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HomeRetiredMilitarynewseventsnewsletterMarch2023  SBP Open Season What Retirees Need to Know About Discontinuing

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                        - SBP Open Season NDAA2023

#### **The NDAA 2023 SBP Open Season: What Retirees Need to Know About Discontinuing **

The SBP Open Season  allows eligible members and former members who were enrolled in SBP or RCSBP (Reserve Component Survivor Benefit Plan) as of December 22, 2022 to permanently discontinue their SBP coverage. Before submitting your request for discontinuance, **please review the SBP advantages and disadvantages information on the first page of the Discontinuance form**. SBP Open Seasons rarely occur. Consider the impact your decision will have on your loved ones moving forward. Because your beneficiaries must also concur with the decision to discontinue, you may want to review this information with them.There is a **special form to discontinue coverage during the SBP Open Season**. The form and details are available on the NDAA 2023 SBP Open Season special focus webpage: **https://www.dfas.mil/sbpopenseason23**To submit the form to DFAS, we ask that you:
                        - Ensure the SBP Open Season 2023 Discontinuance Form is (available on the special focus webpage  **https://www.dfas.mil/sbpopenseason23** ) is  filled out completely and signed .
                        - If you are married,  your spouse must concur  with the discontinuance and your spouse’s signature(s) must be notarized or witnessed by an SBP counselor. In addition, any covered beneficiaries who are adults (18 and over) must concur with the discontinuance and their signature(s) must be notarized or witnessed by an SBP counselor. 

You can upload the Discontinuance form to our askDFAS online upload tool, send it via postal mail, or fax it to DFAS. Your discontinuance will be effective the**first day of the first calendar month** following our receipt of a valid SBP Open Season 2023 Discontinuance Form. We will mail you a discontinuance confirmation letter when we have processed your request. 

##### **Important - About Discontinuing**

**Key points to keep in mind: **
                        - No refunds  of SBP premiums for the period of coverage are allowed.
                        - Discontinuation  does not absolve  the member of any unpaid premiums.
                        - If discontinuing RCSBP coverage,  the Reserve Component Premium, sometimes referred to as “add-on” cost, will continue  until your retired pay has been reduced for a total of 360 months, or until the death of the beneficiary of RCSBP. This coverage has already been provided to you while you awaited the requisite age of entitlement to retired pay. The cost would be prorated if you discontinues coverage prior to starting receipt of retired pay.
                        - If you discontinue your SBP coverage during the SBP Open Season that runs from runs from December 23, 2022 to January 1, 2024,  you cannot re-enroll in SBP coverage during the SBP Open Season .  
                        - Your discontinuance will be effective the  first day of the first calendar month  following our receipt of a valid SBP Open Season 2023 Discontinuance Form.
                        - To be valid, the form must be  properly signed and dated by all parties , including the current spouse, and any currently-covered former spouse, child aged 18-22 or natural interest person (NIP). In addition, the covered party’s signature must either be notarized or witnessed by an SBP counselor.
                        - Please remember to  sign and date the form , have all beneficiaries concur, and have the notary or SBP counselor witness sign. Once all the information is filled in and all signatures received, the form can be submitted directly through askDFAS or via fax or email.
                        - Normal processing time is  30 days  from the date DFAS receives a valid discontinuance form containing all of the necessary information to discontinue coverage. We will mail you a discontinuance confirmation letter when we have processed your request. 
                        - Retirees may terminate their SBP coverage during their  third year  (25th to 36th months) of receiving retired pay subject to the provisions of 10 U.S.C. § 1448a.  This is different  from the opportunity to discontinue coverage during the SBP Open Season. Retirees in their third year may either terminate SBP coverage pursuant to 10 U.S.C. §1448a using the Survivor Benefit Plan Termination Request (DD 2656-2).
                        - The 2023 NDAA SBP Open Season  does not allow for changes to existing SBP coverage .
                        - In order for a retiree to discontinue SBP coverage for a former spouse that was required by a court order, the retiree must provide a  new court order  releasing the retiree from the requirement to provide the former spouse with SBP coverage. Additionally, the retiree’s former spouse must concur with the request to discontinue coverage, and the former spouse’s signature must be notarized or witnessed by an SBP counselor.

##### **Frequently Asked Questions About Discontinuing**

We also have a list of **Frequently Asked Questions**about discontinuing SBP coverage during the SBP 2023 Open Season on our special focus webpage: **https://www.dfas.mil/sbpopenseason23** 

Page updated Mar 29, 2023

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