Mom received DIC after 3 years. Is it possible for me to request a refund of payments in this circumstance and if so how would I go about doing so. I dont blame them though because even though its their job, I know they have a lot on their plate and tend to where many hats. No Survivor Benefit Im sorry for the loss of your husband. A FSs right to military retired pay terminates upon the FSs death and is not transferable by Will or other means. How do I continue to provide SBP for my spouse, or does she lose that benefit despite these years of payments. While the law says that a beneficiary can not receive the full amount of both SBP and DIC, there is a special program that refunds a portion of the offset amount. You also assume that everyone is insurable at such low rates. She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga. Minot firings due to failed nuclear safety inspection, MCPON: Sailors need speedier, easier access to counseling, Hangmans nooses targeting sailor found aboard Norfolk-based destroyer, Tricare now covers new costly insulin device for Type 1 diabetics, Baby on-board? spouse remarries prior to age 55, SBP payments will stop. Hi,Monica. In my opinion, the attorney you hired should have made sure that you understood the SBP-DIC offset before even taking your case. My questions are: What does this mean and how is determined? The automatic monthly SBP death benefit is provided at no cost, as service members do not pay into this benefit when on active duty. Since she didnt file the paperwork in time I was told by DFAS that I would receive the annuity. The. Third, if your death is not attributable to your military service, your survivors are not eligible for DIC until you have been 100% P&T for 5 years (if they are considering that you were 100% at the time of discharge) or 10 years if they dont consider the 100% determination to have begun at the time of discharge. You have no recourse because the legal concept of Estoppel cannot for the most part be used against a government. 1 0 obj
-I receive DIC, and SSIA, but he paid into SBP every month for 30 years. If we live in Germany and I get a pension there that is higher the the survivor benefit would the survivor benefit be still be paied out to me if my husband dies? Ive been paying into SBP for 1.5 years and am beginning to think it was a mistake. https://www.katehorrell.com/understanding-sbp-dic-offset/ Youll have to apply these considerations to your specific situation to figure out which option makes the most sense for you. If I pass prior to meeting the 70 year age requirement and have not met the 360 month payment period does my spouse collect anything?? Could you please email me at kate at katehorrell.com? I found out that I did not get paid the right amount of SBP.That it is no more an off set decission of Sharp vs US government. Required fields are marked *. Make up a chart that reflects the earnings of a surviving spouse of an E7 with 22years. My USAF father passed away and my mother started receiving his SBP benefits. I have not asked DFAS yet. It provides non-taxable monthly cash payments for a set amount ($1257.95/mo for 2017, with additional amounts for dependent children or special circumstances.). I was medically retired at 16 years this past June and I elected SBP at time of retirement. Her claim was denied because my father never set up ex-spouse SBP. He received benefits at age 60 he is now 73. When a Social Security beneficiary dies, his or her surviving spouse is eligible for survivor benefits. Denying SBP claims on arbitrary grounds. Im having difficulty imagining a way out of this situation. 5. Kate, Im about to medically retire and have no dependents or former spouse. 3. Incapacitated or disabled children are at any age. For survivors to receive DIC, the death must be related to a service-related injury or disease, or the retiree must have been receiving that VA compensation with a totally disabled rating for at least 10 years prior to the death. https://paycheck-chronicles.military.com/2017/02/01/mailbag-veterans-services-officers/, Yeap! Unfortunately, my mom passed away 6 months later. He did not die first, and so the policy does not make a payment. Thanks! Retiring Military: Should You Choose SBP? My beneficiary has died and I have no other beneficiary. Great question. Former Spouse-and-Child (ren) 6. Do any of them have special needs? I have considered going to the nearest USAF base personnel offices and speak with a SBP knowledgeable officer or NCO. If I do enroll her in the first week when will her SBP coverage commence? All references to third party products, rates, and offers may change without notice. Sorry, I have not taken the time to read all the questions and responses. Any discussion of SBP or insurance should be thinking strongly about the worst-case scenario, and this worst-case scenario cant assume that youll have a long and successful second career. I have put hours into researching for an answer to this question and finally came across your site. TOTAL REDUCTION = $3,730 or $310.83 per month annuity reduction. Ive not known anyone to that has been in your situation but it might be worth applying. Robert, I am sorry to hear about the death of your beneficiary. The Survivor Benefit Plan (SBP) is often the most important decision of your financial life, and it is also probably the most confusing. This provision has specific parameters check with your finance or personnel office for more details as it may apply to your exact situation. About SBP- If annuity payable amount is 55% and base amount is approximately $2350.00 will the monthly spouse cost of $277.00 come out of the approximate payable benefit of $1292.00 if spouse hasnt met the 360 month and 70 year requirement? Since she is getting part of his military retirement she gets her own RAS from DFAS, correct? If that marriage ends , the SBP annuity will resume. These special payments are called Special Survivor Indemnity Allowance (SSIA). She should formally apply for benefits from DFAS using the instructions at this page: https://www.dfas.mil/retiredmilitary/survivors/Retiree-death/sbp.html Let me know what happens! Generally, there are not SBP benefits for adult children, unless they are declared incapacitated by the branch of service (Navy) and listed as a secondary dependent on the retirees dependency record. We have been married the entire time (44years) and I know I never signed any forms giving up my right to his pension when he dies considering he was 10 years older than myself. Just be sure if you do marry or have a child that you make those changes within one year. Complete a DD Form 2656-6 requesting SBP coverage for your spouse, and provide your spouse's name, Social Security Single father retired and divorced. Thank you for your reply. 3. One month later I put my mom in for dic and in January 2018 it was approved. Can you look at your husbands past retiree account statements and see if the SBP premium deductions are reflected there? Your mother should change her income tax withholding via the online MyPay system or by physically mailing an IRS Form W-4P (available at https://www.irs.gov/pub/irs-pdf/fw4p.pdf) to DFAS at Defense Finance and Accounting Service, U.S. Military Annuitant Pay, 8899 E 56th Street, Indianapolis, IN 46249-1300. Do we have to be worried? ***. You have to consider your specific situation. Waiting time on phone is average of 30- 45 minutes. 2 0 obj
Im not sure you will be able to get DFAS to tell you who was covered under your fathers SBP, but I guess it doesnt hurt to ask. 1. Thanks. If I retire (from the ANG) at age 49 and dont begin drawing my (ANG) retired pay until age 60, exactly when do I begin paying premiums to the SBP whether I choose immediate coverage or deferred coverage? Im retired military. Can you help me understand how not making a claim against survivor benefits feels like youve lost money, but a comparable situation (like auto insurance) doesnt feel that way? Survivor: For most widows and widowers, the earliest age of eligibility for survivor benefits is 60 (50 if you are disabled). There is also a little counter at the bottom of the RAS that shows how many months of premiums have been paid. Now if you have already been receiving the DIC payments, youre only going to receive one of the benefits fully unless you elect child only, advisable if your kids are still young but know that it ends after college. SBP coverage for my spouse? I received court ordered 1/2 of retirement military pay from my former spouse. . Tony, please accept my condolences on the loss of your parents. Is it lost? Nancy, great service you are providing. The SBP program costs the federal government. According to statement something was deducted. We were married before he retired and he elected current spouse coverage. Hi Kate, All aspects of spouse SBP apply to same sex marriages. I wouldnt decline SBP because you plan to invest aggressively in the future. The 5 year rule for 100% disabled veterans specifically permits them to fully discontinue coverage if they so desire. Brown, who hired an attorney to help him pursue the issue, said that he's also happy for other affected retirees. The years they were married or the time between their passing? (Theres a whole book in that statement, so be sure that you thoroughly understand the taxability of the proceeds of any insurance policy you purchase.) A surviving spouse or child may receive a special lump-sum death payment of $255 if they meet certain requirements. Obviously, this year has reminded us all how much inflation risk matters. Retired 2010 The chief complaint about SBP is the Dependency and Indemnity Compensation (DIC) offset. SBP will cost me (at least) $585 (6.5% of $9K). Thank you for your explanations- These matters can be so confusing. NOTE: Your spouse will receive 55% of $40,000 for CSRS annuitants when you die and a FERS spouse . Im sure I have other things to ask but that should be a good start! It is possible that you might be able to make a claim for the SBP benefits she should have received between his death and her death. Depending on your husbands medical situation, you may be eligible for Dependency and Indemnity Compensation (DIC) if he pre-deceases you. If your father maintained former spouse coverage on your mother, she may be eligible for SBP benefits. https://www.dfas.mil/retiredmilitary/survivors/Understanding-SBP-DIC-SSIA. It is my understanding this must be filed within one year of the divorce in order to officially initiate the SBP coverage for the former spouse. Unfortunately, one of the reasons SBP is so affordable is that there is no provision for refund of premiums if the beneficiary passes before the retiree. I doubt that youre going to have much luck at your neared USAF base, as most of the folks working there have only a basic level of understanding of the SBP program. Had it been the other way around (e.g., Her SBP was higher than DIC, she wouldnt get the offset, but would get a little bit of SBP and DIC). https://www.dfas.mil/retiredmilitary/about/aboutus/customer-service.html (Youre probably considered an annuitant even though youre not receiving an annuity.) Unlike some other military benefits, only one spouse/former spouse may be covered by SBP at any time, and there are a web of rules regarding changes. Thank you in advance. If you elect SBP coverage, your beneficiaries are fully covered as soon as you retire. 2. Comment * document.getElementById("comment").setAttribute( "id", "abdb2766c9bb6c7b9354065e65ae13d8" );document.getElementById("ef5eefa35b").setAttribute( "id", "comment" ); Notify me of follow-up comments by email. You should present all the facts. It would stop if/when your spouse dies. Excuse my ignorance but my father recently passes away and had SBP. Heres hoping you can clearify this (possibly) unusual situation for me. It takes less than 3 years of SBP benefits to recoup every cent that is paid into SBP even if the service member paid in the entire 30 years before reaching-paid up status, and that assumes that there is no cost of living adjustment in that entire time. Can you change the base amount later once you elect to have SBP at retirement? Itand also applies retroactively to retirees who were previously unable to transfer their benefits after their ex-spouse died. If I begin paying premiums before I begin drawing my retired pay how will SBP/DFAS know what to charge me? My mother is still alive but DFAS says that the word spouse is in the contract and because she is divorced from him and not his spouse she is not entitled to the SBP. Do this by submitting DD Form 2656-1 requesting the conversion of. It seems to me there must be some way to ask the military to prove that you waived SBP, but Im not sure. of service in the Marine Corps. Kate, My mother in law past away and Dad came to live with me. The base amount is chosen at the time of retirement and can not be modified. 1994 and he passed away in 2004. View on Amazon Military Guide to Financial Independence His RAS states No SBP election is reflected on your Account. Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book "A Battle Plan for Supporting Military Families." Good afternoon Ms. Horrell, For long-term income, there are a couple of significant risks to using a lump-sum payout. SBP premiums are only refunded if the survivor is subject to the SBP-DIC offset. I cant even pick which one is bigger. <>
Am I still required to pay until I die or reach the paid-up status? But dont count on what your investments will do in the future. Let me help you keep up-to-date on your military pay and benefits! My question is: If he passes away before me, will I have to pay this, or will they deduct it from my DIC payments, or can we just keep ignoring the bills and just withdraw next year after the 10-yr. mark? Child (ren) Only 3. Both of these contribute to a higher premium and higher annuity benefit than was intended or may be needed. This change affects surviving spouses who are, or who will become in the future, eligible for both Survivor Benefit Plan (SBP) payments and Dependency and Indemnity Compensation (DIC) payments, and who were previously subject to a full or partial SBP-DIC offset. (The numbers vary, and that is rounded.) All opinions are my own, and I only promote products that I use and love! If my retired spouse dies before age 70 and 360 months havent been paid in SBP, am I still eligible to receive it? This information remains here for those transition years and for reference. In your friends case, DIC would completely offset the SBP benefit. If he selected SBP and predeceases you, you will receive benefits at the level selected at retirement for your lifetime. The SBP-DIC offset is being phased out and will be eliminated as of 1 January 2023. /% J9G n`cc Y\ k_\i\ kf gifk\Zk pfli jgflj\ `] pfl i\dXiip% If you lose your spouse and your SBP premiums stop, you will be able to elect SBP to cover a new spouse if you remarry. However, it would be unusual for a beneficiary to be in a higher tax bracket than the covered retiree. As a smart friend says, Life insurance is for when the insured doesnt live as long as youd hope. Accordingly, I am strongly considering a $1M term policy, primarily to handle the mortgage if/when I pass before its paid off. Thank you so much for your help. I dont know of anyone who has dealt with this situation. The Office of Survivors Assistance has prepared a list of the most Frequently Asked Questions (FAQ's) to assist you. I did not know about the offset until his death. This topic is dear to my heart, and I love to help people understand it better. The check just showed up in the mail she told me at first she thought it wasnt real! At this point we are still waiting to hear back from the Army on the extension. I was told that my Father had not informed DFAS of my Mothers passing in 2006 as he was suppose to do. Kate, I have been paying into the SBP for 11 years now. Thats an awful way to live but so is actually running out of money. I am 70. Im unaware of any other situation in which premiums are refunded. Me, I wouldnt sleep well at night with a lump sum of money and the responsibility to make it last and to ensure that its value isnt eroded by inflation. Thank you. Can my child recieved my SBP or just the X, You can designate child only SBP. Without SBP, if the retiree dies, the military retirement stops as well. Once he turns 22, will my SBP monthly payment stop since no one will be eligible any longer? Do not want anything for X or for her to recieved anything from me. My husband never had opportunity to get a retirement plan and now he is almost 50. We live in Central Europe and I want her to have a steady income in the event of my passing. Important note: The SBP-DIC offset is being eliminated over the next few years. I elected full SBP (55%) for my wife on retirement. Directions are located on this webpage: https://www.dfas.mil/retiredmilitary/provide/sbp/payment.html The link to the actual form is not good, but you will have the form number to ask for assistance from the VA. Be sure you understand how the SBP-DIC offset works. We were told at the 5 year mark to call and let them know to stop taking payments out because it had been 5 years. 2.5% of the first $635 ($15.88), plus 10% of the remaining covered amount. Your email address will not be published. Note: The RCSBP annuity is paid until the spouse dies, unless the surviving spouse remarries before age of 55. This category is very helpful for couples who choose not to marry, yet want to provide benefits to their partner. Thank you for helping us military widows to find answers. You can also look at it as if the tax benefits are decreasing the cost of the premiums. Thank you, Shellie. Child born after divorce with another woman. When I elected to buy into the SBP I did it so my wife would continue receiving a portion of my retirement after Im gone. Written documentation regarding the death of FS; A copy of the FSs death certificate; and. My question is Will I receive back pay from June to present day? I have been looking around some websites like DFAS, Military.com, DODWarrior to name a few and have found that upon retirement the spouse has to consent in writing to reduce coverage or elect no coverage, I have not found any paper work showing that my mother made this election nor have I found a SBP election certificate (DD-1883). My original plan was to never pay it. Think of the Survivor Benefit Plan (SBP) as an insurance policy, focused on protecting a survivor's income flow from the military retirement if the retiree dies first. Oh, gosh, what a mess. I am sure the person who sold him on the VGLI didnt explain how the premium would go up dramatically as he got older. However, the Department of Finance and Accounting Services (DFAS) does not change its payments until DFAS is properly notified of the FSs death. I wrote an entire post about the SBP-DIC offset here: Understanding The SBP-DIC Offset. Retirees agree to pay a portion of their retirement pay into their SBP so that, when theydie, the program will payan annuity to their surviving beneficiary based on a portion of the retiree's pay. My parents divorced in 1985. If you could find a comparable insurance policy or annuity, I guarantee you that it would cost many times the cost of SBP. You may choose to purchase or not purchase. What would happen if they do not pay the 360 months? An SBP election only covers retired pay if the insured dies. She can apply to find out if it happened. During retirement - you would now receive $950 each month. tkOkin**k!rJJ2gtR3_y!im x/G06:wzXqhkfy$#3Ndb'TG)yE}O!UTI,o^'8*d4N'R|\$] @A4Dx%FK6rKPm.%k cQDeS ihYey5,a$p[%J-~SRr. Parents married 18 years 1958-1976, Divorced 1976. Any advice would be helpful. Hi Kate. San Antonio, TX Family Law and Military Divorce Blog, When a former spouse (FS) passes away first, how long does it take for the retired servicemember (SM) to recover the FSs share of retired pay? If your wife does pass, and you someday remarry, please know that SBP can be reinstated to cover a future spouse, but that election must be made within 1 year of the remarriage. And if you commit suicide, spouse wont get jack S**t. Eligible Beneficiary Categories. Have you reached out to DFAS for the answer to this question? My question is this. Cancellation requires spousal concurrence just as it did at the time of retirement. In this case, your friends family would only receive SBP payments. since he only receive $150 dollars a month for retirement. (Its just the premiums though, no interest for however many years thats been.). Are you asking if the premiums must continue to be paid if the insured dies? I asked many questions and wrote everything down to the T. 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Premium deductions are reflected there to retirees who were previously unable to transfer their benefits after ex-spouse... Those changes within one year completely offset the SBP premium deductions are reflected there passed away and SBP! To retirees who were previously unable to transfer their benefits after their ex-spouse died person who sold him on VGLI. The extension child recieved my SBP or just the X, you may be eligible for Dependency and Indemnity (! ( the numbers vary, and offers may change without notice you,! The premiums still waiting to hear back from the Army on the extension opinions... Remarries prior to age 55, SBP payments for SBP benefits $ )! No SBP election is reflected on your husbands medical situation, you can designate child only SBP selected... You have no dependents or former spouse coverage on your military pay and benefits affected retirees explain. Change without notice on the extension: your spouse will receive benefits at bottom... 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Before he retired and he elected current spouse coverage right to military retired pay the.