CVA Survivor Benefits & Dependents Programs 1 — Questions and Answers
Question 1: What is the primary purpose of the Survivor Benefit Plan (SBP) for military retirees?
- To provide disability compensation to retired veterans
- To provide a monthly annuity to eligible survivors after a military retiree's death (Correct answer)
- To pay burial expenses for military retirees
- To fund education benefits for children of retirees
Correct answer: To provide a monthly annuity to eligible survivors after a military retiree's death
SBP provides a monthly annuity equal to up to 55% of the retiree's retired pay to eligible survivors after the retiree's death, ensuring continued financial support.
Question 2: What is the 'SBP-DIC offset' (also called the 'widow's tax') that was phased out beginning in 2021?
- A tax on military retirement pay
- A dollar-for-dollar reduction in SBP annuity when a survivor also received VA DIC benefits (Correct answer)
- A penalty for survivors who remarried
- An income tax on DIC payments received by surviving spouses
Correct answer: A dollar-for-dollar reduction in SBP annuity when a survivor also received VA DIC benefits
The SBP-DIC offset (widow's tax) required surviving spouses who received both SBP annuity and VA DIC to have their SBP reduced dollar-for-dollar by the DIC amount; this offset was fully phased out by January 1, 2023.
Question 3: What VA benefit provides burial assistance to eligible veterans, including a burial allowance and plot allowance?
- Dependency and Indemnity Compensation
- VA Burial Benefits (Correct answer)
- Veterans Pension for Survivors
- Aid and Attendance benefit
Correct answer: VA Burial Benefits
VA Burial Benefits provide financial assistance toward burial and funeral expenses, including a burial allowance, plot allowance, and in some cases transportation expenses for eligible veterans.
Question 4: Who is eligible for interment in a national cemetery?
- Only veterans with honorable discharges and their spouses
- Veterans discharged under conditions other than dishonorable, their spouses, and dependent children (Correct answer)
- All US citizens who served in any military branch
- Only veterans who died from service-connected conditions
Correct answer: Veterans discharged under conditions other than dishonorable, their spouses, and dependent children
Eligible veterans discharged under conditions other than dishonorable, their spouses, and unmarried dependent children are eligible for interment in national cemeteries at no cost.
Question 5: What does Dependency and Indemnity Compensation (DIC) require regarding the cause of a veteran's death?
- The veteran must have been rated 100% disabled
- The veteran's death must have been caused by or contributed to by a service-connected disability (Correct answer)
- The veteran must have served in combat
- The veteran must have been enrolled in VA healthcare at time of death
Correct answer: The veteran's death must have been caused by or contributed to by a service-connected disability
DIC requires that the veteran's death be directly caused by a service-connected disability or that a service-connected condition materially contributed to the cause of death.
Question 6: Under what circumstances can a surviving spouse receive both VA DIC and the full SBP annuity following the phase-out of the SBP-DIC offset?
- Only if they remarried after age 57
- Since January 1, 2023, eligible surviving spouses can receive full SBP and full DIC concurrently (Correct answer)
- Only if the veteran had a 100% rating for 10 or more years
- Only if the veteran died in combat
Correct answer: Since January 1, 2023, eligible surviving spouses can receive full SBP and full DIC concurrently
Since January 1, 2023, the SBP-DIC offset has been fully eliminated, allowing eligible surviving spouses to receive both their full SBP annuity and full VA DIC payments concurrently.
CVA Survivor Benefits & Dependents Programs 1
What is the primary purpose of the Survivor Benefit Plan (SBP) for military retirees?