Reserve Component Survivor Benefit Plan (RCSBP)

What is the Reserve Component Survivor Benefit Plan (RCSBP)?

Reserve Component Survivor Benefit Plan (RCSBP)

The Reserve Component Survivor Benefit Plan (RCSBP) enables people who served in Reserve Components to participate in the SBP program.  The Reserve Component Survivor Benefit Plan (RCSBP) is quite similar to the Survivor Benefit Plan (SBP) that covers non-reserve components of the armed services. However, there are a number of differences in eligibility, coverage and cost that reflect the unique nature of reserve service.

The RCSBP is available to members of the following Reserve Components:

• The Army National Guard of the United States

• The Army Reserve

• The Navy Reserve

• The Marine Corps Reserve

• The Air National Guard of the United States

• The Air Force Reserve

Probably the most important difference between RCSBP and the SBP is the “gray” period - the time between when the Guard/Reserve member retires and when they turn 60, which is when most Reserve or Guard service members begin to collect their military pension.  If the Guard/Reserve member dies during this gray period, the choice the member made at retirement will determine if and when their designated beneficiary will receive the survivor annuity.

This can be demonstrated with the following three options:

Option A

Option A allows the member to defer making an RCSBP selection until their military pension begins. This option is beneficial for those who retire without an eligible beneficiary. It also allows them to designate one later - a benefit that would come in handy if they marry after military retirement. The downside to Option A is that if they die before age 60 (when they make your selection), they lose the benefit permanently.

Option B

If they select Option B at military retirement and die before their military pension begins, their beneficiary will receive the survivor pension when the member would have turned 60. Unfortunately, there could be a multiyear delay until they receive it, which could impact their financial security. For example, if their family is dependent on the member’s income and they die at age 50, that would leave their family 10 years to provide for themselves until the military pension would begin.

Option C

In Option C, the survivor pension starts immediately upon the retiree’s death, regardless of their age. This is the option that ensures their beneficiary will receive a steady stream of income to offset lost income due to the retiree’s death. However, this option, naturally, costs a bit more than Options A and B since the retiree’s family would receive the benefit before the retiree’s military retirement would have started.

For more information on RCSBP see the following link: Defense Finance and Accounting Service > RetiredMilitary > provide > rcsbp (dfas.mil)