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Section B – Certificate of Permanent and Total (P&T) Disability for Discontinuation of Survivor Benefit Plan (SBP) Participation

Updated Dec 14, 2022

In This Section

 

 

1.  Certificate of P&T Disability for the Purpose of Discontinuing SBP Participation


Introduction

 
This topic contains information on certification of P&T disability for the purpose of discontinuing SBP participation, including

Change Date

 
February 3, 2011

XIII.ii.5.B.1.a.  Requirements for Discontinuing Participation in the SBP

 
Public Law (PL) 96-402, enacted October 9, 1980, allows a uniformed service retiree to discontinue participation in the Survivor Benefit Plan (SBP) if they have a service-connected disability rated by the Department of Veterans Affairs (VA) as totally disabling for
  • 10 or more years, or
  • continuously for a period of not less than 5 years from the date of discharge.
Upon receipt of a retiree’s request to withdraw from SBP under PL 96-402, the Defense Finance Accounting Service (DFAS) contacts VA for certification of total disability.
 
Important:  A total rating based on individual unemployability with no future examination meets the total disability requirement.

XIII.ii.5.B.1.b.  Action Taken to Notify DFAS Upon a Reduction in Disability