Commutative Property. An operation is commutative if you can change the order of the numbers involved without changing the result. Addition and multiplication are both commutative. Subtraction is not commutative: 2 - 1 is not equal to 1 - 2. Here are some examples of the commutative properties of addition and multiplication: 88 + 65 = 65 + 88. 153 = 153.
Another consideration is that SBP premiums reduce the retiree's taxable income and reduce out-of-pocket costs for coverage. SBP benefits are taxed as income to the survivor however the tax rate upon receipt of the annuity will generally be less than the member's current tax rate. Most insurance plans are the reverse; premiums are paid from after-tax income, while survivors are not taxed on the proceeds.
Soldiers with service-connected disabilities may be eligible for Federal income tax exclusions of Veterans' benefits and disability pension payments. Benefit Highlights: Military Retirement Pay. Military retirement pay based on age or length of service is taxable and must be included as income for Federal income taxes.The amount a Retiree pays to participate in the Survivors Benefit Plan (SBP) is excluded from taxable income.ilitary retirement pay based on age or length of service is taxable and must be included as income for Federal income taxes. The amount a Retiree pays to participate in the Survivors Benefit Plan (SBP) is excluded from taxable income.