Direct Remittance Roundup: Billing Changes and Payment Options

*Please Note: this article is for retirees who pay monthly SBP premiums directly to DFAS. You may disregard this article if you do not make separate payments for SBP each month.

If you’ve been following recent editions of the DFAS Retiree Newsletter, you’ve likely seen several articles about important changes for retirees who pay their Survivor Benefit Plan (SBP) premiums directly to DFAS. This process of paying for SBP is called direct remittance.
In August 2025, DFAS changed the billing process to improve service to direct remitters. DFAS is now mailing monthly bills for SBP premiums. The new DFAS bill provides more detail than the previous bills sent by the U.S. Department of Treasury Centralized Receivables Service. Learn more about the new billing format by reviewing the helpful explainer printed on the reverse side of your October billing statement.

The Importance of Paying SBP Premium Balances
The new format of the DFAS SBP premium bill provides additional details about your account balance. For example, your DFAS billing statement includes a line item called, “Remaining Balance Due from Prior Month.” This block shows the total amount of any past due SBP premiums you may owe. If you do not owe any past due premiums this amount will appear as $.00. Any past due unpaid premiums are subject to interest charges (currently 4.0% annually). Interest charges are also itemized on the new billing statement.

Retirees who continue to carry a “Remaining Balance Due from Prior Month” will soon see additional reminders from DFAS about the importance of promptly paying any outstanding balance for past due SBP premiums. DFAS wants to work with you to bring your account up to date as soon as possible, and we encourage you to pay your past due SBP premiums in full promptly. If you’ve made a recent payment to satisfy your outstanding balance after receiving your new DFAS billing statement - thank you.

You will continue to receive a monthly bill for each month’s SBP premiums until you reach “paid-up” status (attained once a retiree has made 360 months of SBP premium payments and has reached the age of 70). If at any time your net retired pay becomes sufficient to cover your monthly SBP premium, your premium will revert to being deducted from your retired pay.

Please note: Upon your death, any unpaid premium balance will be deducted from your Arrears of Pay (AOP) and the SBP annuity payable to your SBP beneficiary until paid in full. No annuity will be paid to your SBP beneficiary until all outstanding premiums, including interest, have been paid. Prompt payment of any past due premium amounts is in the best interest of both you and your beneficiaries.

Convenient Payment Options for Direct Remittance
There are other convenient options for paying your monthly SBP premiums. We recommend using the Pay.gov website to make your payments directly. Pay.gov is convenient, simple, and secure. You will need your DOW ID number (DOW ID#) to make your payment. You can find it on the lower-left portion of your monthly billing statement. Please visit https://www.pay.gov/public/form/start/1463931154 to get started.

If you receive VA disability compensation, you may request to have future monthly SBP premium payments deducted from your VA pay. Please complete “DD Form 2891 Interim” and submit it back to DFAS. You can learn more and locate the form on our Forms Library at https://www.dfas.mil/raforms.

Important Note for Payments from Online Bill Pay Services
If you use your bank’s online bill pay service to remit your monthly SBP premium payment, the process is entirely digital from your perspective. You might be surprised to know, however, that your bank actually makes the payment on your behalf by mailing a paper check to DFAS.

Since the payment arrives by paper check, it is very important that you enter your DOW ID number (DOW ID#) in the “Account Number” field on the online bill pay form. This will help ensure your payments get credited to your SBP premium balance promptly and accurately. Please visit the webpage listed below for additional tips to ensure successful payment.

Learn More: Visit the “Pay for SBP” webpage
If you are a direct remitter and want to learn more about direct remittance and all your payment options, please visit our “Pay for SBP” webpage: https://www.dfas.mil/payforsbp.