Retired and Annuitant Pay: Paid-Up Survivor Benefit Plan (SBP)

[darrels joy]

Effective October 1, 2008, no reduction in the retired pay of a participant in the SBP will be made for any month after the later of (1) the 360^th month of paid premiums; and (2) the month during which the participant attains 70 years of age. Section 641 also includes participants who are paying premiums under the Reserve Component SBP (RCSBP). Section 655 of the National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65, extended the paid-up provision to RSFPP participants. The RSFPP provision also becomes effective on October 1, 2008.




These changes allow qualified retirees to stop paying SBP and/or RSFPP premiums while maintaining their current annuity coverage. The change is commonly referred to as “Paid-up SBP.” Beginning October 1, 2008, a member who is a least 70 years of age and has made a minimum of 360 months of premium payments is eligible to have their monthly premiums stopped. 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.




The DFAS notice will be mailed beginning in May 2008, to members who have met or will soon meet the entitlement criteria. All retirees will be notified of their paid-up premium status on their December 2008 annual Retiree Account Statements (RAS). This information will be updated with each RAS issued after December 2008 to help retirees monitor their eligibility status.
http://www.dfas.mil/retiredpay/paid-...aymentsbp.html

[SuperScout]

thanks for the reminder! Although that magic date is still a bit dim on the horizon, the potential increase in monthly bucks will be very welcome.

[colmurph]

Effective October 1, 2008, no reduction in the retired pay of a participant in the SBP will be made for any month after the later of (1) the 360^th month of paid premiums; and (2) the month during which the participant attains 70 years of age. Section 641 also includes participants who are paying premiums under the Reserve Component SBP (RCSBP). Section 655 of the National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65, extended the paid-up provision to RSFPP participants. The RSFPP provision also becomes effective on October 1, 2008.[/These changes allow qualified retirees to stop paying SBP and/or RSFPP premiums while maintaining their current annuity coverage. The change is commonly referred to as “Paid-up SBP.” Beginning October 1, 2008, a member who is a least 70 years of age and has made a minimum of 360 months of premium payments is eligible to have their monthly premiums stopped. 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. FONTnotice will be mailed beginning in May 2008, to members who have met or will soon meet the entitlement criteria. All retirees will be notified of their paid-up premium status on their December 2008 annual Retiree Account Statements (RAS). This information will be updated with each RAS issued after December 2008 to help retirees monitor their eligibility status


Big deal. After paying 30 years of premiums you don't have to pay anymore. Who is going to live long enough? This isn't going to help someone who retired after they were 40 years old. I retired at 53 so I'll have to live to be 83 to get the break. This is another "Feel Good" thing that doesn't cost the Government anything and which doesn't really affect anybody except the ones who retired at 37 with 20 years of service.