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Base Amount

SBP Premiums and benefits depend on what we call the "base amount" that you elect as the basis of your coverage. Your base amount can be your full monthly retired pay or just a portion, down to as little as $300. When this website says "retired pay" you can substitute "base amount" unless it says otherwise. Full coverage means your full retired pay is your base amount. Your base amount is tied to your retired pay. When retired pay gets a Cost-of-Living Adjustment, or COLA, so does the base amount, and as a result, so do premiums and benefits.

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Office of the Under Secretary of Defense for Personnel and Readiness