Is SBP adjusted to compensate for increases in the cost of living?
Yes. This feature helps keep SBP's purchasing power in step with tomorrow's dollar value. All features of SBP are increased by the same percentage as the retiree Cost of Living Adjustment (COLA). The ratio of cost to benefit is constant.

What is a "base amount"?
This is the dollar amount of retired pay you select to base participation on. It can be any amount between $300 per month and full retired pay.

Can an election be changed?
Elections are generally permanent and irrevocable. However, since May 17, 1998, a member has been able to unenroll during the one-year period between the 25th and 36th month following start of retired pay. Spouse concurrence is required, no costs are refunded, and no future enrollment is allowed. Premiums continue as long as there is an eligible beneficiary. Costs are suspended if a spouse is lost to death or divorce. If the retiree remarries, coverage resumes automatically at the first anniversary unless the retiree makes a written request to decline resumption before that date. Child costs stop when the youngest child exceeds 18 (or 22 if unmarried and enrolled full time in college).

SBP elections are made by category, so the choices you make for your eligible beneficiaries at retirement are critical. For example, if you are married at retirement, and decline coverage for your spouse, then later remarry, you may not enroll your new spouse. Likewise, if you have eligible children you decline to enroll, you may not enroll future children.

I'm unmarried, what are my options?
You can elect "insurable interest" coverage or decline coverage. If you gain a spouse or child in the future, you may enroll them within one year of the marriage or birth.

May I terminate my participation in SBP because I have decided that I no longer need coverage, it will not benefit my spouse, or I just do not want to participate in the plan anymore?
You may voluntarily elect to discontinue participation in the SBP only during the 25th through the 36th month after commencement of payment of retired pay. If you qualify to discontinue participation in the plan, you must complete a DD Form 2656-2. Spousal concurrence is required, except in limited circumstances when your spouse is unavailable. The termination form is only valid if a service-designated SBP Counselor or Notary Public witnesses your spouse's concurrence.

Must I continue to pay SBP costs if my spouse dies?
No. SBP spouse coverage is suspended (not terminated) upon receipt of notice that your spouse has died. You must send the death certificate to the mailing DFAS Retired Pay. Upon receipt of the death certificate, SBP costs will be stopped effective with the first day of the month after the death of your spouse. SBP costs deducted from your retired pay, after your spouse has died, will be refunded after receipt of your spouse's death certificate. The amount refunded will be limited, if the death certificate is submitted more than six years after your spouse's death.

If my spouse dies before me, do I get a refund for all the years that I paid SBP premiums?
No. By law, SBP spouse premiums cannot be refunded for any period that you had an eligible spouse beneficiary.

I understand that if my spouse dies, SBP premiums are suspended. What are my options if I remarry?
If your SBP coverage is suspended due to the death of your spouse and you remarry, you have two options.

Option 1: Resume coverage. Your new spouse automatically becomes the eligible spouse beneficiary on the first anniversary of the marriage or upon the birth of a child of your new marriage. You should provide DFAS with the name, social security number, date of birth and marriage certificate for your new spouse as soon as possible, in order to update your records and properly deduct SBP costs. You also may increase coverage when you remarry.

Option 2: Terminate coverage. You may elect not to resume spouse coverage. If you elect not to resume SBP participation for your new spouse, your new spouse is notified and any SBP coverage is terminated. An election to terminate spouse coverage must be made within one year of remarriage and is irrevocable. If your original SBP participation is for spouse and child, and you elect to terminate spouse coverage upon remarriage, your children continue to be covered.

Notice of remarriage as well as an election to increase coverage or to terminate spouse coverage may be submitted on DD Form 2656-6 to DFAS Retired and Annuitant Pay.

If I elected not to participate in the SBP for my spouse when I retired, may I elect spouse coverage now?
No. If you were married at retirement and you declined SBP coverage, there is no authority to elect spouse coverage after retirement, unless Congress authorizes an open enrollment period.

I wasn't married when I retired, so I did not make an election under SBP. If I get married after retirement, may I elect coverage for my spouse under SBP?
Yes. You may elect SBP coverage for the first spouse you marry after retirement. However, you must elect the coverage before the first anniversary of your marriage. Send a letter to DFAS (or use DD Form 2656-6) requesting SBP coverage for your spouse, and provide your spouse's name, social security number, date of birth and a copy of the marriage certificate.

My spouse and I didn't have any dependent children when I retired and I didn't elect child coverage. We now have a child. May I cover the child?
Yes, as long as you elect coverage within one year of the child's birth or adoption, etc. Subsequent eligible child beneficiaries will automatically be covered under SBP. You must provide DFAS with the child's name, social security number, date of birth, and if adopted, a copy of the adoption papers, within one year after the child is acquired. Evidence of the parent-child relationship is required in order to elect coverage for stepchildren or foster children.

My divorce decree requires that I keep SBP coverage for my ex-spouse. What do I have to do?
Spouse coverage under the SBP stops at the date of divorce, since the status as spouse ends on that date. Termination of the divorced spouse's eligibility is automatic under the law, even if the agency is not advised of your divorce. You should provide DFAS with a copy of the divorce decree, and a written request to change coverage to former spouse coverage. You may make a former spouse SBP election whether or not there is a provision in your divorce decree requiring you to do so. Any former spouse SBP election must be made within one year of the date of the divorce, whether voluntary or in compliance with a court order.

I am the former spouse of a military retiree and our divorce decree requires the retiree to provide former spouse SBP coverage for me. Do I need to do anything?
Yes. Since there is a provision in a court order or an agreement approved by a court order, which requires the member to make a former spouse SBP election, you or your attorney should submit a "deemed election" request within one year of the date of the court order or agreement requiring the retiree to provide coverage.

Will my former spouse's SBP coverage be stopped if I remarry and want to provide coverage for my new spouse?
It depends. If you voluntarily elected former spouse SBP coverage and there is no court order or agreement requiring it, you may change the coverage to your new spouse or dependent child after you remarry or within one year of acquiring a dependent child. However, coverage ordered by a court or written agreement cannot be stopped at your request alone. Court-ordered former spouse coverage may be changed to spouse coverage only if you remarry and you furnish DFAS a certified copy of a court order that modifies the provisions of all previous court orders and removes any requirement to provide former spouse SBP coverage. Former spouse coverage can also be changed if your former spouse dies.

If the former spouse SBP is based on a written agreement that has not been incorporated, ratified or approved by a court order, you must furnish DFAS a statement signed by you and your former spouse, which evidences your former spouse's agreement to an election change. In addition, you must certify either the court order is valid and in effect or the statement is current and in effect.

What happens to my former spouse's SBP coverage if my former spouse remarries before age 55?
The SBP coverage is suspended and cost deductions from your retired pay are stopped if your former spouse becomes ineligible due to remarriage before age 55. The former spouse's SBP coverage is considered suspended for as long as your former spouse's subsequent marriage remains in effect. If the subsequent marriage is terminated by death, annulment, or divorce, your former spouse's eligibility is reinstated and SBP cost deductions resume.

My spouse told me in the event of death the military would take care of me. Now that my spouse has passed away, I've discovered that my spouse did not elect SBP coverage for me and you've stopped my spouse's retired pay. Is there anything that can be done?
If the retiree did not elect SBP spouse coverage when he or she first became eligible, you are not entitled to receive an annuity now. If the retired member retired before March 1, 1986 and was married upon retirement, the military service should have notified you if SBP was not elected. If the retired member retired March 1, 1986 or later, you must have signed a written statement concurring in the retiree's election of anything less than maximum spouse SBP coverage.

I have been receiving SBP annuity payments and I want to remarry. What affect will the remarriage have on my annuity payment?
If you remarry before age 55, the SBP annuity stops the first of the month in which you remarry and coverage is suspended. If your subsequent marriage ends due to death, annulment or divorce, your annuity will be reinstated. If you remarry after age 55, the SBP annuity will continue to be paid. You should forward a copy of your marriage certificate to DFAS when a remarriage occurs.

My spouse elected spouse and child SBP coverage at retirement. When my spouse died, I was the only one that received an annuity payment. Why does our minor child not receive an annuity payment also?
As the spouse, you are the primary beneficiary under the SBP. Your children are only eligible to receive an annuity if you die or become ineligible due to remarriage before age 55 and your children are still dependent children under the law.

I am the guardian or family member of a minor, mentally incompetent or legally disabled person who is entitled to receive an SBP annuity. What should I do to receive payments on behalf of the minor or legally disabled person?
If you are the court-appointed guardian or fiduciary of the annuitant, you should mail DFAS a copy of the court order appointing you to handle the financial affairs of the annuitant. If you are a family member of a minor, mentally incompetent or other legally disabled person and are requesting court appointment as a representative payee, you must obtain an application from DFAS Retired and Annuitant Pay (800-321-1080) and submit the form by mail. The form should be accompanied by the court order or statement of a physician or psychologist formally determining mental incompetence or medical incapacity, or a birth certificate if you are applying on behalf of a minor child.