Survivor Benefit Plans and Military Divorce: Defending Against or - - PowerPoint PPT Presentation

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Presenting a live 90-minute webinar with interactive Q&A

Survivor Benefit Plans and Military Divorce: Defending Against

• r Claiming Former-Spouse SBP Coverage

Today’s faculty features:

1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific WEDNESDAY, JUNE 28, 2017

• Wm. John Camp, Attorney, John Camp Law, Warner Robins, Ga.
• G. Brentley Tanner

, Partner, Sullivan & Tanner, Raleigh, N.C.

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Survivor Benefit Plans and Military Divorce: Defending Against or Claiming Former-Spouse SBP Coverage

Brent Tanner brentleytanner@ncfamilylaw.com John Camp john@johncamplaw.com

Points for Consideration

• What is the SBP?
• SBP Costs
• Legal Authorities for SBP
• DD Forms
• Timing for SBP Designation
• Active Duty vs. Reserve Component
• When is SBP not an option?
• Board for the Correction of Military Records and the SBP Appeal
• Types of Beneficiaries
• Alternatives to SBP
• Is SBP part of MPD or is it separate?
• If no military service during coveture, can SBP be given to former

spouse from premarital retirement?

6

SBP –Should ByPass?

• SBP = 10 USC 1447 et seq.
• Benefit at death of retiree/SM = 55% of base

amount

• Cost (fm retired pay) = 6.5% of base amt for

“spouse/former spouse coverage”

• Benefits, disadvantages
• Checklist for judges

7

SBP DEFINED

• Court can order SBP coverage
• Without it, payments to former spouse

end at the retiree's death

• Unitary – cannot divide, share with

your NEW spouse!

8

SBP Election

• At retirement for A/D members
• Turn-down requires spousal consent
• Guard/Reserve choices… [use DD Form

2656-5]

9

SBP DEFINED

• Premiums come “off the top” before

DRP (if court-ordered)

• Avoid SGLI as alternative (Ridgway

case)

10

TYPICAL CLAUSE???

“MARY DOE SHALL RECEIVE 46.5% OF ALL THE MILITARY RETIREMENT BENEFITS OF JOHN DOE, INCLUDING EVERYTHING ATTRIBUTABLE TO HIS SERVICE IN THE MILITARY TOWARDS A PENSION, AND EVERY PENSION BENEFIT OF HIS.”

11

BETTER Clause…

• “Master Sgt. John Doe will elect

former-spouse Survivor Benefit Plan coverage for Jane Doe, with his full retired pay chosen as the base amount.”

12

LIFE & DEATH

If representing SPOUSE –

• Life: SPECIFY SHARE OF PENSION
• Death: IF SM DIES AFTER DIVORCE, SBP COVERAGE TO

‘FORMER SPOUSE’

• “JOHN WILL IMMEDIATELY ELECT FORMER-

SPOUSE SBP COVERAGE FOR MARY.”

13

SBP Strategies

• Shifting the premium to FS…
• SBP not available if FS remarries before 55

14

SBP Strategies

• Strategies for Servicemember…

– Require FS to reimburse Servicemember for premium – Lower the share of FS so that, in effect, she bears entire burden of payment – (e.g., 30% nominal share for FS, 25.13% after premium shift!)

15

SBP Strategies

• SBP not available if FS remarries before

age 55 - suspended

– But reinstated if later divorce… – Or death of new spouse – Or annulment

16

SURVIVOR BENEFIT PLAN

• One-year deadline

–From divorce if SM submits applies –From date of SBP order if FS sends the order Dealing with Deadlines

17