RCSBP

The Reserve Component Survivor Benefit Plan (RCSBP) enables people who served in Reserve Components to leave the people they care about with a benefit called an “annuity.”

An annuity is a monthly payment that lasts the lifetime of your beneficiary after you pass away. The amount of the monthly payment is a percentage of your retired pay, and that percentage depends upon the election you make when you sign up for RCSBP.

RCSBP is quite similar to the Survivor Benefit Plan (SBP) that covers non-reserve components of the armed services. However, there are a number of differences in eligibility, coverage and cost that reflect the unique nature of reserve service.

For more information, visit the following links:

MILPERSMAN 1772-010
DFAS RCSBP
RCSBP - Chapter 54 of Financial Management Regulation
Office of the Actuary - SBP Financial Analysis Tools

Eligibility

By completing all of the requirements that qualify you for retired pay at age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15), you are eligible to participate in the Reserve Component Survivor Benefit Plan (RCSBP).
You have 90 days from receipt of the NOE/RCSBP Election Certificate (DD Form 2656-5) to enroll in this plan. Effective 1 January 2001, if an election is not received within the 90-day time frame, a member’s spouse (and children if listed in NSIPS) will be automatically covered under an immediate annuity (Option C) based on the full amount of retirement pay.

Please return the completed signed/notarized DD Form 2656-5 to:

Commander Navy Personnel Command (PERS-912)
5720 Integrity Drive
Millington, TN 38055

1. Option A - Decline participation in the RCSBP

If you choose not to participate in the plan at this time and you live to age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15), you will be given an opportunity to enroll in the Survivor Benefit Plan (SBP). However, if you die before reaching age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15), your family/survivor will not receive any of your future military retirement pay. Spousal concurrence is required.

2. Option B - Deferred Annuity

If you die before age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15), your survivor will begin receiving a monthly annuity effective the date that would have been your 60th birthday (or Retired Pay Eligibility Date per NDAA FY08 and FY15). If you die after age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15), the survivor annuity will become effective the day after the date of death. Spousal concurrence is required.

3. Option C - Immediate Annuity

Your survivor will begin receiving an annuity immediately whether you die before or after age 60 (or Retired Pay Eligibility Date per NDAA FY08 and FY15). The survivor's annuity will be reduced by the Survivor's Annuity Premium Deduction.

Level of Coverage, Cost, Change, Discontinuation

You may elect to provide RCSBP coverage for a survivor based on the full amount of your retirement pay or a reduced amount, but not less than $300.00. Full coverage is required for an insurable interest beneficiary.

Cost

There is no cost for RCSBP coverage until you receive retirement pay. The monthly cost will be withheld from your retirement pay and will be based on your age and the age of your eligible beneficiary at the time of the election. If you die, your survivor will received a reduced annuity; the .01% reduction is applied for the annuitant's lifetime and is called Survivor's Annuity Premium Deduction.
To estimate your monthly premium, visit The Office of the Actuary SBP Premium Rates page to download their calculator.

Election Changes

Conditions that trigger eligibility to change coverage include marriage, remarriage, acquiring a dependent child, divorce*, death of spouse*.
*See DD FORM 2656-6 for further details and exceptions.

Discontinuation

Section 641, Public Law 105-85 provides a one-time option for you to discontinue your participation in Survivor Benefit Plan. A Survivor Benefit Plan Termination Request (DD Form 2656-2) must be completed and mailed to the Defense Finance and Accounting Service in Cleveland. The one-year window begins on the second anniversary of receipt of retired pay and ends on the ends on the third anniversary.
Once participation is discontinued under this provision there will be no refunds of past premiums paid nor will any benefits be paid in conjunction with your previous participation.
YOU WILL STILL BE SUBJECT TO PAY THE RCSBP COVERAGE ADD-ON PREMIUM UNTIL A TOTAL OF 360 MONTHS OR OTHER CIRCUMSTANCE SPECIFIED IN TABLE 54.1 AND 54.2 of the DoD 7001.14-R FMR VOLUME 7B CHAPTER 54.
You will not be able to resume participation for any category of beneficiary.

Beneficiaries

Eligible beneficiaries under the RCSBP include spouse, child, former spouse, and natural person with an insurable interest. Members eligible to participate in RCSBP may elect coverage in one of the following coverage categories: spouse; spouse and child; child only; former spouse; former spouse and child; natural person with an insurable interest; or Special Needs Trust (SNT).

Spouse only

Your spouse will receive a monthly survivor annuity check of 55% of your retirement pay or the lesser amount that you designate as your base amount of coverage. Your spouse will receive monthly survivor annuity checks for life, provided he/she does not remarry before age 55. Survivor payments are suspended if this happens; however, if that marriage ends in death or divorce, the survivor annuity payments will be reestablished.
It is important to understand that, with spouse coverage, you are covering not only the spouse you have at the time you enroll, but also any spouse you might marry in the future. A legal separation or a pending divorce classifies you as still being married and having an eligible spouse beneficiary.
If you lose your spouse through death or divorce and then remarry, coverage for a subsequent spouse automatically goes into effect on your one-year anniversary unless you terminate participation, with spouse concurrence, during the first year of your remarriage.
If you become divorced after you make an election into the plan (and there is no stipulation in the divorce decree to convert it to former spouse coverage) or if your spouse dies before you start receiving retirement pay at age 60, no premium will be withheld from your retirement pay for past coverage.
Spousal concurrence is required if spouse coverage is selected for Option “B” or for less than the maximum coverage.

Child(ren)

The definition of a “child” includes your natural child through a current or prior marriage, an adopted child, stepchild, foster child, or recognized natural child living with you at the time of your death.  Note: stepchild coverage ends with divorce.
Coverage is not limited to the child(ren) you have at the time of your election, but extends automatically to any child(ren) acquired thereafter.
All eligible children share the survivor payment equally until age 18 (age 22, if a full-time student).  There is no age limit for survivor annuity payments to unmarried children who are mentally or physically incapable of self-support due to a condition that existed before age 18 (age 22, if in a full-time student).
The cost for this coverage is based on your age and the age of your youngest child at the time of your original election.  The cost will be recalculated for any child born or adopted at a later date.
There is a permanent cost reduction for child coverage that continues even after your child(ren) cease to be eligible beneficiaries.  The cost is minimal.
If you are unmarried during the 90-day eligibility enrollment period and elect the ‘child(ren) only’ coverage, but later acquire a spouse, this coverage may be broadened to include your new spouse.  However, this election change must be made in writing and submitted to the Navy Personnel Command (PERS-912) within one year of the date of marriage at the above address.
If you have eligible dependent children during your enrollment period and choose not to cover them, any children born or adopted at a later date cannot be covered under RCSBP.
This type of coverage guarantees dependent childr(ren) 55% of your retirement pay or the amount you designate as your base amount of coverage.  The designated base amount must be an even dollar amount between $300 and your full retirement pay.

Insurable interest

This type of coverage can be elected if you are unmarried and have no dependent children.  An insurable interest person is one who has a basis to expect financial benefit or advantage from the continuance of your life.
If you are unmarried and have only one dependent child (who is eligible for ‘child only’ coverage), you may elect coverage for this child as an insurable interest beneficiary.
If you designate a person who is not more closely related than a cousin, a notarized statement indicating that the person has a logical and lawful reason to expect financial benefit from your continued life, is required.
Insurable interest coverage is more expensive than other coverage and you are not required to make an insurable interest election.
Only one person may be designated as an insurable interest beneficiary.  If the insurable interest beneficiary predeceases you, deductions from your retirement pay will be permanently terminated.  Additional beneficiaries may not be chosen for insurable interest coverage after the loss of your original insurable interest beneficiary.
If you elect insurable interest coverage, the option may be changed to cover a newly acquired spouse and/or child; however, this must be done within one year of marriage or acquiring a child.
A survivor annuity payable to an insurable interest beneficiary will be 55% of your net retirement pay remaining after the reduction of the cost for participation in the plan.  The monthly survivor annuity is payable to that person for life.
Insurable interest coverage must be based on your full amount of retirement pay.
This is an expensive option because the cost for such coverage is 10% of your full gross retirement pay plus an additional 5% for each full five years the beneficiary is younger than you.  The total cost for this coverage may not exceed 40% of your gross monthly retirement pay.
You are allowed to terminate participation in this type of coverage at any time; however, at age 60 you will be expected to pay for this past coverage for an insurable interest beneficiary.  If you terminate this type of coverage before age 60, the premium will be pro-rated according to the number of months you had the coverage in relation to the number of months you would have had this coverage if you did not terminate before age 60.  If you wish to terminate this type of coverage, please call our toll-free number 866-827-5672 to request the forms.

Former spouse and former spouse/children

If you participate in RCSBP with either spouse or spouse and child(ren) coverage, and later divorce, you can elect to change to former spouse coverage (DD Form 2656-1). The election change must be made in writing and submitted to NPC PERS-912 at the above address within one year following the divorce.
If you are currently married and elect coverage for your former spouse during your 90-day enrollment period, your current spouse will be notified as required by law.

Costs and survivor payments under this type of coverage are identical to those for spouse or spouse and child coverage.

If you have a former spouse, you may designate your former spouse or your former spouse and child(ren) as beneficiary(ies) during your 90-day enrollment period in the plan if the child(ren) resulted from your marriage to that former spouse. (Children of other marriages may not be included.)
If you are required by the court to provide coverage for your former spouse as part of the divorce decree settlement and fail to honor such agreement, then your former spouse may make an election in your behalf. It must be done within one year of the divorce and certain restrictions apply.
If you make a former spouse election and later acquire a spouse, the former spouse coverage can be changed to cover the new spouse under the following conditions:

If former spouse coverage was elected with a written agreement, you are free to change the election to spouse coverage within one year of remarriage.
If former spouse coverage was made to comply with a court order, you may change the election to spouse coverage for a subsequent spouse within one year of remarrying, but only if you obtain a court order that relieves you of the requirement to maintain your former spouse as the beneficiary.

Survivor coverage for a former spouse is not automatic

It is important to understand that spouse coverage does not automatically convert to former spouse coverage upon divorce. A court order cannot, by itself, be used to institute RCSBP coverage. A signed election certificate (DD Form 2656-10) must be submitted by the service member, or in some cases, the former spouse, before coverage can be established. An RCSBP participant has one year from the date of divorce to change an election from spouse coverage to former spouse coverage.

Survivor Benefit Annuity Claims

SELRES/VTU/IRR - report death to Navy Casualty Office by contacting MNCC at 1-833-330-6622, askmncc@navy.mil
Gray Area/Non-Pay Retirees (i.e. coverage under RC-SBP) - report death to PERS-912 by contacting MNCC at 1-833-330-6622, askmncc@navy.mil
Retired Pay recipients (i.e. coverage under SBP) - report death to DFAS by mail, online or call DFAS customer service support at 1-800-321-1080

Remarriage

If you lose your spouse through death or divorce and later remarry, you have the following options:
1. Resume coverage for your new spouse.
2. Increase coverage up to the maximum allowable if you elected less than full coverage.
3. Withdraw from participation.

A new spouse will be automatically entitled to survivor benefits from RCSBP after one year of marriage provided that former spouse coverage is not in effect due to a court order.

You may elect not to provide survivor benefit coverage for your new spouse; however, your decision must be made in writing within one year of the date of your remarriage. You must complete and mail a DD Form 2656-6. Once completed, mail to:

Commander Navy Personnel Command
PERS-912
5720 Integrity Drive
Millington, TN 38055

If you previously elected ‘spouse and children coverage’ and your spouse beneficiary becomes ineligible due to death or divorce, then the election will revert to the coverage for ‘children only.’

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NAVY PERSONNEL COMMAND
5720 Integrity Drive
Attn: PERS-### or BUPERS-###
Millington, TN 38055-0000
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