Paid-up Survivor Benefit Plan (SBP) takes effect in October 2008 for any military retiree who is age 70 or older and whose retired pay has been reduced for SBP premiums for at least 360 months (30 years). Some of our class already qualify and will reap the reward this October while others still have a couple of years or so to go.

 

Paid-up SBP Premium and eligibility is described below:

 

1. What is Paid-up SBP?

Paid-up SBP refers to a provision of the Survivor Benefit Plan law passed by Congress in October 1998 and which is due to take effect in October 2008. This change in the law applies to qualified members who will no longer be required to pay SBP premiums once they satisfy certain age and premium payment requirements.

 

2. Who is eligible to have their SBP premiums stopped?

Any retiree who is age 70 or older and whose retired pay has been reduced for SBP premiums for at least 360 months will qualify to have their SBP costs terminated.

 

Information on the Paid-up SBP is covered in the DFAS site at

http://www.dfas.mil/retiredpay/frequentlyaskedquestions/paid-upsbpfaqs.html