Survivor Benefit Plan Eligibility Requirements and Related Information
Coverage
Basic Eligibility Requirements
Gross Benefits
Monthly Cost
Benefits Stop
Married to a retiree upon retirement or during the initial open enrollment period; or Married at least one year at the time of retiree’s death; or Spouse is the parent of a child born of a post- retirement marriage to deceased retiree; or Member died on active duty. The same basic rules outlined above; and The child or children must be unmarried and under the age of 18 (under 22 if full-time student), or can be any age if mentally or physically handicapped provided physical disability occurred prior to the age of 18 (or 22 if a full-time college student). Note: Recent legislation allows SBP benefits to be paid into a special needs trust. Before this was enacted, SBP benefits for a fully disabled child affected the other disability benefits the child could receive. The child or children must be unmarried; be dependents under the age of 18 (under age 22 if full-time student), or can be of any age if mentally or physically incapacitated provided total disability occurred prior to the age of 18 (or 22 if a full-time college student). If there is no eligible spouse or child when the member retires and the person has a bona fide financial interest in the SBP participant’s continued life. Persons who are closer related than a cousin do not require proof of financial interest. A single child can have an insurable interest if there is no spouse or other eligible children. The rules and requirements for “Former Spouse” coverage are lengthy and very complicated — too complicated to list in this space. When considering such coverage, we highly recommend seeking legal assistance. Only children of marriage to former spouse are eligible.
Upon death if the spouse remains unmarried. On remarriage if an annuitant is under age 55. (If ended due to remarriage, it can be restored if the new marriage is terminated.)
Depends on whether cost is determined by the “old” or the “new” method. See paragraph 5-5 .
55% of amount designated by the member. See paragraph 5-4 .
Spouse Only
Same as above for spouse. Child’s benefits end upon reaching age limit, marriage, or death. Totally incapacitated children who are incapable of support have lifetime benefits provided they are not married. Children only receive SBP if the spouse becomes ineligible.
Same as above plus a slight extra charge that ends when no eligible children remain. The monthly cost is based upon the age of the retiree, spouse, and youngest child.
Spouse and Child or Children
Same as above.
A special children’s cost based on retiree’s age
Child’s benefits end upon reaching age limit, death, or marriage with exception for an unmarried, totally disabled child.
55% of amount designated by the member in equal shares.
Child or Children Only
and age of the youngest child.
10% of the retired pay plus 5% for each full five years by which the beneficiary is younger than the retiree (maximum cost is 40% of retired pay).
Person with an
55% of retired pay remaining after deducting the cost of the SBP coverage.
Upon the death of the beneficiary.
Insurable Interest in the Retiree
Former Spouse and Children
The same as “Spouse and Child” above.
The same as “Spouse and Child” above.
The same as “Spouse and Child” above.
CHAPTER 5: THE SURVIVOR BENEFIT PLAN
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