Survivor Benefit Plan (SBP) for Military Retirees
A way to leave your spouse a monthly check for life from your military retired pay. It is not automatic in every case.
What it is
SBP pays an annuity, a monthly payment for the lifetime of the beneficiary, equal to a percentage of retired pay based on the coverage the retiree chooses. The cost comes out of your monthly retired pay. Related plans on DFAS's page: Reserve Component SBP (RC-SBP) and the Retired Serviceman's Family Protection Plan (RSFPP).
Who can be covered
Under the law (10 U.S.C. 1448) the plan covers a spouse, dependent children, a former spouse, and a person with an insurable interest in you.
What it costs
DFAS says the cost can be no more than 6.5 percent of the base amount, taken monthly from retired pay. DFAS example: with $1,000 a month of retired pay and full coverage, covering a spouse costs $65 a month. You may choose a lower base amount, but there is a minimum level of coverage.
Paid-up: if you have paid premiums for 30 years (360 months) and are at least 70, you are "paid-up." Coverage continues and no more premiums are due (Department of Defense Office of the Actuary).
Survivor Benefit Plan
Spouse rules and the marriage window
- If you are married or have a dependent child, you are in SBP unless you elect out before you become entitled to retired pay.
- A married person cannot choose no coverage, spouse coverage below the maximum, or child-only coverage without the spouse's concurrence.
- If you marry or gain a dependent child after retiring, you may elect to join, but the Secretary must receive it within one year after the marriage.
- An unmarried retiree with no dependent child may elect coverage for a person with an insurable interest.
Traps
- SBP is not the same as Arrears of Pay (AOP). Electing SBP does not name your AOP beneficiary. That takes a separate designation.
- The DIC offset is gone. Years ago the law reduced a surviving spouse's SBP payment by the amount of VA Dependency and Indemnity Compensation (DIC). DFAS says that deduction was eliminated in total, effective January 1, 2023, and the first full SBP payment came February 1, 2023. A surviving spouse can now receive full SBP and full DIC. The Special Survivor Indemnity Allowance (SSIA), which partly made up for the deduction, is no longer paid after the January 3, 2023 payment. If an older letter, website or advisor says DIC reduces SBP, it is out of date. Call DFAS to confirm your own survivor's payment.
Where to call and where to go
Phone
- DFAS Retired and Annuitant Pay: 800-321-1080, Monday to Friday, 8:30 a.m. to 4:30 p.m. Eastern. Source: DFAS SBP page
- VA (for DIC questions): 1-800-827-1000. Source: va.gov/contact-us
Official pages