage. If she dies after he retires (and before he dies), can he then name me as his beneficiary in her place? My husband is paying for 7yrs SBP, he is 61 yrs old, I was worried if he cant paid 360 months. I just cannot believe after 44 years of marriage for me to remember my husband this way. Can you explain the best strategy to make sure enough taxes are taken from what she receives or is this a situation where she must file estimated taxes on the earnings? Income from the SBP annuity is fully taxable. Im sorry that your father did not understand that when he made the choice to enroll in SBP. It is not a loss of money, but a change of how the money is paid and results in a higher total amount of income for survivors, but it is confusing and many people find it frustrating. I was told that my Father had not informed DFAS of my Mothers passing in 2006 as he was suppose to do. Since I am claiming him as a dependent on taxes do I also include the 1099-R information on my tax return or should I also do a separate return under his social? It took about a year. Depending on your husbands medical situation, you may be eligible for Dependency and Indemnity Compensation (DIC) if he pre-deceases you. And if you have special needs kids who will be granted secondary dependency, you definitely want SBP. So now no SBP, 1. I hope that eases your mind. If you elect SBP coverage, your beneficiaries are fully covered as soon as you retire. Contact your finance or admin folks to get exact costs. She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga. Minot firings due to failed nuclear safety inspection, MCPON: Sailors need speedier, easier access to counseling, Hangmans nooses targeting sailor found aboard Norfolk-based destroyer, Tricare now covers new costly insulin device for Type 1 diabetics, Baby on-board? Single father retired and divorced. In the meantime, you can make arrangements for your SBP premiums to be made from your VA pay using Form 2891 or you can make payments directly to the VA using the address listed on this webpage. Eligible Beneficiary Categories. If a servicemember dies before retiring, his/her former spouse will still be entitled to SBP only if the servicemember 1) had already become eligible to retire, 2) qualified for retired pay but had not yet applied for or been granted retired pay, or 3) had completed 20 years of service, but had not yet completed the required 10 years of active If you choose to replace SBP with life insurance, be sure to have a plan for how those insurance proceeds will be invested in a way that deals with how quickly inflation can erode the purchasing power of a dollar, and also a plan for how your beneficiaries can be assured of not out-living the proceeds from the insurance policy. Your monthly pension is reduced by 10%. Many people find that a combination of term insurance and SBP fulfill their needs better, and you dont have to opt to cover the full amount of your military retirement pay. Please review this FAQ to see if your question has already been addressed, or visit NCA's helpful FAQ list here. The provision, in the 2016 National Defense Authorization Act provision, will help an unknown number of people like retired Air Force Lt. Col. Harold Brown, who paid tens of thousands of dollars into his Survivor Benefit Plan for his ex-wife. But they kept 6 years of back pay that were out of the statue of limitations Barring Act 31. When my husband found out that she would be eligible for SBP Benefits again, after her divorce from her second husband, he asked her for the divorce decree, but was just told that it is not of his business! To the best of my knowledge, there is no provision for SBP benefits to ever be non-taxable income. There is no refund of premiums. I dont guarantee that all the information in the packet is currently 100% accurate, but I believe everything in this part is correct. Will they reimburse me for the last 20 years and what should I really ave gotten since now his disability was 100%. Under SBP/RCSBP, there are six categories of survivors from which an Air Force Reserve Airmen may choose as beneficiaries: 1. Im a little confused about the question. I am married to a non US citizen and he is my beneficiary for the SBP. Im glad I was able to answer your question. But back pay from 12/29/2011 through 11/30/2017 would be valid. My husband died 9 years ago( active duty) and I never got any payment from this sbp benefit. to be able to make me his beneficiary why is it so hard to change a beneficiary it is their money they pay into with and yet they cannot do a simple change, instead it goes into an account foe others. Excuse my ignorance but my father recently passes away and had SBP. Ive not known anyone to that has been in your situation but it might be worth applying. I retired as a Colonel (O6) with 30 years of service. Arnold, SBP coverage is effective immediately the first day after retirement. I appreciate all your explanations, and look forward to your reply. Are you saying that you waive all of your military pay to receive disability compensation, which is non-taxable? He retired from USMC in 2014 and he did not elect me for SBP. Who can I contact to try and help Dad. The base amount covered may be any amount from $300 per month up to the entire amount of retired pay. Theres another whole book in that, but definitely read up! Third, if your death is not attributable to your military service, your survivors are not eligible for DIC until you have been 100% P&T for 5 years (if they are considering that you were 100% at the time of discharge) or 10 years if they dont consider the 100% determination to have begun at the time of discharge. I hope you have a better understanding of SBP now. 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