Which statement best describes the Survivor Benefit Plan?

Which statement best describes the Survivor Benefit Plan?

• A. It provides a one-time lump-sum payment to survivors
• B. It provides a life-long annuity to eligible survivors after death
• C. It provides medical coverage to survivors
• D. It provides housing allowances to survivors

Answer: (B)

The idea being tested is that the Survivor Benefit Plan provides a life-long monthly annuity to eligible survivors after the member’s death. It’s meant to replace a portion of the retiree’s income for the family, continuing month after month for the survivor. This is funded by premiums paid during the member’s life, and after death the designated survivor receives a ongoing payment rather than a one-time payout or benefits like medical coverage or housing allowances. The amount comes from the base retirement amount and the elected percentage, so it’s a steady, recurring benefit rather than a lump sum.

The idea being tested is that the Survivor Benefit Plan provides a life-long monthly annuity to eligible survivors after the member’s death. It’s meant to replace a portion of the retiree’s income for the family, continuing month after month for the survivor. This is funded by premiums paid during the member’s life, and after death the designated survivor receives a ongoing payment rather than a one-time payout or benefits like medical coverage or housing allowances. The amount comes from the base retirement amount and the elected percentage, so it’s a steady, recurring benefit rather than a lump sum.