Readers of Tom Philpott’s Military Update column sound off.

Widows Praise SBP Protection; More Retirees Want In

I just read your article about not enough retiring military members taking advantage of the Survivor Benefit Plan to protect spouses.

My husband paid into it, saying this would be added income for me if he passed before me. He died July 2004 and SBP has helped me a lot.

Maybe instead of the military talking to the GIs about this plan, they should have surviving spouse tell them about how this added benefit helps them to care for children, if any are still in the home, and gives wives like me added income to supplement other fixed income.

I thank God my husband loved me enough to think about how I will live after he is gone.

RUTHIE LAWRENCE
Via e-mail

I am a recent widow and participant in SBP.  I am also a certified public accountant. You might share with your readers that took fewer than two-and-a-half years for me to recoup in SBP payments every penny that my husband paid into SBP as monthly premiums.

The only drawback at this point is the SBP offset when one receives Dependency and Indemnity Compensation from the VA.  [Note: The Senate has voted to end the SBP-DIC offset in its version of the fiscal 2008 defense authorization bill.  A House-Senate conference committee will decide whether that provision to eliminate the offset wins a spot in the final defense bill.]

It’s a mistake not to enroll in SBP.  I am very grateful for what I receive. Thanks for your interesting articles.

RUTH HARTSTEIN
Bossier City, La.

I am one of the 16 percent of Army retirees who did not sign-up for the Survivor Benefit Plan. I realize I made a mistake.

I retired in 1992. Last year I called the finance department and inquired about the possibility of signing up for SBP now. The lady told me it was impossible but that once every so many years the Army opens the door to retirees like me.

Do you know if that is true and how often it happens?

JOSE G. AGUILAR
Via e-mail

Open seasons to allow late enrollment in SBP do not happen often and aren’t controlled by individual services.  They typically are tied to SBP program changes.  The last open season began in October 2005 and lasted a year.  It was mandated by legislation to phase out the Social Security offset at age 62.

To enroll, late entrants had to pay lump-sum amounts equal to total premiums not paid, plus interest, since the plan first was turned down, usually at time of retirement.  Late entrants also began paying normal SBP premiums of 6.5 percent of covered monthly retired pay.

No other open season is planned. – Tom Philpott

That was an interesting article on SBP. I retired from the Army in 2001. I took the minimum SBP option. What, if anything, can someone like me do to increase coverage now that the SBP plan no longer has an offset at age 62.

CRAIG HANSON
Via e-mail

The open season of 2005-2006 offered an opportunity to increase SBP coverage. No new open season is planned. – T.P.

I have been receiving SBP payments since 2003. When my husband retired in 1974, there was no discussion about not taking it.  He had been in the Army but was stationed at an Air Force base.

In the pre-retirement classes he attended, officials suggested not taking SBP and, instead, putting that money into a life insurance policy. Our thought was to secure for me part of the retirement benefit he earned through more than 20 years of service.

Many Air Force people we knew opted not to sign up. We did and also kept our Servicemembers’ Group Life Insurance, thank God. These are benefits we are entitled to. Active duty members need to continue these options after they retire.

SUSAN BAKSA
Crestview, Fla.

There are two sides to a story and I would like to tell you mine.

I retired in '75 from the Air Force and elected to take minimum SBP coverage and use funds to buy term insurance. That has worked out very well for me and my wife. I would have paid out many thousands of dollars of protection over the past 33 years for full SBP.

Many of us looked at SBP and decided that if we were not in good health then it was a must decision to enroll. However, for those in good health it was a no brainier to go with insurance or some type of investment. Many currently retired personnel who did not take full SBP coverage are still living and enjoying life.

As you explained, SBP has been improved over the years. The big change was elimination of the age 62 offset. However, even with the changes, if I were to go back to '75 I would still do as I did.

I know the statistics say women live six to seven years longer than men but those figures are probably not accurate for healthy male military retirees. There sure are a lot of older retired military personnel here in Colorado Springs as well as in other military areas.

PHIL ALLISON
Lieutenant Colonel, USAF-Ret.
Via e-mail

SBP-DIC OFFSET

When Congress did the right thing in 2003 on “concurrent pay,” voting to allow many disabled military retirees to draw both retirement and VA disability pay, I thought they'd do the right thing by disabled veterans' widows too.  Unfortunately, five years later, that still hasn't happened.

I am the surviving spouse of a 100 percent service-connected disabled chief master sergeant who died at 63 in 2000. I should draw 55 percent of my husband's retired pay under SBP.

But no, they refunded me about half of the $30,000 in premiums my husband had paid coverage in the event he preceded me in death and I draw, instead, $1324 a month from the VA in DIC (Dependency and Indemnity Compensation).  That is all I receive from the VA for losing him, and it’s not nearly. 

Because the $1324 in DIC doesn’t quite equal 55 percent of his retired pay, the Air Force pays me $238 to make up the difference.

What I should draw is full DIC from VA plus 55 percent in SBP.  And other military widows too should draw their due!

SHIRLEY LAFLAMME
Via e-mail

Letters may be edited for clarity or length.  Write to Military Forum, P.O. Box 231111, Centreville, VA  20120-1111, send e-mail to militaryforum@aol.com or visit www.militaryupdate.com.