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Pay & Personnel News Updates from our Branches

SBP-DIC Offset Elimination News


Congress enacted changes to the Survivor Benefit Plan (SBP) that, in 2023, will fully eliminate the offset (reduction) to SBP annuity payments for surviving spouses who are also receiving Dependency and Indemnity Compensation (DIC) from the Department of Veterans Affairs (VA). 

**Please note the change in the law does NOT affect the amount of DIC you receive from the VA. You should continue to receive your full DIC amount from the VA. **

**First payday for the final phase of the SBP-DIC Offset Phased Elimination is February 1, 2023**

What Happens in 2023

**First payday for the final phase of the SBP-DIC Offset Phased Elimination is February 1, 2023**

Beginning on February 1, 2023, surviving spouses will receive their full Survivor Benefit Plan (SBP) payment from USCG and their full Dependency and Indemnity Compensation (DIC) payment from the VA. This is because February 1, 2023 will be the first SBP annuity payday after the SBP-DIC Offset is fully eliminated, which takes effect January 1, 2023. 

The Special Survivors Indemnity Allowance (SSIA) will no longer be paid after the January 3, 2023 payment, because SSIA is only paid to spouses who have their SBP payment offset by DIC. 

As a reminder, the SBP-DIC Offset Phased Elimination only affects SBP payments issued by USCG. The changes do NOT affect Dependency and Indemnity Compensation (DIC) payments from the VA. Eligible surviving spouses will continue to receive the full amount of DIC from the VA.

Please keep in mind that the SBP payment you receive on January 3, 2023 is for your December entitlement, which will include the 2023 Cost of Living Adjustment (COLA). It is NOT the first payment with the elimination of the Offset. That payment will be made on February 1, 2023.