Clarification on DD Form 2656 and SBP for Medically Retired Service Members (PDRL)

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pebforlife

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I'm seeking clarification regarding the process for those who are medically retired and placed on the Permanent Disability Retired List (PDRL). I was recently transitioned to the PDRL and my admin provided me with DD Form 2656: Data for Payment of Retired Personnel.

I have less than 20 years of service, and to my understanding, since my VA disability compensation exceeds the amount of retired pay from the DoD, I will not receive a DoD pension due to the VA offset rules. Given that, I’m unsure why I need to complete this form—or if I even need to complete it at all.

Additionally, if I do need to submit the form, how should I handle the Survivor Benefit Plan (SBP) section? Since I expect to receive $0 in DoD retired pay, is there any reason to elect SBP coverage?
 
Under SBP should you pass, your spouse will get a portion of your DoD pay along with any potential VA DIC benefits if entitled. New rules as of 2023 permit draw from both sources by the spouse if the Veteran passes. So even though you get zero DoD, your spouse would still get paid. Do note that SBP monthly premiums can be pretty expensive.

 
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