Gray Area Spotlight: Did You Know?

The 2023 SBP Open Season is Your Opportunity to Enroll or Discontinue RCSBP/SBP Coverage

In the 2023 National Defense Authorization Act (NDAA), Congress provided for a special Survivor Benefit Plan (SBP) Open Season, which ends January 1, 2024.

The Survivor Benefit Plan (SBP) Open Season allows Gray Area Retirees awaiting retired pay who were NOT enrolled in SBP or the Reserve Component Survivor Benefit Plan (RCSBP) as of December 22, 2022, to enroll.

The SBP Open Season also allows Gray Area Retirees awaiting retired pay who were enrolled in SBP or RCSBP as of December 22, 2022, to permanently discontinue their SBP/RCSBP coverage.

What Gray Area Retirees Need to Know About Enrolling During the SBP/RCSBP Open Season

For a member who enrolls during the Open Season, the law generally requires that the member will be responsible to pay retroactive RCSBP or SBP premium costs that would have been paid/owed if the member had enrolled at their first opportunity.

Gray Area Retirees do not pay RCSBP/SBP premiums until they begin receiving retired pay, so the Open Season retroactive RCSBP premium cost typically means the premiums that are often referred to as “RCSBP tack-on costs” a retiree pays for RCSBP coverage when they begin receiving retired pay.

To protect a member from making a legal commitment to payment of an undetermined amount for the retroactive costs, a four-step process for enrolling during Open Season was set up. This process includes a request for an estimate prior to officially enrolling and making the legal commitment.

After receiving a Letter of Intent to Enroll in RCSBP during the SBP Open Season, the Branch of Service will inform the member of the additional amount that the member will be required to pay upon reaching eligibility age for the newly established RCSBP coverage and future SBP coverage. Members who wish to enroll in RCSBP after notification of the additional amount that the member will be required to pay must submit an official “SBP/RCSBP Open Season Enrollment Form” to the member’s individual Branch of Service. The Open Season enrollment is not effective until the first day of the month after a complete, official “SBP/RCSBP Open Season Enrollment Form” is received by the Branch of Service.

Important Deadlines and Information for Members Considering Enrollment

• Eligible members and former members awaiting retired pay should submit their Letter of Intent (for an estimate) or official Enrollment Form to their Branch of Service.

• The official Open Season Enrollment Form must be received by the Branch of Service before the official January 1, 2024, deadline.

• Members who want an estimate prior to enrolling should submit their request (using the Open Season Letter of Intent) now if they want to receive an estimate in time to enroll by the deadline.

• Enrollment is effective the first day of the first calendar month following receipt of a valid enrollment form.

• Members are allowed 30 days from the date they sign the enrollment form to cancel enrollment. Cancellation must be in writing and received within those 30 days.

RCSBP Election - Send Your Letter of Intent to:

For ARMY, email to: usarmy.knox.hrc.mbx.RPMD-ord-sbp-regulatory-and-policy-team@army.mil  Or, mail to: ATTN RPMD-ROR-GAR, Human Resources Command, 1600 Spearhead Division Avenue Dept 482, Ft Knox, KY 40122-5402 

For NAVY, mail to: Navy Personnel Command (PERS-912), 5720 Integrity Drive, Millington, TN 38055-9120
 
For AIR FORCE, submit via my myFSS Or, mail to: HQ ARPC/DPTTB 18420 Silver Creek Ave, Bldg 390 MS 68, Buckley SFB, CO 80011  

For MARINE CORPS, email to: smb.manpower.mmsr5@usmc.mil  Or, mail to: Headquarters, U.S. Marine Corps (MMSR-5) 3280 Russell Rd, Quantico, VA 22134 
 
What Gray Area Retirees Need to Know About Discontinuing During the SBP Open Season

The law generally requires the covered beneficiaries to concur in writing with the election to discontinue. In addition, Gray Area Retirees awaiting retired pay who discontinue during the Open Season must still pay premiums for RCSBP coverage already received once they begin receiving retired pay.

Before submitting a request for discontinuance, members should review the SBP advantages and disadvantages information on the first page of the Discontinuance form. SBP Open Seasons rarely occur. Discontinuing means no RCSBP coverage. It also means no SBP coverage once you begin receiving retired pay. Consider the impact your decision will have on your loved ones moving forward. Because your beneficiaries must also concur with the decision to discontinue, you may want to review this information with them.

Important Deadlines and Information for Members Considering Discontinuing

• Discontinuance is effective the first day of the first calendar month following receipt of a valid form.

• Covered beneficiaries 18 and over must concur with discontinuance and their signature(s) must be notarized or witnessed by an SBP counselor.

• Once a discontinuance form is received, no cancellation of the discontinuance is allowed.

Send your Discontinuance Form to:

For ARMY, email to: usarmy.knox.hrc.mbx.RPMD-ord-sbp-regulatory-and-policy-team@army.mil  Or, mail to: ATTN RPMD-ROR-GAR, Human Resources Command, 1600 Spearhead Division Avenue Dept 482, Ft Knox, KY 40122-5402

Air Force Reserve/Air National Guard Mail: HQ ARPC/DPTTB, 18420 E. Silvercreek Ave, Bldg 390 MS68, Buckley AFB, CO 80011 or via myFFS

Navy Reserve Mail: Navy Personnel Command (PERS-912), 5720 Integrity Drive, Millington, TN, 38055-9120

Marine Corps Reserve: Mail: Headquarters U. S. Marine Corps, Manpower and Reserve Affairs (MMSR-5), 3280 Russell Road, Quantico, VA, 22134- 5103 or via email to smb.manpower.mmsr5@usmc.mil

For Additional Information

Army Gray Area Retiree Soldiers (not yet receiving pay), please visit the Army’s webpage on the Survivor Benefit Plan at https://soldierforlife.army.mil/Retirement/survivor-benefit-plan or contact your local Retirement Services Officer.

Gray Area Retirees (not yet receiving retired pay) of the Navy, Marines and Air Force should contact their Branch of Service for information on the SBP Open Season.
 
NOTE: Members who are retired with pay, please see the SBP Open Season article, “The Survivor Benefit Plan Open Season Ends January 1, 2024” in this newsletter.

 

Special Note from the Air Reserve Personnel Center (ARPC) for Air Force Gray Area Retirees

Due to the various challenges that arose from platform shifts, HQ ARPC Retirements is currently experiencing a delay in processing retirement applications. At present, we are processing retirement applications with a requested retirement date in August 2023. Once these applications are completed, we will shift our focus to applications with a requested retirement date in September 2023 and so on. We recognize that this delay may adversely affect members' benefits and entitlements, and we apologize for any inconvenience caused.