SBP Increase Lowers Gross Pay

On April 1, annuitants in the Survivor Benefit Program (SBP) who were age 62 or older and who had been receiving less than 45 percent of the military members’ base amount of retired pay saw their annuities rise to 45 percent. Some, however, were concerned to find their pay statement showing a reduction in gross pay. They should compare the net pay listed against previous net pay in order to see that they have lost no net pay. SBP annuities will increase to 50 percent of the base amount in April 2007 and 55 percent in April 2008.