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HomeRetiredMilitarynewseventsnewsSurvivor SBP NewsletterPhased Elimination SBP-DIC Offset January 2021

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#### **The Phased Elimination of the SBP-DIC Offset Begins in January of 2021**

**surviving spouses who are, or who will become in the future, eligible for both Survivor Benefit Plan (SBP) payments and Dependency and Indemnity Compensation (DIC) payments****optional child annuity (see Phase Three)****The changes do NOT affect Dependency and Indemnity Compensation (DIC) payments****full amount of DIC****ensure your annuity account information is up-to-date and includes your correct mailing address ****set up a profile now and add your email address****NOT need to pay back****To help you understand how the 2021 changes will affect your SBP and/or SSIA payment, we mailed letters**** do not call our Customer Care Center for your estimate****Gross SBP ****offset amount ****payment after DIC offset ****SSIA****deducted****It is NOT the amount of DIC you will receive from the VA**** FULL amount of your DIC****Below is an outline of each phase of the upcoming changes to the SBP-DIC Offset. ****Phase One – Offset Reduced to Two-Thirds – Begins January 1, 2021**** will be reduced (offset) by no more than two-thirds****full DIC amount****SBP annuity amount that is more than two-thirds of their DIC****SSIA ****gross SBP amount that is less than two-thirds of their DIC****Phase Two – Offset Reduced to One-Third – Begins January 1, 2022****reduced (offset) by no more than one-third of the amount of DIC****full DIC**** SBP annuity amount that is more than one-third of their DIC amount ****SSIA****gross SBP amount that is less than one-third of their DIC amount****Phase Three - Offset Eliminated – Begins January 1, 2023****In 2023, the offset will be eliminated completely****SSIA payments will no longer be made**** full DIC amount****full SBP annuity amoun****Phase Three – Repeal of Optional Child Annuity for Active Duty Deaths and Restoration of Eligibility for Previously Eligible Spouses - Begins January 1, 2023****eligible surviving spouses of service members who died on active duty or inactive duty who previously elected to transfer the SBP annuity to a child or children (known as the “optional child annuity”) will begin receiving the SBP annuity instead of the child or children****eligible surviving spouse will begin receiving the SBP annuity payment on February 1, 2023, even if the child or children who had previously received the SBP payment are/were no longer eligible due to age or marriage**** full DIC ****full SBP****only affects those spouses and children of service members who died on active duty or inactive duty when the surviving spouse elected to transfer the SBP annuity to a child or children****nothing that these surviving spouses need to do at this time.****See News and FAQs on our SBP-DIC News Webpage****special webpage for news and Frequently Asked Questions****www.dfas.mil/sbpdicnews****DFAS Survivor SBP Newsletter****will NOT**
Page updated Dec 3, 2020

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