Benefits Update for Retirees

On December 3, the Defense Finance and Accounting Service (DFAS) announced they will be eliminating the offset of benefits for spouses receiving money both from the Survivor Benefit Plan (SBP) and Dependent Indemnity Compensation (DIC).  

This change is as a result of legislation previously passed by Congress in the National Defense Authorization Act of 2020 that aimed to repeal the “Widow’s Tax”. As part of the rollout of this repeal, impacted retirees were mailed a letter explaining the changes that would be taking place. 

As part of the implementation, DFAS asks that all recipients ensure their annuity account information is up to date, including your current mailing address. The repeal itself will take place in three phases and will only impact money distributed by DFAS and recipients of DIC, will not see a change in their benefits. 

As part of NDVS’s efforts to ensure our retiree’s have this information available, if this impacts you, please visit: https://www.dfas.mil/RetiredMilitary/newsevents/news/Survivor-SBP-Newsletter/Phased-Elimination-SBP-DIC-Offset-January-2021/ .