4

Question 1

What is the purpose of the SBP?

Answer 1

To provide a plan to complement the SBP under social security.

Question 2

What is the definition of a dependent child for SBP purposes?

Answer 2

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).

Question 3

What is the day of election for SBP purposes?

Answer 3

Election day is the date of receipt of election by HRSIC, or the date of the postmark if mbrs intent might be prejudiced.

Question 4

How are incapacitated children considered under the definition of dependent children?

Answer 4

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.

Question 5

What coverage is available automatically given to a retired mbr with depns?

Answer 5

Full coverage from the 1st day of retirement unless lessor or no amt is elected.

Question 6

By what timeframe should SBP coverage of less than the automatic amt be elected?

Answer 6

60 dys prior to retirement date.

Question 7

What coverage is offered to a mbr who acquires depns after retirment?

Answer 7

Mbr may participate if election is made within 1 yr of acquisition.

Question 8

At what point will a mbr see a reduction in the cost of SBP?

Answer 8

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.

Question 9

How is the spouses letter mailed?

Answer 9

By certified mail (return receipt).

Question 10

What documents get mailed to PSC(RAS)?

Answer 10

Return receipt, spousal letter, spousal endorsement, and DD-1883.

Question 11

What changes can SBP enrolled mbrs expect effective 1Oct2008?

Answer 11

SBP cost are paid in full upon retiree reaching age 70 or upon completion of 30 yrs of retirement (whichever is later).

Question 12

What is the SBP election form number?

Answer 12

CG PSC4700.

Question 13

How much does SBP cost for mbrs entering on or after 1Mar90?

Answer 13

6% of the base amt elected.

Question 14

How much does SBP cost for mbrs entering before 1Mar90?

Answer 14

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.

Question 15

If G-QPM makes an election for a mental incompetent how long does that mbr have to change the election?

Answer 15

180 dys.

Question 16

What is the interest charges for delinquencies in payment?

Answer 16

6% compounded annually.

Question 17

How can a widow(er) or former spouse loose eligibility to SBP?

Answer 17

Payment stops the 1st dy of the month in which a widow(er) or former spouse remarries.

Question 18

How can widow(er) or former spouse regain eligibility to SBP after remarrying?

Answer 18

Once remarriage is terminated by death, annulment, or divorce payment is resumed the 1st dy of the month in which eligibility is regained.

Question 19

How much does SBP pay to an eligible beneficiary?

Answer 19

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.

Question 20

What is the taxability of the SBP insurance?

Answer 20

SBP costs are not included as gross income for FITW purposes.

Question 21

What is the taxability of the SBP benefit?

Answer 21

The benefit is included as gross income for FITW purposes.

Question 22

In regards to SBP, what is the most an Insurable Interest Person (IIP) can get?

Answer 22

55%

Question 23

Collection of monthly SBP premiums from retired pay stop when the mbr reaches age 70 or ___ years of premium payments whichever comes later?

Answer 23

30 years

Question 24

What does the base amount refer to regarding SBP?

Answer 24

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

Question 25

What does the term “Widower” refer to for SBP purposes?

Answer 25

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.

Question 26

Who is an insurable interest person for SBP purposes?

Answer 26

Any person relying on a mbrs retired income

Question 27

What are the rules surrounding “Insurable Interest Persons”?

Answer 27

It is for single mbrs w/ no depns to elect someone who depns on their retired pay.

Question 28

What are the regulations surrounding a mbrs initial SBP election?

Answer 28

Any election in effect on the day a mbr become entitled to retired pay is irrevocable (except for IIP or newly acquired depn)

Question 29

What are the regulations surrounding a mbrs initial SBP election?

Answer 29

Any election in effect on the day a mbr become entitled to retired pay is irrevocable (except for IIP or newly acquired depn)

Question 30

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?

Answer 30

180 days.

Question 31

If a mbr w/ depns at time of retirement loses depns and then remarries, what are his options for SBP?

Answer 31

Resume coverage at original amount, Choose max level or no coverage at all.

Question 32

If a mbr chooses Children only SBP coverage, what is the amount they are charged?

Answer 32

Based on the difference btwn mbrs age and youngest child.

Question 33

If a SBP Beneficiary is entitled to DIC (depn indemnity coverage), how does the DIC effect SBP annuities?

Answer 33

SBP payment is reduced dollar for dollar by the DIC amount. A portion of the SBP premiums can be refunded if necessary.

Question 34

What are the SBP costs to cover an IIP (Insurable Interest Person?

Answer 34

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%).

Question 35

What is the amount of an annuity an IIP will receive?

Answer 35

55% of retired pay after a reduction for SBP costs.

Question 36

Is the spousal consent required to be notarized if the mbr elects less than the max coverage?

Answer 36

Yes (effective 1May08)