Heard About the Survivor Benefit Plan-Dependency Indemnity Compensation Court Case Win?

Nov 02 2009

In August, three widows won their court case against the Feds to have both their SBP and DIC paid in full. Before you start to celebrate, you need to hear the rest of the story…

This case specifically related to the law that allows widows who remarry after age 57 to keep their DIC benefits. Their case argued that the wording of the law that allows continued DIC after age 57 and remarriage also mandates full payment of both SBP and DIC. This specific provision of the law bars offsets from any “veterans’ benefits.” While the Feds argued that SBP is not a “veterans’ benefit” because SBP is paid by DOD and not the VA, the courts didn’t buy it.

So the bottom line is that if you are eligible for both SBP and DIC and you remarried after age 57, you will receive both survivor payments without offset.

If you meet these criteria, the DOD is in the process of identifying you. Once identified, you will receive full payment of both SBP and DIC retroactive back to 2004 or the date of your remarriage, whichever is later. Payments will be reduced by any SBP premium refunds or Special Survivor Indemnity Allowance (SSIA) you have received.

As for the rest of you, you will continue with an offset of your SBP. On the bright side, this ruling, along with the SSIA legislation, provides a compelling reason for the elimination of the SBP-DIC offset. How can the Feds think one group of survivors should have offsets while another group doesn’t?

4 responses so far

4 Responses to “Heard About the Survivor Benefit Plan-Dependency Indemnity Compensation Court Case Win?”

  1. Pamon 05 Nov 2009 at 9:27 pm

    I know this has been a long tough battle, this is great news for those that this applies too. However; there a still many of us that have not remarried. This victory along with the SSIA I hope will serve as a call to the legislators that this offset has to be repealed for all of us.

  2. Andrew Pincsakon 02 Mar 2010 at 12:50 am

    My wife died in 2005. I have 4 children. I was sick shortley after wife died and I was in Medical class action lawsuit. 3 years went by before I was told by IRS agent Im eligible to file
    survivor benifits for my wife and children. At time age 10-15
    Can I appeal for hearing to get retro back to time she died.
    Why is the policy dont ask(Me) dont tell(Feds)
    this is not fare for me to struggle on 1 income 3 years when I could have helped my children. I lost the 225$ and 3 years of
    315$ each for 4 kids. I worked 2 jobs during that time and
    Type II Diabetes took its tole.
    Do I have a fight or does my wife working and death mean
    Nothing.
    Thanks,
    Andrew Pincsak
    Need Help
    PS: total loss $58,000

  3. Shane Ostrom, CFP®on 03 Mar 2010 at 6:42 pm

    Was your wife military? Was her passing while on active duty? Was she deployed? Shane Ostrom, MOAA

  4. Suzanne Crosbyon 24 Mar 2010 at 3:35 pm

    Where can I go to read more on this court case?

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