New studies released by RAND, an independent research and development group, found that the policies of the Survivor Benefit Plan (SBP) “generally compared well” to those of other public, private, federal and commercial plans.
The assessment began at the request of Congress to compare the financial outreach to surviving members from different sectors.
The chief purpose of SBP is to provide a “reasonable level of income through an annuity” to survivors of U.S. service members who die in the line of duty or are enrolled in SBP as retirees.
This benefits program replaced a former federal plan that resulted in high costs for retirees and other “limitations.”
According to the assessment, most annuitants were survivors of military retirees in 2016. RAND said the amount covered by SBP has been rising, reaching about 98 percent of the retiree group.
Part of the increase comes from the Department of Defense’s subsidization of SBP, which calls for lower paid premiums of retirees “that would be required to cover the full liability of SBP,” according to RAND.
RAND said SBP benefits typically provide up to a third, and sometimes up to half, of survivors’ income, depending on whether they receive Social Security.
