Hanscom Air Force Base   Right Corner Banner
Join the Air Force

News > Understanding the Survivor Benefit Plan
Understanding the Survivor Benefit Plan

Posted 10/31/2012   Updated 10/31/2012 Email story   Print story

    


by Judith Trabucco
Airman and Family Readiness Center


10/31/2012 - HANSCOM AIR FORCE BASE, Mass.  -- The Survivor Benefit Plan enables military retirees to financially protect a spouse or other survivors by insuring that a portion of retired pay continues after the retiree's death, providing a guaranteed income to the survivors.

The decision to enroll in this program is made prior to retirement and is irrevocable. The retiring servicemember's spouse must consent to any protection level that is less than 100 percent. If no reduction is elected, the cost for spouse-only coverage is 6.5 percent of gross military retired pay.

Everyone's situation is different. When considering the SBP and alternatives, here are some things to keep in mind:

Potential advantages

· No evidence of insurability is required

· No suicide or incontestability clauses

· Benefits are tied to retired pay increases

· SBP costs are not subject to federal income tax or state income tax in most states

· Survivor's benefits are subject to federal estate taxes, but in most cases are eligible for the unlimited marital deduction

· Benefits are not subject to garnishment, lien, or other legal processes

· Benefits may be payable for the lifetime of beneficiary

Potential disadvantages

· No residual estate remains after death or marriage of designated beneficiary

· Monthly benefit is subject to federal income tax as ordinary income

· Monthly benefit is subject to state income tax in some states

· Preferred risks subsidize uninsurable risks

Additionally, SBP costs, benefits and provisions are continuously subject to revision by legislative and administrative action.

The Survivor Benefit Plan may contribute significantly to loved ones' financial well-being and should be considered part of an overall retirement income strategy to address needs and goals. A qualified financial advisor can help develop such a strategy and plan.

For further information regarding the Survivor Benefit Plan, contact Judy Trabucco at 781-225-2765 781-225-2755 or email judy.trabucco@hanscom.af.mil.



tabComments
No comments yet.  
Add a comment

 Inside Hanscom AFB

ima cornerSearch

tabMission NewsRSS feed 
Theater Battle Control Division Industry Day highlights new contract approach, MCS first delivery order

Critical force-protection system completed ahead of time, under budget

Summer Focus Week offerings, still time to register

Hanscom's cyber initiatives

MPS Increment IV reaches full deployment

Radar site beefs up security, showcases latest upgrade to battle management PEO

Space Fence contract awarded  1

Leading cyber minds converge at Hanscom

tabHanscom NewsRSS feed 
AFMC recognizes fourth quarter "Graduates"

Hanscom Heroes Homecoming

Medical appointment reminders available via text, email

Hanscom personnel honored at AFCEA International Conference

JPPSO passes along summer moving tips

AtHoc, 'Giant Voice' alert personnel to critical information

BSC development team convenes in August

Consumer tips on avoiding scammers

Contracting director joins SES ranks, rejoins Air Force

tabNews Briefs and HappeningsRSS feed 
Upcoming events

News in Brief

School Notes

tabCommentaryRSS feed 
How to protect your home while traveling

Taking inspiration from our founding fathers

tabPhoto FeatureRSS feed 
Photo feature: This week at Hanscom, July 16

tabFeaturesRSS feed 
Family's love of music drives win at AF competition

Hanscom CGO answers the call


Site Map      Contact Us     Questions     USA.gov     Security and Privacy notice     E-publishing  
Suicide Prevention    SAPR   IG   EEO   Accessibility/Section 508   No FEAR Act