SBP: Did You Know?

We recognize the laws and regulations governing military annuity pay are complex and can be difficult to understand. In each issue of the DFAS Survivor SBP Newsletter, we share a few helpful tips for survivors.

•     Did You Know: It is very important to promptly report a retiree’s death to DFAS. A military retiree’s entitlement to retired pay ends on the date of death of the member.

You asked and we delivered! We now have a “What to Do When a Military Retiree Dies - New Helpful Checklist” available on our website. Check it out on the Quick Tools webpage: https://www.dfas.mil/raquicktools

•     Did You Know: DFAS will stop monthly payments upon notification of death of a retiree to prevent overpayment. If a payment was made after the date of the retiree’s death, DFAS is required to notify the bank to reclaim the entire payment. If the retiree had a joint bank account, it is especially important to be aware that the entire payment will be reclaimed.

•     Did You Know: Regarding the Promise to Address Comprehensive Toxics (PACT) Act/Retroactive Dependency and Indemnity Compensation (DIC) - If you are awarded retroactive DIC by the VA because of the PACT Act or for any other reason, and the DIC is for any periods prior to the January 1, 2023 full elimination of the SBP-DIC Offset, the offset that was in effect at the time must be applied. That means if it's prior to January 1, 2021, the reduction of SBP is 100% of the amount of DIC. For any DIC awarded for the period of January 1, 2021, through December 31, 2021, the reduction of SBP is two-thirds of the amount of DIC. For any DIC awarded for the period of January 1, 2022, through December 31, 2022, the reduction of SBP is one-third of the amount of DIC.

•     Did You Know: You can live outside of the USA and still be eligible for your annuity. International Direct Deposit (IDD) is available to annuitants living in eligible locations overseas. To enroll in IDD, fill out the International Direct Deposit Enrollment (SF 1199-I) form and mail it to DFAS. If you currently have your pay sent via direct deposit to a stateside financial institution, do not close that account until you have verified receipt at your international bank. If you live in a country that does not qualify for International Direct Deposit, you can use a stateside bank. You can also receive a paper check through overseas mail.

Did You Know? DFAS Webpages for Survivors

•     DFAS Report a Retiree’s Death: https://www.dfas.mil/retdeath

•     Manage your SBP annuity: https://www.dfas.mil/managesbp

•     Understanding SBP, DIC, SSIA: https://www.dfas.mil/sbpdicssia

•     SBP-DIC Offset phased elimination: https://www.dfas.mil/sbpdicnews

•     International Direct Deposit: https://www.dfas.mil/RetiredMilitary/manage/idd/

•     Start an SBP annuity: https://www.dfas.mil/startsbp

•     Quick Tools: https://www.dfas.mil/raquicktools

•     askDFAS: https://www.dfas.mil/askDFAS (click on Retirees & Annuitants)

•     DFAS Facebook: https://www.facebook.com/DFASOfficial

•     myPay: https://mypay.dfas.mil

Page updated Apr 24 2024