The SBP premiums and benefits depend on what is referred to as the "base amount". The base amount is the dollar amount of coverage that is elected. The base amount can be any amount ranging from $300 to the full amount of the member's retired pay (or in the case of a member who retires under REDUX, the retired pay the member would have received if under the high-three retirement system). Full coverage means that the full retired pay is the base amount. The base amount is tied to retired pay. When retired pay is adjusted due to a Cost-of-Living Adjustment, or COLA, the base amount is adjusted, and as a result, the premium and amount of the annuity increase.