Enlisted Association  National Guard of Kansas

SBP FOR RESERVISTS

Reservists with 20 years of satisfactory service are eligible for retired pay at age 60.  If they die before turning age 60 that entitlement to retired pay ends.  If this happens there is a way for designated persons to receive a portion of the veterans retirement pay in the form of a monthly annuity through the Reserve Component Survivor Benefit Plan (RCSBP)..  When reservists receive their 20-year letter they have available to them three options:

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 the day after the servicemembers death, regardless of his or her age.

The annuity is 55% of the base pay amount before the annuitant’s age 62 and might be reduced to as low as 35% after that age if the annuitant is eligible for social security poayments on the member’s account.  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 she or he receives at least $300 a month in retired pay. Retirees can voluntarily discontinue the RCSBP during a one year period beginning on the second anniversary of the date they became eligible to receive retired pay.  A recall to active duty following retirement does not change this date. Once participation is discontinued there will be no refund of premiums, no benefits will be paid in conjunction with previous participation, and a member may not resume participation for any beneficiary.  Members can elect beneficiaries as follows:

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

SPOUSE & 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:  Receive an annuity as long as they remain unmarried and disabled.

FORMER SPOUSE:  Annuity is paid to the elected former spouse.

FORMER SPOUSE & CHILDREN :  The former spouse is primary beneficiary and the children are contingent beneficiaries.

INSURABLE INTEREST PERSON:  Annuity is paid for life of the beneficiary.  This can only be a person who depends on your income for support such as a parent, dependent or non-dependent child, relative, or associate.

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SSA Full Retirement Age Increase 2003

Starting in January, individuals born in 1938 and afterward will have to work additional months before reaching the full Social Security retirement age.  Those people born in 1937 and prior years reached full retirement age upon attaining their 65th birthday.   Social Security eligibles born in 1938 reach 65 in 2003, but must go an additional two months for full retirement. Those born in 1939 will have to wait until they are 65 four months, and the age will keep going up until it reaches 67 for full retirement for those born in 1960 and later. A full chart at http://www.ssa.gov/retirechartred.htm is available for viewing.  The only exception to the rule is that those born on Jan. 1 go by the requirements of the previous year.

Even with the full retirement age increasing, eligible people can still retire as early as age 62, but with reduced payments. There is both a major disadvantage and a big advantage to taking the benefit before reaching full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is that the benefit is permanently reduced. Since it's different for each person, those thinking retirement should be sure to contact Social Security before a decision is made.

Also, officials point out that many people equate full Social Security retirement age with Medicare and remind them that they are not the same. Although the Social Security full retirement age is going up, it does not hold true for the Medicare age.  The Medicare age will remain 65, so those workers who elect to wait for the full 100 percent Social Security payment will still have to enroll in Medicare Part B during the open enrollment period around their 65th birthday. That period includes the three months prior to the birth month, the birth month and three months following the birth month. A method of payment must be arranged to pay the premiums before Social Security retirement benefits start and the premium can be automatically deducted. Failing to enroll during the seven-month period will require the retiree to wait until the following open enrollment period of Jan. 1 - March 31 of each year, with coverage starting July 1. Each year's delay adds 10 percent penalty to the premium cost. [Source: Charles Gray 4 MSS/DPF Seymour Johnson AFB Msg dtd 25 NOV 02

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Burial Flags

VA provides an American flag to drape the casket of a deceased individual who:

• Served in any war
• Died, while in active military, naval, or air service after 27 MAY 1941
• Served after 31 JAN 1955
• Died while a member of the Selected Reserve
• Served at least one enlistment or had been discharged or released from active service for a disability incurred or aggravated in the line of duty.
• Was entitled to retired pay for service as a Reservist at the time of death, or would have been entitled to retired pay, but for the fact that the individual was under 60 years of age.
• Was a member or former member of the Selected Reserve who completed at least one enlistment or period of initial obligated service as a member of the Selected Reserve, or was discharged before completion of the initial period for a disability incurred or aggravated in the line of duty.

Veterans separated from service must have been discharged or released under conditions other than dishonorable. After the funeral service, the flag may be given to the next of kin, close friend, or associate of the deceased veteran. Burial flags may be obtained at VA regional offices, national cemeteries and most post offices. A flag may also be obtained with VA Form 21-2008 U.S. Flag for Burial Purposes which can be downloaded at www.va.gov/FORMS/default.asp. Application should be accompanied by a copy of the deceased veterans DD-214 or any other discharge document noting an honorable discharge. [Source: VA Pamphlet 80-01-1]

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Friday, March 24, 2006 07:43:39 AM
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