SBP Offset Elimination

Published Oct. 1, 2007
Retiree Activity Office

RAF MILDENHALL, England -- Section 644 of Public Law (PL) 108-375 provides a 3½-year period phase out of the SSO reduction applied to SBP annuities.

Beginning Oct. 1, 2005 and ending March 31, 2008, the two-tier method of computing the annuity for a spouse annuitant age 62 and older is eliminated by increasing the amount of the annuity four times during the elimination period, as follows:

Amount of Annuity
For months prior to October 2005 -- 35 percent
October 2005 through March 2006 -- 40 percent
April 2006 through March 2007 -- 45 percent
April 2007 through March 2008 -- 50 percent
April 2008 and after -- 55 percent