Survivor Benefit Plan

Military pay stops when a member dies. The Survivor Benefit Plan, or SBP, is an annuity that provides a beneficiary with monthly payments for life.

Prior to retiring, each member must decide whether to continue SBP coverage into retirement. The member will be enrolled upon retirement unless he or she opts out.

Costs are deducted from the retiree's monthly pay and are based on the amount of coverage. The premiums for SBP coverage are non-taxable, and the benefit increases with inflation.

Once a member enrolls, changing the election is difficult.

If married, the member's spouse must concur in writing if the servicemember seeks to:

• Decline coverage at retirement;

• Provide a reduced annuity; or

• Provide an annuity to a child, but not the spouse.

A member seeking to disenroll from SBP must have the written concurrence of the covered spouse. SBP premiums paid before the termination effective date are not refunded.

If a divorce occurs after retirement, a non-military spouse can still have coverage. In such a case, he or she must contact the Defense Finance and Accounting Service to request "former spouse coverage" within one year of entry of the final decree of divorce in order to lock in coverage.