[Congressional Record Volume 147, Number 8 (Tuesday, January 23, 2001)]
[Senate]
[Page S457]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THURMOND:
  S. 145. A bill to amend title 10, United States Code, to increase to 
parity with other surviving spouses the basic annuity that is provided 
under the uniformed services Survivor Benefit Plan for surviving 
spouses who are at least 62 years of age; and for other purposes; to 
the Committee on Veterans' Affairs.
  Mr. THURMOND. Mr. President, today, I am again introducing 
legislation that would correct the long-standing injustice to the 
widows or widowers of our military retirees. The proposed legislation 
would immediately increase for surviving spouses over the age 62 the 
minimum Survivor Benefit Plan (SBP) annuity from 35 percent to 40 
percent of the SBP covered retired pay. The bill would provide a 
further increase to 45 percent of covered retired pay as of October 1, 
2004 and to 55 percent as of September 2011.
  As I outlined in my many statements in support of this important 
legislation the Survivor Benefit Plan advertises, that if the service 
member elects to joint the Plan, his survivor will receive 55 percent 
of the member's retirement pay. Unfortunately, that is not so. The 
reason that they do not receive the 55 percent of retired pay is that 
current law mandates that at age 62 this amount be reduced either by 
the amount of the Survivors Social Security benefit or to 35 percent of 
the SBP. This law is especially irksome to those retirees who joined 
the plan when it was first offered in 1972. These service members were 
never informed of the age-62 reduction until they had made an 
irrevocable decision to participate. Many retirees and their spouses, 
as our constituent mail attests, believed their premium payments would 
guarantee 55 percent of retired pay for the life of the survivor. It is 
not hard to imagine the shock and financial disadvantage these men and 
women who so loyally served the Nation for many years experience when 
they learn of the annuity reduction.
  Uniformed services retirees pay too much for the available SBP 
benefit both, compared to what we promised and what we offer other 
federal retirees. When the Survivor Benefit Plan was enacted in 1972, 
the Congress intended that the government would pay 40 percent of the 
cost to parallel the government subsidy of the Federal civilian 
survivor benefit plan. That was short-lived. Over time, the 
government's cost sharing has declined to about 26 percent. In other 
words, the retiree's premiums now cover 74 percent of expected long-
term program costs versus the intended 60 percent. Contrast this with 
the federal civilian SBP, which has a 42 percent subsidy for those 
personnel under the Federal Employees Retirement System and a 50 
percent subsidy for those under the Civil Service Retirement System. 
Further, Federal civilian survivors receive 50 percent of retired pay 
with no offset at age 62. Although Federal civilian premiums are 10 
percent retired pay compared to 6.5 percent for military retirees, the 
difference in the percent of contribution is offset by the fact that 
our service personnel retire at a much younger age than the civil 
servant and, therefore pay premiums much longer than the federal 
civilian retiree.
  Mr. President, although the House conferees thwarted my previous 
efforts to enact this legislation into law, I am ever optimistic that 
this year we will prevail. I base my optimism on the fact that the 
National Defense Authorization Act for Fiscal Year 2001 included a 
Sense of the Congress on increasing Survivor Benefit Plan annuities for 
surviving spouses age 62 or older. The sense of the Congress reflects 
the concern addressed by the legislation I am introducing again today. 
I urge my colleagues to support this bill and now ask that the bill be 
sent to the desk.
                                 ______