HomeMy WebLinkAboutpage-2A two-tier system for SBP was passed by P.L. 99-
145 effective March 1, 1986. All Military personnel
who are retirement eligible after October 1, 1985, are
under this two-tier system SBP system. However,
current retirees, current retirees, current SBP benefi-
ciaries and military personnel who were retirement
eligible on or before October 1, 1985 also are affected
by the two-tier SBP system.
Title VII of P.L. 99-485 in effect establishes only
one SBP annuity, and that annuity is computed by
utilizing the two-tier system (55% of thee base amou-
nt until age 62 and 35% thereafter). However, the
original SBP law (P.L. 92-425) enacted on September
21, 1972, established an SBP annuity based solely on
55% percent of the base amount (together with any
Social Security offset applicable). Many retirees are
enrolled in the SBP law. The basic question is: Will
the SBP annuity for these retirees be paid under the
provisions of the original SBP law or the two-tier
system?
For military personnel who were retirement eligible
on or before October 1, 1985, and their future
survivors, or military personnel retired on or before
October 1, 1985, and their future survivors and
current beneficiaries, "grandfathering" of their SBP
annuity will apply is their survivors or beneficiaries
would have been subject to the Social Security offset.
Under grandfathering, surviving or (current benefici-
aries will receive the annuitymost financially favorable
to them, either under the law as it was before March
1. 1986, or the new two-tier system. The Defense
Finance and Accounting Service Center (DFAS) will
compute this after the retiree's death.
Know Your Medications
Keep a list of all medicines you take. Tell your
doctor and pharmacist about the medicines you take,
including all over-the-counter medicines such as
aspirin, ibuprofen and dietary supplements like
vitamins and herbals. Tell them about any drug
allergies you have. Ask the pharmacist about any side
effects and what food or other things to avoid while
taking the medicine. When you get your medicine,
read the label, including the warnings. and make sure
it's what the doctor ordered, and know how to use it.
If the medicine looks different than expected, askyour
pharmacist about it.
Discuss your choices; talk to your doctor and health
care team about your options if you need hospital
care. If you have more than one hospital to choose
from, ask your doctor which one has the best care and
results for your condition.
Understand your surgery. Make sure you under-
stand what will happen if you need surgery. Ask your
doctor and surgeon:
* Who will take charge of my care while I'm in the
hospital?
* Exactly what will you be doing?
* How long will it take?
* What will happen after the surgery?
* How can I expect to feel during recovery?
Social Security Beneficiaries Due Make
Up Checks
Many Social Security Beneficiaries and Supplemen-
tal Security Income beneficiaries should have received
small make-up checks in mid July.
According to the Social Security Administration
Officials, SSA was to issue one-time payments to
about 45 million Social Security beneficiaries and
approximately 6 million Supplemental Security
Income beneficiaries. If you have an out of balance
in your check book, chances are your refund has been
mailed to your bank account;
Survivor Benefit Plan (SBP) Grandfather-
ing Clarification
Melanie Wiggins, Author and Artist, speaker at July
meeting receeives award from CDR Reddish, USN, Rex.