Posted on Apr 21, 2023
Can DFAS enroll me into Survivor Benefit Plan (SBP) even if I declined?
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I need the communities help in resolving a survivor benefit plan (SBP) issue. When I retired, my wife and I declined the SBP plan it was also signed and notarized . This document was then faxed to DFAS by the transitioning office. A month letter I noticed that SBP was withdrawn after I left service. I called DFAS and they said that the faxed document did not show the notary stamp. I used the retirement services and resent the document followed up to ensure they got it and the seal was legible. It has been over 8 months and DFAS insists that they are sticking with their initial assessment and that I should go through the Army corrections board to have it fixed. This only adds more months to the process in the mean time DFAS is refusing to place a hold on the SBP until the issue is resolved. Also I am not even sure if DFAS will refund the money. What further action can I take?
Posted in these groups: DFAS
Retirement
Military Pay
The Retired Enlisted Association (TREA)
Military Benefit Association
Retirement Military Pay The Retired Enlisted Association (TREA) Military Benefit Association
Posted >1 y ago
Responses: 3
I suggest you do both.
The 2023 NDAA allowed one of those rare open seasons for SBP enrollment and disenrollment. The period goes through until January 1, 2024.
You can disenroll now* and that will stop your payments while you go though the ABCMR.
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* https://www.dfas.mil/RetiredMilitary/provide/sbp/SBP-Open-Season-NDAA2023/#Discontinue
The 2023 NDAA allowed one of those rare open seasons for SBP enrollment and disenrollment. The period goes through until January 1, 2024.
You can disenroll now* and that will stop your payments while you go though the ABCMR.
-------------------------------------------------------
* https://www.dfas.mil/RetiredMilitary/provide/sbp/SBP-Open-Season-NDAA2023/#Discontinue
SBP Open Season NDAA2023
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1SG (Join to see)
Thank you Sir. It’s funny that DFAS also suggested that I do congressional inquiry to something that they can easily fix.
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COL Randall C.
1SG (Join to see) - I would be remiss if I didn't ask you, "Are you sure you want to do this"? There are situations where the answer is "Yes, I'm sure", but frankly they are very few when compared to continuing it when looking at it holistically if something happens to you.
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1SG (Join to see)
COL Randall C. Sir, in short,’Yes’. I already have private insurance that is much cheaper and less red tape to deal with.
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SFC Dan Thomsen
What frustrates me is someone telling you you need your congressman to do what the military should do on it's own. I would right a Memorandum to the Chief at DFAS for retiree's and let them know what your issue was and that you were told to do a congressional instead of the persons you reached out to finding the people and way you go about addressing it. Always back to doing the Hard Right over the Easy Wrong.
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Why do you not want the SBP? My brother declined it because he wanted as much money up front as he could get. He passed last year and his wife is now living on $1,400 a month which is his social security amount (it was higher than hers). If he had selected SBP when he retired, she would be getting another $2,800 per month. I selected SBP and my wife and I both selected the same option from out civilian jobs. Now, whichever one of is left will be able to continue our current lifestyle.
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You both understand that this screws you wife out of all your pension money when you die right Top!
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1SG (Join to see)
The SBP is risk management a not a one size fit all program. It’s not about screwing but rather making a wise decision for my circumstances. If the plan is working for you and gives you ease of mind that’s great but it does not meet my situation.
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MAJ Byron Oyler
1SG (Join to see) - I was not a fan of the SBP and almost declined it. Who gets screwed is if the SM outlives the spouse and you do not see a dime of that back. We should all be contacting our congressional reps to change this. The one thing that put me over the top to do it is the difference between it and insurance. Insurance money can run out but the $2100 SBP my wife would get a month will not run out and will at a minimum pay the mortgage. My $300K life insurance will take care of other things.
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1SG (Join to see)
MAJ Byron Oyler thank you for your feedback. My mortgage is paid off and we are financially stable plus I have higher term life insurance for the fraction of the cost. If I outlive the term insurance then that’s the risk we take. If I don’t then, I know the amount covered by the term insurance will last much longer without any red tape on who can benefit that amount since it is paid in lump sum. SBP however stops if my spouse also kicks the bucket and who knows how much longer she will leave after me. This isn’t a knock on SBP, I think it’s a good program but it does t cover all the needs. I rather have the lump sum which gives me more options on how and when I want to use the money. The SBP may pay off monthly bills but lump sum can buy and pay off a new house. I can even invest portion of to my kids education fund.
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MAJ Byron Oyler
1SG (Join to see) - It sounds like you know what you are doing and most important, comfortable with your decision.
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