Theres another whole book in that, but definitely read up! It was only for my kids, and when I signed up for it I had no clue what I was doing. I havent made any payments into SBP as I havent received retirement pay from DFAS and only disability from the VA. Im not sure if should attempt to catch up or just wait it out until I can cancel it. Hi Kate. Any info you can provide would be helpful. Id definitely keep an eye on it, though! Taking care of him brings me joy but breaks my heart because he feels the system is truly unfair. I have not asked DFAS yet. However, your analysis fails to include several important considerations and one glaring factual error. If a couple gets divorced, the ex-spouse of a retiree can still be awarded his or her SBP. There are 100 reasons why that plan could be derailed, and theyre all reasons that would make you want SBP more. If my retired spouse dies before age 70 and 360 months havent been paid in SBP, am I still eligible to receive it? This post may contain affiliate links, from which I may earn revenue to support this free site. My husband retired in 1993 and I pulled out all of his retirement papers and and there is no forms with my signature on anything giving up my rights to SBP or form of any sort to SBP. The age 70 and 360 month is just the paid-up cut-off, after which no more premiums are required. SBP coverage would then be the only coverage. Waiting time on phone is average of 30- 45 minutes. And if you have special needs kids who will be granted secondary dependency, you definitely want SBP. This category is very helpful for couples who choose not to marry, yet want to provide benefits to their partner. It can be paid out of his VA disability compensation, he just has to authorize it. How was I to know cancer would catch up with her and she would die before me?". Assistant General Counsel for Garnishment Operations. Unlike some other military benefits, only one spouse/former spouse may be covered by SBP at any time, and there are a web of rules regarding changes. If the spouse dies after the retiree, if all children are over 21, child coverage stops. Im not sure if the retirement officer told you the wrong information, or explained it in a way that was confusing. Disabled veterans who meet the appropriate qualifications withdraw by completing and submitting the SBP Withdrawal Due to VA Disability Packet, and follow the instructions in the letter and on the form. DFAS requires notice by fax or by mail. A joint and survivor annuity is an annuity that pays out for the remainder of two people's lives. What am I missing? 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. SBP and Life Insurance do not compare equally, but SBP is a form of life insurance. 1. However, spousal SBP ceases to exist when you divorce. 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. How do I continue to provide SBP for my spouse, or does she lose that benefit despite these years of payments. 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. 2. That child will be turning 18 in January and not attending college. She did not send the within that 1 year timeline. Brown, one of World War II's famed Tuskegee Airmen, who survived being shot down near Austria and taken as a prisoner of war, has been in a battle with the Defense Finance and Accounting Service since 2013, when his ex-wife died of cancer. Depending on your husbands medical situation, you may be eligible for Dependency and Indemnity Compensation (DIC) if he pre-deceases you. I submitted the request for the pro-rated amount of his last annuity pay. It provides non-taxable monthly cash payments for a set amount ($1257.95/mo for 2017, with additional amounts for dependent children or special circumstances.). I dont blame them though because even though its their job, I know they have a lot on their plate and tend to where many hats. Both of these contribute to a higher premium and higher annuity benefit than was intended or may be needed. Complete a DD Form 2656-6 requesting SBP coverage for your spouse, and provide your spouse's name, Social Security Elected SBP for spouse. 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. Any advice would be helpful. I do wonder about the amount youve chosen. Hi Rich! Thanks for any info/help you may have. In response to calls to repeal the SBP-DIC offset, Congress enacted a special payment forsurviving spouses whose SBP payments have been offset as a result of receiving DIC. Hi, I cannot seem to get a clear answer from anyone at DFAS on anything related to my husbands pension (SBP) since he died. Second, survivors who are affected by the SBP-DIC offset are eligible for a $310 month allowance called the Special Survivors Indemnity Allowance (SSIA). In addition to its relatively modest cost, SBP provides an attractive income stream because it is inflation-adjusted each year and it continues until the death of the beneficiary. I am about to remarry to a foreign national who will, eventually get her citizenship. He elected for current spouse. You may want to talk with DFAS or your nearest base legal for more information. Your email address will not be published. A non-family member may include a business partner or joint owner of property. I assume my payments into the SBP will stop. I would be grateful if you can help. His RAS states No SBP election is reflected on your Account. I have many people come to me and say that the offset is unfair. I understand the opportunity to elect former spouse coverage within 1 year of divorce. Your premiums have gone into the the pool and will be used to pay out claims to other SBP participants. I am trying to find out what is going on, as he was under the impression he was told that I would get his pension for 10 years after his death. Yes, Sandy, you are covered under SBP immediately. A veterans service organization will often help with this and services are free. Im sorry that your father did not understand that when he made the choice to enroll in SBP. FERS - To elect a full 50% survivor annuity for your spouse your annuity will be decreased by 10%. There is also a little counter at the bottom of the RAS that shows how many months of premiums have been paid. My question is regarding the child only SBP. If the coverage is required by the divorce settlement, then the spouse must provide DFAS with a copy of the court order. Is that correct? Also, a Veterans Service Officer might be able to track down more details. Ive printed up material from the SBP FAQs that say that I cant lost it. The premiums will be automatically deducted by DFAS from your monthly retirement check. She received a check for backpack and I dont understand y. If the retiree was not married at the time of their former spouse's death, but later marries, the new spouse can still be listed as the SBP beneficiary. Author Jim Cramp is a retired active duty colonel and the founder and principal attorney at the Cramp Law Firm . SBP premiums are deducted from retired military pay pre-tax, which reduces the overall cost of the premiums. However, it would be unusual for a beneficiary to be in a higher tax bracket than the covered retiree. 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. (Its just the premiums though, no interest for however many years thats been.). The terms of SBP are grossly unfair for the very high cost, do you know if there have been any lawsuits against the military for this program? Any suggestions on what I can provide them? The years they were married or the time between their passing? There are additional costs for children. They were separated but not divorced. There was a lot going on at that time with my Mothers death. Every situation is different. You do this through the Defense Finance and Accounting Service (DFAS). I asked DFAS if I should hire an attorney and her answer was I cant answer that because this conversation is being recorded. Lisa, former spouses can be covered under SBP, but there is a process that needs to be followed. 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. Someone called once and she answered some additional questions. When she turns 18 will I then be able to change my SBP to my wife? Thank you for helping us military widows to find answers. First is the ability of the beneficiary to manage the lump sum while dealing with grief. It will make a tremendous difference to them," he said. Is there anyway that I can lose my SBP/DIC? You can use the formula from the Office of the Actuary to determine real costs. Brown did not hesitate to name his first wife as his beneficiary when they divorced in 1991. My question is since my retirement is totally non taxable will my spouse have to pay income tax on her SBP benefit ? I did make two phone calls just to be sure they were still working on it. 4. I appreciate the information on the military benefit plan. But after his ex-wife died, he said he simply wanted to name his new spouse, whom he married in 2010,as his SBP beneficiary. 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. Spouse/former spouse and child(ren) or child-only coverage are the only categories of beneficiary that can allow a retiree to designate more than one beneficiary at a time. I should be receiving his SBP in the next 2 months. I dont understand this as unless this means I no longer have to pay for SBP, my benefit would be far greater than my DIC. There is no refund of premiums if you make this choice. Here at the blog, I talk about the financial issues that affect military families - pay, allowances, and benefits. My husband has an ex-wife and their divorce decree states he must select her as her SBP beneficiary. But in other years, other risks might be larger. (I dont know how thats coded on your paperwork.) They are digging in their heels more and more now due to budgetary problems. Gabriel, there are a couple of things going on here, but regardless he wont have wasted his money paying for SBP. A FSs right to military retired pay terminates upon the FSs death and is not transferable by Will or other means. SBP spouse benefits last for life for un-remarried spouses. 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. 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. Yes, thats the reasoning behind the offer. I cannot find anything online in MyPay to download and print. The law requiring spouses to agree to waive SBP was enacted in 1986, so you should have been asked to sign for anything less than full SBP. Excuse my ignorance but my father recently passes away and had SBP. Notice must include: PUBLIC NOTICE: Jim Cramp is the attorney who is responsible for the contents of this website. If your parents were already divorced at the time your father retired, your mother would not have received any notification because it is not required for former spouses as they dont have any inherent rights to SBP coverage. Former Spouse 5. Do any of them have special needs? 2. The 5 year rule for 100% disabled veterans specifically permits them to fully discontinue coverage if they so desire. <>>> I carry automobile insurance, and yet I hope to not make a claim. It is possible that you might be able to make a claim for the SBP benefits she should have received between his death and her death. 4 0 obj But back pay from 12/29/2011 through 11/30/2017 would be valid. With regard to the new wife, if you have been married less than a year, it might be worth getting caught up with the payments (if they will let you) and adding coverage for her. Hi! Incapacitated or disabled children are at any age. of service in the Marine Corps. Good luck to you! 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. When I received the return of SBP premiums they withheld about 10%. With the passage of the new law, he said, "a terrible wrong has now been corrected. No, they do not. stream Thank you, Shellie. My question is Will I receive back pay from June to present day? She faxed the Army to ask for an extension of time (this also was allowed). "I've been waiting and waiting and waiting," said Brown, 90. Because DIC benefits are non-taxable, the net income is higher than if just SBP were received. Youre trying to get a refund of the SBP premiums that your father continued to pay after your mothers death? Thank you so much for responding because I dont know what else to do. It took me the surviving widow 15 years . In this case, your friends family would only receive SBP payments. My dad died in 2017 at the age of 80. You are very kind and thoughtful to do all this Q & A. Divorced 1992 with SBP required in divorce decree. What is DFAS currently saying about the situation? So Im doing more research that I should have done prior to paying in. section 3702 regarding SBP payment of any claim not received within 6 years from the date it accrues basically a claim for Arrears of Pay. The SBP cost factors displayed are based on spouse-only coverage. I am also 100% disabled. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 9 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 3 0 obj The value in SBP is the inflation adjusted, lifetime guaranteed income. She never received SBP prior to. Have I a leg to stand on at all? 1. The tax levy is not part of the SBP laws but results from individual tax treaties between the U.S. government and various foreign countries. 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. We were surprised that taxes withheld were very low; enough to require her to pay a penalty for underpayment. Upon Loss of Spouse SBP spouse coverage is not terminated when a spouse loses eligibility (spouse dies or member and spouse divorce). This wild assumption sounds like advice from a 4 year old. Retired since 1988. Every retiring service member with an eligible spouse or child is automatically enrolled in the Survivor Benefit Plan at the maximum level. Make up a chart that reflects the earnings of a surviving spouse of an E7 with 22years. Uniformed Services Former Spouses' Protection Act and Survivor Benefit Plan (PPCPUB 5825) decline SBP coverage for the new spouse and any future spouse; increase SBP coverage if the previous SBP election was for reduced spouse coverage; or resume previous spouse SBP coverage. Is that a correct assumption? Sending prayers to your wife and you during this difficult time. I read your post with interest and have a question for you. My mother insists that my sister could receive the survivor benefits upon my fathers passing. 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