What Is DFAS Annuity Pay for Military Survivors?

DFAS annuity pay for military survivors is the monthly Survivor Benefit Plan (SBP) payment the Defense Finance and Accounting Service sends to the eligible survivor of a deceased service member or military retiree. The payment can reach 55 percent of the retiree’s covered retired pay and continues for life, subject to a few eligibility rules. To start receiving it, you report the death to DFAS, file a verification form, and submit supporting documents.¹

How Much the Annuity Pays

The monthly annuity equals 55 percent of the “base amount” the retiree elected when enrolling in SBP.² Under full coverage, the base amount is the retiree’s entire retired pay, so the survivor receives 55 percent of that full retirement check. A retiree could also choose a reduced base amount, which lowers the eventual annuity.

Active-duty deaths work differently. Coverage is automatic at the maximum level and cannot be reduced.³

Payments receive annual cost-of-living adjustments tied to the Consumer Price Index, so the amount rises with inflation over time.⁴ A COLA is never negative; in a year when prices fall, the adjustment is simply zero.

Who Qualifies to Receive Payments

Surviving Spouses

Surviving spouses are the most common beneficiaries. When a service member is married at retirement, spouse coverage is automatic unless the member opts out with the spouse’s written consent.⁵

Remarriage matters. If a surviving spouse remarries before age 55, DFAS suspends the annuity. If that later marriage ends by death, divorce, or annulment, payments resume on the first day of the month the marriage ends.⁶ Remarriage at age 55 or older has no effect; the annuity continues uninterrupted.⁷

Former Spouses

A former spouse can receive the annuity when the retiree voluntarily elected former-spouse coverage or when a divorce-related court order requires it. Electing former-spouse coverage blocks a current spouse and that spouse’s children from being covered.⁸

Dependent Children

Dependent children qualify if the retiree elected child coverage or the spouse beneficiary dies or becomes ineligible. A child is eligible while unmarried and under 18, or under 22 if enrolled full-time in a recognized school.⁹ When more than one child qualifies, they split the annuity in equal shares.

A child who cannot support themselves because of a mental or physical disability remains eligible for life, as long as the disability existed before age 18, or before age 22 if the child was a full-time student then.⁶ Payments for a disabled child can also be directed into a special needs trust set up for that child’s sole benefit.

Reporting the Death to DFAS

Nothing moves until DFAS knows the retiree has died. Reporting the death also stops retired pay, so DFAS does not later have to recoup overpayments. Three ways to report:¹⁰

Online through the askDFAS Notification of Death form, available at any hour.
By phone at 1-800-321-1080, Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern.
By fax or mail, though online and phone are faster.

Have the retiree’s full name, Social Security number, and date of death ready. A surviving spouse should also have the date of marriage.

Documents You Need to File

After the death is reported, gather the paperwork that formally opens the annuity claim:

A copy of the death certificate showing cause of death. For an active-duty death, also provide the DD 1300 Report of Casualty.¹¹
DD Form 2656-7, Verification for Survivor Annuity. This is the main application. It collects your personal information, your relationship to the deceased, and direct deposit details.¹²
IRS Form W-4P to set federal income tax withholding on the annuity.
SF 1174, Claim for Unpaid Compensation, to collect any retired pay owed at the time of death (called “arrears of pay”). This is generally a one-time payment covering the prorated final month.¹³

The DD Form 2656-7 requires Social Security numbers for the claimant and, if applicable, for each child under 23 and any incapacitated child.¹² Accurate routing and account numbers are essential to avoid payment delays. Forms are available on the DFAS website.

Where to Send the Claim and How Long It Takes

Send your completed package to:¹⁴

Defense Finance and Accounting Service
U.S. Military Annuitant Pay
8899 E 56th Street
Indianapolis, IN 46249-1300

You can also fax documents to 800-982-8459 or upload them through askDFAS, which usually confirms receipt faster.¹⁵

With a complete package, DFAS can typically process the claim within 60 days.¹⁶ Unsigned forms, missing documents, or blank fields extend the timeline. DFAS writes to you if it needs more information or once the claim is approved, and the first payment includes any amount owed retroactively from the date of death.

SBP Alongside VA Dependency and Indemnity Compensation

If your spouse died from a service-connected cause, or was rated totally disabled by the VA for a qualifying period before death, you may also qualify for Dependency and Indemnity Compensation (DIC) from the VA. The basic DIC rate for a surviving spouse is $1,699.36 per month as of December 2025.¹⁷

DIC used to reduce SBP dollar for dollar, so many survivors received little SBP after the offset. Congress repealed that offset in the National Defense Authorization Act for Fiscal Year 2020 and phased it out. As of January 1, 2023, the offset is fully eliminated, and surviving spouses receive both SBP and DIC in full.¹⁸ The related Special Survivor Indemnity Allowance is no longer paid, since there is no offset left to compensate for.

To qualify for DIC, you generally must have been married to the veteran for at least one year (or had a child together) and must show the death was service-connected or that the veteran held a qualifying total disability rating.¹⁹ DIC is applied for through the VA, not DFAS.

Taxes on the Annuity

SBP annuity payments are subject to federal income tax. DFAS withholds based on what you put on Form W-4P, and you can change your withholding any time through myPay or by submitting a new W-4P to DFAS by mail or fax.²⁰

Every January, DFAS issues an IRS Form 1099-R reporting the annuity income paid to you during the prior year.²¹ You use this to file your federal return, and duplicates are available through askDFAS.¹⁵

State treatment varies. Some states fully exempt military survivor annuities, some offer partial exemptions tied to age or income, and others tax the payments as ordinary income. Check your state’s current rules or ask a tax professional.

Keeping Payments Coming After You’re Approved

Annual Marital Status Verification

Since August 2023, the Survivor Benefit Plan–Marital Status Update (SBP-MSU) has replaced the former Certificate of Eligibility as the annual verification form.²² DFAS mails it three months before your birthday, and you must return the completed form by the first day of your birth month.⁷ The SBP-MSU applies to spouse and former spouse annuitants under 55, child annuitants ages 14 through 17, and annuitants with a court-ordered legal representative. Miss the deadline and DFAS suspends payments until you send it in.

Report any change in marital status right away. Remarriage before age 55 suspends payments, and payments can restart later if that marriage ends. Updates can go by mail, fax, or the askDFAS upload tool.

School Certifications for Student Annuitants

Child annuitants ages 18 through 22 have to certify full-time student status each year. DFAS mails a school certification package with DD Form 2788 and a pre-filled letter confirming previous attendance.⁹ DD Form 2788 covers the upcoming school year unless the student drops below full-time, graduates, or marries, and the form itself may require a separate certification for each term.²³

Report any drop below full-time enrollment, withdrawal, or marriage immediately. Continuing to accept payments after eligibility ends creates a debt the government will collect.

Direct Deposit and Account Changes

Update banking through myPay online; changes typically post within three to seven business days.²⁴ Log in, select Direct Deposit, and enter the new routing number, account number, and account type. Address updates, tax withholding, and other account details can be handled the same way, or by sending the appropriate forms to DFAS.

1
Defense Finance and Accounting Service. Survivor Benefit Plan
2
Office of the Law Revision Counsel. 10 U.S. Code 1451 – Amount of Annuity
3
Department of Defense. DoDI 1332.42 – Survivor Benefit Plan
4
Military Compensation and Financial Readiness. Retirement Cost of Living Adjustments (COLA)
5
Office of the Law Revision Counsel. 10 U.S. Code 1448 – Application of Plan
6
Office of the Law Revision Counsel. 10 U.S. Code 1450 – Payment of Annuity: Beneficiaries
7
Defense Finance and Accounting Service. How Remarriage Before Age 55 Affects SBP Eligibility
8
Military Compensation and Financial Readiness. Survivor Benefit Program Former Spouse Coverage
9
Defense Finance and Accounting Service. School Certifications
10
Defense Finance and Accounting Service. Report a Retirees Death
11
Defense Finance and Accounting Service. How-To Checklist for the DD Form 2656-7
12
Department of Defense. DD Form 2656-7 – Verification for Survivor Annuity
13
Defense Finance and Accounting Service. How to Claim Retiree AOP Using the SF1174
14
Defense Finance and Accounting Service. Customer Service
15
Defense Finance and Accounting Service. Manage Your SBP Annuity
16
Defense Finance and Accounting Service. Retired and Annuitant Pay Processing: How Long Does It Take?
17
U.S. Department of Veterans Affairs. Current DIC Rates for Spouses and Dependents
18
Defense Finance and Accounting Service. SBP DIC News
19
U.S. Department of Veterans Affairs. About VA DIC for Spouses, Dependents, and Parents
20
Defense Finance and Accounting Service. Federal Income Tax Withholding
21
Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
22
DoD 7000.14-R Financial Management Regulation. Volume 7B, Chapter 46
23
Defense Finance and Accounting Service (DFAS). DD Form 2788, Child Annuitants School Certification
24
Defense Finance and Accounting Service. Direct Deposit