What is the SBP / DIC offset?
DIC is a payment made by the Department of Veteran Affairs (DVA) to the spouse of a member who dies due to a service-connected illness or injury. The DVA determines entitlement to and the amount of the DIC award. If DIC is awarded, the SBP/RCSBP annuity must be reduced by the amount of the DIC award. The SBP/RCSBP annuity is terminated if the DIC is greater than the SBP/RCSBP. However, if an annuitant receives DIC based on a member other than the one providing SBP/RCSBP, there will not be a DIC reduction. Each annuitant signs a DIC authorization statement when they submit their annuity application. This allows DFAS to establish their SBP/RCSBP annuity prior to notification from the DVA regarding their entitlement to DIC. This prevents delays in SBP/RCSBP payments. If DIC is awarded, the following conditions apply: •If the monthly DIC benefit exceeds the SBP/RCSBP monthly annuity, the amount of the SBP/RCSBP annuity paid prior to notification of the DIC award, not including the month of
