July 17, 2009 • June Walbert
Q: I was married to my ex-spouse for over 30 years and during the time of the marriage I enrolled in the Survivors Benefit Plan. I had put a lot of money into it and I then got divorced in 2008. At that point, I stopped paying in and the divorce decree states my ex is not to have the SBP. I remarried in 2009 and would like to carry my current spouse is that possible? Would the amount that I paid in still be there when and if I can add my new spouse?
-Pete, Longview, Wash.
A: As I’ve noted here several times, I’m a big fan of SBP. And Defense Finance and Accounting (DFAS) is pretty flexible when it comes to that benefit in regards to divorce and marriage. I’m glad to hear you are keenly interested in covering your spouse with SBP. So what you should do is immediately notify DFAS that you have remarried. If you do nothing, after a year, she’ll automatically be covered based on your original elections. If you would like to change the coverage you had before you suspended it back in 2008, you must do this before your first wedding anniversary. Otherwise your old coverage and premiums will automatically apply after one year of marriage to your new wife. You can contact DFAS at 800-321-1080. Check out the related Q&A at the DFAS website
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I am wondering how Pete was able to avoid his ex-spouse getting the SBA benefit as former spouse.....There is a case in Oklahoma that has been going on for over two years and that is one thing that is being disputed. She wants it along with retirement based on his future retirement pay and rank, not his current at the time they seperated. Any insights or leads would be greatly appreciated.
Posted by: Susan | July 23, 2009 at 06:10 PM
Your information regarding the SBP annuity is correct however...people need to be aware that if for any reason they should die from a military related illness or injury, and their spouse is eligible to receive DIC, the amount of the SBP payment will be offset by the amount of the DIC payment. In most cases, they will lose the entire SBP annuity.
We are fighting this year, as we have been for the past 7, to have this offset eliminated. On July 21, the senate passed a special amendment to a bill introduced by Senator Nelson this year. It now goes to conference and if it makes it out of conference, it will go to the house for a vote. Currently we have 266 cosponsors to HR 775 and we are trying to convince the remaining 134 to cosponsor. This is where it usually fails...they say there is no money... Our answer to them is... it is a cost of war so find the money. If Washington can bail out banks, and automakers, then there should be money for the military survivors who have already lost our spouses. We shouldn't have to lose the money they thought they put away for our future, in case they died before us.
There are between 54,000 and 57,000, widows and widowers, that are affected by this offset. The average amount forfeited by survivors is around $1100 a month.
As you know, SBP is money is taken from retirement checks on a voluntary basis. It is an insurance policy for survivors. DIC is a payment for a military (war) related death. One has nothing...or should have nothing, to do with the other.
You could help thousands of military members and their families by letting them know that there help is needed if we are to get this passed this year. If it happened to us, it can happen to them as well.
As a member of Gold Star Wives, and Surviving Spouses Legislative Issues, we are asking that they contact their legislators and ask them to support us. We need to end the SBP/DIC Offset.
Sincerely,
Marianne Stringer (widow of)
Thomas E. Stringer Ret. CWO3 Coast Guard
Posted by: Marianne Stringer | July 23, 2009 at 05:27 PM