Finance
‘Widows Tax’ Will Be Completely Gone as of Feb. 1 Benefit Checks
MOAA made ending this unfair offset a major legislative priority.
For years, survivors of deceased military members were required to forfeit part or all of their purchased Survivor Benefit Plan (SBP) annuity when awarded the VA’s Dependency and Indemnity Compensation (DIC). The loss of any portion of the SBP annuity is known as the "Widows Tax."
The Fiscal 2020 National Defense Appropriations Act changes this provision, for the benefit of more than 65,000 military survivors, with a fix that will be phased in over a three-year span. Below, find out how MOAA fought to end the widows tax, and what's new with the SBP program.
MOAA made ending this unfair offset a major legislative priority.
Disabled retirees may want to maintain Survivor Benefit Plan coverage now that survivors can receive both benefits in full.
As one key senator put it, "MOAA members ... never give up until the mission is complete."
The more voices we have, the better we'll be heard. Become a member today.