[Congressional Record Volume 149, Number 31 (Wednesday, February 26, 2003)]
[Senate]
[Page S2842]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 451. A bill to amend title 10, United States Code, to increase the 
minimum Survivor Benefit Plan basic annuity for surviving spouses age 
62 and older, to provide for a one-year open season under that plan, 
and for other purposes; to the Committee on Armed Services.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation that 
will correct an injustice being visited upon the survivors of our 
servicemembers killed in action and military retirees under the current 
military Survivor's Benefit Plan, or SBP.
  As the program currently operates, the widows or widowers of those 
who have ``borne the battle'' receive an annuity equal to 55 percent of 
the servicemember's retirement pay. That is, until they turn 62. At 
that time, under current law, a surviving spouse's SBP benefits must be 
reduced either by a Social Security offset, or a reduction in payments 
to 35 percent of retired pay--a drop of almost 40 percent--simply 
because they have reached the age of 62.
  For example, let's take the widow of a Navy chief petty officer or E-
7 who had served 20 years before retiring. Before she reaches 62, this 
widow will receive $771 per month, but on her 62nd birthday, that 
benefit drops to only $491 per month--a loss of $3,360 per year.
  For a retired O-5, say a Marine Corps lieutenant colonel, the widow's 
benefit would drop by $6,960 a year as soon as she turns 62. Some 
birthday gift.
  But the inequities don't stop there. For example, the military 
Survivor Benefit Plan does not measure up to the Federal Survivor 
Benefit Plan in terms of benefits paid to survivors. Survivors of 
Federal civilian retirees under the original Civil Service Retirement 
System receive 55 percent of their spouse's retired pay for life--with 
no drop in benefits at age 62. Under the newer Federal Employee 
Retirement System, survivors still receive 50 percent of retired pay 
for life, again with no drop at age 62.
  Yet another reason that we should adopt this legislation is that 
members of the military pay more than their share of Survivor Benefit 
Plan program costs, as compared to their Federal civilian counterparts.
  Originally, the Congress intended the government to subsidize 40 
percent of the cost of military Survivor Benefit Plan premiums--similar 
to the government's contribution to the Federal civilian plan. Over the 
last several decades, however, there has been a significant decline in 
the government's cost share, and Department of Defense actuaries advise 
that the government subsidy is now down to less than 17 percent. This 
means that military retirees are now paying more than 83 percent of 
program costs from their retired pay versus the intended 60 percent.
  Contrast this to the Federal civilian SBP, which has a 52 percent 
cost share for those under the Civil Service Retirement System and a 67 
percent cost share for those employees, including many of our own 
staff, under the Federal Employees Retirement System. While it is true 
that there are differences between the civilian and military premium 
costs, with Federal civilians paying more, it is also true that 
military retirees generally retire earlier than their Federal civilian 
counterparts, and as a result, pay premiums for many more years.
  This legislation is intended to raise, over a five year period, the 
percentage of the retirement annuity received by the survivor from 35 
percent to 55 percent after age 62. The first year, 2004, will be an 
open season to allow new enrollees to sign up for the program in order 
to reduce retired pay outlays by increasing deductions of SBP premiums 
from retired pay, thus offsetting part of the cost of the survivor 
benefit increase.
  Beginning on Oct. 1, 2004, the second year, the age-62 SBP annuity 
would increase to 40 percent of retired pay, followed by an additional 
increase to 45 percent in 2005, 50 percent in 2006 and 55 percent in 
2007 after which all survivors would receive the 55 percent of the 
annuity.
  Once again, I ask my colleagues to support our Nation's military 
widows and widowers. In the National Defense Authorization Act of 2001, 
we included a Sense of the Congress on increasing the military SBP 
annuity. This year, we have a chance to carry out this intent by 
enacting this important measure, and I ask my colleagues to join with 
me in support of this legislation.
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