4 Flashcards
What is the purpose of the SBP?
To provide a plan to complement the SBP under social security.
What is the definition of a dependent child for SBP purposes?
0—17 (if not pursuing a fulltime course of study), 0—21 (if pursuing a fulltime course of study), 22 (a child is a depn from their 22nd b-day until 1Jul of their 22nd year).
What is the day of election for SBP purposes?
Election day is the date of receipt of election by HRSIC, or the date of the postmark if mbrs intent might be prejudiced.
How are incapacitated children considered under the definition of dependent children?
The incapacity must be verified by a physician’s statement before eligibility is extended. If incapacity is not permanent the eligibility will be revalidated biennially.
What coverage is available automatically given to a retired mbr with depns?
Full coverage from the 1st day of retirement unless lessor or no amt is elected.
By what timeframe should SBP coverage of less than the automatic amt be elected?
60 dys prior to retirement date.
What coverage is offered to a mbr who acquires depns after retirment?
Mbr may participate if election is made within 1 yr of acquisition.
At what point will a mbr see a reduction in the cost of SBP?
Once the last child is no longer eligible mbrs rate will automatically be reduced starting the first day of the month after the depn change was effective.
How is the spouses letter mailed?
By certified mail (return receipt).
What documents get mailed to PSC(RAS)?
Return receipt, spousal letter, spousal endorsement, and DD-1883.
What changes can SBP enrolled mbrs expect effective 1Oct2008?
SBP cost are paid in full upon retiree reaching age 70 or upon completion of 30 yrs of retirement (whichever is later).
What is the SBP election form number?
CG PSC4700.
How much does SBP cost for mbrs entering on or after 1Mar90?
6% of the base amt elected.
How much does SBP cost for mbrs entering before 1Mar90?
The lesser of 6.5% of the base amt or 2.5% of the first $434 of base amt plus 10% of the remaining amt. In addition there is an actuarial charge base on the ages of mbr, spouse and youngest depn.
If G-QPM makes an election for a mental incompetent how long does that mbr have to change the election?
180 dys.
What is the interest charges for delinquencies in payment?
6% compounded annually.
How can a widow(er) or former spouse loose eligibility to SBP?
Payment stops the 1st dy of the month in which a widow(er) or former spouse remarries.
How can widow(er) or former spouse regain eligibility to SBP after remarrying?
Once remarriage is terminated by death, annulment, or divorce payment is resumed the 1st dy of the month in which eligibility is regained.
How much does SBP pay to an eligible beneficiary?
55% of the base amt if under age 62 upon becoming eligible for the annuity. 35% of the base amt if 62 or older upon becoming eligible.
What is the taxability of the SBP insurance?
SBP costs are not included as gross income for FITW purposes.
What is the taxability of the SBP benefit?
The benefit is included as gross income for FITW purposes.
In regards to SBP, what is the most an Insurable Interest Person (IIP) can get?
55%
Collection of monthly SBP premiums from retired pay stop when the mbr reaches age 70 or ___ years of premium payments whichever comes later?
30 years
What does the base amount refer to regarding SBP?
The full amt of a mbrs retired pay, or lesser amt if elected by a mbr, but not less than $300 unless total retired pay is less than $300
What does the term “Widower” refer to for SBP purposes?
The spouse of a mbr at the time he retired, or if married after retired than married for 1 yr, or if married for less than 1 yr they have kids together.
Who is an insurable interest person for SBP purposes?
Any person relying on a mbrs retired income
What are the rules surrounding “Insurable Interest Persons”?
It is for single mbrs w/ no depns to elect someone who depns on their retired pay.
What are the regulations surrounding a mbrs initial SBP election?
Any election in effect on the day a mbr become entitled to retired pay is irrevocable (except for IIP or newly acquired depn)
What are the regulations surrounding a mbrs initial SBP election?
Any election in effect on the day a mbr become entitled to retired pay is irrevocable (except for IIP or newly acquired depn)
If election is made on behalf of mbr, by comdt and then mbr becomes able to made decision, how long do they have to make that decision?
180 days.
If a mbr w/ depns at time of retirement loses depns and then remarries, what are his options for SBP?
Resume coverage at original amount, Choose max level or no coverage at all.
If a mbr chooses Children only SBP coverage, what is the amount they are charged?
Based on the difference btwn mbrs age and youngest child.
If a SBP Beneficiary is entitled to DIC (depn indemnity coverage), how does the DIC effect SBP annuities?
SBP payment is reduced dollar for dollar by the DIC amount. A portion of the SBP premiums can be refunded if necessary.
What are the SBP costs to cover an IIP (Insurable Interest Person?
10% of a mbrs retired pay, plus 5% for each 5 yrs that a mbr is younger than the retiree (up to a max of 40%).
What is the amount of an annuity an IIP will receive?
55% of retired pay after a reduction for SBP costs.
Is the spousal consent required to be notarized if the mbr elects less than the max coverage?
Yes (effective 1May08)
