Notifying DFAS and the VA after a military retiree's death

Two separate notifications — not one

This is the most important thing to understand: DFAS and the VA are entirely separate agencies. Notifying one does not notify the other. Many families assume — reasonably — that a single phone call or death certificate will flow through the system automatically. It doesn't.

If the veteran was a military retiree, they may have been receiving retired pay from DFAS. If they were also rated for service-connected disability, they may separately have been receiving VA compensation. These are two different payment streams, from two different agencies, requiring two different notifications.

Veterans who were not retired military but received VA disability compensation or VA pension face one notification (the VA). Military retirees who received both retired pay and VA compensation face two.

Notifying DFAS (military retired pay)

DFAS (Defense Finance and Accounting Service) manages military retired pay. If the deceased was a military retiree receiving a monthly retired pay check or direct deposit, DFAS must be notified.

How to contact DFAS

• Phone: 800-321-1080 (Monday–Friday, 8am–5pm Eastern) — the fastest method
• Mail: DFAS, Retired and Annuitant Pay, 8899 E. 56th Street, Indianapolis, IN 46249-0760
• myPay.dfas.mil: limited online notification capability; phone is more reliable for a death notification

What to have ready

• The retiree's full name and Social Security number
• Date of death
• Certified copy of the death certificate (have several copies; DFAS may request a mailed copy)

What DFAS will do

• Stop retired pay from the date of death
• Calculate any payments made after death that must be returned
• If the retiree was enrolled in SBP, begin the process of transitioning to the Survivor Benefit Plan annuity
• Send a letter confirming the change in pay status and any overpayment amount

Notifying the VA (disability compensation and pension)

If the veteran was receiving VA disability compensation or a VA pension, the VA must also be separately notified. The VA does not receive automatic death notification from DFAS, the Social Security Administration, or any other federal agency.

How to contact the VA

• Phone: 800-827-1000 (Monday–Friday, 8am–9pm Eastern)
• In person: any VA regional office — staff can accept the notification and process it on the spot with a certified death certificate
• Online: limited; in-person or phone is more reliable for this specific action

What the VA will do

• Stop compensation or pension payments from the date of death
• Calculate any payments received after death and initiate recovery
• Identify whether the surviving family may be eligible for DIC, Accrued Benefits, or other survivor programs

The overpayment risk

Retired pay and VA compensation are paid monthly. The law is clear: payments stop as of the date of death. Any payment made for the month of death (or any subsequent month) must be returned to the government.

In practice, because payments are made in advance or mid-month, families frequently receive payments after the date of death before agencies learn of the death. This creates an overpayment that must be returned.

The recovery process works as follows:

• DFAS or the VA sends a formal demand letter identifying the overpayment amount
• The family has an opportunity to dispute the amount if they believe the calculation is incorrect
• Payment can typically be returned by check, electronic payment, or in some cases by offset from other benefits owed
• Significant delays in notification can escalate overpayments to Treasury Department offset programs, which can intercept tax refunds or other federal payments

Prompt notification — within the first week — is the most effective way to minimize overpayment exposure. Many families who notify DFAS and the VA within days of the death find that only one partial payment needs to be returned.

Survivor benefits that follow

Notifying DFAS and the VA of the death is also the trigger for survivor benefit programs to begin. When DFAS receives the notification, they initiate the SBP annuity claim process if the retiree was enrolled. When the VA receives notification, they can identify survivor programs the family may qualify for.

Key survivor benefits to pursue after notification:

• SBP annuity — for surviving spouses of military retirees enrolled in SBP; contact DFAS to begin
• DIC — monthly benefit for surviving spouses, children, and parents of veterans who died from a service-connected condition; file VA Form 21P-534EZ
• Accrued Benefits — any unpaid VA benefits owed to the veteran; file VA Form 21P-601
• VA Survivors Pension — needs-based monthly benefit for surviving spouses and children of wartime veterans with limited income; separate from DIC

Common mistakes

• Notifying only one agency. Families that call DFAS but not the VA (or vice versa) often discover months later that payments have continued from the unnotified agency. Both must be contacted separately.
• Assuming the funeral home or Social Security Administration handles military notifications. Some agencies do share death notification (Social Security uses a national death index), but DFAS and the VA do not reliably receive these notifications in time to stop payments. Direct contact by the family is always required.
• Not understanding that the month-of-death payment must be returned. Unlike some federal benefit programs, military retired pay and VA compensation are prorated to the day of death — not rounded to the end of the month. Any payment received for the period after the death date must be returned.
• Not asking about Accrued Benefits. If the veteran had a pending claim or appeal at the time of death, surviving family members may be entitled to the unpaid amounts. This is frequently overlooked. Ask specifically about Accrued Benefits when notifying the VA.
• Ignoring the SBP transition while handling the death payment. When contacting DFAS to stop retired pay, simultaneously confirm SBP enrollment status. If SBP was elected, begin that claim in the same call.

Frequently asked questions