WASHINGTON - Congressman Adam H. Putnam (FL-12) applauded the House Armed Services Committee action to eliminate the Social Security offset under the Survivor Benefit Plan (SBP) by increasing the annuities paid to survivors of military retirees who are 62 or older.  The SBP provision was included in H.R. 4200, the Fiscal Year 2005 National Defense Authorization Act, which was passed by the committee late last evening.

“I am proud to have cosponsored SBP legislation during my tenure in Congress, and I am pleased that this inequity has finally been addressed,” said Putnam. “This legislation will ease the burden on widows of veterans.”

The issue concerns uniformed services survivor benefits, which, relative to premiums paid, do not match what was promised and provided to survivors of other federal retirees.  Restoring equity requires an increase in the SBP annuity.  SBP was enacted in 1972, and under the current plan, survivors are faced with a 20% drop in their annuity once they reach age 62.  The typical recipient experiences a reduction in their annuity from 55% of the retiree's pay to 35%.  Thousands of these survivors were never told about this annuity cut, and the unexpected loss of income is often financially devastating.

The SBP provision will eliminate the social security offset under SBP and increase the annuities paid to survivors of military retirees who are 62 or older from 35 percent of retired pay to the percentages indicated for the following periods:
 
(1) For months after September 2005 and before April 2006:  40 percent
(2) For months after March 2006 and before April 2007:  45 percent
(3) For months after March 2007 and before April 2008:  50 percent
(4) For months after March 2008: 55 percent

“H.R. 4200 is expected to be considered by the House shortly, and following passage I am hopeful that the Senate will support the SBP provisions so we can send this measure to the President's desk as soon as possible,” Putnam concluded.