Update on SBP Equitability

The Senate’s version of the fiscal 2007 defense authorization bill would accelerate the paid-up premium threshold for military retirees at age 70 to Oct. 1, 2006, from Oct. 1, 2008. It also would eliminate the reduction of Survivors Benefit Plan payments incurred by military spouses who receive Dependents Indemnity Compensation. The House version makes no reference to these issues. Additionally, the two bodies have not produced a joint budget resolution. Consequently the Senate plan includes offsets for the SBP fixes while the House plan does not. Resolution of the SBP issues will depend upon a joint House-Senate conference this fall. The key players for the issue probably will be the chairmen and ranking members of the House and Senate Armed Forces Committees, Sen. John Warner, R, Va.; Sen. Carl Levin, D-Miss.; Rep. Duncan Hunter, R-Calif.; and Rep. Ike Skelton, D-Mo.