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Current policy states "After retirement, spouse of a deceased SM is only authorized 55% of retirment pay". WHY? Again, if you are a civilian employee which pays into a retirement account and you die, your spouse gets 100% annuity over time. WHY does the US Army think its OK to keep 45% of your money(s) earned? WHY? Who made the policy knowing it was unfair to the SM spouse? Where is the logic? Your thoughts...
Posted >1 y ago
Responses: 7
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Sir, This is an annuity that you have to purchase to cover a surviving spouse, it's NOT an automatic entitlement. If you choose to NOT pay into the SBP program at retirement, a surviving spouse will have nothing from your retirement. The maximum benefit you can enroll for is 55%.
You have to continue to pay into this monthly for 30 years and age 70. After that, no more deductions are taken from your retirement and the annuity is considered paid in full.
The basis for this is that you did not contribute (financially) to your military retirement, it is 100% funded. The SBP is available to purchase to allow spousal coverage.
You have to continue to pay into this monthly for 30 years and age 70. After that, no more deductions are taken from your retirement and the annuity is considered paid in full.
The basis for this is that you did not contribute (financially) to your military retirement, it is 100% funded. The SBP is available to purchase to allow spousal coverage.
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SSgt Gregory Guina
1SG John O. I believe the financial was implied. MSG Wade Huffman Exactly the point I made earlier just maybe not as eloquent. I myself will not be purchasing this annuity although I will be purchasing a 20 year term life policy that will pay out between 600k and 1 Million dollars in the event of my death. the amount that I will pay in premiums will be less than the amunt I pay in SBP so that is the smart way to go in my opinion.
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MSG Wade Huffman
1SG John O. , yes, financially is implied (and added), as SSgt Gregory Guina stated. We all know spouses contribute to our careers, but none of us contribute (financially) to our military retirement.
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MSG Wade Huffman
SSgt Gregory Guina , sounds like you have a solid plan. SBP isn't for everyone, that's why we have choices. For many it's the best thing going. Lots of things to consider such as financial position, health, family history, etc. Some may be all but un-insurable for the type of policy you are planning on getting.
Every situation is different.
Every situation is different.
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MSgt (Join to see)
One thing to remember about insurance policies - the majority have a 'war clause' in them so they don't have to payout if your injured in a conflict. You really have to look to find the 'few' that don't have that. I took one out when I was still serving and will continue with it till I'm gone - I won't have to worry about my family (they will be taken care of) I also, have a separate one for my house in case I go before it's paid off. The SBP was not something I wanted due to the fact that it would be making my already smaller 'military retirement' even smaller. But, everyone must choose for themselves on what they thinks is best.
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Gentlemen, thankyou for your responses. It is great thing to pool together experience and knowledge of subjects not necessarily covered during retirement briefings or even inprocessing when SM first enter the military. Makes for a great read-back/feed-back down the road, thanks again for contributing to this discussion. Please invite others to contribute as well, thanks again, God Bless
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I learn more on RallyPoint threads than when I was on active duty! Thanks for the info everybody.
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