By DFAS Cleveland     July 2025

Your decision about the Survivor Benefit Plan (SBP) or the Reserve Component Survivor Benefit Plan (RCSBP) requires careful consideration. There are advantages and disadvantages that you need to weigh and important timeframes to consider as you make your decision.

What is the Survivor Benefit Plan (SBP)?

SBP provides eligible beneficiaries with a benefit called an annuity, after your death. An annuity is a monthly payment. The amount of the benefit is a percentage of your retirement pay. The percentage is dependent on your election. SBP can cover your spouse, your children or both. Former spouses can also be covered. Another option, if you do not have a spouse or child, is to cover a Natural Interest Person.

Is the Reserve Component Survivor Benefit Plan (RCSBP) the same as the SBP?

In addition to the decision about SBP, Reserve and Guard members have an additional decision to make about the Reserve Component Survivor Benefit Plan. If they have dependents, this decision must be made when they receive their Notice of Eligibility (NOE) which is also known as the “20-Year Letter.”

RCSBP is similar to SBP. However, there are some differences in eligibility, coverage and cost that reflect the unique nature of Reserve and Guard service. Please see the Army Retirement Services website for detailed information about RCSBP: https://soldierforlife.army.mil/Army-Retirement/ Retirement-Planning/Survivor-Benefit-Plan-Decision

Advantages and Disadvantages of the plans

There are advantages to electing SBP or RCSBP:

• You will leave a guaranteed income to your beneficiary. A beneficiary receives 55% of the member’s elected amount.
• Survivor benefits are not affected by Social Security or Department of Veteran’s Affairs (VA) Dependency and Indemnity Compensation (DIC).
• Unlike many private life insurance policies, coverage will not be cancelled due to any illness you may have or your age.
• Your age or health and that of your spouse will never impact the cost of the program.
• The annuity is protected against inflation, increasing when there is a Cost of Living Adjustment based on the Consumer Price Index.

There are also some disadvantages to consider:

• SBP coverage is supplied at no cost while you are in active service. However, when you begin receiving retired pay, a monthly deduction is taken from your pay if you elect SBP and/or RCSBP coverage.
• Another disadvantage is once you enroll, changing your election is difficult because there are limitations on changes that can be made after an election.

When can I sign up for SBP?

Active-duty Soldiers should decide on their SBP coverage when they fill out their application for retired pay. Reserve Component members should decide on their SBP coverage when filling out the application for retired pay only if they deferred the SBP decision when they received their NOE, or did not have dependents prior to the application date.

When can I sign up for RCSBP?

Reserve Component (RC) members must make their decision about RCSBP when they complete the equivalent of 20 years of service and receive their NOE. When the NOE is issued, you have 90 days to choose an RCSBP option using the DD Form 2656-5. If your election response is not received within 90 days, the law requires a member be automatically enrolled.

Therefore, it is VERY important that you respond regarding RCSBP when you receive your NOE.

Paying for RCSBP or SBP coverage

The SBP cost depends on the level of coverage a member chooses. SBP coverage is supplied at no cost while in active service. During retirement, however, a monthly deduction is taken from retired pay to pay for SBP coverage, if the member elects to participate.

For RCSBP, members pay the standard SBP cost, plus an additional Reserve Component (RC) cost, through deductions from their retired pay. This RC cost is often referred to as the “RCSBP add-on cost.”

Get informed

As you can see, there is a lot of information to consider when making this decision. There are limitations on changes that can be made after your election, so your decision at retirement (or NOE) may be difficult to change later.

We encourage members of the Army to take advantage of no-cost DOD financial counseling services by going to the Office of Financial Readiness website to find a Personal Financial Counselor (https://finred.usalearning.gov/pfcMap) or consult a Retirement Services Officer about your SBP or RCSBP decisions.