Survival Benefit Plan

brystonschafer

PEB Forum Regular Member
Registered Member
Hey y'all. Hope someone could possibly shed some light on some things.

When retiring I was asked if I wanted to opt into the Survival Benefit Plan (SBP) or not. At the time, I figured $15 a month couldn't hurt and it sounded like a good idea.

However, since I no longer receive Army Retired pay, but receive VA compensation instead, how is the SBP still benefiting me?

According to https://www.dfas.mil/retiredmilitary/provide/sbp/change.html I am "free to cancel or terminate your SBP election beginning in the 25th month through the 36th month - or the third year - of your retirement."

With that in mind, am I basically throwing $15 to DFAS every month for no reason?

Thanks in advance.

V/R
Bryston Schafer
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Registered Member
Your beneficiary remains covered.
LINK <—- DFAS


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 - Beginning April 2018
  • Deductions from your VA pay
  • Direct remittance
  • Paid Up Status

Deductions from your Retired Pay (Normal Payment Method)
The normal method of paying for SBP coverage is by an automati
c 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 April 2018
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 is 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, beginning with the monthly premium due in April of 2018. 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.

This change affects retirees who receive CRSC and previously paid SBP monthly premiums via direct remittance.

Retirees who currently have SBP premiums deducted from their Department of Veteran Affairs (VA) pay will not be affected.
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.

Retirees who currently have SBP premiums deducted from their Department of Veteran Affairs (VA) pay will not be affected.

Ron
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Registered Member
Added.

From a non-DOD site.
Question 7. I have waived my entire military pay in favor of VA compensation. I am enrolled in SBP and make direct payments to DFAS. Why can't I have the payments deducted from VA?

Answer: You can. Section 503, P.L. 99-576 (Oct. 28, 1986) amended 38 USC 3101 by permitting VA to deduct SBP costs from VA compensation when military retired pay is waived for such compensation. Such a request must be made to the VA by the retiree.

Ron
 

brystonschafer

PEB Forum Regular Member
Registered Member
@RonG

Thank you for your diligent and timely response.

I will definitely proceed to take advantage of having my VA pay deducted in order to pay for the SBP monthly cost.

I have been getting irritated by the monthly DFAS envelopes I have been receiving. They are wasting paper!
 
data-matched-content-ui-type="image_stacked" data-matched-content-rows-num="3" data-matched-content-columns-num="1" data-ad-format="autorelaxed">
Top