This continues to be an area of concern for this council. As it is now, the contribution for a retiree continues until death. Contributions made into another form of retirement over just 20 years would produce a far better benefit without a Social Security offset. This law is effective 1 October 2008. SBP is a government-subsidized program that provides an annuity to a surviving spouse and other eligible beneficiaries of a deceased member of the uniformed services entitled to retired pay.
Current law requires payment of premiums until the retired member dies.
In addition, if a member retires and the member and spouse do not both elect to decline participation in SBP, the member becomes a participant and cannot subsequently disenroll at any time. One modification would have ended the requirement for premiums for participants who have paid premiums for 30years or who are 70 years of age, which ever is later. Future participants would be permitted to disenroll from SBP during the one-year period between the second and third year following retirement. As enacted, the 1998 Defense Authorization Act included the modification to permit disenrollment but did not include provisions for paid up SBP on the basis of 30 years of payments or age 70. The Secretary of the Navy should support prompt enactment of legislation to provide for paid-up SBP and direct extensive distribution of information to retirees concerning the pending legislation in order that they can reach a sound decision regarding the disenrollment option.