SBP-DIC Offset Elimination: What We Know So Far

   Everyone is asking how the elimination of the Survivor Benefit Plan (SBP)-Dependency and Indemnity Compensation (DIC) offset — colloquially known as the "widows tax" — will affect them and how much money they will get.

    The law just passed, and nothing happens in 2020. This year, lawyers will review and interpret the words. Policies, directives, and regulations will be written. Computer systems will be designed and tested to implement the processes and pay survivors. However, the actual pay implementation will not start until 2021.

    You can count on MOAA to share details as they develop. We will publish information as soon we get the word. To get updates on any developments, make sure you subscribe to The MOAA Newsletter.

   Spouse SBP annuitants subject to the DIC offset won’t see the first change in their payments until the Feb. 1, 2021, payment.

   You do not need to notify your pay agency that your SBP payment is affected by this change in the law. The pay agencies know who you are — they are docking your SBP now.

  See Widows Tax plan