DD Form 2656-2 "Survivor Benefit Plan (SBP) Termination Request"

What Is DD Form 2656-2?

DD Form 2656-2, SBP Termination Request, is a form used to voluntarily discontinue participation in the Army Survivor Benefit Plan. Retired Soldiers may opt-out of SBP coverage with the former spouse's concurrence witnessed by a Notary public or a designated SBP Counsellor and between the 25th and 36th month following the date they began to receive retired pay. After termination, SBP participation may never be resumed.

An up-to-date fillable version of DD Form 2656-2 is available for download or digital filing below or can be found on the Executive Services Directorate website. The DD 2656-2 is a part of a series of related documents used for actions related to the SBP, RSFPP, and RCSBP. The form was last released by the Department of Defense (DoD) on July 1, 2020, with all previous editions being obsolete.

There are both advantages and disadvantages to discontinuing SBP participation. Benefits include tax advantages, government-subsidized SBP costs, protection against inflation and resumed coverage in cases when the individual chooses to remarry and the disadvantages are either personal or cost-related.

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DD Form 2656-2 Instructions

  1. The two-page DD Form 2656-2 is made up of five sections. Section I provides filing instructions and describes the applicability of the form and lists mailing addresses.
    • Defense Finance and Accounting Services, U.S. Military Retired Pay, 8899 E. 56th Street, Indianapolis, IN 46249-1200 for U.S. Army, Navy, Marine Corps, and the Air Force
    • Commanding Officer (RAS), U.S. Coast Guard Personnel Service Center, 444 S.E. Quincy Street, Topeka, KS 66683-3591 for the U.S. Coast Guard and NOAA
    • Compensation Branch, 560 Fishers Lane, Room 4-50, Rockville, MD 20857 for the U.S. Public Health Service
  2. Section II identifies the retired service member and requires a name, social security number, and date of retirement in Boxes 1, 2 and 3 respectively.
  3. Section III is the termination request. The retiree must read the statement in Box 4 and sign the line below indicating consent to discontinue SBP participation.
  4. Section IV is for spouse concurrence. Concurrence is required only if the current beneficiary is a legal or former spouse. The statement is provided in Box 5; the spouse must provide their signature, date of signing, social security number, and printed name in the lines below the statement. If a former spouse election was required by court order then a certified copy of the modified order allowing SBP termination must be attached to the DD 2656-2. Spousal concurrence is not required in this case.
  5. Section V is for certification by an SBP Counsellor or Notary Public. Their signature certifies that the spouse signed the form in their presence and provided some sort of ID to identify them as the person signing the DD 2656-2.

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SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
OMB No. 0704 - 0569
NOTICE TO PERSONS REQUESTING TO DISCONTINUE PARTICIPATION IN THE UNIFORMED SERVICES SBP
OMB approval expires
(Required under the provisions of Section 1448a(d), Title 10, United States Code)
20230731
(Please read Privacy Act statement and instructions on back BEFORE completing this form.)
The public reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments
regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Department of Defense,
Washington Headquarters Services, at whs.mc-alex.esd.mbx.dd-dod-informationcollections@mail.mil. Respondents should be aware that notwithstanding any
other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB
control number.
ADVANTAGES AND DISADVANTAGES OF CONTINUED SBP PARTICIPATION
ADVANTAGES OF CONTINUED SBP PARTICIPATION
Peace of Mind. Retired pay stops at your death. SBP gives you the assurance of continuing a portion of your retired pay to your spouse
(including former spouse) or insurable interest for life.
Tax Advantages. SBP premiums withheld from retired pay are not taxed. For example, if your monthly retired pay is $2,000, your SBP costs of
$130 are not taxed, thus your real SBP cost (assuming a 28 percent marginal tax bracket) is $93.60. Also, it may be wise financial strategy to
receive SBP's tax advantage when the retiree is in a higher marginal tax bracket, rather than when the survivor may be in a lower one.
Government Subsidy. The government pays for a portion of the SBP costs. Your premiums pay for only part of your SBP benefit and the
government subsidizes the remainder.
Inflation Protected Benefits. SBP benefits are inflation-protected due to cost-of-living adjustments (COLA). Over the years of retirement,
inflation can result in substantial changes in the value of annuity payments.
Amount of Risk. In most cases, SBP premiums will be recouped as benefits within three years after the retiree's death. You must weigh the
higher risk of leaving your survivor with insufficient income without SBP against the smaller risk that your survivor might not get back every cent
paid for SBP. A spouse may receive SBP payments for many years, receiving several times the amount paid in premiums.
Resumed Coverage. Even if your spouse dies first, you may resume coverage for a subsequent spouse without any penalty based on
advanced age, deteriorated health, or other risk factors.
DISADVANTAGES OF CONTINUED SBP PARTICIPATION
Permanence. There may not be another opportunity to discontinue beyond this special one-year period (i.e., if you no longer wish to provide a
benefit to your beneficiary, this could be your only chance to discontinue).
Return of Costs. Your beneficiary might not recover total payments made into the plan (e.g., if you are a retiree with a much older spouse; if
you are certain you will never remarry).
Reduced Need. You may no longer need the coverage SBP provides (e.g., if you no longer need to protect your retired pay).
Taxable Annuity. The SBP annuity is taxable as income when received by the beneficiary.
IMPORTANT REMINDERS
Barred Forever. Once you discontinue participation, you cannot reenter the Plan. However, you have up to 30 days after submitting this
form to change your mind. You may withdraw your request to discontinue participation by sending a written request to the same finance center
that you sent your original request for termination.
No Premium Refund. You received protection for the period SBP costs were made. Therefore, no premiums will be refunded. Your past costs
are generally immaterial to this decision; you should make your decision based on future benefits and costs.
I confirm that I have read, understand and agree to the above
Yes
DD FORM 2656-2, JULY 2020
Page 1 of 2
PREVIOUS EDITION IS OBSOLETE.
SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
OMB No. 0704 - 0569
NOTICE TO PERSONS REQUESTING TO DISCONTINUE PARTICIPATION IN THE UNIFORMED SERVICES SBP
OMB approval expires
(Required under the provisions of Section 1448a(d), Title 10, United States Code)
20230731
(Please read Privacy Act statement and instructions on back BEFORE completing this form.)
The public reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments
regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Department of Defense,
Washington Headquarters Services, at whs.mc-alex.esd.mbx.dd-dod-informationcollections@mail.mil. Respondents should be aware that notwithstanding any
other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB
control number.
ADVANTAGES AND DISADVANTAGES OF CONTINUED SBP PARTICIPATION
ADVANTAGES OF CONTINUED SBP PARTICIPATION
Peace of Mind. Retired pay stops at your death. SBP gives you the assurance of continuing a portion of your retired pay to your spouse
(including former spouse) or insurable interest for life.
Tax Advantages. SBP premiums withheld from retired pay are not taxed. For example, if your monthly retired pay is $2,000, your SBP costs of
$130 are not taxed, thus your real SBP cost (assuming a 28 percent marginal tax bracket) is $93.60. Also, it may be wise financial strategy to
receive SBP's tax advantage when the retiree is in a higher marginal tax bracket, rather than when the survivor may be in a lower one.
Government Subsidy. The government pays for a portion of the SBP costs. Your premiums pay for only part of your SBP benefit and the
government subsidizes the remainder.
Inflation Protected Benefits. SBP benefits are inflation-protected due to cost-of-living adjustments (COLA). Over the years of retirement,
inflation can result in substantial changes in the value of annuity payments.
Amount of Risk. In most cases, SBP premiums will be recouped as benefits within three years after the retiree's death. You must weigh the
higher risk of leaving your survivor with insufficient income without SBP against the smaller risk that your survivor might not get back every cent
paid for SBP. A spouse may receive SBP payments for many years, receiving several times the amount paid in premiums.
Resumed Coverage. Even if your spouse dies first, you may resume coverage for a subsequent spouse without any penalty based on
advanced age, deteriorated health, or other risk factors.
DISADVANTAGES OF CONTINUED SBP PARTICIPATION
Permanence. There may not be another opportunity to discontinue beyond this special one-year period (i.e., if you no longer wish to provide a
benefit to your beneficiary, this could be your only chance to discontinue).
Return of Costs. Your beneficiary might not recover total payments made into the plan (e.g., if you are a retiree with a much older spouse; if
you are certain you will never remarry).
Reduced Need. You may no longer need the coverage SBP provides (e.g., if you no longer need to protect your retired pay).
Taxable Annuity. The SBP annuity is taxable as income when received by the beneficiary.
IMPORTANT REMINDERS
Barred Forever. Once you discontinue participation, you cannot reenter the Plan. However, you have up to 30 days after submitting this
form to change your mind. You may withdraw your request to discontinue participation by sending a written request to the same finance center
that you sent your original request for termination.
No Premium Refund. You received protection for the period SBP costs were made. Therefore, no premiums will be refunded. Your past costs
are generally immaterial to this decision; you should make your decision based on future benefits and costs.
I confirm that I have read, understand and agree to the above
Yes
DD FORM 2656-2, JULY 2020
Page 1 of 2
PREVIOUS EDITION IS OBSOLETE.
SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
PRIVACY ACT STATEMENT
AUTHORITY: 10 U.S.C. Chapter 73, subchapters II and III Survivor Benefit Plan; DoD Instruction 1332.42, Survivor Annuity Program Administration; DoD Financial Management
Regulation, Volume 7B, Chapter 43; and E.O. 9397 (SSN), as amended.
PRINCIPAL PURPOSE(S): Used by an SBP participant to discontinue participation in SBP during an authorized period.
ROUTINE USE(S): To former spouses for purposes of providing information, consistent with the requirements of 10 U.S.C. Section 1450(f)(3), regarding Survivor Benefit Plan
coverage. To spouses for purposes of providing information, consistent with the requirements of 10 U.S.C. Section 1448(a), regarding Survivor Benefit Plan coverage. The System of
Record Notice (SORN) T7347b is published at:
https://www.federalregister.gov/documents/2009/01/07/E9-41/privacy-act-of-1974-systems-of-records
DISCLOSURE: Voluntary; however, failure to provide requested information may delay the termination process and may result in the expiration of the period of eligibility.
SECTION I - INSTRUCTIONS
GENERAL.
1. Applicability: This form is used to voluntarily discontinue participation in the Survivor Benefit Plan (SBP). In accordance with Section 1448a of Title 10, United States Code, a
participant in SBP may elect to discontinue participation during the 25th through the 36th month after commencement of payment of retired pay.
2. Read these instructions and the Advantages and Disadvantages of Continued SBP Participation carefully before completing this form. Type or print legibly. Maintain a copy of this
form with your records.
3. Mail the completed form to the appropriate finance center listed below. Use of certified mail is recommended for proof of date of mailing and receipt. U.S. Army, Navy, Air Force, or
Marine Corps: Defense Finance and Accounting Service, U.S. Military Retired Pay, 8899 E. 56th Street, Indianapolis, IN 46249-1200.
U.S. Coast Guard, NOAA or U.S. Public Health Service: Commanding Officer (RAS), U.S. Coast Guard Personnel Service Center, 444 S.E. Quincy Street, Topeka, KS 66683-3591
U.S. Public Health Service: Compensation Branch, 5600 Fishers Lane, Room 4-50, Rockville, MD 20857.
SECTION II - IDENTIFICATION.
Items 1 and 2 - Self-explanatory.
Item 3 - Enter date of commencement of retired pay.
SECTION III - TERMINATION REQUEST. Read the statement carefully, then sign your name and indicate the date of your signature.
SECTION IV - SPOUSE CONCURRENCE. Concurrence is required only if the current beneficiary is a legal spouse or former spouse. Legal Spouse - Spousal concurrence must be
obtained to discontinue participation in SBP. A photo bearing identification must be presented to the witness. Read the statement carefully, then sign your name and indicate the date of
your signature in the presence of the witness.
Former Spouse -
a. If a former spouse SBP election was required by a court order, the retired member must attach to this termination form a certified copy of a modified court order which allows
termination from the SBP. Former spouse concurrence is not required for this situation.
b. If a former spouse SBP election was voluntarily made based on a written agreement that was not ratified or incorporated in a court order, former spouse concurrence must be
provided to discontinue participation in SBP. A photo bearing identification must be presented to the witness. Read the statement carefully, then sign your name and indicate the date of
your signature in the presence of the witness.
SECTION V - WITNESS (SBP COUNSELOR/NOTARY) CERTIFICATION AND SIGNATURE. The termination form is only valid if the spouse or former spouse concurrence is
witnessed by a Service-designated SBP Counselor or Notary Public.
SECTION II - RETIRED MEMBER IDENTIFICATION
1. NAME (Last, First, Middle Initial)
2. SSN
3. RETIREMENT DATE (YYYYMMDD)
SECTION III - TERMINATION REQUEST
4. RETIREE: By my signature, I hereby request to discontinue participation in SBP. I have read and understand the disadvantages and advantages of this decision, as listed on the
front of this form. I understand that SBP coverage will discontinue on the first day of the month following the month that this request is received by the Defense Finance and Accounting
Service. I understand that no refund of costs already paid for SBP coverage will be made, nor will SBP benefits be paid upon my death. I further understand that once I discontinue
SBP, I cannot reenter the Plan.
a. SIGNATURE
b. DATE SIGNED (YYYYMMDD)
SECTION IV - SPOUSE CONCURRANCE
5. SPOUSE: By my signature, I certify that I am the legal spouse/former spouse of the above listed retiree. I have read and understand the disadvantages and advantages of this
decision, as listed on the front of this form. I understand that I will receive no SBP benefits upon the death of my spouse/former spouse. I concur with the decision to terminate
participation in SBP and have signed this statement of my free will. I further understand that once my spouse/former spouse discontinues participation in SBP, he/she cannot reenter
the Plan.
a. SIGNATURE
b. DATE SIGNED (YYYYMMDD) c. NAME (Last, First, Middle Initial)
d. SSN
SECTION V - CERTIFICATION SBP Counselor or Notary Public)
6. WITNESS: By my signature, I certify that the above named spouse/former spouse signed this form in my presence and that the above named spouse/former spouse produced a
photo bearing identification document which identified him/her as the person signing this SBP Termination Request.
a. WITNESS NAME (Last, First, Middle Initial)
b. MILITARY INSTALLATION (If applicable)
c. TITLE
d. SIGNATURE
e. DATE SIGNED (YYYYMMDD)
f. STREET ADDRESS
g. CITY
h. STATE
i. ZIP CODE
DD FORM 2656-2, JULY 2020
Page 2 of 2
PREVIOUS EDITION IS OBSOLETE.
Page of 2