A Survivor Benefit Plan (SBP) provides for payment of an annuity to the surviving beneficiary of the military retiree. There are three SBPs that may apply to retirees from the Michigan National Guard. You can designate or change beneficiaries using the applicable form.

State Military Retirement

The State SBP allows for selection of a beneficiary to receive the retiree's state retired pay at a reduced rate (if the surviving spouse) or the final retired pay benefit settlement after the retiree's death if a beneficiary other than the surviving spouse. Use the Retirement Beneficiary Nomination Form for this.

Federal Military Retirement

For all retirees from the National Guard (Army or Air), the Reserve Component SBP (RC-SBP) applies. The active duty SBP also applies in the case of retired Active Guard/Reserve (AGR) personnel. Retired AGR personnel must, therefore, make elections and beneficiary designations for both the regular federal SBP and the RC-SBP. Use the Survivor Benefit Plan Election (DD Form 2656-8)  (DD Form 2656-5 replaces DD Form 1883) for this.

The three options available under both federal SBPs are:

• Option A--Decline making an election for or against SBP coverage until age 60
• Option B--Survivor annuity payable beginning when the member would have been 60 years old (if death occurs before age 60) or the day after the date of death (if death occurs after age 60)
• Option C--Survivor annuity payable beginning the day after the date of death regardless of the retiree's age

Be aware that there are different costs for each option.