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SBP Open Season Begins October 1 Thanks to pressure last year from AMS and other military associations, Congress ordered changes in the Survivor Benefit Program as part of the 2005 National Defense Authorization Act. One of those changes was an open season to allow non-participating retirees or those who are participating at less than maximum coverage to enroll in SBP or increase their coverage. That open season begins this October 1 and runs through September 30 of next year (2006). Some of the basic information pertaining to enrollment in SBP is listed below. ELIGIBLE MEMBERS: An eligible member is a member or former member of a Uniformed Service who, on September 30, 2005: (1) is either (a) entitled to retired pay, or (b) would be entitled to retired pay under chapter 1223 of title 10, United States Code (or chapter 67 of title 10, United States Code, as in effect before October 5, 1994), but for the fact of being under 60 years of age, and (2) is not participating in SBP (or RCSBP if applicable), and was previously eligible to elect SBP or RCSBP coverage, or (3) is participating in SBP (or RCSBP if applicable) at less than the maximum level for a spouse or former spouse, or is providing child-only coverage. An election by an eligible member described in (1)(a), above, shall be for a standard annuity even if that member had previously elected a reserve component annuity. An election by an eligible member described in (1)(b), above, shall be for a reserve component annuity. Any member described in (2), above, who was previously a participant in SBP (or RCSBP if applicable), but elected to terminate participation under the provisions of section 1448a of title 10, United States Code, is not eligible to make an election during this open enrollment period. ELECTIONS ALLOWED: There are two categories of elections allowed during this open enrollment period: 1. A member or former member who, on September 30, 2005, is otherwise eligible, but is not participating in SBP or RCSBP, may elect SBP (or RCSBP if applicable) for any type of coverage that member or former member would have been eligible to elect and declined, or failed to elect, at an earlier opportunity. 2. A member or former member who, on September 30, 2005, is participating in SBP or RCSBP at less than the maximum level for a spouse or former spouse, or had elected child-only coverage, may elect to add coverage, up to the maximum level for a spouse or former spouse. In the case of a member or former member who had previously elected child-only coverage, the child-only coverage may be increased to an amount not to exceed the maximum base amount, or coverage for a spouse, or a former spouse who is the parent of issue of that child, at a base amount not less than the amount provided for that child-only coverage may be added. In addition, child coverage may be added to spouse or former spouse coverage previously in effect. COVERAGE LIMITATIONS: Members may only designate beneficiaries who satisfy the prescribed legal criteria for the category of coverage as of the date the election is filed. No open enrollment election may remove an existing beneficiary in order to provide coverage for a different beneficiary. Consistent with section 645(d), members may not elect to cover a beneficiary or select a level of coverage that could not be in effect as the result of an election previously made by the member. For example, a member who was married upon retirement may not elect insurable interest coverage. Additionally, no elections for Supplemental SBP (SSBP) coverage may be made under this open enrollment period. MAKING AN ELECTION: Members must complete a DD form 2656-9, Survivor Benefit Plan (SBP) and Reserve Component Survivor Benefit Plan (RCSBP) Open Enrollment Election (Public Law 108-375) (October 1, 2005 – September 30, 2006). Elections must be submitted to the Service designated agent indicated in the instructions on DD form 2656-9. All elections must be postmarked by September 30, 2006. An electronic copy of the form is available on the Internet at: http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2656-9.pdf. EFFECT OF DEATH WITHIN TWO YEARS: If a member dies within two years of the effective date of the election, the election is void. All open enrollment premiums shall be refunded in a lump sum payment to the person who would have been the beneficiary had the member lived the required two years. OPEN ENROLLMENT PREMIUMS: Members must pay open enrollment premiums for elected coverage based on the number of years that have elapsed since the member's first opportunity to participate in the SBP. The number of years that have elapsed generally begins on the date of the member’s first opportunity to participate in SBP or RCSBP. For most members this will be the date of retirement. However, under certain circumstances, the date may be different. The following chart depicts the date to use to determine years that have elapsed in order to compute the open enrollment buy in premium. |
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