Military Survior Benefits are Increasing

As of March 2008, if a military member died under the old rules the surviving spouse then received 35% of his retirement pay. Under the new rules, that spouse now will receive 55%.


Details (from retirement planner newsletter):

As March came to an end so did the Survivor Benefit Plan (SBP) Social Security Offset. As a result of Public Law 108-375, the Social Security Offset for annuitants was eliminated effective April 1, 2008. The law provided for a phased-in elimination which began October 1, 2005, and ended March 31, 2008, with the last Social Security Offset deduction. Prior to October 2005, at age 62 the SBP annuity was reduced because the beneficiary became eligible to receive the retiree’s Social Security benefits.

Effective April 1, 2008, annuitants that had their annuity reduced by the Social Security Offset now have the offset removed. Annuitants that were eligible for the minimum annuity percentage of 35 percent prior to October 2005 are now entitled to the full 55 percent of the base amount. Annuitants who were receiving the Supplemental Survivor Benefit in addition to the basic benefit will also be paid at the new rate of 55 percent. The minimum annuity percentage is now 55 percent for all annuitants.

For example: with a $1,000 base amount the annuitant should see an increase in monthly annuity to $550 (55% x $1,000).