Beneficiaries will see the change in their February payments. Image: Africa Studio/Shutterstock.com
Retirees, eligible members and former members who are awaiting retired pay who are not enrolled in either the Survivor Benefit Plan (SBP) or Reserve Component Survivor Benefit Plan (RCSBP) now have until Jan. 1, 2024, to change their minds, during an open season.
Those who do, however, would be responsible for retroactive SBP premium costs they would have incurred had they elected to participate when first eligible.
The open season also allows for current participants to permanently discontinue SBP coverage, but does not call for refunds of premiums they previously paid.
SPB and RCSBP provide financial support to survivors in the event of the death of service members or retirees.
SBP beneficiaries who also collect dependency and indemnity compensation (DIC) from the Department of Veterans Affairs no longer will see the amount of SBP they collect reduced dollar-for-dollar by the amount of DIC they receive.
The offset – known commonly as the “widows’ tax,” has been eliminated.
Beneficiaries will see the change in their February payments. Additionally, the Special Survivors Indemnity Allowance (SSIA) is being eliminated. The SSIA had been paid to spouses whose SBP was subject to the DIC offset.
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