The Survivor Benefit Plan (SBP) is a Department of Defense (DOD) program that allows military retirees to provide continuing monthly income to eligible survivors after the retiree's death. If a retiree elects SBP coverage and pays the required premiums, eligible beneficiaries may receive a monthly annuity. This article provides an overview of the program.
For additional information on benefits for survivors and dependents of veterans, see the Veterans’ Services articles.
Topics on this page
- What is the Survivor’s Benefit Plan?
- Eligible Beneficiaries
- How is the SBP Benefit Calculated?
- How much does the SBP Cost?
- What happens if a beneficiary remarries?
- Sources of Law
What is the Survivor’s Benefit Plan?
The Survivor Benefit Plan (SBP) is a program administered by the Department of Defense (DOD), not the Department of Veterans Affairs (VA). SBP functions similar to an insurance program by providing continuing income to designated beneficiaries after a military retiree’s death. Beneficiaries may include the surviving spouse, former spouse, children or a disabled dependent. In cases where the deceased didn’t have a spouse or children, another person of natural insurable interest, such as a brother or sister, may be eligible.
Retirees who elect to participate in the plan pay monthly premiums from their gross (pretax) retired pay. Election to participate in the SBP program is generally made at the time of retirement. In limited circumstances, retirees can enroll or change coverage after retirement, such as following marriage, divorce, or the birth of a child.
SBP beneficiaries may receive up to 55% of the retiree’s pay as a lifetime annuity after the retiree’s death. Beneficiaries may include the surviving spouse, former spouse, children or a disabled dependent. In cases where the deceased didn’t have a spouse or children, another person of natural insurable interest, such as a brother or sister, may be eligible.
NOTE: Some surviving spouses may qualify for both Survivor Benefit Plan (SBP) benefits and VA Dependency and Indemnity Compensation (DIC). Eligibility and payment amounts depend on individual circumstances and applicable federal law governing how these benefits work together. Survivors should consult Defense Finance and Accounting Service (DFAS) or the VA for current information.
Read the Law: 10 U.S.Code §§ 1447, 1448, 1450(f), 1451
Eligible Beneficiaries
When applying for military retirement, a service member generally chooses whether to participate in the Survivor Benefit Plan (SBP) and, if so, selects the category of beneficiary to be covered. In most cases, this election is made at retirement, although federal law allows certain changes in limited circumstances.
Read the Law: 10 U.S.Code § 1448
The available beneficiary categories include:
Spouse
A retiree may elect coverage for a current spouse. If a married retiree declines spouse coverage or elects less than full coverage, the spouse must generally provide written, notarized consent before the election is valid.
Read the Law: 10 U.S.Code § 1448(a)(3).
Spouse and Child(ren)
A retiree may elect coverage for both a spouse and eligible dependent children. If the spouse dies or loses eligibility, an eligible child may become the beneficiary under the terms of the plan.
Read the Law: 10 U.S.Code §§ 1447(11), 1448(a).
Child(ren) Only
A retiree may elect to cover only eligible dependent children. If the retiree is married, the spouse must generally consent in writing to this election.
For SBP purposes, an eligible child generally must be:
- the retiree's biological child, adopted child, stepchild in certain circumstances, or other eligible dependent recognized under federal law;
- unmarried; and
- under age 18.
An unmarried child who is attending an accredited educational institution full-time may remain eligible until age 22. A child who became permanently incapable of self-support because of a physical or mental disability before losing eligibility due to age may remain eligible regardless of age.
Read the Law: 10 U.S.Code § 1447(11).
Former Spouse
A retiree may elect to provide SBP coverage for a former spouse. In some cases, a court order issued as part of a divorce requires former spouse coverage. A former spouse may also request that DFAS treat the court order as a "deemed election" if the retiree does not make the required election.
Read the Law: 10 U.S.Code §§ 1448(b), 1450(f)(3).
Person with an Insurable Interest
If a retiree has no eligible spouse or dependent child, they may elect coverage for a person with a legitimate insurable interest, meaning someone who would experience a financial loss upon the retiree's death. Examples may include a sibling or another closely related individual.
Read the Law: 10 U.S.Code §§ 1448(b)(1), 1447(9).
Declining Coverage
A retiree may also choose not to participate in the Survivor Benefit Plan. If the retiree is married, the spouse must generally consent in writing before the election to decline coverage becomes effective.
Read the Law: 10 U.S.Code § 1448(a)(3).
How Is the SBP Benefit Calculated?
The amount a beneficiary receives depends on the level of coverage the retiree elected when enrolling in the SBP. When a retiree enrolls, they select a "base amount" of military retired pay to insure. After the retiree's death, the monthly survivor benefit is generally equal to 55% of the selected base amount.
For example, if a retiree elects coverage based on their full retired pay, the survivor benefit will generally be 55% of that amount. If the retiree elects a lower base amount, both the monthly premium and the survivor benefit will be reduced.
SBP payments are generally made as a monthly annuity and may continue for the lifetime of an eligible beneficiary, subject to the eligibility rules of the program.
Read the Law: 10 U.S.Code §§ 1451(a), 1452.
How much does the SBP cost?
The cost of SBP coverage depends on the level of coverage the military retiree elects. A retiree may elect coverage based on their full retired pay or a reduced "base amount," subject to limits established by federal law. Choosing a lower base amount reduces both the monthly premium and the amount that beneficiaries may receive after the retiree's death.
For most retirees, the monthly premium cannot exceed 6.5% of the selected base amount. In many cases, premiums end after the retiree has reached age 70 and has paid premiums for at least 30 years, although eligibility for this "paid-up" status depends on meeting the requirements established by federal law. Premiums are generally deducted automatically from the retiree's gross (pre-tax) military retired pay.
Because premium calculations vary depending on the type of coverage selected and the beneficiary category, retirees should consult the DFAS or their military branch's retirement office for information about their specific costs.
Read the Law: 10 U.S.Code § 1452.
What Happens if a Beneficiary Remarries?
The effect of remarriage depends on the type of beneficiary and the circumstances of the remarriage.
In general, a surviving spouse who remarries before age 55 loses eligibility to receive SBP payments while the remarriage continues. If that marriage later ends because of death, divorce, or annulment, SBP eligibility may be restored.
Different rules apply to former spouses, dependent children, and other beneficiary categories. In addition, federal law governs how SBP benefits interact with other survivor benefits, including certain benefits available through the VA.
Because these rules can be complex and depend on an individual's circumstances, beneficiaries should contact the DFAS or seek legal advice if remarriage may affect their benefits.
Read the Law: 10 U.S.Code § 1450.
Sources of Law
Federal Law
- 10 U.S.Code §§ 1447–1455 (Survivor Benefit Plan)
- Department of Defense Instruction (DoDI) 1332.42, Survivor Benefit Plan
- Department of Defense Financial Management Regulation (DoD 7000.14-R), Volume 7B, Chapters 43–46 (Survivor Benefit Plan)