Active Duty/Line of Duty Survivors Spotlight April 2024: 

What Does SBP Spouse and Child Coverage Mean?

 

The DoD Survivor Benefit Plan (SBP) provides an ongoing monthly annuity payment to military spouses or dependent children when a military member dies while on active duty, on inactive duty in the line of duty, or after retirement (if the military retiree chooses to purchase coverage).

When a member passes away on active duty or in the line of duty, the Survivor Benefit Plan (SBP) coverage is “spouse and child,” if there is a surviving spouse and a child or children. There is an exception if there is a court order for the SBP to go to a former spouse.

What does SBP spouse and child coverage mean?

Spouse and child coverage means the SBP monthly annuity payments go first to the surviving spouse if the spouse is eligible. There is only one SBP annuity and it is paid monthly either to the spouse or, if the spouse becomes not eligible, the annuity payments will go to the child or children. If the spouse is not eligible and there is more than one eligible child, the monthly annuity payment is divided equally among the eligible children.

For example, let’s say the SBP monthly annuity is $1500:
  • If the spouse is eligible, the spouse would receive $1500 monthly.
  • If the spouse is not eligible, and there is one eligible child, the child would receive $1500 monthly.
  • If the spouse is not eligible, and there are three eligible children, each child would receive $500 monthly.
When is a surviving spouse eligible or not eligible for SBP?

Spouses remain eligible to receive SBP monthly payments for life unless:
  • The spouse marries prior to age 55.
  • The spouse passes away.
If the spouse marries prior to age 55, the eligible child or children can receive the SBP monthly payments (the spouse must notify DFAS). However, if that marriage ends, the payments would revert to the spouse (the spouse must notify DFAS).

When is a child eligible or not eligible for SBP?

Children are eligible for SBP monthly payments until they turn 18, or if the child is in high school or college full-time, until age 22. There are special rules for child who become incapacitated prior to age 18 (or age 22 if the incapacitation happens while the child is a full-time student between age 18 and age 22)..

Please note: we refer to the children of a service member as “child” annuitants even when they are over 18 years old because that is their relationship to the member.

What happens if there are multiple children, and one child becomes ineligible?

If more than one child is receiving SBP monthly annuity payments, and we receive documentation that one of the children is no longer eligible, we redivide the SBP annuity in equal shares among the remaining eligible children. This is called “reapportionment.”

However, we must receive documentation that the child is no longer eligible before we can reapportion the annuity.

For example, let’s say there are three eligible children, and each is receiving a $500 share of the $1500 monthly annuity. One child annuitant, who is over 18 and a full-time student, decides to no longer attend college. We don’t receive a school certification from that child.

If we don’t receive documentation from that child, that child’s share of the annuity payment is suspended until we receive documentation. We cannot reapportion the annuity until we receive that documentation.

If we do receive documentation from the child annuitant that states the child is not attending school full-time, we can reapportion the SBP annuity, and the remaining two eligible children would each receive $750 monthly.

Does other income affect SBP monthly payments?

Other income has no effect on the monthly SBP payments.

Prior to January 1, 2023, if a surviving spouse was receiving Dependency and Indemnity Compensation (DIC) payment from the Department of Veterans Affairs (VA), the law required a spouse’s SBP payments to be offset (reduced) by the amount of the spouse’s DIC payment from the VA. This was called the SBP-DIC Offset. However, the SBP-DIC Offset was eliminated as of January 1, 2023.

DIC for children was not affected.

Does everyone receive the same amount of SBP?

The SBP annuity is based on the individual member’s service and pay grade. It does not vary based on a child’s age or the number of children.

Do a child annuitant’s college grades affect SBP monthly payments?

The child’s grades are not relevant. The criteria for college-age child annuitants are they remain a full-time student and provide the proper school certification documentation timely. 

Can a surviving spouse or child move abroad and receive SBP monthly payments?

SBP annuitants can receive monthly payments while living outside of the United States if they continue to provide the proper eligibility verifications timely.

What about the SBP Optional Annuity for Dependent Children?

When a service member died on active duty or inactive duty in the line of duty after October 7, 2001 and before January 1, 2023, the surviving spouse could request to have the SBP annuity paid directly to an eligible dependent child or children instead of to the spouse.
This was called the “Optional Annuity for Dependent Children” but was often referred to as the “Optional Child Annuity.”

The option was available because until January 1, 2023, there was a requirement for a spouse’s SBP payments to be offset by the amount of the spouse’s DIC payment from the VA (the SBP-DIC Offset).

Payments to the surviving child were considered a more favorable option because SBP paid to a child was not required to be offset by the amount of the DIC payment.

When the National Defense Authorization Act for Fiscal Year 2020 eliminated the SBP-DIC Offset, it also repealed the authority for the Optional Annuity for Dependent Children as of January 1, 2023. This means for the surviving spouse of an Active Duty/Line of Duty member who previously requested to have the Survivor Benefit Plan (SBP) annuity paid directly to an eligible dependent child or children, the annuity was reverted to the surviving spouse as of January 1, 2023 (if she or he submits documentation and is eligible).

It also means for the surviving child or children who were receiving the SBP monthly payment prior to January 1, 2023 because of the Optional Annuity for Dependent Children, the SBP payments were suspended until we received or receive documentation from the surviving spouse.

There are only three situations where those eligible children can continue to receive the SBP monthly payment after the elimination of the Optional Child Annuity:
      1-If DFAS receives documentation the service member was not married at the time of their death.
      2-If DFAS receives documentation the surviving spouse is deceased.
      3-If DFAS receives documentation the surviving spouse remarried prior to age 55.

If DFAS has not received the documentation in the above situations, the annuity is suspended until documentation is received.

Please note this ONLY affects child annuitants where the service member died on active or inactive duty in the line of duty after October 7, 2001 and before January 1, 2023, and the spouse requested the Optional Annuity for Dependent Children. It does not affect any other child annuitants, including those of a member who retired prior to passing away.

Please check our special focus webpage for details regarding the changes: https://www.dfas.mil/sbp2023childoptrev


Surviving Spouses
 
If you are the surviving spouse of an Active Duty/Line of Duty member who requested to have the SBP annuity paid directly to an eligible dependent child or children and you have NOT submitted a Spouse Eligibility Packet, we need your information as soon as possible. Please download, fill out and submit the eligibility packet from our special focus webpage as soon as possible: https://www.dfas.mil/sbp2023childoptrev

Additional information on SBP eligibility

Please note, this is a summary of SBP coverage and eligibility. Please see the following webpages for additional information:
 
 
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Save the Date: DoD’s First Survivor Symposium


As part of the Defense Department’s commitment to offering steadfast support to survivors of active-duty deaths, the DOD’s first Survivor Symposium offers a platform to explore crucial questions. During this focused 3-hour conference, experts will address the following topics:
  • How survivor benefits change when you remarry
  • How guardians can apply for the death gratuity on behalf of a surviving child
  • How a beneficiary survivor annuitant keeps their account up to date with the Defense Finance Accounting Service and the Department of Veterans Affairs
Those interested in attending the symposium, scheduled for June 21, 2024 from noon to 3 p.m. ET, can register for the event by using this online registration form.

 


 

Page updated Apr 24 2024