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would have a one-year open season to decide in which tier to enroll. Under the current system, military re-

tirees contribute up to 6.5 percent of their retired pay to ensure their survivors will receive up to 55 percent of the amount of their retired pay. Premiums continue until the sponsor makes 360 payments and reaches age 70. Automatic coverage is extended to survivors of servicemembers who die on duty. The new tier increases the premium to

11.25 percent — a 73-percent increase. Sur- vivors of retirees choosing the higher tier option will not be subjected to the SBP/ Dependency and Indemnity Compensa- tion (DIC) offset. The change could have a significant im- pact on the amount of money servicemem- bers contribute to the program. “The problem with this proposal is that it asks the folks who are most likely to be affected by the offset, those who have sig- nificant service-connected health issues, to pay even more in premiums to take care of their loved ones,” says Col. Phil Odom, USAF (Ret), a MOAA deputy director of Government Relations. “These individu- als are likely to have serious issues finding gainful employment after military service. We shouldn’t be asking them to pay even more money for SBP.” MOAA also is concerned the new pre-

mium likely will be seen as too expensive for servicemembers, and they might decline SBP coverage. DoD and Congress have worked hard at improving SBP programs over the past 25 years. Participation cur- rently is at record levels, and no current pri- vate insurance can offer equal protection. Unfortunately, the proposed changes

fail to provide relief for the 60,000 mili- tary survivors currently affected by the SBP/DIC offset. These survivors will continue to be penalized by an antiquated Civil War-era law.

Lifetime SBP Premiums

an E-7 retiring will pay almost $60,000 more in higher premiums

$134,450 Under the proposed SBP system,

$77,682

Current System 6.5% Contribution

11.25% Contribution New System

an O-5 retiring will pay more than $100,000 more in higher premiums

$255,152

Under the proposed SBP system,

$147,421

Current System 6.5% Contribution

11.25% Contribution New System Source: Office of Secretary of Defense *on the web: Inim voluptat elit utpating ex etuerci eu feum eum aliquating ese feugait JULY 2015 MILITARY OFFICER 35