Social Security Offset

Effective October 1, 2005, DFAS will begin implementing the congressionally-mandated Social Security Offset Legislation.  The phase-out means thousands of survivors will get more money from their Survivor Benefit Plan (SBP) annuities. 

Over the next three years, the minimum percent used to calculate a SBP annuity will incrementally increase.  The first incremental change will occur on October 1, 2005, when any annuitant currently receiving SBP at less than 40 percent of the base annuity will have his or her annuity increased to 40 percent.  This re-computation will be reflected in the annuitant’s October account statement and November 1, 2005 payment.  The benefit will remain unchanged for annuitants currently receiving payments greater than 40 percent of the annuity base. 

DFAS will continue to implement the phase-out of the Social Security Offset over the next three years effective as follows:

·         April 1, 2006, the minimum annuity percentage will increase to 45 percent.

·         April 1, 2007, the minimum annuity percentage will increase to 50 percent.

·         April 1, 2008, the minimum annuity percentage will increase to 55 percent.

Beginning April 1, 2008, there will no longer be a Social Security Offset and annuitants will receive the maximum 55 percent of the annuity base.