On December 15, 2014, Congress passed the Disabled Military Child Protection Act. This legislation grants military members the authority to name a "payback" special needs trust as a beneficiary of Survivor Benefit Plans (SBP).
Upon death, the service member's right to receive retirement pay terminates. The Survivor Benefit Plan (SBP) is an annuity program that allows retired or retirement-eligible active duty service members to provide continued income to specified beneficiaries at the time of the participant's death.
Military retirement benefits are not handled in the same manner as private pension plans, which are governed by ERISA (Employee Retirement Income Security Act). Dividing military benefits as part of a divorce case is not easy.
Everyone knows that a divorce typically involves dividing your marital assets. In a military divorce those assets frequently include the service member's military benefits, such as the right to military retirement pay and healthcare for the children.