SBP for Reservists
By Capt. Bud Schneeweis, USCG-Ret., Director; Lt. Col. William A. Pierce, USA-Ret.; Cmdr. Katherine O’Neill Tracy, USNR-Ret.; and Phil Dyer, CFP Benefits Information

What is the Reserve Component Survivor Benefit Plan (RCSBP)?

The RCSBP allows beneficiaries of reservists to receive a monthly annuity after their sponsor dies. Reservists with 20 years of satisfactory service are eligible for retired pay at age 60, but if a reservist dies before turning 60, his or her entitlement to retired pay ends. In this case, the only way for beneficiaries to receive a portion of the veteran’s retirement pay is through the RCSBP.

What RCSBP options are available to reservists when they receive their 20-year letter?

There are three options available to these reservists:

1. No election until age 60 with spousal consent: Servicemembers can decline coverage until they reach age 60, but they will not have coverage between retirement eligibility and age 60. Coverage after age 60 will remain subject to the retiree’s election upon reaching that age.

2. Deferred annuity with spousal consent: The survivor annuity will begin when a servicemember would have turned 60, if the member dies before reaching that age. If the member lives to age 60, the annuity starts the day after his or her death.

3. Immediate annuity: The survivor annuity begins on the day after the servicemember’s death, regardless of his or her age.

Note: As of Jan. 1, 2001, reservists who have completed 20 years of satisfactory service automatically are covered under RCSBP at the maximum level (option 3), unless they decline coverage or elect reduced coverage. If they decline or elect reduced coverage, their spouse must concur per Public Law 106-398, Section 655 (Oct. 30, 2000).

What is the amount of the RCSBP annuity?

The annuity is 55 percent of the “base amount” before age 62 and might be reduced to as low as 35 percent after that age. The maximum base amount is the servicemember’s gross monthly retired pay, but it could be less. The servicemember can select the base amount, as long as he or she receives at least $300 a month in retired pay.

Can I cancel my RCSBP?

A servicemember participating in the RCSBP only has a one-year period to voluntarily withdraw from the program. The retiree can discontinue the RCSBP for one year beginning on the second anniversary of the date he or she became eligible to receive retired pay. A recall to active duty following retirement does not change this date.

Once participation is discontinued under these provisions:

• there will be no refund of premiums properly collected;
• no benefits will be paid in conjunction with previous participation; and
• a member may not resume participation for any beneficiary.

Who can be an RCSBP beneficiary?

The following people can be RCSBP beneficiaries:

Spouse: An annuity is paid to the eligible spouse for life, unless the spouse remarries before age 55.

Spouse and children: The spouse is the primary beneficiary, and the children are contingent beneficiaries.

Children only: Children receive an annuity until age 18, or 22 if they are enrolled in school full time.

Incapacitated children: Incapacitated children receive an annuity as long as they remain unmarried and disabled.

Former spouse: An annuity is paid to the elected former spouse.

Former spouse and children: The former spouse is the primary beneficiary, and the children are contingent beneficiaries.

Insurable interest person: Electing insurable interest provides an annuity for the life of the beneficiary. This can be any person who depends on your income for support—a parent, dependent or non-dependent child, relative, or associate.