Are retirees with Reserve Component SBP (RC-SBP) coverage eligible?
Yes. However, credit for Paid-up SBP applies only to months that retired pay is reduced. Since no premiums are deducted until the member is eligible to receive retired pay (usually age 60), there is no credit toward months of paid-up coverage for months covered, but for which no premiums are paid. SBP premium reductions begin upon commencement of retired pay and only these months of premium reductions are applied to the 360 month requirement.
