I am military retiree (24 years service) entered service 1971 and I was medically retiree with a 60 percent disability . You should present all the facts. He doesnt get more then $150.00 dollars a month for retire pay (offset) since he didnt serve for 20+ years and his VA rating pay was higher then his medical retirement. Since she didnt file the paperwork in time I was told by DFAS that I would receive the annuity. There is both personal risk and market risk. I am his second wife, ( 10 years younger) and he is not able to obtain any type of decent insurance coverage due to his PTSD, and many meds for anxiety and depression. My question is regarding the child only SBP. He was married to another lady when he originally elected to take SBP, although he says he felt forced to do it by his officers at that time without proper explanation of what it was all about. My husband hasnt made an SBP payment since he was declared 100% P&T disabled in 2009. Child born after divorce with another woman. Heres the complete list of posts. Good evening Kate, Any advice would be helpful. You didnt actually answer her question. (Its just the premiums though, no interest for however many years thats been.). Check with the Internal Revenue Service or DFAS for more information. https://www.retirees.af.mil/Library/Fact-Sheets/Display/Article/440093/spouse-only-sbp-coverage/. Question 4. Or would SHE be liable to pay back the money? And this all happened a long time ago. When I elected to buy into the SBP I did it so my wife would continue receiving a portion of my retirement after Im gone. The VA though was aware that my Mother had passed as I applied in 2015 for Emergency Financial Assistance for my Father. But they kept 6 years of back pay that were out of the statue of limitations Barring Act 31. As you can see, theres a lot to consider. SBP gives automatic coverage, at no cost to service members, to anyone . Yes, that is partly correct. My dad died in 2017 at the age of 80. When we got married he has children from his previous marriage, and so he elected spouse and children( Me and the kids) but I never did anything in regards with this sbp entitlement. It is very helpful. If married, the spouse is required to agree with the service members SBP choice to elect anything less than full SBP. Thanks for all of the information you have provided. If the coverage is required by the divorce settlement, then the spouse must provide DFAS with a copy of the court order. Many people miss that window to reinstate coverage. He is worried that he been wasting his time paying for the SPB? I have read that I may receive prorated SBP premium refunds. If the survivor is eligible for DIC, the amount of their SBP will be reduced by the amount of DIC that they receive. I'm Kate! Helping Military & Federal Civil Service Spouses Get Paid. 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. Other contributors to that bucket might include any other pensions from the spouses employment or the service members second career, income provided by TSP, 401(k)s or 403(b)s, life insurance or other annuities, Individual Retirement Arrangements, real estate, and other income-producing assets. Wait, so are you saying she paid in for 25 years and isnt going to see any of that? The request for the change originally came from defense officials, said Dustin Walker, spokesman for the Senate Armed Services Committee. That doesnt sound right to me. My husband a veteran died 20 years ago. Everything About The Survivor Benefit Plan, Life Insurance or SBP? I was also rated 60% disabled by the VA and received concurrent disability. If the spouse dies after the retiree, if all children are over 21, child coverage stops. Also keep in mind that life insurance vs. SBP is not an either-or question, nor is it an all-or-nothing question. Your monthly pension is reduced by 5%*. 2. I will have been paying into the child only SBP for 15 years by then. 2. Sending prayers to your wife and you during this difficult time. Partial Survivor Benefit: Your spouse receives 25% of your unreduced FERS pension, if you pass away first in retirement. What do you think? Kate, I understand payback for dollar for dollar. Hi Kate, I retired at 62 three years ago and may not live until 92 if I die as I understand your previous post, my wife will receive the SBP payment even though it is not paid in full. He signed up for it but died less than two years after retiring from the military. Im glad you are happy with your decision not to purchase SBP, but please do not counsel others without all the facts.. While the law says that a beneficiary can not receive the full amount of both SBP and DIC, there is a special program that refunds a portion of the offset amount. Hi! I have appealed that decision of DFAS denial back in January of 2019 and still waiting to see what happens. My father did not notify DFAS of his divorce and continued to pay into SBP. Kate, My mother in law past away and Dad came to live with me. In your friends case, DIC would completely offset the SBP benefit. All reviews on this site represent the personal opinions of the author. Is that a correct assumption? The base amount is calculated as a percentage of full retired pay, and therefore adjusts with each retiree Cost of Living Adjustment (COLA). My mother never received notice of her entitlement for RCSBP (could be they sent notice to an old address) and never knew she was entitled to it and neither did I until I read about it online recently. There is no refund of premiums paid. SBP charges were never deducted from his pay. SBP would cost me $195 per month, and would never pay out what my term policy will. Also, a Veterans Service Officer might be able to track down more details. If a deceased person had legally made a will before they died, the will will decide who will inherit . But dont count on what your investments will do in the future. My suspicion is that spousal consent came into effect after 1982, but I am not sure and Im surprisingly having a hard tie pinning down the date. I understand that you mean well, but trying to convince people to sign up for SBP is wrong. Do we have to be worried? 2. 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. Therefore, thelack of apost-tax premium option isnt negatively affecting many people. 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. I go over ten things you should think about in Should You Choose SBP? I asked many questions and wrote everything down to the T. I remember being so surprised that thats how it worked because it sounded too good to be true which now I know it wasnt. If he selected SBP and predeceases you, you will receive benefits at the level selected at retirement for your lifetime. Instructions are listed here: https://www.dfas.mil/retiredmilitary/provide/sbp/change.html, Thank you Kate. Does a cash value build up in the annuity so you can cash it out? Ive had lots of folks ask me what happens if they die before reaching 70 years or making 360 payments. Sorting out what happens with the SBP as you move through your divorce process is absolutely essential to ensuring that you have a clear idea of what you're entitled to if you are the non-servicemember, or what you are obligated to do for your ex if you are the spouse . Can a military spouse get in trouble for cheating? It takes less than 3 years of SBP benefits to recoup every cent that is paid into SBP even if the service member paid in the entire 30 years before reaching-paid up status, and that assumes that there is no cost of living adjustment in that entire time. So Im doing more research that I should have done prior to paying in. blessings Child (ren) Only 3. There is no requirement to make a minimum number of payments or have coverage for a certain amount of time. I do my best to present all the facts about SBP, without bias. My wife is 10 years younger than I am. 1 0 obj Unsubscribe at any time. Also with very few exceptions, any election made at retirement is irrevocable. Parents married 18 years 1958-1976, Divorced 1976. SBP is like insurance there is no refund of premiums. Jerry, yes, you should automatically stop paying premiums when your child turns 18, if the child is not in college. I do not see how one would successfully argue that the program has a very high cost when it is subsidized by nearly half. Appeal appeal appeal! She was living overseas when this happened.. Fast forward to today, she could now use the pension and the benefits. My husband (20 yr veteran) have been married 34 years. Odom said the fact that DFAS made no public notice of the policy change rankled retirees, advocacy groups and some lawmakers. Once he elected SBP, those payments come out of his retirement pay automatically. Any info you can provide would be helpful. Thank You for your input. I am retired Navy. This information remains here for those transition years and for reference. She was the mother of my two children. She did not receive anything when my dad passed ins 2001 so not sure if that is cause he never signed up or there was something that needed to be provided to the USAF in 2001 when he passed. This category is very helpful for couples who choose not to marry, yet want to provide benefits to their partner. It is a very simple process and folks do it all the time when they receive a lump sum of taxable income. 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. Married for 25 years during military service and as part of the divorce as BP was set up for me at time of retirement as the beneficiary. I have paperwork showing he paid for Plan C into SBP and copy of retirement pay statement dated 12/04/97. am going to give the synopsis of coverage here, because there are so many rules for each individual classification. You can find more resources to learn about SBP at 10+ Places To Learn About The Survivor Benefit Plan. 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. You may find more helpful information in the SBP portion of this packet. Have you ever heard of this happening? I was talking to an older lady the other day, her husband retired when SBP was just starting. I dont know of anyone who has dealt with this situation. I read your post with interest and have a question for you. View on Amazon Military Guide to Financial Independence He was 90 years old and his wife, my mother died a few years before he did. At thetime, he asked to transfer his SBP benefit to his current wife. Sorry, Im a little confused after reading this article. Kate does not represent the Department of Defense, the Department of Veterans Affairs, or any government agency. Former spouse is now remarried-how do I check or verify that my name was not replaced with the new spouses on the SBP? Military pay, including active duty pay and allowances and retired pay, stops upon a Soldier's death. There are several reasons why you might want to continue having SBP coverage even if your husband is 100% disabled, including the Special Survivors Indemnity Allowance (SSIA), if the SBP benefit is larger than the DIC benefit, etc. When you pass away, your survivor will get 25% of your regular monthly pension - in our example $250 a month. Regardless of whether they took SBP or not, the families I know who are happy with their SBP decision are the ones who both understood the program thoroughly, and made the decision together about how it did or did not meet their familys needs. How Does the Servicemember Recoup the Former Spouses Share of Retired Pay if the Former Spouse Dies First? If she dies after he retires (and before he dies), can he then name me as his beneficiary in her place? Yes, thats the reasoning behind the offer. 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. Its all about when something happens and if youre prepared. The personal risk is harder to quantify, and can easily be overlooked. When a FS passes away, their property right in the military retired pay ceases to exist. My parents divorced in 1985. My question is this Im guessing that I will still be making this payment in my early 90s. It was only for my kids, and when I signed up for it I had no clue what I was doing. It has been over 25 years since the former spouse left this country. 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. Received a letter from DFAS this last week informing me that from the period 09/01/2006 to 12/29/2011 back pay would not be eligible. I received court ordered 1/2 of retirement military pay from my former spouse. I dont like that if my husband dies first I get nothing out of all of the premiums we paid to SBP which in my opinion is way to expensive for a 50% chance of getting nothing. The withholding tax rate is 30 percent of the payable annuity. "Your surviving spouse may remarry after age 55 and continue to receive SBP payments for life. 3. Im wondering if I can make a legitimate waiver request, and the best way to go about stating my case, to DFAS regarding The Barring Act, 31 U.S.C. Other issues related to the death of a FS, such as what can happen to a FS's Survivor Benefit Plan (SBP) can be found by clicking here. 1-Spouse: The surviving spouse is the beneficiary of RCSBP upon the death of the Soldier/Retired Soldier. Hi Kate. It is my understanding that those bills would eventually be paid out of any beneficiary payments, but if all your kids have aged out, then you shouldnt be adding any new premium costs. 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