About the Survivor Benefit Plan (SBP) | Military OneSource (2024)

FAQs

About the Survivor Benefit Plan (SBP) | Military OneSource? ›

The Survivor Benefit Plan provides financial support to military spouses and/or children when a military member dies while on duty or after retirement. SBP provides eligible beneficiaries with a monthly payment known as an annuity. The recipient of an SBP annuity is referred to as the annuitant.

Military retired pay stops upon the death of the retiree. The Survivor Benefit Plan allows a retiree to ensure, after death, a continuous lifetime annuity for their dependents. The annuity, based on a percentage of retired pay, pays eligible survivors an inflation-adjusted monthly income.

The Survivor Benefit Plan (SBP) allows a retiree to ensure, after death, a continuous lifetime annuity for their dependents. The annuity which is based on a percentage of retired pay is called SBP and is paid to an eligible beneficiary. It pays your eligible survivors an inflation-adjusted monthly income.

The SBP annuity is determined by the base amount you elect. The base amount may range from a minimum of $300 up to a maximum of full retired pay. The annuity is 55 percent of the base amount.

A surviving spouse or surviving divorced spouse cannot apply online for survivors benefits. You should contact us at 1-800-772-1213 to request an appointment. If you are deaf or hard of hearing, call our TTY number at 1-800-325-0778.

SBP is 55 percent of the base amount you choose to cover. The base amount is between the minimum of $300 per month and to the maximum of your full retired pay. You can elect an amount of SBP you want to provide by adjusting your base amount.

The Survivor Benefit Plan SBP cost is high. Yet, the likelihood that a retiree's spouse (or qualifying child) will ever receive any tangible return from it is low. If the spouse predeceases the service member, then all the funds paid into the plan are simply a loss from net retired pay.

A member who elected SBP and has paid premiums for 30 years (360 months), and who is at least 70 years of age, is considered "paid-up". Although SBP coverage continues, no further premiums are required.

Spouses will receive SBP for life unless remarried prior to age 55. If that marriage ends, the SBP annuity will resume. If your spouse dies first or you get divorced, SBP costs will stop (once you notify the Defense Finance and Accounting Service).

A request for withdrawal requires the written consent of your beneficiary. When you die, your surviving spouse will be entitled to a refund of all the SBP costs that were paid.

Do you pay taxes on SBP? ›

Currently 48 states partially or fully exempt SBP payments and only two states in the country fully tax these benefits, Vermont and California.

SBP provides up to 55 percent of a service member's retired pay to an eligible beneficiary upon the death of the member. After the service member passes away, the SBP annuity is paid out monthly to the surviving spouse, or to the child or children of the member.

Your military pension does not affect your Social Security benefits. You'll get your full Social Security benefit based on your earnings. Survivors benefits may affect benefits payable under the optional Department of Defense Survivors Benefit Plan.

1. Widowed Spouses and Former Spouses Remarrying Early: Widowed spouses and former spouses who remarry before age 60 (or 50 if they are disabled) become ineligible for survivor benefits. However, if the later marriage ends, eligibility can be reinstated.

If you or the insured worker was granted a tax exemption as a member of a religious group, whose members oppose insurance plans such as Social Security, you may not be eligible for survivor benefits. If you are eligible, your benefits may be smaller (See §1128.);

Surviving spouse, full retirement age or older—100% of your benefit amount. Surviving spouse, age 60 to full retirement age—71½ to 99% of your basic amount. A child under age 18 (19 if still in elementary or secondary school) or has a disability—75%.

According to the Social Security Administration, the average survivor benefit paid in December 2023 was $1,501.60 per month.

The short version: Spousal benefits are available to retired workers' spouses or ex-spouses. They pay up to 50% of a worker's monthly retirement or disability benefit. Survivor benefits are paid to a surviving spouse or surviving ex-spouse when a Social Security beneficiary dies.

How Long Do You Receive Social Security Survivor Benefits? Social Security survivor benefits are payable to the surviving spouse for the remainder of their life. Restrictions apply for divorced spouses eligible to receive benefits.

SBP costs for insurable interest coverage are 10 percent of the member's gross retired pay plus an additional 5 percent for each full five years the beneficiary is younger than the retiree; however, total costs cannot exceed 40 percent of the retired pay.