Health Issues

Forwarded by Ted Stroup:

Dear AFSC and AAFMAA Members:

Armed Forces Services Corporation (AFSC) provides Member Services to AFSC members and to "grandfathered" members of AAFMAA. This message is provided as a courtesy to inform you of recent legislative changes to the military's Survivor Benefit Plan (SBP). Specifically, the upcoming SBP Open Enrollment period begins on October 1, 2005 and runs through September 30, 2006.

If you are already participating in the SBP at the "Full Base Amount" or do not currently have an eligible beneficiary, then this message may not apply to you. Feel free to share it with others whom you believe could benefit from this information.

As mentioned in our earlier Newsgram, the FY2005 National Defense Authorization Act approved last year will phase out the current SBP age-62 benefit reduction by April 2008 - effectively providing lifetime SBP annuities of 55% of covered retired pay. The same legislation also authorized an "open season" to allow non-participating retirees or those who are participating at less than maximum coverage to enroll in SBP or increase their coverage to protect their spouses under the newly improved SBP plan. The one-year open-enrollment period will start Oct. 1, 2005. Retirees participating in the open season must pay all applicable back premiums, plus interest, either in a lump sum or in 24 equal installments.

Each service and the Defense Finance Centers will provide information to eligible retirees in the coming months. For AFSC and AAFMAA members only, we offer counseling and estimates of the open enrollment costs by calling 1-888-237-2872 or email us at info@afsc-usa.com. Please have your recent DFAS Retiree Account Statement handy when calling. (Do not reply to this email message with your inquiries. Instead, use the email address

info@afsc-usa.com)

Application forms can be downloaded on-line at: http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2656-9.pdf

Thank you for allowing AFSC to continue serving you and your family.

Sincerely,

Bill Saunders, CFP®

Director Client Services

Armed Forces Services Corporation

Local: 703-379-9311; Toll free: 1-888-237-2872 info@afsc-usa.com