U.S. Military (Ret.): Reserve retired plan lets survivors get annuities - Military Retirement - Navy Times

U.S. Military (Ret.): Reserve retired plan lets survivors get annuities

Our regular column on issues affecting retired military.

Q. In your Feb. 28 column, you mentioned the Reserve Component Survivor Benefit Plan. What is that? I’m a “gray area” reserve retiree, and this is the first time I’ve heard of it.

A. The RCSBP is the reserve component version of the Survivor Benefit Plan for active-duty retirees. It’s the same basic model, with a few tweaks that reflect some of the unique aspects of reserve retirement.

The program pays up to 55 percent of your retired pay as a monthly annuity to your survivors if you die. Reservists become eligible as soon as they have enough service to qualify for military retirement benefits.

At that point, you have three RCSBP options:

• Option A: Put off a decision to sign up until you reach 60, when reservists normally can begin using their retirement benefits. If you die before that age, your survivors would not get an annuity.

• Option B: Provide an annuity to begin at age 60 if you die before then, or immediately if you die after age 60.

• Option C: Provide an annuity to begin immediately, whether you die before or after age 60.

There are specific rules that govern eligibility for spouses and children.

The premiums you pay, and the annuities paid to your chosen survivors, are both a percentage of your selected “base amount,” which may be your full monthly retired pay or a lesser amount, down to a minimum of $300.

There are two premiums associated with RCSBP: a basic premium and an additional “reservist premium” that comes into play if you choose option B or C. This additional premium covers the cost of benefits paid out before you reach age 60 under those two options.

All the services have websites with basic information on RCSBP. One of the more easily understood sites is this one: www.armyg1.army.mil/rso/docs/sbp/fact/RCSBPforHomepage.doc.

Q. I have been following the news about possible increases in Tricare fees for “working age” military retirees. Do you know if 100 percent disabled retirees and their families would be subject to such increases?

A. In this context, “working age” seems to refer only to age, not to whether an individual is physically capable of employment. I’ve seen nothing to indicate that any retirees under age 65 who are not yet eligible for Tricare for Life — even those who are disabled — would be exempt from these increases if they are approved.

However, those increases are not a sure thing. Sen. Jim Webb, D-Va., chairman of the Senate Armed Services Committee’s personnel panel, said recently that he still does not support any increases in Tricare fees — and he’s a key player in this debate.

Retired Command Master Chief Alex Keenan served 28 years in the Coast Guard. Email him.