Paying for SBP
There are four methods of paying for your SBP coverage if you elect it:
- Deductions from your retired pay
- Deductions from your CRSC Pay
- Deductions from your VA pay
- Direct remittance
Deductions from your Retired Pay (Normal Payment Method)
The normal method of paying for SBP coverage is by an automatic deduction from your retirement pay. The vast majority of retired members with SBP coverage pay through this means. It is implemented automatically if you elect SBP coverage at the time you retire.
Deductions from your CRSC Pay
Beginning with the Survivor Benefit Plan (SBP) monthly premiums due in April of 2018, DFAS started deducting SBP recurring monthly premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the monthly premiums. This new deduction was due to a change in the law which requires DFAS to deduct SBP recurring monthly premiums from CRSC.
The change in the law only affects SBP recurring monthly premiums. It does not affect past due SBP premium amounts. DFAS is not deducting past due premiums from CRSC pay. Retirees who have past due SBP premiums are still responsible for paying the past due SBP premium amount and any interest accrued through direct remittance to DFAS.
This change benefits retirees and their survivors by preventing a debt when a retiree forgets to pay the SBP premiums directly. When SBP premiums are not paid during a retiree’s lifetime, it creates a debt which must be repaid from the SBP annuity a survivor receives.
Special note: the SBP recurring monthly premium deduction will show under the garnishments category on your CRSC statement. Beginning with the April 2018 CRSC entitlement (paid on May 1, 2018), there is a note (“Garnishment amount of $XX is for SBP Deduction") on your CRSC monthly statement with the amount of your SBP recurring monthly premium deduction that appears in the garnishments category on your statement. This note does NOT mean that past due SBP premiums are deducted from CRSC. It is only to identify the recurring monthly premium deduction.
Deductions from your VA Pay
If you were ruled disabled by the Department of Veterans Affairs (VA) and your VA disability compensation exceeds your retired pay, you don't receive retired pay from DFAS. If you don’t receive enough retired pay or CRSC pay, we cannot automatically deduct SBP premiums from your monthly pay. (See Disability Entitlements for information about the VA offset). In this case, the best way to pay for your SBP coverage is to have your monthly premium payments deducted from your VA disability compensation and forwarded to DFAS Retired and Annuitant Pay by the VA. Thousands of retirees take advantage of this process.
If you are interested in having your SBP monthly premiums deducted from your VA disability pay, complete a DD Form 2891 Interim - Authorization for Retired Military Member Survivor Benefit Plan (SBP) Monthly Premium Deduction by Department of Veterans Affairs (VA). You DO NOT need VA to fill out the form. Get the form from our Forms Library webpage.
Send the completed form to DFAS via our askDFAS online upload tool (find out more on our Quick Tools webpage) or send via postal mail to:
Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis, IN 46249-1200
Direct Remittance
In August 2025, DFAS changed the billing process for retirees who pay their SBP premiums directly (“direct remitters”). This change was implemented to improve the service on your account. DFAS is now mailing direct remitters 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 (CRS).
Prior to August 2025, direct remitters received their SBP recurring monthly premium bills from CRS. The previous CRS bill only showed the current monthly premium amount due, even if you had a balance of past due SBP premiums. Any payment that exceeded your current monthly premium was applied to any past due premiums.
The previous CRS bill format informed direct remitters that unpaid balances were subject to interest, inviting recipients to contact the DFAS Customer Care Center to learn more about any past due SBP premium balance that may have been subject to interest accrual.
The new format of the DFAS SBP premium bill provides additional details about your account balance. For example, your DFAS billing statement includes a new line item called, “Remaining Balance Due from Prior Month.” This amount 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 your 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 owed past due premiums and you recently made a payment to satisfy your outstanding balance after receiving your new DFAS billing statement.
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.
SBP Direct Remittance Payment Options
It’s important that DFAS has your current mailing address, so you receive the billing statement with the new payment instructions. If your address has changed, DFAS has several convenient options for updating the mailing address on your retired pay account.
1. Use our askDFAS online tool to update your address: find out more on our Quick Tools webpage.
2. Send us a completed and signed DD Form 2866 to request we update your mailing address: Get the form from our Forms Library webpage.
A-Upload your signed form as a PDF using our askDFAS online upload tool. Find out more at https://www.dfas.mil/retonlinetools.
B-Or mail your form to:
Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis, IN 46249-1200
3. Call our Customer Care Center during normal business hours to update your address: 800-321-1080.
Deductions from Your VA Disability Pay: See information in the “Deductions from your VA Pay” section of this webpage to learn how you can simplify your SBP monthly premium payments by having them deducted from your VA disability pay, if applicable.
Pay.Gov eBilling: We strongly encourage you to make your payment online through the Pay.gov website. Pay.gov is available 24 hours a day/7 days a week, and provides a straightforward platform to use your checking or savings account or debit card to make your SBP premium payment through the DOD Military Retired Pay SBP Premium online form. Complete the online form by entering the information that appears on your billing statement. Enter your name (first and last), DoD ID, payment amount, email address, and phone number. Please allow four business days for DFAS processing.
Online Bill Pay: Use your financial institution’s Online Bill Pay by searching for biller DFAS R&A Pay. If DFAS R&A Pay does not appear as an option, enter it manually. When prompted for the account number, enter your DoD ID number printed on your bill. In lieu of your DoD ID number, you may also enter your Social Security number (SSN). Without one of these identifying numbers, we cannot match your payment to your account, which may result in processing delays.
Payment by Check or Money Order: Make a payment by mailing your check or money order along with the payment coupon attached to the bill you received in the mail. To ensure proper processing of your payment, write your full name and the DoD ID number or Social Security Number on the front of your check or money order and send them to:
Defense Finance and Accounting Service, DFAS-CL
SBP Remittances
P.O. Box 979013
St. Louis, MO 63197-9000
Payments by check or money order must be mailed in time to be received by the payment due date. Do not send cash.
Payments sent to any location other than the PO Box listed above, including Retired and Annuitant Pay offices at DFAS Cleveland, may be delayed or not received. Any delinquent amounts carried over into a new billing month will accrue interest.
Page updated Nov. 14 2025