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HomeRetiredMilitarynewseventsnewsletterJune2023 Enrolling During 2023 SBP Open Season What Retirees Need to Know

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                        - SBP Open Season NDAA2023

# Enrolling in SBP Coverage During the 2023 SBP Open Season? Here’s What Retirees Need to Know

**NOT enrolled****as of December 22, 2022****Upon enrollment you will be legally responsible and obligated to pay a “buy-in premium.”****monthly premiums****protect a retiree from making a legal commitment****The Enrollment Four-Step Process****STEP 1.****Letter of Intent to Enroll (LOI)***Download the “Letter of Intent to Enroll during the SBP Open Season” from our special focus webpage. The webpage also has information on how to submit your completed LOI and additional FAQs about enrollment: ***https://www.dfas.mil/sbpopenseason23****STEP 2.****individual estimate****STEP 3.****SBP Open Season 2023 Enrollment Form***Download the “SBP Open Season 2023 Enrollment Form” from our special focus webpage. The webpage also has information on how to submit your completed form and additional FAQs about enrollment: ***https://www.dfas.mil/sbpopenseason23****STEP 4. ****confirmation of your enrollment,****effective the first day of the first calendar month following our receipt****date you sign the enrollment form****Cancellation must be in writing and received within those 30 days****Buy-In Premium Payment Options****Payment Option A = Choose to submit a lump sum payment****Payment Option B = Choose to submit a partial payment****12 equal monthly installments***If you want to**submit a specific amount as a partial payment** of the SBP buy-in premium due, **please write a note** on **SBP Open Season 2023Enrollment Form and **include the specific amount**you want to pay.* ***Payment Option C = Choose to have the SBP buy-in premium plus installment interest deducted****12 equal monthly installments****choose to****make direct payments to DFAS in 12 equal monthly installments****If you choose to pay in installments, the default option is to have the installment deducted from your retired pay or CRSC pay. If you want to pay the installments directly, please write a note on your enrollment form.****we must receive payment within 30 days ****Important - About Enrollment and Premiums*Key points to keep in mind:***                        - Normal processing time is 30 days from the date we receive a valid request.
                        - Your enrollment will be  effective the first day of the first calendar month following our receipt  of your valid enrollment form.
                        - Beginning with the effective date of your enrollment and going forward, SBP monthly premiums will be deducted from your retired pay or CRSC pay until you reach “paid-up” status. These are your “prospective monthly premiums.” This means the amount of your net pay will be lower than it is prior to your enrollment in SBP coverage.
                        - If you choose to pay your buy-in premium over time, installment interest will be added to your buy-in premium. This information will be included in your enrollment confirmation letter.
                        - If you  want to submit a specific amount as a partial payment  of the SBP buy-in premium due,  please write a note  on SBP Open Season 2023 Enrollment Form and  include the specific amount  you want to pay.
                        - If you choose to pay in 12 equal monthly installments, you must either have the installments deducted from your pay over the entire 12 months OR pay DFAS directly for the entire 12 months. We are not able to change your method of payment during the 12 months.
                        - If you choose to pay in 12 equal monthly installments, and you have enough net retired pay OR net CRSC pay to cover the deduction of the monthly installment, the default payment method for the buy-in premium is to deduct the installments from your pay. If you DO NOT want the installments deducted from your pay, please notify us promptly. In addition, in this case  we must receive your first payment  within 30 days  of the date of the enrollment confirmation letter.
                        - If you choose to have the buy-in premium deducted from your pay in 12 equal monthly installments and we determine your net pay will not be high enough to cover the installments, you will be required to make a partial payment plus have the balance of the buy-in premium deducted in 12 equal monthly installments from your pay. We will include this information in your enrollment confirmation letter.  We must receive your partial payment  within 30 days  of the date of the enrollment confirmation letter.
                        - Your final enrollment costs, both the monthly premium and buy-in premium, may change if there is a time gap between when you submit your LOI and the time you submit your final enrollment form. Costs may also change if there are changes to the information submitted. In addition, if you choose to pay your buy-in premium over time, installment interest will be added to your buy-in premium.
                        - If you choose to make a lump sum payment, a partial payment or direct installment payments,  we must receive payment within 30 days  of the date of the enrollment confirmation letter.
                        - If you were enrolled in SBP coverage at some point prior to this SBP Open Season and you paid monthly SBP premiums, those premiums can be credited toward your buy-in premium amount.
                        - The 2023 NDAA SBP Open Season specifically states enrollment in the Plan must be voluntary on the part of the eligible member. It further specifies that no court order may require an eligible member to make an Open Season election pursuant to section 643, P.L. 117-263.
                        - An eligible member who, on December 22, 2022, was receiving retired pay and was not participating in SBP is not required to have concurrence of his/her spouse (or other beneficiary) to enroll in SBP coverage during the Open Season.
                        - Since the one-time buy-in premium is not considered a reduction in retired pay due to an election under chapter 73 of title 10, United States Code, these amounts  do not serve to reduce the member's taxable retired pay . The previous sentence applies even when the one-time buy-in premium is paid through deductions from retired pay.
**Frequently Asked Questions About Enrollment During the SBP Open Season****https://www.dfas.mil/sbpopenseason23*****NOTE: The above process is for ARMY, NAVY, AIR FORCE, SPACE FORCE, and MARINE CORPS RETIREES RECEIVING PAY*
Page Updated June 28 2023

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