Jan. 12, 2022 —
SBP-DIC Offset Phased Elimination News: January 1, 2022 begins Phase Two of the SBP-DIC Offset Phased Elimination.
In 2022, surviving spouse SBP annuity payments issued by PPC will be reduced (offset) by no more than one-third of the amount of DIC (issued by the VA).
This change in the law does NOT affect your DIC payments. You will continue to receive your normal DIC payments from the VA.
Phase Two changes will begin with your SBP annuity payment made on February 1, 2022.
The National Defense Authorization Act (NDAA) for Fiscal Year 2020 changed the way that Survivor Benefit Plan (SBP) annuity payments are reduced (off-set) by the receipt of VA Dependency and Indemnity Compensation (DIC). There is no change in 2020 but beginning in 2021, the off-set will be reduced to 2/3rd's of the DIC amount. In 2022, the off-set will be reduced to 1/3rd of the DIC amount and the off-set will be totally eliminated in 2023.
PPC is now working now to review the change and making plans for implementation. In the meantime, please ensure that your contact information (address, email, and phone number) are up to date at the PPC.
Related Information from the Department of Defense