My son signed up and got his, so I hope the fee is waived! Lots of benefits but I would hate for him to pay the annual fee on that. He assured me it was waived. I learned a long time ago not to argue with him. If he is wrong, lesson learned!
According to son (yes, he reads this forum, he just won't create an account) the first year you pay the fee up front and then get reimbursed when you send them the military information. In subsequent years the fee is just waived since they have the information on file. It will appear as a fee and a credit on your first bill each year.