The SBP-DIC Offset Phased Elimination 

2023 Changes 

Public ‐ Sep2022 

SBP-DIC Offset Phased Elimination News

www.dfas.mil/sbpdicnews

SBP 2023 Optional Child Annuity reversion

www.dfas.mil/sbp2023childoptrev

DFAS Facebook

www.facebook.com/DFASOfficial

Manage your SBP annuity

www.dfas.mil/managesbp

School certifications

www.dfas.mil/schoolcerts

myPay

https://mypay.dfas.mil

Helpful DFAS Webpages for Annuitants 

-See Page 2 for 2022 ChangesPhase Three - 2023

*Please see our SBP-DIC News webpage for FAQs: www.dfas.mil/sbpdicnews* 

 In the third and final phase (2023), the SBP-DIC offset will be fully eliminated. That 

means you will begin to receive your full SBP gross benefit payment with no offset 

(reduction). The first payday for Phase Three is February 1, 2023. You will also continue 

to receive your full DIC payments from the VA. SSIA will not be paid after the 

January 3, 2023 payday. 

Monthly Payments Starting in Phase Three:

Example

If DIC benefit (paid in full by the VA) equals = $1437.66 

And SBP gross benefit (paid by DoD/DFAS) equals = $940 

Monthly Payments Based on Above Example: 

Monthly payments beginning February 1, 2023 (first payday of Phase Three): 

$1437.66 DIC from VA + $940 Gross SBP from DFAS 

DIC benefit (paid in full by the VA) = $1437.66 

SBP gross benefit (paid in full by DoD/ DFAS) = $940 (before taxes) 

(No SSIA is paid after January 3, 2023) 

Page 1 

Note: Dec 2022 SBP payments 

will be made on Jan 3, 2023. 

Jan 2023 payments will be made 

on Feb 1, 2023. 
The SBP-DIC Offset Phased Elimination 

2022 Changes 

Public ‐ Sep2022 -See Page 1 for 2023 ChangesPhase Two - 2022

*Please see our SBP-DIC News webpage for FAQs: www.dfas.mil/sbpdicnews*

In Phase Two (2022) of the offset phased elimination, your SBP gross benefit is 

reduced by an amount that is equal to one-third of your DIC benefit. This does NOT affect 

your DIC payment, which is paid by the VA. The first payday for Phase Two was 

February 1, 2022 and the last payday for Phase Two is January 3, 2023. 

Monthly Payments During Phase Two: 

 

Example

If DIC benefit (paid in full by the VA) equals = $1437.66 

And SBP gross benefit (paid by DoD/DFAS) equals = $940 

Offset to SBP (DIC benefit amount divided by 3) equals = $479.22 

SBP net payment after offset (reduction) of $479.22 equals = $460.78 

Monthly Payments Based on Above Example: 

Monthly payments beginning February 1, 2022 (first payday of Phase Two): 

$1437.66 DIC from VA + $460.78 Net SBP from DFAS + $346 *SSIA from DFAS

DIC benefit (paid in full by the VA) = $1437.66 

SBP net payment (paid by DoD/ DFAS) = $460.78 (before taxes)

*SSIA payment (paid by DoD/ DFAS) = $346 

(*SSIA paid ONLY when SBP gross is reduced due to offset; up to maximum of $346 in 2022) 

Please note: a small number of spouse annuitants (approximately 12%) will NOT see an increase 

in their SBP net payment in 2022. This is because one-third of their DIC benefit (the offset) is more 

than their SBP gross benefit. This group of spouse annuitants WILL receive their full SBP gross benefit 

beginning February 1, 2023 (see page 1).

DIC = Dependency and Indemnity Compensation paid by the Department of Veterans Affairs (VA) 

SBP = Department of Defense (DoD) Survivor Benefit Plan 

SSIA = DoD Special Survivor Indemnity Allowance 

DFAS = Defense Finance and Accounting Service; the DoD agency that processes Survivor Benefit Plan (SBP) 

and SSIA payments 

Page 2 

Note: Dec 2022 SBP payments 

will be made on Jan 3, 2023. 

Jan 2023 payments will be made 

on Feb 1, 2023.