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 the 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) in April 2009 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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SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
NOTICE TO PERSONS REQUESTING TO DISCONTINUE PARTICIPATION IN THE UNIFORMED SERVICES SURVIVOR BENEFIT PLAN (SBP)
(Required under the provisions of Section 1448a(d), Title 10, United States Code)
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 potentially 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; or if SBP payments to an incapacitated child would negatively impact other benefits as dictated by the
state of residence).
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.
DD FORM 2656-2, APR 2009
PREVIOUS EDITION IS OBSOLETE.
Adobe Professional 8.0
SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
NOTICE TO PERSONS REQUESTING TO DISCONTINUE PARTICIPATION IN THE UNIFORMED SERVICES SURVIVOR BENEFIT PLAN (SBP)
(Required under the provisions of Section 1448a(d), Title 10, United States Code)
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 potentially 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; or if SBP payments to an incapacitated child would negatively impact other benefits as dictated by the
state of residence).
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.
DD FORM 2656-2, APR 2009
PREVIOUS EDITION IS OBSOLETE.
Adobe Professional 8.0
SURVIVOR BENEFIT PLAN (SBP) TERMINATION REQUEST
PRIVACY ACT STATEMENT
AUTHORITY: 10 U.S.C. Chapter 73, subchapters II and III; DoD Instruction 1332.42, Survivor Annuity Program Administration; DoD Financial
Management Regulation, Volume 7B, Chapter 43; and E.O. 9397 (SSN).
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.
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 and NOAA: 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
2. SSN
3. RETIREMENT DATE
(Last, First, Middle Initial)
(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 CONCURRENCE
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.
b. DATE SIGNED
a. SIGNATURE
c. PRINTED NAME
d. SSN
(Last, First, Middle Initial)
(YYYYMMDD)
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
b. MILITARY INSTALLATION
(Last, First, Middle Initial)
(If applicable)
e. DATE SIGNED
c. TITLE
d. SIGNATURE
(YYYYMMDD)
f. STREET ADDRESS
g. CITY
h. STATE
i. ZIP CODE
DD FORM 2656-2 (BACK), APR 2009
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DD Form 2656-2 Instructions

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

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.

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.

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.

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.

DD 2656-2 Related Forms

  1. DD Form 2656, Data for Payment of Retired Personnel is used to elect an SBP and designate beneficiaries for retired pay.
  2. DD Form 2656-1, SBP Election Statement for Former Spouse Coverage is a form used by spouses and former spouses of servicemen for purposes of providing information regarding SBP benefits.
  3. DD Form 2656-5, RCSBP Election Certificate is used by Reserve Component Members to make an election for the RC SBP.
  4. DD Form 2656-6, SBP Election Change Certificate is used by retired service members to change a Survivor Benefit Plan election.
  5. DD Form 2656-7, Verification for Survivor Annuity is used by a surviving or former spouse to verify eligibility for an annuity under the SBP.
  6. DD Form 2656-8, SBP Automatic Coverage Fact Sheet is used to determine retiree's marital and dependency status in order to establish and maintain an accurate accounting of the retired pay account.
  7. DD Form 2656-10, SBP/RC SBP Request for Deemed Election is used by former spouses to provide information related to SBP coverage.
  8. DD Form 2656-11, Statement Certifying Number of Months of SBP Premiums Paid is used if the individual disagrees with the number of months credited toward Paid-up SBP by the Defense Finance and Accounting Service.

Related forms

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