Which statement about the Survivor Benefit Plan is false?

Which statement about the Survivor Benefit Plan is false?

• A. The plan is one of several ways a member can provide a portion of their military retired pay to eligible survivors.
• B. The SBP annuity is payable to eligible survivors.
• C. The SBP paid-up feature is available after reaching 70 years of age with 360 monthly payments.
• D. You have a one-year window to terminate SBP coverage between the 2nd and 3rd anniversaries of the date you begin to receive retired pay.

Answer: (A)

The key idea is how the Survivor Benefit Plan works and who it benefits. The statement in question claims SBP is one of several ways to provide a portion of a service member’s retired pay to survivors. In reality, SBP is the designated program that converts part of the retiree’s monthly retired pay into a survivor annuity for eligible beneficiaries; there aren’t multiple similar options that divert retired pay to survivors. Other survivor support exists (like VA benefits or life insurance), but those aren’t part of the retired-pay annuity itself. So, the SBP annuity is indeed payable to eligible survivors, there is a paid-up feature after 360 monthly payments starting at age 70, and you have a one-year window to terminate SBP coverage between the second and third anniversaries of when you begin to receive retired pay.

The key idea is how the Survivor Benefit Plan works and who it benefits. The statement in question claims SBP is one of several ways to provide a portion of a service member’s retired pay to survivors. In reality, SBP is the designated program that converts part of the retiree’s monthly retired pay into a survivor annuity for eligible beneficiaries; there aren’t multiple similar options that divert retired pay to survivors. Other survivor support exists (like VA benefits or life insurance), but those aren’t part of the retired-pay annuity itself.

So, the SBP annuity is indeed payable to eligible survivors, there is a paid-up feature after 360 monthly payments starting at age 70, and you have a one-year window to terminate SBP coverage between the second and third anniversaries of when you begin to receive retired pay.