A recent study by the Rand Corporation entitled “An Assessment of the Military Survivor Benefit Plan,” responds to Congress’s request for evaluation of the program’s efficacy and the potential to commercialize the Survivor Benefit Plan (SBP).
The study compares the SBP to the Civil Service Retirement System, Federal Employee Retirement System, Los Angeles Fire and Police Pension Fund, and Chicago Public Schools.
Rand concluded that SBP, the premiums for which are heavily subsidized by the federal government, was comparable to similar benefit plans, and is satisfactory in its current state.
While the study concludes that SBP is sound, there might be benefits to outsourcing the program, such as accessing the expertise of private insurance providers. Possible negatives include the challenge of ensuring providers receive a fair return on investment, and protecting beneficiaries should a provider face bankruptcy. Presently, the study concludes that there are too many unknowns before a decision of whether or not to outsource can be made.
SBP is one of several benefits available to survivors of those who have served. At Navy Mutual, our mission goes beyond providing affordable, quality life insurance and superb service to our Members; we also help guide beneficiaries through the often confusing and overwhelming aspects of survivor benefits.
For more information on Survivor Benefit Plan details, as well as other military benefits, please click here, download the Navy Mutual Survivor Benefits app on Apple iTunes, Google Play, or contact us at (800) 628-6011.
To read a summary of the report and/or the entire study, click here.