SBP and RSFPP Paid-Up Provision

This fact sheet provides information to help you understand the provisions of the Survivor Benefit Plan (SBP), but is not a contract document. The basic statutory provisions of the SBP law are in Chapter 73, Title 10, United States Code

SBP and RSFPP Paid-Up Provision

The Strom Thurmond National Defense Authorization Act for Fiscal 1999, signed into law as Public Law 105-261 on Oct. 17, 1998, authorized a paid-up provision to the SBP.  The law states that, effective Oct. 1, 2008, no reduction may be made in the retired pay of a participant in SBP for any month after the later of the 360th month of retired pay reduction and the month during which the participant reaches 70 years of age.

Termination of Premium Payments

Beginning with the retired pay entitlement and SBP coverage in effect for October 2008, SBP premium reductions shall no longer be made from the retired pay of qualified participants.  The first payment affected would be the payment normally due in November 2008.

Enrollment in the RSFPP, the predecessor of the SBP, will not be counted in determining the qualifying SBP enrollment period.  Only SBP participation, which began Sept. 21, 1972, will be used for this purpose.

Retired Serviceman's Family Protection Plan Coverage

Public Law 106-65, signed into law Oct. 5, 1999, extended the paid-up provision to active RSFPP participants.  That law states that, effective Oct. 1, 2008, no reduction may be made in the retired pay of an RSFPP participant for any month after the later of the 360th month of retired pay reduction and the month during which the participant attains 70 years of age.