No.

Mr. Steven V. Berson Director Inheritance and Gift Tax Division 318 State Office Building Denver, Colorado 80203

Dear Mr. Berson:

You have requested my opinion on the question of whether certain benefits paid pursuant to military retirement plans, the Survivor Benefit Plan (SBP) and Retired Serviceman's Family Protection Plan (RSFPP), are subject to inheritance tax.

It is my understanding that two years prior to retirement eligibility, a serviceman must elect whether to: (1) accept full retirement pay; or (2) accept a reduced amount and designate a beneficiary from among a limited group,…