SBP Premiums and VA Deductions

Retirees who have most, or all, of their retired pay waived due to receipt of disability payments from the Department of Veterans Affairs (VA) do not have a direct channel to pay the premiums for their Survivor Benefit Plan (SBP) coverage. Generally, SBP premiums are automatically deducted from a member’s retired pay, but in this situation, there isn’t enough retired pay to cover the premium amount, and the member is responsible for paying the SBP premiums on their own. In this case, the most convenient way to pay for SBP premiums is to have the money deducted from their VA disability payments and sent directly to DFAS. If you are in this situation, complete a DD Form 2891 Interim, which can be found on our Forms Library webpage at https://www.dfas.mil/raforms.  

The DD Form 2891 Interim is a simple form to complete. Fill in your information in Section I. You will need your current monthly SBP premium amount. You can find this amount by looking at your most recent Retiree Account Statement (RAS) on myPay or on your SBP premium bill.

You should verify your net retired pay is less than the SBP premium amount.  Once you have the amount of your SBP premium, and confirm it exceeds your net pay, enter it into the block in Section II. There is no need for the VA to review or complete any portion of the form.  

The most convenient way to submit your documents is uploading them to DFAS online 24/7 via the askDFAS online upload tools. More information about uploading your documents on askDFAS can be found at https://www.dfas.mil/askdfas/.

You may also mail documents to the address below or fax to (800) 469-6559. 

Defense Finance and Accounting Service 
U.S. Military Retired Pay 
8899 E 56th Street 
Indianapolis, IN 46249-1200 
 
Having your SBP premiums deducted by the VA and sent directly to DFAS is the easiest way to ensure your loved ones are taken care of and your SBP premiums are paid on time. For any questions about SBP premiums or anything related to your retired pay, please visit our website at https://www.dfas.mil/payforsbp.