-

Military Retirement Pay: What Happens When A Retired Veteran Dies? 

-

Military retired pay stops upon death of the retiree! The Survivor Benefit Plan (SBP) allows a retiree to ensure, after death, a continuous lifetime annuity for their dependents. The annuity which is based on a percentage of retired pay is called SBP and is paid to an eligible beneficiary.  What is the death benefit for retired military?  The Survivor Benefit Plan is a Department of Defense sponsored and subsidized program that provides up to 55 percent of a service member's retired pay to an eligible beneficiary upon the death of the member.

Military Retiree Casualty DOs and DON'Ts.  When a military retiree dies, the next of kin should call the Defense Finance and Accounting Service (DFAS).   DFAS will close the retiree's pay account and send a survivor benefits package.  Typically, forms will be included that instruct the next of kin on how to return the retiree's unpaid pay.  These forms MUST be completed and return to DFAS with a copy of the death certificate.   Survivors should report retiree deaths as shown by clicking on the link below:

-