Surviving spouses whose benefits increased last year as part of the phased elimination of the Survivor Benefit Plan-Dependency and Indemnity Compensation (SBP-DIC) offset will see another increase on Feb. 1.

MOAA waged a long fight to end this offset, commonly referred to as the “widows tax,” under which the amount of a surviving spouse’s SBP annuity would be reduced, dollar for dollar, by the amount of their DIC payment.

Language in the FY 2020 National Defense Authorization Act (NDAA) will end the offset by 2023. Here’s the breakdown:

• In 2021, all surviving spouses affected by the change should have seen their SBP offset cut to no more than two-thirds of their DIC payment.
• This year, beginning with their Feb. 1 payment, surviving spouses should see their SBP offset cut to no more than one-third of their DIC payment.
• In 2023, the offset will be removed entirely.

[FROM 2020: MOAA President Reflects on Repeal Becoming Reality] 

All surviving spouses eligible for the Special Survivors Indemnity Allowance (SSIA) will continue to receive that benefit in 2022, according to the Defense Finance and Accounting Service (DFAS). The maximum SSIA benefit is $346 per month for 2022, per DFAS, or equal to the gross SBP amount (if SBP is less than $346 a month).

SSIA will no longer be paid in 2023, when the full offset is removed.

Resources to Know

Surviving spouses affected by this change should have received a letter from DFAS in December with individualized estimates of your upcoming benefit payments. Click here for a sample letter, which includes links for more information on eligibility verification, managing your benefits online, tax statements, and the DFAS Survivor SBP Newsletter.

Beneficiaries with questions about the SBP-DIC changes can contact DFAS at (800) 321-1080. Beneficiaries with questions about their myPay online account can call (888) 332-7411. Surviving spouses interested in more information about MOAA’s advocacy and charitable causes, or in furthering any one of MOAA’s survivor-related advocacy efforts, may be interested in joining MOAA’s Surviving Spouse Virtual Chapter; get more information at this link.