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Seeking Permission: The Effect of Changing The Opt Out Procedure for the Military Survivor Benefit Plan

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  • Amanda C. Stype

Abstract

This paper examines whether a policy change that required retiring married service members to obtain spousal permission to opt out of survivor benefits, similar to a provision in the Retirement Equity Act of 1984, affected the decision to enroll in the Survivor Benefit Plan. Using administrative data on military retirees, I find that those retiring after the enactment of the policy are approximately 7 percentage points more likely to choose pension survivor benefits, with the increase in enrollment larger among enlisted personnel. This study contributes to the growing literature regarding how arguably minor policy changes substantially affect pension enrollment behavior.

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  • Amanda C. Stype, 2017. "Seeking Permission: The Effect of Changing The Opt Out Procedure for the Military Survivor Benefit Plan," National Tax Journal, National Tax Association;National Tax Journal, vol. 70(1), pages 133-154, March.
    • Handle: RePEc:ntj:journl:v:70:y:2017:i:1:p:133-154
    DOI: 10.17310/ntj.2017.1.05
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