SBP/DIC Offset Repeal Introduced

SBP/DIC Offset Repeal Introduced

Senator Nelson (Fla.) introduced legislation (S. 339) and Congressman Joe Wilson (S.C.) introduced identical legislation in the house (H.R. 846) that repeals the SBP/DIC Offset for survivors, sometimes referred to as the “Military Widows Tax.”

Survivor Benefit Program (SBP) and Dependency and Indemnity Compensation (DIC) payments are paid for different reasons. SBP is purchased by the retiree and is intended to provide a portion of retired pay to the survivor. DIC is a special indemnity compensation paid to the survivor when a member’s service causes his or her premature death. In such cases, the VA indemnity compensation should be added to the SBP the retiree paid for, not simply substituted. It should be noted as a matter of equity, that surviving spouses of federal civilian retirees who are disabled veterans and die of military-service-connected causes can receive DIC without losing any of their federal civilian SBP benefits.

Members are urged to use the FRA Action Center to ask their legislators to support this important legislation. 

Disclaimer: The opinions expressed within this article are the views of the writer and do not necessarily reflect the views and opinions of FRA.

Latest News

Take Action

Legislative Issues