The Defense Finance and Accounting Service handles military retired pay, Survivor Benefit Plan (SBP) annuities, and arrears of pay for deceased military retirees and active duty service members. When a military retiree dies, DFAS must be notified to stop retired pay and begin processing survivor benefits.

Death notification

When a military retiree dies, the surviving spouse or family member should notify DFAS as soon as possible. The quickest method is the online askDFAS Notification of Death form, available 24/7 at https://www.dfas.mil/RetiredMilitary/Quick-Tools-for-Retirees-SBP-Annuitants-Survivors/ under "To Report the Death of a Retiree." You can also call DFAS at 1-800-321-1080 or 1-317-212-0551 during business hours. A retiree's entitlement to retired pay ends on the date of death, and DFAS will stop making monthly payments once notified. If DFAS is not notified promptly, overpayments deposited after the date of death must be reclaimed from the bank in full. For active duty deaths, the Casualty Assistance Officer handles the notification. DFAS does not automatically receive death reports from Social Security or the VA.

Deadline: As soon as possible; retired pay received after death must be returned

Survivor benefits

The DFAS offers 3 benefits for surviving family members.

Survivor Benefit Plan (SBP) Annuity

Monthly annuity paid to the surviving spouse or eligible dependent children of a military retiree who enrolled in the Survivor Benefit Plan. SBP pays 55% of the retiree's selected base amount. SBP is automatic at retirement unless the spouse consents in writing to reduced or no coverage.

Amount: 55% of the retiree's SBP base amount

Arrears of Pay

Any retired pay earned but not yet paid at the time of death is paid to the surviving spouse or designated beneficiary. This includes the final partial month of retired pay from the 1st of the month through the date of death.

Amount: Prorated retired pay from the 1st of the month through date of death

Unpaid Retired Pay Balance

If the retiree was owed any back pay, bonuses, or travel reimbursements at the time of death, DFAS pays the balance to eligible survivors or the estate.

Amount: Varies based on amounts owed

Forms

DD Form 2656-7Verification for Survivor Annuity

Filed by a surviving spouse or beneficiary to begin Survivor Benefit Plan (SBP) annuity payments after the death of a military retiree.

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When someone dies

Notifying the DFAS after a death

6-step process, 8 required documents, and 3 survivor benefits.

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Frequently asked questions

Yes. Public Law 116-92, the National Defense Authorization Act for Fiscal Year 2020, enacted a phased elimination of the SBP-DIC offset. As of January 1, 2023, the offset has been fully eliminated. Surviving spouses who qualify for both SBP and DIC now receive the full amount of each benefit without any reduction.

If the retiree declined SBP coverage at retirement (with the spouse's written consent), the surviving spouse does not receive an SBP annuity. However, the surviving spouse may still be eligible for arrears of pay and any unpaid balances owed to the retiree.