Direct Remittance Roundup: Billing changes and payment options

By Defense Finance and Accounting Service (DFAS) February 2026

Important Note: This information is for retirees who pay their monthly Survivor Benefit Plan (SBP) premiums directly to the Defense Finance and Accounting Service (DFAS). If SBP premiums are automatically deducted from your pay, this article does not apply to you.

What changed with your bill?

As of August 2025, DFAS improved the billing process for retirees who pay their SBP premiums directly, which is a process known as direct remittance. Direct remitters now receive monthly bills directly from DFAS, which are more detailed than the previous billing statements from the U.S. Department of Treasury centralized receivables service.

Your new bill clearly shows important information in itemized blocks, including:

Remaining balance due from prior month: Any past-due SBP premiums from previous months. This will be $0.00 if you do not owe any past-due premiums.
Interest charge on remaining balance due: Any interest applied to past-due balances (currently 4.0% annually).

You can learn more about the new billing format by reviewing the helpful explainer that was printed on the reverse side of your October 2025 billing statement.

The importance of paying SBP premium balances

Retirees who continue to carry a “remaining balance due from prior month” will soon see additional reminders from DFAS about the importance of promptly paying any outstanding balance for past due SBP premiums.

DFAS wants to work with you to bring your account up to date as soon as possible, and we encourage you to pay your past due SBP premiums in full promptly. If you’ve made a recent payment to satisfy your outstanding balance after receiving your new DFAS billing statement - thank you.

You will continue to receive a monthly bill for each month’s SBP premiums until you reach “paid-up” status (attained once a retiree has made 360 months of SBP premium payments and has reached the age of 70). If at any time your net retired pay becomes sufficient to cover your monthly SBP premium, your premium will revert to being deducted from your retired pay.

Please note: Upon your death, any unpaid premium balance will be deducted from your Arrears of Pay (AOP) and the SBP annuity payable to your SBP beneficiary until paid in full. No annuity will be paid to your SBP beneficiary until all outstanding premiums, including interest, have been paid. Prompt payment of any past due premium amounts is in the best interest of both you and your beneficiaries.

Convenient options for SBP payments

There are other convenient options for paying your monthly SBP premiums. DFAS recommends using the Pay.gov website at: (https://www.pay.gov/public/home) to make your payments directly. Pay.gov is convenient, simple, and secure. You will need your DOD ID number to make your payment. You can find this number on the lower-left portion of your monthly billing statement. Please visit https://www.pay.gov/public/form/start/1463931154 to get started.

If you receive VA disability compensation, you may request to have future monthly SBP premium payments deducted from your VA pay. Please complete “DD Form 2891 Interim” and submit it back to DFAS. You can learn more and locate the form on our Forms Library at https://www.dfas.mil/raforms.

Important note for payments from online bill pay services

If you use your bank’s online bill pay service to remit your monthly SBP premium payment, the process is entirely digital from your perspective. You may be surprised to know, however, that your bank makes the payment on your behalf by mailing a paper check to DFAS.

Since the payment arrives by paper check, it is very important that you enter your DOD ID number in the “Account Number” field on the online bill pay form. This will help ensure your payments get credited to your SBP premium balance promptly and accurately. Please visit the webpage listed below for additional tips to ensure successful payment.

Visit the “Pay for SBP” webpage to learn more

If you are a direct remitter and want to learn more about direct remittance and all your payment options, please visit our “Pay for SBP” webpage: https://www.dfas.mil/RetiredMilitary/provide/sbp/payment/.