I have not asked DFAS yet. If you elect spouse/former spouse and child(ren) as beneficiaries, the spouse/former spouse is the primary beneficiary and the children are secondary beneficiaries. My husband retired from USAF and was receiving his retirement pay. We were wondering about applying for spousal benefits, but were told we were supposed to apply for it within the 1st year of our marriage. They seem to struggle with international issues. My dad died in 2017 at the age of 80. It is still in my name so I get those benefits after death? Instructions are listed here: https://www.dfas.mil/retiredmilitary/provide/sbp/change.html, Thank you Kate. Once youve reached those two milestones, your coverage remains in force without any more payments due. Im 100% permanently and totally disabled from the VA since 1996. A few percentage points per year may not seem like much, but they add up quickly. There is no minimum time or number of payments required for benefits to be paid. Your premiums have gone into the the pool and will be used to pay out claims to other SBP participants. 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. Thanks for clarifying. My question is this This post is also part of a larger series about the Survivor Benefit Plan. Kathryn, did you apply for SBP and it is being offset by DIC? You also assume that everyone is insurable at such low rates. The only conversation I remember is someone sold him a VGLI which at the time was less than 6.5% SBP premium he would have paid. If your spouse has the pension and you both choose to receive that pension as a lifetime benefit, while your spouse is alive, you might receive $1,600 a month in pension benefits. For many military families, full SBP coverage is the right choice. The new law allows: A military retiree who was married at the time of an ex-spouse's death, or who later remarries, to elect to provide SBP coverage to his or her current spouse. Is it true that this benefit can be taken away from me?? Pat, Im sorry to hear that this has turned out this way. SBP coverage would then be the only coverage. Ive printed up material from the SBP FAQs that say that I cant lost it. Jeff, are you asking about repaying that deficit now or how that deficit will impact annuity payments made to your survivors? All of pay is non taxable and I have SBP 55 percent for my spouse. I suppose it wouldnt hurt to as DFAS maybe there is some loophole that isnt publicized. What does this mean and how is determined? 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 . I read on the DFAS website that, in the event of direct deposit payments( I dont feel is classed as a deduction as they said) being missed , that the missed payments must be deducted from the total annuity, upon the annuitants claim therefore reducing the annuity amount by the amount of missed payments. We received notice that the premium cost would have to be refunded. If an employee dies with at least 18 months of creditable civilian service under FERS, a survivor annuity may be payable if: the surviving spouse was married to the deceased for at least nine months, or; the employee's death was accidental, or; there was a child born of the marriage to the employee. . And if you commit suicide, spouse wont get jack S**t. FAQs. Thank you. BENEFICIARIES A beneficiary is a person who receives the RCSBP annuity payments when you die. 1-Spouse: The surviving spouse is the beneficiary of RCSBP upon the death of the Soldier/Retired Soldier. Im sorry that your father did not understand that when he made the choice to enroll in SBP. . No Survivor Benefit Parents married 18 years 1958-1976, Divorced 1976. The benefit is not split between the spouse and child(ren), and there are not multiple benefits going to multiple children. I realize that this is an uncomfortable thing to say, but I probably will not have the opportunity to chat with you again. He is worried that he been wasting his time paying for the SPB? It was only for my kids, and when I signed up for it I had no clue what I was doing. 2. Once the dust settles, I understand I will receive reduced SBP, full DIC, and SSIA. Am I still required to pay until I die or reach the paid-up status? Her claim was denied because my father never set up ex-spouse SBP. The Survivor Benefit Plan allows retiring service members to allocate a portion of their retirement pay to a spouse or other eligible beneficiaries after their death. Mr. Mann, you can continue your SBP coverage by electing to have the SBP premiums deducted from your VA disability compensation or by paying the premiums directly. Question 4. What are they going to do to resolve the non-payment issue? Barrett, I just want to be sure that Im understanding correctly: it is all military disability retirement pay, and none of it is VA disability compensation? It is very helpful. I pay the SRB to ensure that upon former spouse death, I continue to get payments. I invite you to join Military Widows: SBP-DIC Offset on FB. I am a retired Marine, approaching 70 yrs in 2019. What I am trying to get clarification on is if I can elect a reduced benefit amount (consistent with the intended annuity) either at the time of electing former spouse coverage or perhaps is it when I officially retire (but not yet collecting retired pay) which will be in about 3 years. 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. SBP is not a form of life insurance. Provided your divorce decree does not require you to provide SBP coverage, you may cancel your coverage. I was medically retired at 16 years this past June and I elected SBP at time of retirement. Best of luck to you making an adjustment to your taxes I hope everything works out well for you. My husband divorced his now ex-wife while still active in the Military. Many people miss that window to reinstate coverage. About SBP- If annuity payable amount is 55% and base amount is approximately $2350.00 will the monthly spouse cost of $277.00 come out of the approximate payable benefit of $1292.00 if spouse hasnt met the 360 month and 70 year requirement? Every situation is different. As a general rule, High-36 pension payments to former military spouses terminate if the former spouse remarries. 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. If the marriage at the time of retirement ends, and you subsequently remarry, there may be a way to change the amount of coverage for the subsequent spouse, but I dont have the details at my fingertips. Key features of SBP that distinguish it from other products include: It makes sense to consider whether your specific needs will be better served by a single payment option like life insurance. Unfortunately, one of the reasons SBP is so affordable is that there is no provision for refund of premiums if the beneficiary passes before the retiree. My husband was court ordered to enroll her in SBP. Unless this was an extraordinarily complicated case, I would review that bill pretty darn carefully.) 3. Appeal appeal appeal! I would assume over 24 years since my husbands death, I have received more SBP payments than SBP premiums we paid from 1982-1994 (retirement to death). Speak with a qualified military divorce attorney if you havequestions about military divorce. the back amount debt would be paid by the SBP premiums + interest. In this case, your friends family would only receive SBP payments. Brown, who hired an attorney to help him pursue the issue, said that he's also happy for other affected retirees. Retired since 1988. In this article, I list four reasons why you may want to keep SBP even if you are 100% disabled. There are 100 reasons why that plan could be derailed, and theyre all reasons that would make you want SBP more. Unless he is disabled, or youre paying for him as an insurable interest, your son is no longer eligible for SBP payments. The most important thing to know is that (with few exceptions) all aspects of the SBP decision are made when the service member retires. What if neither knew they had to change the sbp annuity to former spouse? I am sure the person who sold him on the VGLI didnt explain how the premium would go up dramatically as he got older. Retirees agree to pay a portion of their retirement pay into their SBP so that, when theydie, the program will payan annuity to their surviving beneficiary based on a portion of the retiree's pay. I do my best to present all the facts about SBP, without bias. and if so what kind of attorney. how does it work for veterans who were Medically retired at 8 years. This process requires an application and proof of medical disability that prevents them from being self-sufficient. You are absolutely correct that term life insurance is often much less expensive than SBP, but they are very different products. 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. Thank you for your reply, it is much appreciated. Who cuts it? He died 3 months ago. This nice lady was not bitter and still talks of fondly of her military memories. The years they were married or the time between their passing? This problem makes the DFAS SBP worthless. "I've been waiting and waiting and waiting," said Brown, 90. The request must be received within one year of the law's. Thank You for your input. This category is very helpful for couples who choose not to marry, yet want to provide benefits to their partner. This is a huge problem and its getting worse. Once he elected SBP, those payments come out of his retirement pay automatically. Accredited Financial Counselor, Navy spouse, and mom of four. Odom said that MOAA had brought the matter to the attention of defense officialsand staff members of House and Senate Aarmed Sservices Ccommittees. But back pay from 12/29/2011 through 11/30/2017 would be valid. It may have turned out to be a brilliant idea, depending on how things unfold. Once you reach age 70, you still have to complete 360 payments. The firm provides a spectrum of family law-related services to clients in the greater San Antonio region, across the United States and throughout the world. Here at the blog, I talk about the financial issues that affect military families - pay, allowances, and benefits. However, if your ex-wife's second (or subsequent) marriage ends by annulment, divorce, or the death of her new spouse, then her eligibility to receive pension payments may resume. Think about an insurance policy like this, if your preretirement income was $50,000/yr, than thats only 8 years of replacement income but not including housing/medical benefits. Thank you for addressing my two questions and thank you in advance for your response. Former spouse is now remarried-how do I check or verify that my name was not replaced with the new spouses on the SBP? I did see that you anticipate a second career after the military. Since he is not longer eligible for benefits, what happens to the money I paid into the plan for 15 years? Claims of insurable interest must be documented for non-family members, or family members whose relationship is further than cousin. I cannot find any information about this on any of the published SBP links. Odom said the fact that DFAS made no public notice of the policy change rankled retirees, advocacy groups and some lawmakers. To the best of my knowledge, there is no provision for SBP benefits to ever be non-taxable income. I have a question. I cannot find anything stating that is not eligible to be a beneficiary. In your friends case, DIC would completely offset the SBP benefit. There are multiple groups of people who can be covered by SBP, but I will group them into three general groups to make it a little more simple. I am retired and am concerned about the recent tax changes. Thank you very much Kate. There is also a little counter at the bottom of the RAS that shows how many months of premiums have been paid. SBP is for when the survivor lives a lot longer than you planned.. My child is the beneficiary, when my child turns 18 and not in college do I get to stop paying SBP payments? I have recently went through a divorce and have suspended my SBP coverage through DFAS. Important note: The SBP-DIC offset is being eliminated over the next few years. He does pay into the sbp with the understanding i would get a portion of his retirement should he die. Cynthia I am doing some research but it is slow. I was deemed 100% P&T for one injury, but have many others die to combat. Do any of them have special needs? Cancellation requires spousal concurrence just as it did at the time of retirement. Military pay, retired or active, ends with the death of the service member, retired or active. This topic is dear to my heart, and I love to help people understand it better. There was a lot going on at that time with my Mothers death. This was just the information I needed to make the best decision for my family. The loan adjuster says that the underwriter is wanting a copy of my award letters for SBP and DIC, which are packed away in a box somewhere. Will they also reeimburse me for all my medical bills that I paid in the past? Thank you for helping us military widows to find answers. So, I guess DFAS denied the former spouses claim and then the Appeal Board overturned it. Helping Military Families Make The Most of Their Money. Im 59 so remarriage cant change anything. I am the kind of person who wants to understand and to have the answers when my husband asks me what these things mean. I cant even pick which one is bigger. What does your spouse think about all this? Thank you in advance. I have no proof if he did this or not. I have considered going to the nearest USAF base personnel offices and speak with a SBP knowledgeable officer or NCO. My goal is to give you the tools to make the best decisions right now, so you'll be confidently prepared for whatever comes next - whether that's a PCS move, transition to civilian life, or retirement. 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 I usually hate that advice, but I dont know what other recourse you might have in this situation. Both of these contribute to a higher premium and higher annuity benefit than was intended or may be needed. By Carl O. Graham. The letter of law seems plain to me. 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. Does a cash value build up in the annuity so you can cash it out? I am a guardian for a adult disabled child,his deceased dad was a 30 year lifer in the army, after his death he did have survival insurance,but I filed for dic and pension from VA,denied,did I filed wrong insurance?and if so what can I do? My question is I just recently found out I wouldnt be getting my husbands retired pension because he didnt elect to take out SBP when he retired from the military back in 1993 after serving 30 years in the Navy. Are you asking if the premiums must continue to be paid if the insured dies? The more questions you ask, the more everyone learns. Waiting time on phone is average of 30- 45 minutes. Wed really appreciate it if you could find out how taxes are withheld on the refund. There was an error submitting your subscription. I most definitely want her to have that protection, particularly given my life expectancy. Just as it did at the age of 80 SBP even if you havequestions about military.! 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