Your surviving spouse's SBP annuity is reduced when he or she reaches age 62 and become eligible for Social Security. This is called the Social Security offset.

In the past the offset reduced the SBP annuity to 35 percent of the base amount. This offset created a need for members to purchase a Supplemental Survivor Benefit Plan (SSBP) policy. Fortunately the National Defense Authorization Act of 2005 established a phase out of the offset by 2008. Thus eliminating the need for the SSBP.

The phase out will increase the SBP percentage each year as follows:

  • 40 percent in October 2005
  • 45 percent in April 2006
  • 50 percent in April 2007
  • 55 percent in April 2008

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