DFAS Retired Pay Death Notification: What to Report and When

Military retired pay doesn't stop the moment a retiree dies. It keeps depositing until DFAS is notified — and every payment that lands after the date of death will be reclaimed. If you're the surviving spouse of a military retiree, there's a narrow window to report the death, return any overpayment, and file for the Survivor Benefit Plan annuity before the process gets complicated.

Call DFAS Within 24–48 Hours

Contact the Defense Finance and Accounting Service (DFAS) at 1-800-321-1080 (for retired pay) as soon as possible after the retiree's death. DFAS operates separately from the VA — reporting the death to the VA does not notify DFAS, and vice versa.

Have ready: the retiree's Social Security number, date of death, full legal name, and branch of service. The DFAS representative will stop future retired pay deposits and initiate the process for recovering any overpayment.

If the retiree had arrears of pay (AOP), DFAS pays the final prorated amount and any other money owed to the designated AOP beneficiary after a claim. If no beneficiary was designated, DFAS follows the federal order of precedence. The claim uses SF 1174.

The Overpayment Recovery

Retired pay is normally due on the first of each month, with adjustments for weekends and holidays. Because entitlement ends on the date of death, DFAS must reclaim any retired-pay deposit issued after that date, even if part of it was earned. After DFAS audits the account, it pays any prorated final-month amount and other money owed as AOP to the beneficiary who files a claim.

If the payment was deposited into a joint bank account, DFAS will notify the bank to reclaim the entire payment. Some banks freeze or restrict the account during the process. This can leave the surviving spouse temporarily unable to access their own money.

To minimize disruption: move non-military funds to a separate account before the reclamation hits. If the reclamation causes hardship, contact DFAS promptly and ask what repayment options are available.

Survivor Benefit Plan (SBP) Annuity

If the retiree elected SBP coverage, the surviving spouse receives a monthly annuity equal to 55% of the retiree's selected base amount. This annuity is taxable but provides a steady income stream.

To claim it, submit DD Form 2656-7 (Verification for Survivor Annuity) to DFAS along with:

• A certified copy of the death certificate
• A certified copy of the marriage certificate
• The retiree's Social Security number

DFAS typically processes SBP claims within 30 to 45 days, though backlogs can extend this. The annuity is retroactive to the first day of the month following the retiree's death.

If the retiree was also receiving VA disability compensation with a concurrent retirement pay offset (CRDP or CRSC), you may qualify for both SBP and DIC. The SBP-DIC offset was fully eliminated effective January 1, 2023, so eligible survivors can receive their full SBP annuity and full DIC ($1,699.36/month base in 2026) concurrently. The Special Survivor Indemnity Allowance (SSIA), which partially compensated for the former offset, ended in 2023.

Other DFAS-Administered Payments

SGLI/VGLI: If the retiree maintained Servicemembers Group Life Insurance or Veterans Group Life Insurance, file a separate claim with the Office of Servicemembers' Group Life Insurance (OSGLI) at 1-800-419-1473. DFAS does not handle life insurance claims.

Thrift Savings Plan (TSP): If the retiree had a TSP account, the balance passes to the designated beneficiary. Contact the TSP at 1-877-968-3778 or visit tsp.gov to submit a death benefit claim.

Final tax documents: DFAS will issue a final W-2 or 1099-R for the retiree's last year of retired pay. The surviving spouse will need this for tax filing.

The Veteran's Death Benefits & Survivor Claims toolkit includes a master claims status log and agency communication tracker that helps you coordinate DFAS, VA, and other notifications without losing track of reference numbers and callback dates.