The Reserve Component Survivor Benefit Plan allows retiring National Guard and reserve members to allocate, upon their death, a portion of their retired pay to a spouse or other beneficiary. Understanding enrollment options and how to calculate the premium amounts can be confusing, so it's important to understand how the RCSBP works in order to make the best decision when the time comes.
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Only retirees pay into the Reserve Component Survivor Benefit Plan. It is not an insurance policy-it's an annuity, a monthly payment your beneficiary or beneficiaries receive. Here are answers to questions you may have about the plan:
When do I need to sign up for the plan?
Knowing when to make an enrollment decision is key for National Guard and reserve members. When you become retirement eligible, you will receive a notification-of-eligibility retirement letter, which will include an RCSBP enrollment form. When you receive this letter, you will have 90 days to make a decision about the RCSBP.
- Automatic coverage amount: If you do not respond within 90 days, you will be automatically covered at the maximum level (if you have an eligible spouse or child).
- Selecting less than maximum amount: If you don't want the maximum level, you must make an election within 90 days. If you elect less than RCSBP Option C, full base amount for your spouse, your spouse must agree or the RCSBP election will default to Option C, full base amount for spouse. The only exception is if the election is for a former spouse. There is no spouse concurrence required for a former spouse election.
When you enroll, you may select one of three choices for your coverage:
- Option A: Under this option, you decline to make an election on RCSBP coverage until age 60, when you are eligible to receive retired pay. By doing this, you forfeit any coverage if you die between your retirement eligibility date and age 60.
- Option B: Under this option, your beneficiary will receive payments beginning on the date of your 60th birthday.
- Option C: Under this option, your beneficiary would receive the payments immediately upon your death, regardless of your age.
The following are beneficiaries:
- Spouse: The annuity will be paid to your spouse for the rest of his or her life unless your spouse remarries before the age of 55.
- Spouse and children: Your spouse is the primary beneficiary and your children are beneficiaries only when your spouse loses RCSBP eligibility. For spouse and children, all eligible children are RCSBP beneficiaries under this election.
- Children only: Children are eligible up to age 18, or 22 if they are full-time, unmarried students. The annuity is divided equally among eligible children. Totally incapacitated children are eligible to receive the annuity payable to them for life. However, the RCSBP for a totally incapacitated child may have an adverse effect on other benefits the child receives due to disability.
- Former spouse or former spouse and children: The former spouse is the primary beneficiary and the children are the beneficiaries only if the spouse loses eligibility. For former spouse and children, only the children of the marriage to the member are eligible.
- Person with insurable interest: This election can be made if you do not have a spouse or any eligible children. If insurable interest is for a relative with a closer relationship than a cousin, no proof of financial interest is required. All other insurable interest beneficiaries must show a financial interest in you.
How much money will my beneficiary receive under the RCSBP?
The annuity payment your beneficiary receives under the RCSBP is determined by the base amount you elect. The base amount is the amount of your retirement pay you choose to cover. You may choose any amount between $300 and your full retirement pay as your base amount. The annuity payment is typically 55 percent of the base amount, rounded down to the nearest dollar.
How much money do I need to contribute to the plan?
Just like the annuity amount, the monthly premiums you pay are calculated as a percentage of the base amount you select. When you participate in the RCSBP, you pay the standard Survivor Benefit Plan cost that active-duty service members pay, plus an additional Reserve Component cost, through deductions from your retirement pay. This additional cost is sometimes referred to as the "RCSBP add-on cost." The amount of the add-on premium depends on the type of beneficiary you elect, annuity type you elect (immediate or deferred) and the age difference between you and your beneficiary.
Can I make changes to the plan?
Once you begin coverage under the RCSBP, there are occasions on which you can make changes to your elections.
- Discontinuing RCSBP coverage: Between the second and third year following the date you began to receive retired pay, you may, with your spouse's concurrence, choose to terminate your coverage. However, once you terminate it, it cannot be reinstated.
- Divorce: If you get a divorce, you can suspend spouse RCSBP coverage. Coverage for your children will continue but will be recalculated as children-only coverage.
- Remarriage: If you remarry, your election must be made within one year of your marriage or your new spouse will be automatically covered at the same level as your former spouse. You can resume coverage for your new spouse at the prior level, you can elect not to renew coverage or you can increase coverage for your new spouse if the prior coverage was less than the maximum level. If you declined coverage for your previous spouse at receipt of your notification of eligibility for reserve retirement, you will not be able to add coverage for a new spouse. If you had no spouse at initial election, you have one year from the first marriage following retirement to request coverage for the new spouse.
- Open enrollments: On rare occasions, open enrollment periods are offered to eligible retirees. During this time, retirees who are not participating in RCSBP may elect coverage for eligible beneficiaries, but they must pay premiums retroactive to their eligibility date to first make the RCSBP election. Retirees who are currently participating may add an eligible beneficiary or increase the amount of coverage.
If you have more questions about the RCSBP, your installation Military and Family Support Center can provide information and support. You can also contact the Defense Finance and Accounting Service through the AskDFAS online customer service, by phone at 800-321-1080, Option 1, or by mail at various addresses listed on the DFAS Customer Service website. Get started today on understanding how the RCSBP works so that you can make the best decision for you and your family when the time comes.