What is SBP and why was it created? The Uniformed Services Survivor Benefit Plan (SBP) was created by Congress in 1972 to put an end to the category of destitute survivors. SBP is the sole means by which survivors can receive a portion of military retired pay. Without it–retired pay stops on the date of death of the retiree!

How Does SBP Work? In conjunction with their retirement, military members must elect to receive reduced retired pay for their lifetime by paying premiums into SBP. Election for SBP Coverage is made at the time of retirement.

I have heard recently about a “Paid Up” Provision for SBP? The “Paid-up Survivor Benefit Plan (SBP)” program became effective Oct. 1, 2008. All retirees that are at least 70 years of age and have paid SBP premiums for at least 360 months (30 years) will have their premiums stopped and are no longer required to make monthly payments beginning in the month they meet the eligibility requirements. No action is required by the member to initiate the termination of premiums. DFAS will notify members of their paid-up status and when premiums will be stopped. Retiree Account Statements (RAS) have been modified to include a “premium counter.” The purpose of the counter is to track the number of months of paid premiums credited to a retiree’s account. DFAS is working in conjunction with the Defense Manpower Data Center (DMDC), who maintains historical pay data on all military retirees, to ensure that everyone receives proper credit for all premiums paid and that the premium counter is accurate.

Pre-Retirement SBP Responsibilities
Survivor Benefit Plan Coverage Options