In Phase Two (2022) of the offset phased elimination, your SBP gross benefit is reduced by an amount that is equal to one-third of your DIC benefit. This does NOT affect your DIC payment, which is paid by the VA. The first payday for Phase Two is February 1, 2022 and the last payday for Phase Two is January 3, 2023.
Monthly Payments During Phase Two: Example
¨ If DIC benefit (paid in full by the VA) equals = $1437.66 ¨ And SBP gross benefit (paid by DoD/DFAS) equals = $940
¨ Offset to SBP (DIC benefit amount divided by 3) equals = $479.22
¨ SBP net payment after offset (reduction) of $479.22 equals = $460.78 Monthly Payments Based on Above Example: Monthly payments beginning February 1, 2022 (first payday of Phase Two): $1437.66 DIC from VA + $460.78 Net SBP from DFAS + $346 *SSIA from DFAS
¨ DIC benefit (paid in full by the VA) = $1437.66 ¨ SBP net payment (paid by DoD/ DFAS) = $460.78 (before taxes) ¨ *SSIA payment (paid by DoD/ DFAS) = $346 (*SSIA paid ONLY when SBP gross is reduced due to offset; up to maximum of $346 in 2022)
Please note: a small number of spouse annuitants (approximately 12%) will NOT see an increase in their SBP net payment in 2022. This is because one-third of their DIC benefit (the offset) is more than their SBP gross benefit. This group of spouse annuitants WILL receive their full SBP gross benefit beginning February 1, 2023 (see page 2).
DIC = Dependency and Indemnity Compensation paid by the Department of Veterans Affairs (VA) SBP = Department of Defense (DoD) Survivor Benefit Plan SSIA = DoD Special Survivor Indemnity Allowance DFAS = Defense Finance and Accounting Service; the DoD agency that processes Survivor Benefit Plan and SSIA.
In the third and final phase (2023), the SBP-DIC offset will be fully eliminated. That means you will begin to receive your full SBP gross benefit payments with no offset (reduction). The first payday for Phase Three is February 1, 2023. You will also continue to receive your full DIC payments from the VA. SSIA will no longer be paid.
SBP-DIC Offset Phased Elimination News - use this link to download the reference sheet: www.dfas.mil/sbpdicnews
SBP 2023 Optional Child Annuity reversion www.dfas.mil/sbp2023childoptrev
DFAS Facebook www.facebook.com/DFASOfficial
Manage your SBP annuity www.dfas.mil/managesbp
School certifications www.dfas.mil/schoolcerts
Below is the direct link to the reference sheet - Just copy and paste.