Revised February 3, 2011
XIII.ii.5.B.1.aRequirements for Discontinuing Participation in the SBP
Public Law (PL) 96-402 , enacted October 9, 1980, allows a uniformed service retiree to discontinue participation in the Survivor Benefit Plan (SBP) if they have a service-connected disability rated by the Department of Veterans Affairs (VA) as totally disabling for
- 10 or more years, or
- continuously for a period of not less than 5 years from the date of discharge.
Upon receipt of a retiree’s request to withdraw from SBP under PL 96-402 , the Defense Finance Accounting Service (DFAS) contacts VA for certification of total disability. Important: A total rating based on individual unemployability with no future examination meets the total disability requirement.
XIII.ii.5.B.1.bAction Taken to Notify DFAS Upon a Reduction in Disability
If the Veteran’s disability is reduced below the total disability requirement, DFAS is automatically notified.
End of Part XIII, Subpart ii, Chapter 5, Section B