This demonstrates two very favorable features of SBP: In this example, the annuity at age 90 would be nearly four times the covered retired pay at age 40 and over seven times what the benefit would be at the time of the election. The table shows the premiums for both situations (i.e. *At age 70 or older, a member who has paid premiums for 30 years (360 months) is considered "paid-up" and no further premiums are deducted from retired pay. These increases are made even after the member dies. Survivor payments are generally increased at the same time, by the same percentage. Retired pay is increased annually to keep pace with inflation. The next table shows what can happen after retirement when inflation is 4 percent per year. ![]() For base amounts less than $1,554, the formula in (2) was used. If the base amount was greater than or equal to $1,554, the formula in (1) was used. On January 1, 2010, the breakeven point between the two formulas was $1,554. * The SBP costs used in column 2 are calculated using the formula that provides the least cost. The following table shows the costs associated with several "base amount" options and the benefits your spouse will receive based on these options. Otherwise, it will be the lesser of (1) or (2). If you became a member of a uniformed service on or after March 1, 1990, and you are retiring for length of service (not for disability), and you are not retiring under reserve retirement, SBP costs will be calculated only under the formula in (1) above. For existing SBP-electing retirees, it increases with future COLAs. For new retirees, the threshold amount increases at the same time and by the same percentage as future active duty basic pay. The threshold amount was $725.00 as of January 1, 2010. 2.5% of the first $725.00 of the elected base amount (referred to hereafter as the "threshold amount"), plus 10% of the remaining base amount.6.5% of your chosen base amount, or if less,.The SBP premiums for spouse coverage are: If your surviving spouse remarries before age 55, SBP payments will stop, but may be resumed if the marriage later ends due to death or divorce. Your surviving spouse may remarry after age 55 and continue to receive SBP payments for life. The base amount and the payments to the surviving spouse will generally increase at the same time and by the same percentage that cost-of-living adjustments (COLAs) are made to retired pay. ![]() The annuity is 55 percent of the base amount. The base amount may range from a minimum of $300 up to a maximum of full retired pay. The SBP annuity is determined by the base amount you elect. The key aspects of this SBP option are below: It is designed to provide a lifetime monthly income for your surviving spouse after you die. Spouse coverage is the primary SBP option.
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