This month, we’re going to cover how to set up your Survivor Benefit Plan or SBP. For those unfamiliar with the term, the SBP provides a monthly payment to a surviving spouse or other qualified family member for Active Duty personnel and Veterans. The Reserve Component Survivor Benefit Plan (RCSBP) provides the same benefit for the families of deceased members of Reserve and Guard units.
Each service has its own fact sheets, charts, and other publications.
The points below draw from the SBP/RCSBP Fact Sheet for the Air and Space Forces:
- Regular Airmen and Guardians on active duty – Benefits calculated at retirement with 100% disability. Death must be in the Line of Duty unless retirement-eligible. If retirement eligible and found not in the Line of Duty, benefits are based on years of active service. SBP coverage is provided at no cost, and beneficiaries are determined by law.
- Regular Airmen and Guardians retired – Must enroll upon retirement. Line of Duty determination not applicable. If coverage is elected, the policyholder must choose the SBP beneficiary category and pay a portion of the coverage cost.
- Reserve and National Guard Airmen and Guardians in non-drilling status with less than 20 years of service who die in a non-duty status – Not qualified for No SBP or RCSBP
- Reserve and National Guard Airmen and Guardians on Inactive Duty for Training – RCSBP benefits are calculated as if retired with 100% disability. Death must be in the Line of Duty. If retirement eligible and found not in the Line of Duty, benefits are based on retired pay calculated as a non-regular retirement. Coverage is provided at no cost if the death is found to be in the Line of Duty, and beneficiaries are determined by law.
- Reserve and National Guard Airmen on Federal Active Duty, regardless of years of service – SBP benefits are calculated as if retired with 100% disability. Death must be in the Line of Duty. If retirement eligible and found not in the Line of Duty, benefits are based on years of active service. SBP coverage is provided at no cost, and beneficiaries are determined by law. If retirement eligibility is based on 20 creditable years toward non-regular retirement and death is found not to be in the Line of Duty, RCSBP coverage applies with the beneficiaries determined by law.
- Reserve and National Guard Airmen in non-drilling status with at least 20 years of service - RCSBP. Only if they enrolled with Option B or Option C when they received a 20-Year Letter, or received the 20-year letter, are within the 90 days, but have not made an RCSBP election, or should have received a 20-year letter. Death does not need to be in the Line of Duty.
- Reserve and National Guard Airmen at age 60 who had enrolled in RCSBP with Options B or C - At age 60, RCSBP for non-regular Retired Airmen becomes SBP. Line of Duty determination not applicable. Must pay RCSBP premiums at non-regular retirement.
- Reserve and National Guard Airmen at age 60 who had not enrolled in RCSBP (elected Option A) - SBP. Only if they enroll in SBP upon receipt of retired pay. Line of Duty determination not applicable. Must pay SBP premiums if SBP coverage is elected.
- Reserve and National Guard Airmen over age 60 who had not enrolled in either RCSBP or SBP - No SBP or RCSBP. Retired pay stops at the death of the service member.
Some additional information about SBP:
- A question often asked is, “Does my spouse stay as the beneficiary even after we divorce?” The answer is most often no. It can be yes, however, if the service member or veteran decides to allow it or is ordered by the divorce court to continue carrying the ex-spouse on the plan.
- Spouse: The retiree’s spouse is automatically covered under SBP at the maximum level.
- Children: Eligible children must be unmarried and under 18, or under 22 if enrolled full-time in school. Children with disabilities may qualify at any age. This is an excellent way to provide for a child who cannot work full-time, but does not qualify for disability under Social Security.
- Insurable Interest: Non-family members, such as business partners or parents, may qualify as beneficiaries with sufficient documentation.
These qualifications ensure that the retiree’s family members are financially protected after their passing.
Looking for more information about any of your benefits with the VA? Make sure you are checking out our whole series: VSO 101!
Explore more with My Military Lifestyle and Career and Post Career!
No comments yet. Be the first!