Permit surviving spouses of deceased veterans who are eligible for Survivor Benefit Plan (SBP) annuities and Dependency and Indemnity Compensation (DIC) to receive the full amount of both of those benefits
Eliminate the Special Survivor Indemnity Allowance that is available to surviving spouses who have SBP annuities reduced by the amount of their DIC
Eliminate the refund of SBP premiums that are paid to surviving spouses whose SBP payments are reduced
Eliminate the optional SBP annuities paid to dependent children of service members who died on active duty and restore the SBP annuities to the surviving spouses of those service members
Estimated budgetary effects would primarily stem from
Increasing net payments for the SBP program by $5.7 billion
Increasing accrual payments from the Department of Defense by $2.8 billion
Areas of significant uncertainty include
Accurately estimating the number of surviving spouses who receive SBP payments that will be reduced under current law
