Retirement death benefits only 55%?

CPT Benjamin S. — Fri, 15 Aug 2014 12:27:26 -0400

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...

Response by SSgt Gregory Guina made Aug 15 at 2014 12:31 PM

SSgt Gregory Guina — Fri, 15 Aug 2014 12:31:14 -0400

Sir

Again this is based off a pension and not a 401k. Survivor benefit is something that most of us don't need in my opinion. The majority of spouses now work and the amount you pay for SBP is not worth is especially as you age. I would reccomend that you find a term-life insurancce policy with reasonable rates to ensure that your spouse has the income that they require if something were to happen to you.

Response by MSG Wade Huffman made Aug 15 at 2014 5:59 PM

MSG Wade Huffman — Fri, 15 Aug 2014 17:59:17 -0400

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.

Response by CPT Benjamin S. made Aug 19 at 2014 11:23 AM

CPT Benjamin S. — Tue, 19 Aug 2014 11:23:16 -0400

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

Response by SFC Mark Merino made Sep 24 at 2014 2:40 AM

SFC Mark Merino — Wed, 24 Sep 2014 02:40:31 -0400

I learn more on RallyPoint threads than when I was on active duty! Thanks for the info everybody.

Response by SSgt Private RallyPoint Member made Nov 20 at 2014 6:45 PM

SSgt Private RallyPoint Member — Thu, 20 Nov 2014 18:45:49 -0500

It is not the Army as much as the federal government tightening down the screws and doing so because of politics.

Response by SSG Maurice P. made Nov 20 at 2014 7:11 PM

SSG Maurice P. — Thu, 20 Nov 2014 19:11:31 -0500

how the freak do we change it...them cum-drunk politicans again draining us while they prosper
on our sweat and toil...

Response by LTC Mark Overberg made Jan 29 at 2018 8:45 PM

LTC Mark Overberg — Mon, 29 Jan 2018 20:45:42 -0500

Your statement is not factual. You’re mixing several benefits. First is the Survivor Benefit Plan. Retired military pay 6.5% of their retired pay for spouse coverage (kids cost pennies per month) and the spouse receives 55% of the member’s retired pay when the retired member dies - the annuity normally lasts for the life of the spouse. DOD civilians pay 10% of their retired pay for spouse coverage and their spouse receives only 50% of their civilian retired pay. So military does better than civilian here. Plus, military are covered by the SBP while on active duty (and IADT for Reserves) but the government pays 100% of the premiums. DOD civilians get no such benefit. Military wins again. As for the cost, raising the military SBP higher than 55% of retired pay would require an equal increase in the cost of the premiums the member pays. 6.5% is high enough. If 100% of retired pay is good for a married couple, why isn’t 55% good for one? The SBP is not policy, but federal law, so a change requires Congress and the President to act. The retirement accounts you mention are the TSP, which is like any other investment upon the death of the owner - it’s given to whatever beneficiary the owner designated. 100% if that’s what the owner chose or divided up between several beneficiaries.