Survivor Benefit Plan (SBP) Calculator for Military Retirees

Military retired pay stops when the retiree dies. The Survivor Benefit Plan (SBP) is how a military retiree continues part of it for a spouse, former spouse or child as a monthly annuity for as long as the survivor is eligible. A retiree elects a base amount, pays a monthly cost out of retired pay, and the survivor receives a percentage of that base amount.

Base amount: full retired pay or a reduced amount

10 U.S.C. 1447(6)(A) defines the full base amount: “such term means the amount of monthly retired pay (determined without regard to any reduction under section 1409(b)(2) or 1415(b)(1)(B) of this title).” That is the monthly retired pay before the reductions in 1409(b)(2) and 1415(b)(1)(B), which is why the calculator asks for the unreduced amount. A retiree can instead designate “any amount less than the amount otherwise applicable under subparagraph (A) or (B) with respect to an annuity provided under the Plan but which is not less than $300.” The same section requires that a married retiree's spouse concur where 1448(a)(3) says so, and that the reduced amount be designated on or before the first day the retiree is eligible for retired pay.

DoD Financial Management Regulation Volume 7B, Chapter 43 says it the same way: “The reduced base amount must not be less than $300. When retired pay is less than $300, the election form must indicate full coverage.” The Department of Defense says “The base amount can be any amount ranging from $300 to the full amount of the member's retired pay.”

DFAS's Reserve Component SBP page says “There is, however, a minimum level of coverage required and that the amount is unique to each retiree.” The statute and the DoD FMR set a $300 minimum base amount. Confirm your minimum with DFAS or an SBP counselor.

Annuity: 55% of the base amount

For a spouse, former spouse or dependent child, 10 U.S.C. 1451(a)(1)(A) says “the monthly annuity shall be the amount equal to 55 percent of the base amount.” For a spouse who is 62 or older, 1451(a)(1)(B) has set the same 55 percent: “For months after March 2008, the applicable percent is 55 percent.”

The annuity ends if the survivor remarries too soon. Under 10 U.S.C. 1450(b)(2) an annuity for a surviving spouse or former spouse is paid while that person is living or, “if the surviving spouse or former spouse remarries before reaching age 55, until the surviving spouse or former spouse remarries.” Under 1450(b)(3), if that marriage ends, “payment of the annuity shall be resumed effective as of the first day of the month in which the marriage is so terminated.”

The law also says “The monthly amount of an annuity payable under this subchapter, if not a multiple of $1, shall be rounded to the next lower multiple of $1.” (1451(g)(2)), and DoD FMR 7B ch. 46 says “Monthly annuities, if not a whole dollar, are rounded to the next lower whole dollar.” So this calculator rounds the annuity down to a whole dollar.

Monthly cost: 6.5% of the base amount

10 U.S.C. 1452(a)(1)(A)(iii) sets the flat rate: “In the case of a person who first becomes a member of a uniformed service on or after March 1, 1990, and who is entitled to retired pay under a provision of law other than chapter 61 or chapter 1223 of this title, the reduction shall be in an amount equal to 6½ percent of the base amount.” DFAS puts the limit in plain words: “This can be no more than 6.5 percent of your gross retired pay.”

DFAS gives two examples. “if you receive $1,000 of retired pay each month, and elect full SBP coverage, your monthly cost to cover your spouse under the plan will be $65 each month.” And for a lower base: “we would calculate 6.5 percent of $700, and the monthly cost to cover a spouse under SBP would be $45.50.” This calculator reproduces both. It rounds the cost to the nearest cent, which is this page's choice; the sources give no rounding rule for the cost.

Each row applies the two formulas to the base amount in the first column. These are examples computed from the formulas, not published tables: cost = base amount x 6.5% and annuity = base amount x 55%.

The first row is the lowest reduced base amount the law allows. Base amounts here are examples; your base amount is your full retired pay or the reduced amount you choose.

The calculator compares what you pay with what the survivor would receive. The formula is: months of annuity = premiums paid / monthly annuity. Because the cost is 6.5% of the base amount and the annuity is 55% of it, one month of premium equals 6.5 / 55 = 0.118 months of annuity at any base amount, so 30 years of premiums (360 payments) equal about 42.5 months of annuity.

This comparison does not include taxes, inflation, interest or how long either person lives, and it ignores that the base amount rises with cost-of-living adjustments. It is not a prediction and not advice; use it only to see the scale of the monthly cost against the monthly annuity.

Premiums already paid are not refunded if your spouse dies first. 10 U.S.C. 1452(f)(1): “A person is not entitled to refund of any amount deducted from retired pay or combat-related special compensation under this section.” DFAS says only later deductions come back: “If the spouse alone was covered, cost will terminate and any premiums paid beyond the date of death will be refunded.”

10 U.S.C. 1452(j) says “no reduction may be made under this section in the retired pay of a participant in the Plan for any month after the later of— (1) the 360th month for which the participant’s retired pay is reduced under this section; and (2) the month during which the participant attains 70 years of age.” The Department of Defense adds: “Although SBP coverage continues, no further premiums are required.” Premiums stop only when both conditions are met: the 360th reduced month (30 years) has passed and the retiree has reached age 70. Whichever comes later ends the premiums.

A retiree can cover dependent children without covering a spouse. DFAS: “If you're married and you choose not to cover your spouse, you must get concurrence from your spouse.” The annuity is the same percentage of the base amount that applies to spouses, shared equally among eligible children (“Eligible children equally divide a benefit that is 55 percent of the member's elected base amount.”).

Under 10 U.S.C. 1452(b)(1) the cost for child-only coverage is not a percentage: the retired pay “shall be reduced by an amount prescribed under regulations by the Secretary of Defense.” DFAS says the cost depends on the ages of the retiree and the youngest child. Because no formula is published in the sources used here, this page does not calculate it. The statute defines a dependent child as one who is unmarried and either under 18, or “at least 18, but under 22, years of age and pursuing a full-time course of study or training,” or incapable of self support because of a mental or physical incapacity that began before 18, or before 22 while a full-time student.

A retiree can add children to spouse coverage. The Department of Defense says: “In the latter case, the children receive benefits only if the spouse dies or otherwise becomes ineligible to receive the annuity.” Children are covered in equal shares. 10 U.S.C. 1452(a)(2) says: “If there is a dependent child as well as a spouse or former spouse, the amount prescribed under paragraph (1) shall be increased by an amount prescribed under regulations of the Secretary of Defense.” DFAS adds that “Adding eligible children to an SBP election will add to the cost. The additional cost depends on the age of the retiree, spouse and the youngest child.”

Since the extra cost is set by regulation and no formula is published in the sources used for this page, the calculator shows the spouse part only. A spouse-and-child election costs more than the amount shown.

10 U.S.C. 1452(a)(5)(A) treats a participant who “has (i) a spouse or former spouse, or (ii) a spouse or former spouse and a dependent child” and has not elected insurable-interest coverage as providing spouse coverage, so the cost (6.5% of the base amount) and the annuity (55%) are the same for a former spouse. The differences are in timing. DFAS: “You may elect coverage for your former spouse at the time of your retirement even if you divorced more than a year before your retirement and becoming eligible to participate in the SBP.” And after retirement: “If you’ve already retired and you want to elect former spouse coverage, or the court has ordered you to do so, you must make a former spouse election within one year of your divorce decree.”

If a court order requires former spouse coverage, the former spouse can file a “deemed election” request with DFAS within one year of that order. DFAS: “If your former spouse submits a proper deemed election request within one year of the court order requiring former spouse SBP coverage, then former spouse SBP coverage will be entered on your account, even if you don’t make a former spouse election.” If you have a former spouse, ask DFAS how your divorce decree affects the election.

Reserve and Guard members have their own election, Reserve Component SBP (RCSBP), made when they receive the Notice of Eligibility (NOE) for retired pay, also called the 20-year letter. DFAS says “When your NOE is issued, you have 90 days to choose an option.” The three options are:

• “Option A – You may decline to make an election until age 60 (or earlier if eligible for reduced age retirement). You will remain eligible to elect SBP coverage at the age you qualify for a Reserve Component non-regular retirement. No annuity will be payable to your beneficiaries if you die before non-regular retirement. Spousal concurrence is required and must be notarized.”
• “Option B – You may defer the annuity. This election provides coverage for your selected beneficiary, but if you die before age 60, SBP annuity payments do not start until the date you would have been 60 years old.”
• “Option C – You may elect for an immediate annuity.”

Missing the window has a default. DFAS: “If your election is not received within 90 days, the law requires you to be automatically enrolled in Option C.”

On cost, DFAS says “For RCSBP, members pay the standard SBP cost, plus an additional Reserve Component (RC) cost, through deductions from retired pay.” This calculator does not include the RCSBP add-on cost, so it understates the cost of RCSBP coverage.

When retired pay gets a COLA, three things rise together. For the base amount, 10 U.S.C. 1451(h)(1) says “the base amount applicable to each participant in the Plan shall be increased at the same time.” For the annuity, 1451(g)(1)(A) says “each annuity that is payable under the Plan shall be increased at the same time.” For the cost, 1452(h)(1) says “the amount of the reduction to be made under subsection (a) or (b) in the retired pay of any person shall be increased at the same time and by the same percentage as such retired pay is so increased.” The Department of Defense summarizes it this way: “When retired pay is adjusted due to a Cost-of-Living Adjustment, or COLA, the base amount is adjusted, and as a result, the premium and amount of the annuity increase.”

This calculator shows today's figures; it does not project future COLAs. For the flat-rate method the cost stays 6.5% of the base amount and the annuity stays 55% of it as the base amount rises. For retired pay itself, see the military retirement pay calculator.

The Department of Defense says “Premiums are paid from gross retired pay, so they don't count as income. This means less tax and less out-of-pocket costs for SBP.” On the other side, it says “SBP benefits are taxed as income to the survivor.” DoD FMR 7B ch. 45 (§10.0) is specific: “For federal income tax purposes, premiums for SBP/RSFPP coverage are excluded from taxable income when they are directly withheld from the retired member’s gross retired pay.” That covers federal income tax and only premiums withheld from gross retired pay, so for federal income tax the cost is a pre-tax deduction and your take-home change may be smaller than the cost shown; state treatment varies. This page does not calculate tax.

A surviving spouse who is also entitled to VA Dependency and Indemnity Compensation (DIC) used to have the SBP annuity reduced by the DIC amount. Congress phased that reduction out. 10 U.S.C. 1450(c)(1) sets the schedule:

• During 2020, the annuity was paid only to the extent it exceeded the DIC payment.
• During 2021, the annuity was paid in the amount that it “would exceed two-thirds of such dependency and indemnity compensation.”
• During 2022, the annuity was paid in the amount that it “would exceed one-third of such dependency and indemnity compensation.”
• “On and after January 1, 2023, the full amount of the annuity under this section.”

DFAS confirms: “February 1, 2023 was the first SBP annuity payday after the SBP-DIC Offset was fully eliminated, which took effect January 1, 2023.” The elimination changes only SBP payments from DFAS; DIC from VA is unchanged. The offset ended on January 1, 2023, so the calculator applies no DIC reduction.

Coverage starts as a default. 10 U.S.C. 1448(a)(2)(A) applies the plan to a person “who is married or has a dependent child when he becomes entitled to retired pay, unless he elects (with his spouse’s concurrence, if required under paragraph (3)) not to participate in the Plan before the first day for which he is eligible for that pay.” The Department of Defense says: “You may not reduce or decline spouse coverage without your spouse's written consent.”

Spouse concurrence is required for less than full coverage. 10 U.S.C. 1448(a)(3)(A) says: “A married person who is eligible to provide a standard annuity may not without the concurrence of the person’s spouse elect— (i) not to participate in the Plan; (ii) to provide an annuity for the person’s spouse at less than the maximum level; or (iii) to provide an annuity for a dependent child but not for the person’s spouse.” DFAS says “If you have an eligible spouse and you choose anything less than full coverage, the spouse’s notarized signature must be obtained for the election to be considered valid.”

The decision is hard to undo. The Department of Defense warns: “If you are married and decline SBP at retirement, you will not be eligible to later cover that spouse” DFAS describes a third-year exit: “You are free to cancel or terminate your SBP election beginning in the 25th month through the 36th month - or the third year - of your retirement.” DFAS adds that “this window is an exit only, not an entrance” and that “As with declining at retirement, spousal concurrence is required.” A separate withdrawal is allowed for certain totally disabled retirees (10 U.S.C. 1452(g)): the law covers a person “who is suffering from a service-connected disability rated by the Secretary of Veterans Affairs as totally disabling” for a long enough continuous period, and it needs the written consent of the beneficiary.

DFAS says: “Only a decision by Congress to initiate a free period of enrollment called an “Open Season” would allow a retiree to begin a new election after retirement. Such periods are rare. 2023 was the most recent Open Season.” No current open season is documented in the DFAS and Department of Defense sources used for this page. If you want to add or drop SBP outside the normal rules, ask DFAS whether Congress has opened a window.