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Survivor Benefit Plan Update: Participants in the Uniformed Services Survivor Benefit Plan for retired military members now have a new milestone to mark on their calendars.

SBP participants who reach 70 years of age and have made 360 payments (30 years), will no longer have to pay premiums for continued SBP coverage and will be placed in "Paid-up SBP" status.

No action is required of SBP participants to be placed in Paid-up SBP status.  Once the eligibility criteria has been met, the Defense Finance and Accounting Service will automatically stop deducting premiums from qualifying military retired pay accounts.

The law establishing Paid-up SBP does not allow for refunds of premiums paid before October 1, 2008, even though a retiree may have reached age 70 and made 360 or more premium payments.

Those military retirees who become eligible for Paid-up SBP status will be notified of their SBP status on their annual Retiree Account Statements that will note the number of premiums paid to date.  

Frequently Asked Questions About the Paid-Up SBP

What is Paid-Up SBP?

Paid-Up SBP refers to a provision of the Survivor Benefit Plan law passed in October 1998, and which took effect 1 Oct. 2008, in which qualified members will no longer be required to pay SBP premiums once they satisfy certain age and premium payment requirements.

Who is eligible to have their SBP premiums stopped?

Any retiree who is 70 or older, and whose retired pay has been reduced for SBP premiums for at least 360 months.

Is a retiree who has paid SBP premiums for 360 months or more but has not reached 70 eligible to have premiums terminated?

No. To qualify for the paid-up SBP, a retiree must satisfy both requirements of the law. The retiree must be 70 or older and made SBP premium payments for at least 360 months.

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