33
Spousal Consent to SBP Annuity. For certain elections by a member under the SBP to be
effective, written spousal consent is required.
86
A married member who is eligible to elect an SBP
annuity must obtain the written consent of his or her spouse if (1) the member elects not to participate in
the SBP, (2) the spouse’s SBP annuity is specified by the member to be paid at a level below the
maximum level, or (3) the SBP annuity is for a dependent child rather than the spouse.
87
A married
member who elects to provide a Reserve Component SBP annuity at less than the maximum level or
provides an SBP annuity for a dependent child rather than the spouse must also obtain written spousal
consent to the election.
88
Additionally, if a married member who is eligible to provide an SBP annuity
elects an annuity for a former spouse (or for a former spouse and dependent child), the member’s
current spouse must be notified of the election; however, the current spouse’s consent is not required.
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Cost of SBP Annuity. Under current law, the cost of the SBP premium is shared by the
Government and retired members. The law that governs the method by which the SBP premiums are
calculated has been the subject of two recent amendments.
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The member’s share of the cost of his or
her survivor annuity increases at the same time and at the same rate as COLA adjustments to active
duty military pay. The present monthly cost of an SBP annuity is 6.5 percent of the member’s base
amount. Members who retired before March 1, 1990, either use the new flat rate or 2.5 percent of the
first $300 and 10 percent of the remaining base amount, whichever is more advantageous to the
member.
91
The cost for children’s coverage is determined actuarially. When a cost-of-living increase in
retired pay becomes effective, the member’s SBP premium increases proportionately with the increase
in the related annuity.
92
The cost of providing an SBP annuity to a spouse or a former spouse to whom
payment of a portion of the member's retired pay is being made pursuant to a court order is deducted
from retired pay in determining “disposable retired pay.”
93
86
10 U.S.C. §1448(a)(3).
87
10 U.S.C. §1448(a)(3)(A).
88
10 U.S.C. §1448(a)(3)(B).
89
10 U.S.C. §1448(a)(3)(E).
90
Title VII of the DoD Authorization Act, 1986, 99-145, §714, 99 Stat. 583, 672-673, amended the manner in which the cost of
the SBP is shared by participants and the Government. The changes enacted by this amendment, however, applied only to
persons who first participated in the SBP program on or after March 1, 1986. The basis for determining the cost of SBP was
again amended by the Military Survivor Benefits Improvement Act of 1989, enacted as Title XIV of the National Defense
Authorization Act for Fiscal Years 1990 and 1991, 101-189, sections 1401-1407, 103 Stat. 1352, 1577-1589 (1989). The basis
for determining a member's share of the cost of the SBP annuity was changed from the old rule of 2.5 percent of the first $300 of
the base amount of the annuity plus 10 percent of the remainder of the base amount to a flat 6.5 percent of the base amount for all
individuals who first became members of the uniformed services on or after March 1, 1990. See 10 U.S.C. section 1452(a)(1)(A).
For individuals who first became members of the armed forces before March 1, 1990, the cost of the “premium” was either the
new 6.5 percent rate or the old formula—whichever was more advantageous to the retiree. The stated purposes of this
amendment were to “preserve the design balance between member contribution and government subsidy of the SBP benefits” and
“to reduce the cost of SBP to participants, and hopefully to increase participation in the SBP program.” See Senate Report 101-
81 (Committee on Armed Services), p. 180, accompanying S. 1352, 101st Congress, 1st Session (1989).
91
10 U.S.C. §1452.
92
10 U.S.C. §1451(A) (adjustments to base amount); 10 U.S.C. §1451(g) (adjustment to annuity).
93
10 U.S.C. §1408(a)(3)(D).