Posted on Jan 6, 2023
Retirees to Get a Second Chance to Enroll In or Opt Out of the Survivor Benefit Plan
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SURVIVOR BENEFIT PLAN FOR MILITARY RETIRED VETERANS SHARE OF THE DAY
Military retirees who opted out of a valuable survivor’s benefit when they left active duty will get a rare second chance to enroll thanks to a new rule in the 2023 National Defense Authorization Act. The same measure allows currently enrolled users to leave the program.
Retirees typically get only one chance to enroll in the Survivor Benefit Plan (SBP). Those who opt in usually name their spouses as the beneficiaries, said Mark Belinsky, director of currently serving/retired affairs for the Military Officers Association of America and an Army retiree.
The SBP is like a life insurance policy with no cap. After a retiree dies, the SBP pays a beneficiary up to 55% of the retiree’s retirement pay, adjusted for inflation, monthly for the rest of the surviving spouse’s life, or till a child reaches an age cap.
PO1 William "Chip" Nagel SSG Michael Noll Lt Col John (Jack) Christensen Cpl Vic Burk SGT Charlie Lee] Sgt (Join to see) GySgt Jack Wallace SFC David Reid, M.S, PHR, SHRM-CP, DTM PV2 Larry Sellnow SPC Gary C. SPC (Join to see) Amn Dale Preisach SGT Ruben Lozada 1SG Paul Ayotte SSgt (Join to see) CPT Richard Trione SFC Ralph E Kelley CPL LaForest Gray 1SG Patrick Burke PV2 Scott Mollette
Military retirees who opted out of a valuable survivor’s benefit when they left active duty will get a rare second chance to enroll thanks to a new rule in the 2023 National Defense Authorization Act. The same measure allows currently enrolled users to leave the program.
Retirees typically get only one chance to enroll in the Survivor Benefit Plan (SBP). Those who opt in usually name their spouses as the beneficiaries, said Mark Belinsky, director of currently serving/retired affairs for the Military Officers Association of America and an Army retiree.
The SBP is like a life insurance policy with no cap. After a retiree dies, the SBP pays a beneficiary up to 55% of the retiree’s retirement pay, adjusted for inflation, monthly for the rest of the surviving spouse’s life, or till a child reaches an age cap.
PO1 William "Chip" Nagel SSG Michael Noll Lt Col John (Jack) Christensen Cpl Vic Burk SGT Charlie Lee] Sgt (Join to see) GySgt Jack Wallace SFC David Reid, M.S, PHR, SHRM-CP, DTM PV2 Larry Sellnow SPC Gary C. SPC (Join to see) Amn Dale Preisach SGT Ruben Lozada 1SG Paul Ayotte SSgt (Join to see) CPT Richard Trione SFC Ralph E Kelley CPL LaForest Gray 1SG Patrick Burke PV2 Scott Mollette
Retirees to Get a Second Chance to Enroll In or Opt Out of the Survivor Benefit Plan
Posted from military.comPosted in these groups: 
Benefits
Retirement
Benefits Retirement
Posted 2 y ago
Responses: 2
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I suspect there are many. I know SBP was essentially badmouthed when I received my retirement briefings.
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Here is the thing for Surv Ben Plan for me:
1.) Unless you leave the service with a debilatating disease that willprobabl claim your life, it really isn't worth it. If you die, your spouse willget it unless they remarry. If they remarry they will lose the benefit.
2.) It is a sunk cost that increases exponentially over the years. If you live to a very old age you nor your spouse willreceive any of that back. Or at a very minimum you will get a few years back out of it.
3.) I took the same amount of money that I owuld have put into the plan and invested it in life insurance that she will get or my daughter will get which isn't allowed inthe SBP, and other investments for retirement. That way I at least get a return on the money versus a gamble on my death for my wife. But you have to be disciplined to do that and not use that money for something else.
Just my opinions.
1.) Unless you leave the service with a debilatating disease that willprobabl claim your life, it really isn't worth it. If you die, your spouse willget it unless they remarry. If they remarry they will lose the benefit.
2.) It is a sunk cost that increases exponentially over the years. If you live to a very old age you nor your spouse willreceive any of that back. Or at a very minimum you will get a few years back out of it.
3.) I took the same amount of money that I owuld have put into the plan and invested it in life insurance that she will get or my daughter will get which isn't allowed inthe SBP, and other investments for retirement. That way I at least get a return on the money versus a gamble on my death for my wife. But you have to be disciplined to do that and not use that money for something else.
Just my opinions.
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