SBP / Medical retirement/VA Disability

You are likely eligible to discontinue your Survivor Benefit Plan (SBP) premiums due to your 100% permanent and total (P&T) VA rating, which would increase your monthly retirement pay, but the benefit amount for your spouse is based on your original retired pay. Under Public Law 96-402, codified in 10 U.S.C. 1452, a retiree with a VA total disability rating for five continuous years can withdraw from SBP with the written consent of the beneficiary; you became eligible in 2023 (five years after your 2018 100% rating). The SBP annuity your spouse is entitled to is calculated as 55% of your "base amount," which is a portion of your retired pay you elected at retirement (e.g., 55% of $1,000 = $550 monthly). To proceed, you must submit a **DD Form 2656-2 (Survivor Benefit Plan (SBP) Termination Request)** along with your spouse's notarized consent and proof of your VA 100% P&T rating to DFAS. Importantly, if you are receiving Concurrent Retirement and Disability Pay (CRDP), which restores your full retirement pay due to your VA waiver, discontinuing SBP will increase that restored amount. However, if you pass away, your spouse would lose the SBP annuity but would be eligible for Dependency and Indemnity Compensation (DIC) from the VA under 38 CFR 3.5, which is often more beneficial but may involve an SBP-DIC offset. You should contact DFAS for your exact base amount and consult a VSO or attorney to analyze the financial impact for your family. *This information is for educational purposes and is not legal, financial, or benefits advice.*