Posted on Apr 26, 2015
Change in DFAS "interpretation" of SBP for divorced/remarried Veterans affect you?
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I'm guessing this doesn't affect many of us, but the manner in which DFAS adjusted their interpretation is troubling at least. In essence, those divorced retirees with a "former spouse" election on SBP can no longer transfer the SBP benefits to a subsequent spouse should the ex-spouse pre-decease the veteran. What are your thoughts? Are there other "interpretations" they've changed we don't know about?
http://www.militarytimes.com/story/military/benefits/2015/04/20/dfas-sbp-interpretation-former-spouse/25826965/
http://www.militarytimes.com/story/military/benefits/2015/04/20/dfas-sbp-interpretation-former-spouse/25826965/
Posted in these groups: 
Retirement
Benefits
Retirement Benefits
Posted >1 y ago
Responses: 7
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Thanks for putting this out to the community. I need to make some phone calls and make sure my current wife is the actual recipient of my SBP bennies. If my ex discovers a glitch in the system because of these changes, I'm a dead man.
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MAJ Ken Landgren
Let's take a simple look $300 X 12 months X 20 years is $72,000. If this is true then we need to rally to change this. That is some serious bucks they are trying to steal.
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New Survivor Benefit Policy . . . Who Knew? | RallyPoint
For decades, DFAS had allowed the transfer of SBP benefits to a new spouse if a former spouse died before the retiree. But, in 2013, DFAS --- with no public notice --- changed the way it interprets the law governing SBP. With the change, retirees are no longer automatically allowed to transfer the benefits. Were you aware of this change?...
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Lt Col Fred Marheine, PMP
All I can say is I did search to try and see if it was already posted...I'm sure our intrepid member admins will soon merge the two. Thanks for pointing it out.
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GySgt Wayne A. Ekblad
Lt Col Fred Marheine, PMP
No problem! I am actually wondering why it didn't/doesn't show up as a similar discussion --- maybe it has something to do with the tags I used vs. what you used. Who knows ...
No problem! I am actually wondering why it didn't/doesn't show up as a similar discussion --- maybe it has something to do with the tags I used vs. what you used. Who knows ...
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Thank you for letting us know. I hope to stay married, but if some issue happens it is good to know I would need to make these changes.
I agree with MAJ Ken Landgren that this is a scheme to cheat retiree spouses out of money actually invested. Watch for the Government to try this with Social Security at some point with the same goal of cheating people to save money.
I agree with MAJ Ken Landgren that this is a scheme to cheat retiree spouses out of money actually invested. Watch for the Government to try this with Social Security at some point with the same goal of cheating people to save money.
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Lt Col Fred Marheine, PMP
Agree the change explicitly and expressly benefits the government by denying the veteran a benefit they have paid for (or continue to pay for if not yet 'paid up'). It's reasonable for the Government to require the veteran to take action within a certain timeframe after the Ex dies to make the switch, but denying it at all amounts to theft in my opinion.
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