What is the Survivor Benefit Plan (SBP) and is it the right option for you?
There is some confusion surrounding the Survivor Benefit Plan (SBP). SBP is a form of financial protection offered by the Department of Defense and was designed to give survivors coverage for lost military or retirement pay when a servicemember dies. Under the SBP, also referred to as a “survivor annuity plan,” a military retiree’s spouse (and/or eligible dependents) can receive up to 55% of the military pension (paid monthly for the life of the beneficiary) upon the death of the retiree. Unfortunately, SBP does not simply kick in once a servicemember dies. Generally, a servicemember must decide whether or not to enroll in the SBP at the time of military retirement.