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MOAACC Survivor Assistance Lessons Learned

01/22/2020

Submitted by Lt Col Chuck Shaw, USAF, (Ret)

Even though the repeal of the so called “Widows Tax” has been signed into law, it’s taking a while to find out some important details of how and when it will be implemented.  I did some research on the DFAS website at: https://www.dfas.mil/retiredmilitary/survivors/SBP-DIC-News , and found what I hope will be some useful information.

I did some cut and pasting of the important parts.  Bold print is from DFAS, underlining is by me:

“SBP-DIC Offset Phased Elimination News

[DFAS] will post news here regarding the status of the implementation of the "Phase-Out of Reduction of Survivor Benefit Plan Survivor Annuities by Amount of Dependency and Indemnity Compensation," as directed by the National Defense Authorization Act (NDAA) for Fiscal Year 2020.

Please plan to check this webpage for updates.

We are already at work analyzing the change, and making plans for the implementation. We will be not be able to answer questions about the full effect of this change in the law until we obtain legal interpretation of the changes and identify all of the impacts on policy and procedures.

  • Based on the NDAA, Spouse SBP annuitants who are subject to the DIC offset will see the first change in the SBP annuity payment they receive on February 1, 2021.  Full SBP AND DIC will be phased in from 2021 to 2023.
  • The most important action SBP annuitants can take at this time is to ensure your annuity account information is up-to-date and includes your correct mailing address so we can contact you, if needed. If you’re not using myPay,  set up a profile now and add your email address.
  • We are unable to provide individual estimates of the upcoming changes in spouse SBP annuity payments. Please do not call DFAS Customer Care Center to request an individual estimate.
  • If you previously received a refund of SBP premiums paid due to the SBP-DIC offset, you will NOT need to pay back that refund.
  • The "Repeal of Authority for Optional Annuity for Dependent Children" and "Restoration of Eligibility for Previously Eligible Spouses" in the NDAA only affect those spouses and children of service members who died on active duty or inactive duty when the surviving spouse previously elected to transfer the SBP annuity to a child or children. They do not affect previous or future SBP elections by retirees or SBP annuities for a retiree's beneficiaries.”

I will keep you up to date on updates, but for 2020, there are no changes that will affect you…

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