When a retiree's VA compensation exceeds his gross retired pay, a total waiver of retired pay occurs. If the retiree has SBP, the premium MUST continue to be paid. Since no retired pay exists for us to deduct the cost, a monthly billing notice is mailed to the member. The monthly premium can either be paid by check or the member can make arrangements with the VA to remit the premium by deducting the cost from the VA compensation.
Interest accrues on any unpaid balance.
The surviving spouses, children, or dependent parents of veterans who have died, whether receiving benefits or not, can apply for certain benefits for themselves. As soon as possible the VA should be notified of the death and provided a certified copy of the death certificate. In the case of Direct Deposit the VA will notify the financial institution to return any amounts forwarded via Direct Deposit. Refer to separate Bulletin articles on DIC and Death Pension for details on these benefits. Certified or original documents providing proof of the spouse and children's relationship plus proof of age of the children must accompany the application.