FAMILYVA program
Survivor Benefit Plan (SBP)
DoD annuity program allowing military retirees to elect a monthly payment of up to 55% of their retirement pay to an eligible survivor (spouse or dependent children) after the retiree's death.
Available to military retirees; election made at retirement
Step-by-step guide
What you get
A monthly annuity from DFAS, the Defense Department pay office, to the survivor a military retiree chose: 55 percent of the base amount the retiree elected, raised each December with the cost of living. This is a Defense Department annuity, not a VA claim. DIC from VA is separate, and since January 1, 2023 neither one reduces the other.
What DFAS looks for: an SBP election at retirement
- An election on DD Form 2656 before the retirement dateThe SBP choice goes on DD Form 2656, Data for Payment of Retired Personnel. DFAS says it must be signed before the retirement date, and the witness signs on the same date. DFAS suggests SBP counseling from your branch of service first.
- A beneficiary typeThe choices are spouse only, spouse and children, children only, former spouse, or a natural interest person (someone with an insurable interest, such as a brother or sister) when there is no other beneficiary. A retiree with no beneficiary tells DFAS so rather than leaving the election blank.
- A base amountThe annuity is 55 percent of the base amount. The base amount is the full gross retired pay or a lower amount the retiree picks, down to a minimum DFAS sets for each retiree.
- Spouse concurrence to decline or reduceA married retiree who declines, chooses children only, or picks less than full spouse coverage needs the spouse to sign, with a notary, on or after the retiree signs and before the retirement date. Without it, DFAS treats the election as not valid and starts spouse coverage on full gross retired pay.
Source: DFAS: SBP enrollment (opens in new tab); DFAS: who SBP can cover (opens in new tab); DFAS: SBP advantages and disadvantages (opens in new tab); DFAS: SBP cost (opens in new tab); DFAS: Reserve Component SBP (opens in new tab)
Where are you with SBP?
- A retiree choosing coverage at retirement
Most retirees make the SBP choice once, on the retirement form, and it is hard to change later. DFAS looks for a valid election: who is covered, the base amount, and the spouse signature when the spouse gets less than full coverage.
Source: DFAS: Survivor Benefit Plan (opens in new tab); DFAS: SBP enrollment (opens in new tab); Defense Department: Survivor Benefit Plan (opens in new tab)
- A death on active duty or in the line of duty
Service members on active duty have SBP coverage at no cost, without electing it. It also covers reserve members who die of a service-connected cause during inactive duty training.
- A death in the line of dutyDFAS says a surviving spouse of a member who died on active or inactive duty, in the line of duty, on or after September 10, 2001, generally receives an SBP annuity. Deaths in the line of duty before that date are not covered.
- A surviving spouse who has not remarried before 55The spouse annuity continues for life unless the spouse remarries before age 55. The surviving spouse does not receive it when a court awarded SBP to a former spouse and that election was registered before the death. Since January 1, 2023, a spouse can no longer move the annuity to a child.
Source: Defense Department: Survivor Benefit Plan (opens in new tab); DFAS: end of the SBP and DIC offset (opens in new tab); VA: Federal Benefits for Veterans, Dependents, Survivors, and Caregivers (2026) (opens in new tab); DFAS: understanding SBP, DIC, and SSIA (opens in new tab)
- A Reserve or Guard member with a 20-year letter
Reserve Component SBP (RCSBP) is the Reserve and Guard version. The choice is made when the member receives the 20-year letter (DFAS calls it the NOE), and the cost is the standard SBP cost plus a Reserve add-on.
- An election after the 20-year letterThe election goes on DD Form 2656-5 to your branch of service. The DFAS RCSBP page gives 90 days from the letter, and the DFAS forms page says the branch must receive it within 60 days.
- One of three optionsOption A waits to decide until retirement age, and pays nothing if the member dies first. Option B covers the family but payments start when the member would have turned 60. Option C starts payments right after the death. Options A and B need the spouse to sign with a notary. With no election in time, the law puts the member in Option C.
Source: DFAS: Reserve Component SBP (opens in new tab); Defense Department: Survivor Benefit Plan (opens in new tab); DFAS: retired and annuitant pay forms (opens in new tab)
- A survivor starting the annuity after a retiree dies
The annuity does not start on its own. Someone reports the death to DFAS, and the beneficiary sends DFAS a DD Form 2656-7 with the documents it lists. The beneficiary becomes able to receive SBP the day after the death.
- The death reported to DFASDFAS asks for the retiree's full name, Social Security number, date of death, cause of death, and marital status. A spouse also gives the date of marriage. Retired pay ends on the date of death.
- DD Form 2656-7 and supporting documentsDFAS starts the annuity when it receives a completed DD Form 2656-7, Verification for Survivor Annuity. It also needs the death certificate showing the cause or manner of death if it does not have one, and the retiree's name and Social Security number on each document.
- A survivor who still meets the SBP rulesA spouse or former spouse is paid for life unless they remarry before 55; if that marriage later ends, the annuity can restart. A child is paid until 18, or until 22 while in school full time, if unmarried. A child who cannot support themselves because of a disability has special rules.
Source: DFAS: what happens when a retiree dies (opens in new tab); DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab); DFAS: understanding SBP, DIC, and SSIA (opens in new tab); DFAS: report a retiree's death (opens in new tab); DFAS: Reserve Component SBP (opens in new tab); DFAS: who SBP can cover (opens in new tab); DFAS: SBP and arrears of pay questions (opens in new tab)
- A survivor who also has DIC from VA
DIC is a VA payment, claimed with VA, when the death was service connected. Since January 1, 2023, a surviving spouse can get a full SBP payment from DFAS and a full DIC payment from VA at the same time.
- No SBP and DIC offset since 2023DFAS used to reduce SBP or RCSBP by part of the DIC payment. VA.gov says DFAS began reducing that offset in phases on January 1, 2021, and fully ended it on January 1, 2023. DIC paid to a child does not reduce a child SBP annuity.
- A separate DIC claim with VADIC is a monthly VA payment to a surviving spouse, child, or parent because of a service-connected death. A surviving spouse or child of a Veteran applies with VA Form 21P-534EZ. After a death on active duty, VA says the casualty assistance officer helps the spouse or child complete VA Form 21P-534a instead. SBP paperwork does not start DIC.
Source: VA.gov: DIC rates for spouses and children (opens in new tab); VA.gov: DIC for spouses, children, and parents (opens in new tab); 38 CFR 3.5(a) (opens in new tab); DFAS: end of the SBP and DIC offset (opens in new tab); DFAS: understanding SBP, DIC, and SSIA (opens in new tab); VA Form 21P-534EZ (opens in new tab); VA Form 21P-534a (opens in new tab)
Time limits
A retiree signs the SBP election on DD Form 2656 before the retirement date. A Reserve or Guard member elects on DD Form 2656-5 after the 20-year letter: the DFAS RCSBP page says 90 days and the DFAS forms page says 60 days, so acting within 60 days meets both. Changes after a marriage, a new child, or a divorce have a one-year window.
What to gather, and what it shows VA
| Document | What it shows | How VA gets it | Have it? |
|---|---|---|---|
| DD Form 2656, Data for Payment of Retired Personnel The retirement pay form where a retiree makes the SBP election: who is covered and the base amount. It is a Defense Department form, not a VA form. | Who SBP covers and on what base amount | Your branch of service gives SBP counseling before retirement, and the form is in the DFAS forms library. Sign it before your retirement date, with a witness who signs the same day. | |
| Spouse's notarized concurrence The spouse's signature, witnessed by a notary on the same day, agreeing to less than full spouse coverage or to declining it. | That the spouse agreed to less than full spouse coverage | The spouse signs on DD Form 2656 on or after the date the retiree signs and before the retirement date, in front of a notary. For RCSBP Option A or B, the spouse signs DD Form 2656-5 with a notary. | |
| 20-year letter (NOE) The letter your branch issues when a Reserve or Guard member completes the equivalent of 20 years of service. | When the RCSBP election window opened | Your branch of service issues it. Keep a copy with your retirement papers. | Yes |
| DD Form 2656-5, Reserve Component SBP Election Certificate The form a Reserve or Guard member uses to choose RCSBP Option A, B, or C and who is covered. | Which RCSBP option and beneficiary the member chose | Get it from the DFAS forms library and send it to your branch of service after the 20-year letter. | |
| Death certificate The official record of the retiree's death. DFAS needs a copy that states the cause or manner of death. | The date and the cause or manner of death | A copy from the state or office that recorded the death. Send it to DFAS with your forms if DFAS does not already have one. | Yes |
| DD Form 1300, Report of Casualty The military report of a service member's death. | A death on duty and its date | Send a copy to DFAS with DD Form 2656-7 if DFAS does not have one. DFAS lists it in place of a death certificate for a service member. | Yes |
| DD Form 2656-7, Verification for Survivor Annuity The form a spouse, former spouse, or child fills out to start the SBP annuity. | Who is claiming the annuity and their details | DFAS mails it to the beneficiary after the death is reported. It is also in the DFAS forms library, with a form wizard. Send it to DFAS online through askDFAS, by mail, or by fax. | |
| Direct deposit and tax withholding forms A direct deposit form (FMS 2231, SF 1199A, or SF 1199-I for a bank outside the United States) and, to have federal tax withheld, IRS Form W-4P. | Where DFAS sends the annuity and how much tax to hold back | Send them to DFAS with DD Form 2656-7. The DFAS start an annuity page lists each one. | |
| Forms for a child annuitant DD Form 2790, a custodianship certificate, when the child is under 18, and DD Form 2788, a school certification, when the child is 18 to 22 and in school full time. | The child's age, custodian, or full-time school attendance | Both are in the DFAS forms library. Send them to DFAS with DD Form 2656-7. | |
| Marriage certificate, for a remarriage A copy of the certificate for a new marriage. DFAS asks for it when an annuitant reports a remarriage before 55. | A remarriage and its date | Send it to DFAS with the SBP marital status update form from the DFAS forms library. | Yes |
| VA benefit summary or DIC award letter The VA letter that shows you get DIC and the monthly amount. | That VA pays you DIC, separate from SBP | Download it from VA.gov, where VA posts benefit summary letters and other benefit letters. | Yes |
| VA Form 21P-534EZ The VA application a surviving spouse or child uses for DIC, Survivors Pension, and accrued benefits. | A claim for DIC with VA | Fill it out and send it to VA. The form page on VA.gov has the online and mail options. |
SBP papers go to DFAS or to your branch of service, not to VA. DIC papers go to VA. BeneVets does not ask for copies of any of them.
Steps, in order
- Get SBP counseling from your branch
Before retirement, ask your branch of service for SBP counseling and review DD Form 2656. DFAS calls the SBP choice one that is hard to change later.
Source: DFAS: SBP enrollment (opens in new tab); DFAS: SBP advantages and disadvantages (opens in new tab)
- Choose who is covered and the base amount
Pick a beneficiary type and a base amount. The annuity is 55 percent of the base amount, and the cost for spouse coverage is no more than 6.5 percent of it each month.
Source: DFAS: who SBP can cover (opens in new tab); DFAS: SBP cost (opens in new tab); DFAS: SBP advantages and disadvantages (opens in new tab)
- Sign DD Form 2656 before your retirement date
Sign the form before your retirement date, with a witness who signs the same day. If you are married and choose less than full spouse coverage, your spouse signs on or after your date and before the retirement date, in front of a notary.
Source: DFAS: SBP enrollment (opens in new tab); DFAS: SBP cost (opens in new tab)
- Make your RCSBP election after the 20-year letter
Send DD Form 2656-5 to your branch of service with your choice of Option A, B, or C, inside the window under Time limits. With no election in time, the law puts you in Option C.
Source: DFAS: Reserve Component SBP (opens in new tab); DFAS: retired and annuitant pay forms (opens in new tab)
- Keep premiums paid
DFAS takes premiums from retired pay. If VA compensation leaves too little retired pay, send DFAS a DD Form 2891 Interim to have them taken from your VA pay instead. VA does not need to fill it out. Premiums stop once you have made 360 payments and reached age 70.
Source: DFAS: paying for SBP (opens in new tab); DFAS: retired and annuitant pay forms (opens in new tab)
- Tell your beneficiary what to do
DFAS asks retirees to print its instructions for reporting a death and starting SBP and give them to the beneficiary. Naming someone for SBP does not name them for your last retired pay (arrears of pay); that is a separate designation.
Source: DFAS: what happens when a retiree dies (opens in new tab); DFAS: Survivor Benefit Plan (opens in new tab)
- Report the death to DFAS
Use the askDFAS Notification of Death form online, call DFAS at 800-321-1080, or fax or mail DFAS. Have the retiree's full name, Social Security number, date of death, cause of death, and marital status, and your date of marriage if you are the spouse.
- Send DD Form 2656-7 to DFAS
Fill out DD Form 2656-7 and send it with the death certificate (if DFAS does not have it), a direct deposit form, and Form W-4P if you want tax withheld. Put the retiree's name and Social Security number on every document. Send it online through askDFAS, by mail, or by fax to 800-982-8459.
Source: DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab); DFAS: report a retiree's death (opens in new tab)
- After a death in service, send DD Form 2656-7
The beneficiary of a member who died on duty starts the annuity with the same DD Form 2656-7, sent with the DD Form 1300 Report of Casualty in place of a death certificate. For questions, DFAS points to your branch's retiree services office or the DFAS line at 800-321-1080.
Source: DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab); DFAS: end of the SBP and DIC offset (opens in new tab)
- Claim the retiree's last pay separately
The retiree's last partial month of pay is a separate claim on SF 1174, which DFAS mails to the arrears of pay beneficiary. It needs two witness signatures. Any retired pay sent after the death goes back to DFAS first.
- Apply for DIC with VA if the death was service connected
DIC is a separate VA benefit. A surviving spouse or child of a Veteran applies with VA Form 21P-534EZ. After a death on active duty, the casualty assistance officer helps with VA Form 21P-534a instead. Since January 1, 2023, SBP does not reduce DIC and DIC does not reduce SBP.
Source: VA.gov: DIC for spouses, children, and parents (opens in new tab); VA Form 21P-534EZ (opens in new tab); VA Form 21P-534a (opens in new tab); VA.gov: DIC rates for spouses and children (opens in new tab); 38 CFR 3.5(a) (opens in new tab)
- On a Survivors Pension claim, list SBP as income
If you claim or get Survivors Pension, report your SBP payment as income on VA Form 21P-534EZ. VA counts payments of any kind as income for Survivors Pension unless a rule excludes them, VA.gov lists annuity payments as income, and VA reduces pension by countable income.
Source: 38 CFR 3.271(a) (opens in new tab); 38 CFR 3.23(b) (opens in new tab); VA.gov: Survivors Pension rates (opens in new tab); VA Form 21P-534EZ (opens in new tab)
- Keep DFAS up to date
DFAS asks annuitants for one yearly verification that they still meet the SBP rules. Report a remarriage before 55 on the SBP marital status update form with the marriage certificate. A student child sends DD Form 2788 to keep payments going.
Source: DFAS: SBP and arrears of pay questions (opens in new tab); DFAS: understanding SBP, DIC, and SSIA (opens in new tab); DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab); DFAS: retired and annuitant pay forms (opens in new tab)
- Get free help from a VSO
Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. A VSO helps with the VA side: DIC and Survivors Pension. For SBP itself, DFAS points to your branch of service retiree services office and the DFAS line.
Source: VA.gov: accredited representatives (opens in new tab); DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab)
Good to know
The annuity is 55 percent of the base amount the retiree elected. It rises each December with the same cost of living adjustment as military retired pay, and Social Security does not reduce it.
Source: DFAS: SBP advantages and disadvantages (opens in new tab); DFAS: SBP and arrears of pay questions (opens in new tab)
Coverage is free while on active duty. In retirement, spouse coverage costs no more than 6.5 percent of the base amount each month, usually taken from retired pay before federal income tax. Child coverage adds a cost that depends on ages. Natural interest person coverage costs at least 10 percent and up to 40 percent of retired pay. The DFAS cost page shows worked examples.
Source: DFAS: SBP cost (opens in new tab); DFAS: SBP advantages and disadvantages (opens in new tab); DFAS: who SBP can cover (opens in new tab); DFAS: changing or stopping SBP coverage (opens in new tab)
Premiums stop once the retiree has made 360 monthly SBP payments and reached age 70. Premiums left unpaid at death, with interest, come out of the retiree's last pay and the annuity, and DFAS pays no annuity until they are cleared.
A retiree can stop SBP in a few set cases, including: in the 25th through 36th month of retirement with spouse consent, or with a total VA rating for 10 continuous years (or 5 years right after leaving active duty) with the beneficiary's written consent. Declining coverage for a spouse or children at retirement cannot be undone later, outside a rare open season.
Source: DFAS: changing or stopping SBP coverage (opens in new tab); DFAS: withdrawing from SBP for a total VA rating (opens in new tab); DFAS: end of the SBP and DIC offset (opens in new tab)
Only Congress can open an SBP open season, the only way to start coverage that was declined at retirement. DFAS lists 2023 as the most recent and lists no open season now.
Source: DFAS: changing or stopping SBP coverage (opens in new tab); DFAS: SBP enrollment (opens in new tab)
VA does not manage SBP. Questions about SBP or RCSBP go to DFAS at 800-321-1080. Questions about DIC or Survivors Pension go to VA.
Source: VA.gov: DIC rates for spouses and children (opens in new tab); DFAS: who to contact, DFAS, VA, or the military (opens in new tab); DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab)
For Survivors Pension, VA counts payments of any kind from any source as income unless 38 CFR 3.272 excludes them, and SBP is not on that list. VA.gov lists retirement and annuity payments as income for VA purposes. VA does not pay DIC and Survivors Pension for the same death; when both are possible, VA pays whichever gives the most money.
Source: 38 CFR 3.271(a) (opens in new tab); 38 CFR 3.23(b) (opens in new tab); VA.gov: Survivors Pension rates (opens in new tab); 38 CFR 3.5(c) (opens in new tab); VA.gov: DIC rates for spouses and children (opens in new tab)
BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you
Sources checked October 8, 2026: DFAS: Survivor Benefit Plan (opens in new tab), DFAS: SBP advantages and disadvantages (opens in new tab), DFAS: SBP cost (opens in new tab), DFAS: who SBP can cover (opens in new tab), DFAS: SBP enrollment (opens in new tab), DFAS: paying for SBP (opens in new tab), DFAS: changing or stopping SBP coverage (opens in new tab), DFAS: what happens when a retiree dies (opens in new tab), DFAS: withdrawing from SBP for a total VA rating (opens in new tab), DFAS: Reserve Component SBP (opens in new tab), DFAS: retired and annuitant pay forms (opens in new tab), DFAS: report a retiree's death (opens in new tab), DFAS: start an SBP annuity (DD Form 2656-7) (opens in new tab), DFAS: understanding SBP, DIC, and SSIA (opens in new tab), DFAS: end of the SBP and DIC offset (opens in new tab), DFAS: SBP and arrears of pay questions (opens in new tab), DFAS: who to contact, DFAS, VA, or the military (opens in new tab), Defense Department: Survivor Benefit Plan (opens in new tab), VA: Federal Benefits for Veterans, Dependents, Survivors, and Caregivers (2026) (opens in new tab), VA.gov: DIC rates for spouses and children (opens in new tab), VA.gov: DIC for spouses, children, and parents (opens in new tab), VA.gov: Survivors Pension rates (opens in new tab), VA.gov: download VA benefit letters (opens in new tab), VA Form 21P-534EZ (opens in new tab), VA Form 21P-534a (opens in new tab), 38 CFR 3.5(a) (opens in new tab), 38 CFR 3.5(c) (opens in new tab), 38 CFR 3.23(b) (opens in new tab), 38 CFR 3.271(a) (opens in new tab), VA.gov: accredited representatives (opens in new tab)