BACKGROUND: Current law requires a dollar for dollar reduction in SBP payment for any DIC paid to surviving spouses of service members who died of service connected causes. The SBP paid to a surviving spouse is stopped, even though SBP premiums are refunded (pro-rated) in a lump sum. Affected survivors may lose most or all of their SBP, an insurance paid into by the veteran to support the surviving spouse after death. DISCUSSION: Since SBP was elected and paid into for up to 30 years, this should continue to be paid as was the retiree’s intent at the time of purchase. DIC is awarded when the service person died of a service-connected disability and should not affect the paid-for SBP annuity. RECOMMENDATION: Council requests AF/A1, SAF/LL, and CSAF continue supporting efforts to end the SBP / DIC offset. 2014 AF Retiree Council Issue ISSUE: 2014-05 SUBJECT: Paid-up SBP at Age 67 (Area XII) BACKGROUND: current law, retirees may stop paying Survivor Benefit Program (SBP) premiums when they reach age 70 and have paid premiums for 30 years. Thus, those who entered military service at age 17 are required to pay premiums for 33 years to be eligible for paid-up status. Congressional action is needed to change the minimum age to 67 for paid-up SBP, retaining the requirement to pay premiums for 30 years. DISCUSSION: This is one of the priority issues supported by The Military Coalition. Endorsement by the Council would be a plus for both organizations RECOMMENDATION: Council requests AF/A1, SAF/LL, and CSAF continue supporting efforts to change the SBP paid-up provision to 30 years and remove the age requirement. 2014 AF Retiree Council Issue ISSUE: 2014-06 SUBJECT: Full Pay for Month of Death (Area XII) Under current law, the Defense Finance and Accounting Service (DFAS) is BACKGROUND: required to recover all retired pay due a military retiree for the month of his death. Ultimately, DFAS calculates the number of days the retiree was alive in the month of his death and pays a final settlement. This dual procedure can create an unnecessary hardship for survivors, some of whom must wait several months before Survivor Benefit Program payments begin. Providing
BACKGROUND: Current law requires a dollar for dollar reduction in SBP payment for any DIC paid to surviving spouses of service members who died of service connected causes. The SBP paid to a surviving spouse is stopped, even though SBP premiums are refunded (pro-rated) in a lump sum. Affected survivors may lose most or all of their SBP, an insurance paid into by the veteran to support the surviving spouse after death. DISCUSSION: Since SBP was elected and paid into for up to 30 years, this should continue to be paid as was the retiree’s intent at the time of purchase. DIC is awarded when the service person died of a service-connected disability and should not affect the paid-for SBP annuity. RECOMMENDATION: Council requests AF/A1, SAF/LL, and CSAF continue supporting efforts to end the SBP / DIC offset. 2014 AF Retiree Council Issue ISSUE: 2014-05 SUBJECT: Paid-up SBP at Age 67 (Area XII) BACKGROUND: current law, retirees may stop paying Survivor Benefit Program (SBP) premiums when they reach age 70 and have paid premiums for 30 years. Thus, those who entered military service at age 17 are required to pay premiums for 33 years to be eligible for paid-up status. Congressional action is needed to change the minimum age to 67 for paid-up SBP, retaining the requirement to pay premiums for 30 years. DISCUSSION: This is one of the priority issues supported by The Military Coalition. Endorsement by the Council would be a plus for both organizations RECOMMENDATION: Council requests AF/A1, SAF/LL, and CSAF continue supporting efforts to change the SBP paid-up provision to 30 years and remove the age requirement. 2014 AF Retiree Council Issue ISSUE: 2014-06 SUBJECT: Full Pay for Month of Death (Area XII) BACKGROUND: Under current law, the Defense Finance and Accounting Service (DFAS) is required to recover all retired pay due a military retiree for the month of his death. Ultimately, DFAS calculates the number of days the retiree was alive in the month of his death and pays a final settlement. This dual procedure can create an unnecessary hardship for survivors, some of whom must wait several months before Survivor Benefit Program payments begin. Providing
2014issues.docx