Retirees sometimes treat SBP as a decision they can revisit whenever circumstances change. It is closer to a single election: the choice is normally locked within 90 days of retirement, and Congress has opened enrollment only twice in two decades, most recently December 23, 2022 through January 1, 2024. Understanding what the election buys, and what declining it costs, matters most before the window closes.
Why this article exists
The Survivor Benefit Plan, SBP, is a Department of Defense annuity that pays a surviving spouse (or other eligible beneficiary) a portion of the retiree's military retired pay after the retiree dies. Most retirees decide whether to enroll within 90 days of retirement. After that, the chance to enroll is closed except during a narrow open enrollment window that Congress opens once every decade or so.
The most recent open enrollment was December 23, 2022 through January 1, 2024 (Section 643 of the FY2023 National Defense Authorization Act). The next one is not yet scheduled.
This article walks through what SBP is, who can join during open enrollment, how the cost works, what the surviving spouse actually gets paid, and what happens when the retiree dies.
This is educational. It is not financial advice. For your specific situation, work with DFAS Retired and Annuitant Pay or with a fee-only financial planner who is fluent in military benefits.
What SBP is, in one paragraph
SBP is a life insurance for the military pension. The retiree elects to pay a monthly premium (deducted from retired pay) in exchange for the surviving spouse receiving 55 percent of the retiree's selected SBP base amount each month after the retiree dies. The base amount can be the full retired pay or a smaller dollar figure the retiree picks.
Source rules:
- 10 USC 1447 to 1455 (10 U.S.C. Chapter 73, the SBP statute)
- DoD Financial Management Regulation, Volume 7B, Chapter 43 (DoD implementing rules)
Who can elect during open enrollment
Open enrollment lets retirees enroll if they were previously not enrolled, or step up their existing coverage, during the open enrollment window. The 2022 to 2024 open enrollment, the most recent, was the first one since 2005. There is no SBP open enrollment as of 2026, but Congress periodically schedules them.
Retirees who joined during open enrollment owed a one time buy in premium equal to the premiums they would have paid from their first opportunity to enroll (payable as a lump sum or in monthly installments), plus the normal monthly SBP premium going forward. This is meant to discourage adverse selection.
How the cost works
The SBP premium for spouse-only coverage is 6.5 percent of the chosen base amount, deducted from retired pay monthly. The premium pre-funds the post-retirement annuity. Premiums stop after the retiree pays for 30 years AND reaches age 70, at which point coverage is "paid up" but stays in effect for life.
For a retiree with $3,000 in monthly retired pay who picks the full retired pay as the base amount, the math is:
- Monthly premium: $3,000 x 6.5 percent = $195 per month
- Surviving spouse monthly annuity after the retiree dies: $3,000 x 55 percent = $1,650 per month (taxable to the survivor)
The retiree can also elect a lower base amount, which lowers both the premium and the resulting annuity. The base amount cannot be less than $300 per month.
How the surviving spouse claim works
When the retiree dies, the surviving spouse (or other beneficiary) files with DFAS Retired and Annuitant Pay. Required documents typically include the death certificate, marriage certificate, and the retiree's date of birth and full Social Security number. The first SBP annuity payment usually arrives within 30 to 60 days of DFAS receiving a complete claim.
The SBP annuity is paid by DFAS, not VA. It is taxable. It is paid for the life of the spouse unless the spouse remarries before age 55 (the same age-55 rule that applies to VA DIC), in which case payments stop unless the new marriage ends.
How SBP interacts with VA DIC
For decades, when a surviving spouse was eligible for both SBP and VA DIC, the SBP annuity was reduced dollar-for-dollar by the DIC amount. This was the SBP-DIC offset. It is fully repealed effective January 1, 2023. As of 2023, the surviving spouse collects both SBP and DIC in full, with no offset.
If the retiree's spouse is also receiving the Special Survivor Indemnity Allowance (SSIA), note that SSIA was sunset when the offset was fully repealed. The full SBP annuity replaces what SSIA was patching.
How to decline SBP at retirement
A married retiree who wants to decline SBP coverage altogether at retirement must:
- Get the spouse's written, notarized concurrence (10 USC 1448(a)(3)).
- Sign the SBP declination form before retiring.
A retiree who does not get spousal concurrence is automatically enrolled at the full retired pay base amount.
Common misunderstandings
- SBP is not the same as life insurance. SBP pays a monthly annuity, not a lump sum. SGLI and VGLI are the life insurance products that pay lump sums.
- SBP is not part of the VA benefits system. SBP is paid by DFAS from the DoD retired pay system. It is enrolled and managed at retirement, not after.
- SBP open enrollment is not annual. The 2022 to 2024 window was the first since 2005. There is no guaranteed next open enrollment.
- Children can be SBP beneficiaries instead of a spouse, but the rules around child-only coverage and spouse-and-child coverage are different. Most retirees pick spouse-only.
Where to apply
- Active duty SBP enrollment is part of the retirement paperwork process.
- SBP claim after retiree's death: contact DFAS Retired and Annuitant Pay directly.
- For the most recent open enrollment paperwork, contact DFAS or the relevant service branch retirement office.
Sources
- 10 USC 1447 to 1455 (10 U.S.C. Chapter 73, the SBP statute)
- 10 USC 1448(a)(3) (spousal concurrence)
- Section 643 of the FY2023 National Defense Authorization Act (2022 to 2024 open enrollment)
- DoD Financial Management Regulation, Volume 7B, Chapter 43
- DFAS Retired and Annuitant Pay, SBP page
SBP-DIC offset, phased repeal timeline
Common questions
What is the Survivor Benefit Plan?
SBP is a Department of Defense annuity, not a VA benefit. A military retiree pays a monthly premium deducted from retired pay, and after the retiree dies the surviving spouse (or other elected beneficiary) receives 55 percent of the elected base amount each month for life. It is paid by DFAS and is taxable to the survivor.
When was the last SBP open enrollment?
The most recent open enrollment ran from December 23, 2022 through January 1, 2024 under the FY2023 National Defense Authorization Act, the first window since 2005. No new open enrollment is scheduled as of 2026, but Congress opens one periodically. Outside a window, the enrollment decision is generally locked in within 90 days of retirement.
How much does SBP cost the retiree?
The spouse only premium is 6.5 percent of the chosen base amount, deducted from retired pay each month. Coverage becomes paid up once the retiree has paid premiums for 30 years and reached age 70, after which the protection continues for life with no further premium.
Does DIC still reduce the SBP annuity?
No. The dollar for dollar SBP-DIC offset was fully repealed effective January 1, 2023, so a surviving spouse collects both SBP and DIC in full. The Special Survivor Indemnity Allowance, which patched the old offset, sunset when the repeal completed.