Direct Remittance Changes Coming August 2025

DFAS Cleveland, Ohio - Starting in August 2025, DFAS will change the payment process for retirees who pay their Survivor Benefit Plan (SBP) premiums directly through the U.S. Treasury Department's Centralized Receivables Service (CRS). Retirees will be billed by DFAS and pay SBP premiums through Pay.gov, instead of through Treasury CRS. Originally this change was scheduled to take place in June 2025. However, Treasury CRS will continue sending the direct remittance bills until further notice.

Direct remittance is only for retirees who do not receive retired pay from DFAS or who do not receive sufficient retired pay and/or Combat-Related Special Compensation (CRSC) to satisfy the monthly SBP premium. Direct remittance members who choose not to have their SBP payments deducted from their Department of Veterans Affairs (VA) pay must remit SBP premium payments. In the future, when retirees pay their SBP monthly premiums directly to DFAS they will have several payment options, including paying online via Pay.gov, or requesting their payment be deducted from VA disability compensation.

It's important that DFAS has your current mailing address so you receive the billing statement with new payment instructions. If your address has changed, DFAS has several convenient options for updating the mailing address on your retired pay account. DFAS will notify you when the direct remittance implementation goes into effect. Visit our pay for SBP page to read more information about the direct remittance switchover.