Get For Official Use Only Special Needs Trust Election Statement - Retirees Af

The payments for children equal 55 percent of your covered retired pay. All eligible children divide this benefit in equal shares. If the SBP election was for spouse (or former spouse) and children, the children receive payments if the spouse is dead or dies, or otherwise becomes ineligible for the annuity.

Unlike other types of trusts often used in traditional wealth transfer planning, the primary goal of an SNT is to provide for the child's special needs throughout his or her life. Assets held in a properly structured SNT do not count toward eligibility calculations for public benefits.

DATA FOR PAYMENT OF RETIRED PERSONNEL PRIVACY ACT STATEMENT. AUTHORITY: 10 U.S. Code 1477 et seq (Survivor Benefit Plan), and E.O. 9397 (Social Security number). PRINCIPAL PURPOSE(S): To collect information needed to establish a retired/retainer pay account.

If you are enrolled you will pay premiums for your SBP coverage. In addition you can only leave an annuity to eligible beneficiaries. Election to participate in these programs is generally made at the time of retirement, although some situations allow a retiree to add coverage after retirement.

You are free to cancel or terminate your SBP election beginning in the 25th month through the 36th month - or the third year - of your retirement.

The Survivor Benefit Plan (SBP) The Survivor Benefit Plan (SBP) provides financial support to military spouses and/or children when a military member dies while on duty or after retirement. SBP provides eligible beneficiaries with a monthly payment known as an annuity.

Congress passed the National Defense Authorization Act of 2015, which allows military members and retirees to irrevocably assign annuity payments from Survivor Benefit Plans (SBP) to a Special Needs Trust (SNT) for the benefit of their dependent child with disabilities.

The Survivor Benefit Plan cost depends on the level of coverage you choose. SBP coverage is supplied at no cost while you are in active service. During your retirement, however, a monthly deduction is taken from your pay to pay for your SBP coverage. This can be no more than 6.5 percent of your gross retired pay.