	Introduction

The Survivor Benefit Plan (SBP), enacted in 1972, provides cash benefits to a surviving spouse or other eligible recipient(s) of a retiree or deceased member of the uniformed services. The original intent of the SBP (and its antecedents) was to "ensure that the surviving dependents of military personnel who die in retirement or after becoming eligible for retirement will continue to have a reasonable level of income." Coverage was later expanded to those who die while on active service. Under the SBP, a military retiree can have a portion of his or her monthly retired pay withheld in order to provide a beneficiary with a monthly survivor benefit. The cost of this protection is shared by the retiree (in the form of reductions from monthly military retired pay after retirement), the government, and sometimes the beneficiary (under certain types of coverage). Approximately 1.1 million military retirees are enrolled in SBP. In general the amount of the SBP benefit was found to be comparable to other federal benefits and more generous than similar private-sector plans. SBP Coverage and Provisions

Coverage provisions and calculation of the benefit vary depending on the status of the member (i.e., active duty retiree, reserve retiree, or deceased on active duty), the member's dependents, and certain elections that the member makes at the time of retirement. The maximum SBP benefit is 55% of base amount of military retired pay at the time of the retiree's death. The reduced amount of base retired pay is subject to a $300 minimum. Formulas for Withholding

SBP coverage is provided at no cost for those in active service. Because the SBP premium is a larger percentage of the monthly annuity for those who take part of their retirement as a lump sum, it may discourage some participation in the program. Enrollment Changes and "Open Season"

SBP elections made at the time of retirement are generally irrevocable, with a few exceptions. Those who do not have eligible beneficiaries at the time of retirement, but later marry or have children may enroll within a year of initial eligibility. The SBP benefit payable to the survivor of such a deceased active duty member is equal to 55% of the amount of retired pay that the deceased servicemember would have been eligible for had he or she elected maximum coverage and retired on the day of his or her death. In lieu of receiving full SBP benefits, surviving spouses and surviving former spouses subject to the SBP-DIC offset receive a refund of the deceased retiree's SBP premiums based on the amount of the offset.
The Department of Defense's Survivor Benefit Plan (SBP), enacted in 1972, provides cash benefits in the form of a lifetime annuity to a surviving spouse or other eligible recipient(s) of a retiree or deceased member of the uniformed services. The original intent of the SBP (and its antecedents) was to "ensure that the surviving dependents of military personnel who die in retirement or after becoming eligible for retirement will continue to have a reasonable level of income." Coverage was later expanded to those who die while on active service. Under the SBP, a military retiree can elect to have a portion of his or her monthly retired pay withheld in order to provide a monthly survivor benefit to a designated beneficiary. The cost of this protection is shared by the retiree (in the form of reductions from monthly military retired pay after retirement), the government, and sometimes the beneficiary (under certain types of coverage).
Nearly every Congress since 1972 has, in some way, modified the SBP provisions. These modifications have affected eligibility, the size of the benefit, and the interactions of the benefit with other federal benefits, such as the Department of Veterans Affairs' Dependency and Indemnity Compensation (DIC). In nearly every instance, these changes have made the SBP more generous. The program's eligibility requirements and enrollment processes are complex, and modifications over time have added to the complexity.
The SBP is a $3.7 billion program, administered by the Defense Finance and Accounting Service (DFAS), which provides annuities to approximately a quarter of a million survivors of military servicemembers and retirees. SBP participation and costs have grown over time as Congress has made changes to increase the generosity of the program. SBP coverage is provided at no cost for active servicemembers. Those who die on active duty are generally assumed to have retired with full disability and elected full SBP coverage on the day they die. Military retirees' monthly SBP premiums are generally deducted from the retiree's monthly annuity payment. Because the premiums do not cover the full liability, part of the benefit cost is borne by the government.
The amount of the annuity is a percentage of the base retired pay a member is eligible to receive, with a maximum of 55% of the base amount of retired pay and a minimum of $300. Coverage provisions and benefit calculation vary depending on the status of the member (i.e., active duty retiree, reserve retiree, or deceased on active duty), the member's dependents (i.e., spouse and/or children), and certain elections that the member makes at the time of retirement.
There are limits on changing or discontinuing coverage once a member is enrolled in SBP. Those who do not have eligible beneficiaries at the time of retirement, but later marry or have children may enroll within a year of eligibility based on a qualifying event (i.e., marriage or birth of a child). Congress has, on occasion authorized open seasons for certain members to make changes to their enrollment in parallel with other enacted changes to the benefit.