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An essential task awaits all military service members as they approach retirement, ensuring their financial future and that of their families through the careful completion of the DD 2656 form. This document, crucial in translating years of dedicated service into future pension benefits, serves as the gateway to receiving deserved retirement pay. Its completion marks a significant milestone in a service member's transition from active duty to retirement, guiding them through the selection of payment plans and beneficiary designations. Furthermore, the DD 2656 form is instrumental in determining the correct distribution of benefits, making the accurate and timely submission of this document pivotal. Errors or omissions can lead to delays or incorrect payments, highlighting the form's critical role in securing a financially stable retirement for those who have served. In essence, this process not just formally ends a chapter in a service member's career but also sets the groundwork for their retirement life, emphasizing the form's importance in ensuring that the transition is as smooth and beneficial as possible.

Sample - DD 2656 Form

DATA FOR PAYMENT OF RETIRED PERSONNEL

OMB No. 0704-0569 OMB approval expires: 20230731

The public reporting burden for this collection of information, 0704-0569, 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 the burden estimate or burden reduction suggestions to the Department of Defense, Washington Headquarters Services, at whs.mc-alex.esd.mbx.dd-dod-information-collections@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.

AUTHORITY: 10 U.S.C. 71, Computation of Retired Pay; 10 U.S.C. 73, Annuities Based On Retired Or Retainer Pay; DoD Instruction 1332.42, Survivor Annuity Program Administration; and DoD Financial Management Regulation, 7000.14-R, Volume 7B, Chapter 42.

PRINCIPAL PURPOSE(S): To collect information needed to establish a retired/retainer pay account, including designation of beneficiaries for unpaid retired pay, state tax withholding election, information on dependents, and to establish a Survivor Benefit Plan election.

ROUTINE USE(S): To the Department of Veterans Affairs (DVA) regarding establishments, changes and discontinuing of DVA compensation to retirees and annuitants. To former spouses for purposes of providing information, consistent with the requirements of 10 U.S.C. 1450(f)(3), regarding Survivor Benefit Plan coverage. To spouses for purposes of providing information, consistent with the requirements of 10 U.S.C. 1448(a), regarding Survivor Benefit Plan coverage. Additional routine uses are available in the applicable system of records notice T7347b, Defense Military Retiree and Annuity Pay System Records, available at: http://dpcld.defense.gov/Privacy/SORNsIndex/DOD-wide-SORN-Article-View/Article/570196/t7347b/

DISCLOSURE: Voluntary; however, failure to provide requested information will result in delays in initiating retired/retainer pay.

WARNING

Read the instructions at the end of this form in their entirety prior to completing.

PART I - RETIRED PAY INFORMATION

SECTION I - PAY IDENTIFICATION

1. NAME (Last, First, Middle Initial)

 

2. SSN

 

 

3. DATE OF BIRTH

4. RETIREMENT / TRANSFER

 

 

 

 

 

(YYYYMMDD)

DATE (YYYYMMDD)

 

 

 

 

 

 

 

 

5. RANK / PAYGRADE

6. BRANCH OF SERVICE

 

 

 

 

 

 

 

a. AIR FORCE

b. ARMY

c. NAVY

d. MARINE CORPS

e. COAST GUARD

 

 

7. MEMBER OR FORMER MEMBER OF THE

8. PARTICIPANT IN THE FOLLOWING RETIREMENT PLAN (See instructions, check only one)

a. ACTIVE COMPONENT

a. FINAL PAY (only those members who first joined the service prior to September 8, 1980)

b. RESERVE COMPONENT

b. HIGH-3 (also known as the "High 36")

 

 

 

c. CSB/REDUX (only members who elected the Career Status Bonus upon completion of 15 years of service)

(all members of the Reserves and

National Guard including Active Guard/

d. BLENDED RETIREMENT SYSTEM (BRS)

 

 

 

Reserve and Full-Time Support)

 

 

 

 

e. DISABILITY

 

 

 

 

 

 

9.CORRESPONDENCE ADDRESS (Ensure DFAS - Cleveland Center is advised whenever your correspondence address changes.)

a. STREET (Include apartment number)

b. CITY

c. STATE

d. ZIP CODE

 

 

 

 

e. TELEPHONE (Incl. area code)

f. EMAIL ADDRESS

g. PREFERRED CONTACT METHOD (check one)

TELEPHONE EMAIL

SECTION II - DIRECT DEPOSIT / ELECTRONIC FUND TRANSFER (DD/EFT) INFORMATION (See Instructions)

ACTIVE DUTY ONLY: Check here if you want to continue using financial information currently on file, otherwise fill out Items 10 through 13)

10. ACCOUNT TYPE (Check one)

11. ROUTING NUMBER (See Instructions)

 

 

 

12. ACCOUNT NUMBER (See Instructions)

CHECKING

SAVINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13. FINANCIAL INSTITUTION

 

 

 

 

 

 

 

 

a. NAME

 

b. STREET (Include apartment number)

 

 

c. CITY

 

d. STATE

e. ZIP CODE

 

 

 

 

 

 

 

 

 

SECTION III - SEPARATION PAYMENT INFORMATION

 

 

 

 

 

 

 

14. a. PAYMENT TYPE RECEIVED (Check one)

 

 

 

 

 

b. GROSS AMOUNT

NONE

SEVERANCE PAY (SE)

READJUSTMENT PAY (RP)

SEPARATION PAY (SP)

 

 

 

VOLUNTARY SEPARATION INCENTIVE (VSI)

SPECIAL SEPARATION BONUS (SSB)

 

OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE: If any payment type was selected, attach a COPY OF THE ORDERS which authorized the payment and a COPY OF THE DD FORM 214.

List Of Attachments

If Yes, Attach Page

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MEMBER NAME (Last, First, Middle Initial)

SSN

SECTION IV - VETERANS AFFAIRS (VA) DISABILITY COMPENSATION INFORMATION

15. VA DISABILITY COMPENSATION

a. IN THE EVENT I AM AWARDED DISABILITY

b. HAVE YOU APPLIED FOR OR ARE

c. EFFECTIVE DATE OF

d. MONTHLY AMOUNT

COMPENSATION BY THE VA, I WILL NOTIFY

YOU RECEIVING VA COMPENSATION

PAYMENT (YYYYMMDD)

OF PAYMENT

DFAS OF THE AMOUNT OF ANY AWARD, AS IT

FOR A DISABILITY?

 

 

 

MAY IMPACT MY RETIRED PAY BENEFIT.

 

 

 

 

Agree

Yes

No

 

 

 

 

 

 

 

SECTION V - DESIGNATION OF BENEFICIARIES FOR UNPAID RETIRED PAY (See Instructions)

Check this box if you want to designate your spouse as 100% beneficiary of any unpaid retired pay upon death OR complete Item 16

16. BENEFICIARY OR BENEFICIARIES INFORMATION

Complete this section if you want to designate a beneficiary or beneficiaries to receive any unpaid retired pay you are due at death.

If you do not complete this section OR check the block above, it will cause significant delay in disbursement of remaining pay upon your death.

a. NAME (Last, First, Middle Initial)

b. SSN

c. ADDRESS (Street, City, State, ZIP Code)

d. RELATIONSHIP e. SHARE

(1)

 

 

%

(2)

%

(3)

%

SECTION VI - FEDERAL INCOME TAX WITHHOLDING INFORMATION (Submit information in Items 17 – 21 in lieu of IRS Form W-4 for tax purposes.)

17. MARITAL STATUS (Check one)

SINGLE MARRIED

MARRIED BUT WITHHOLD AT HIGHER SINGLE RATE

18.TOTAL NUMBER OF EXEMPTIONS CLAIMED

19.ADDITIONAL WITHHOLDING (Optional)

20.I CLAIM EXEMPTION FROM WITHHOLDING (Enter "EXEMPT")

21.ARE YOU A UNITED STATES CITIZEN?

Yes

No (See Instructions)

SECTION VII - VOLUNTARY STATE TAX WITHHOLDING INFORMATION (Complete only if monthly withholding is desired.)

22.STATE DESIGNATED TO RECEIVE TAX

23.MONTHLY AMOUNT

(Whole dollar amount not less than $10.00)

24.RESIDENCE ADDRESS (If different from address listed in Block 9)

a. STREET (Include apartment number)

b. CITY

c. STATE

d. ZIP CODE

 

 

 

 

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MEMBER NAME (Last, First, Middle Initial)

SSN

DO NOT COMPLETE PART II,

If you are not covered by the BLENDED RETIREMENT SYSTEM or do not want to elect a lump sum of retired pay

PART II - LUMP SUM ELECTION

This election must be made NO LATER THAN 90 days prior to the date in Part I, Section I, Item 4, in accordance with 10 U.S.C. §1415

For example, if the date in Block 4 is June 1, 2018, the date in Block 28b must be on or before March 3, 2018

SECTION VIII - BLENDED RETIREMENT SYSTEM LUMP SUM ELECTION

Members covered by the Blended Retirement System may, upon retirement (regular retirement), or upon reaching the age of eligibility to receive retired pay (non-regular retirement) elect to receive a portion of his or her retired pay as a lump sum. The lump sum is a discounted present value of a portion of that member’s retired pay; not the same amount that would be received otherwise. It is highly recommended that you consult with a financial counselor before electing a lump sum of retired pay.

25. LUMP SUM PERCENTAGE

(Check one only, if electing to receive a LUMP SUM; if no choice is indicated you will default to receiving your full retired pay on a monthly basis)

a. I elect to receive a 25 PERCENT lump sum that is a discounted

portion of my retired pay for the period from when I am eligible to begin receiving retired pay until I reach full social security retirement age.

b. I elect to receive a 50 PERCENT lump sum that is a discounted portion of my retired pay for the period from when I am eligible to begin receiving retired pay until I reach full social security retirement age.

26. LUMP SUM PAYMENTS

(Check one only. Complete Block 26 only, if electing a LUMP SUM in Block 25)

I ELECT TO RECEIVE THE LUMP SUM IN

a. ONE INSTALLMENT

b. TWO EQUAL ANNUAL INSTALLMENTS

c. THREE EQUAL ANNUAL INSTALLMENTS

d. FOUR EQUAL ANNUAL INSTALLMENTS

27.LUMP SUM CONSIDERATIONS (Read the following carefully before signing in Block 28.)

•You are only eligible to elect a lump sum if you are qualified for a Regular or Non-Regular retirement under the Blended Retirement System. If you are retiring with a disability retirement under 10 U.S.C., Chapter 61, you are not eligible to elect a lump sum.

•A lump sum election must be made NO LATER THAN 90 days prior to the date of your retirement (for Regular Retirement) or 90 days prior to the date you are eligible to begin receiving retired pay (for Non-Regular Retirement), as indicated in Part I, Section I, Block 4.

•You may elect to receive either a 25 percent or 50 percent discounted portion of your future estimated retired pay as a discounted lump sum in exchange for reduced monthly retired pay until you reach your full Social Security Retirement Age.

•As a result of electing a lump sum, your monthly retired pay will be reduced to either 75 or 50 percent of its normal amount depending on whether you elect to receive 25 or 50 percent. At Full Social Security Retirement Age, your monthly retired pay will be restored to its full amount.

•The discount rate used to calculate your lump sum is the rate published by the Department of Defense in June of the year prior to the year of your retirement or year you first become eligible for retired pay, based on the date in Part I, Section I, Block 4.

•A lump sum payment is earned income for purposes of Federal Income Tax – receipt of it may have significant tax implications.

•The amount of the lump sum is based on your calculated military retired pay, the discount rate in effect for the year in which you retire or become eligible to begin receiving retired pay, and the remaining amount of time until you reach full Social Security Retirement Age. Once distributed, you do not have the ability to seek review of or challenge the amount of the lump sum with regard to any assumptions or factors used to compute the amount of the lump sum.

•Survivor Benefit Plan premiums (Part III) will still be deducted from your remaining monthly retired pay should you elect the lump sum. The premiums and your beneficiary’s coverage will be based on the unreduced amount of your monthly retired pay, as if you had not elected a lump sum, unless you indicate otherwise in Block 35 of Part III.

•If you expect to receive a disability rating from the Department of Veterans Affairs, dependent upon your rating, your ability to receive disability compensation could be affected by the lump sum.

•It is important to understand that a lifetime of full monthly payments will most likely be worth more than the lump sum with reduced monthly retired pay. It is highly recommended that you consult with a financial counselor before electing a lump sum of retired pay.

COMPARE YOUR ESTIMATED RETIREMENT BENEFITS WITH OR WITHOUT THE LUMP SUM:

http://militarypay.defense.gov/Calculators/

28. LUMP SUM ACKNOWLEDGEMENT

By signing below, I am indicating that I am aware that I am electing to receive a discounted portion of my retired pay as a lump sum, and that this lump sum will likely be less than I would have received if I had not elected to receive it. I am aware that there are resources available to assist me in making this decision, and that I have reviewed a comparison of my retirement benefits with and without a lump sum. I am also aware that once accepted, I may not seek review of, or otherwise challenge the amount of the lump sum, particularly in regard to deviations from future cost of living adjustments, actuarial assumptions, or other factors used in computing this amount.

a. MEMBER SIGNATURE (Sign only if electing a lump sum in Block 25)

b. DATE SIGNED (YYYYMMDD)

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MEMBER NAME (Last, First, Middle Initial)

SSN

PART III - SURVIVOR BENEFIT PLAN

SECTION IX - DEPENDENCY INFORMATION (This section must be completed regardless of SBP Election.)

29. SPOUSE

a. NAME (Last, First, Middle Initial)

 

 

 

 

b. SSN

c. DATE OF BIRTH

 

 

 

 

 

 

 

(YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

30. DATE OF MARRIAGE (YYYYMMDD)

 

 

31. PLACE OF MARRIAGE (See Instructions)

 

 

 

 

 

 

 

 

 

 

 

 

32. DEPENDENT CHILDREN

 

 

 

 

 

 

 

 

Indicate which child or children resulted from marriage to a former spouse by entering (FS) after relationship in column d.

 

 

 

 

 

 

Add rows or continue on separate paper if necessary.

 

 

 

 

 

 

 

 

a. NAME (Last, First, Middle Initial)

b. SSN

c. DATE OF BIRTH

d. RELATIONSHIP

 

e. DISABLED?

 

(YYYYMMDD)

(Son, daughter, stepson, etc.)

 

 

 

 

 

 

 

(1)

 

 

 

 

 

 

Yes

No

 

 

 

 

 

 

 

 

 

(2)

 

 

 

 

 

 

Yes

No

 

 

 

 

 

 

 

 

 

(3)

 

 

 

 

 

 

Yes

No

 

 

 

 

 

 

 

 

 

SECTION X - SURVIVOR BENEFIT PLAN (SBP) ELECTION (You should consult a Survivor Benefit Plan counselor before making an election.)

If you make no election, maximum coverage will be established for your spouse and/or eligible dependent children

33.RESERVE COMPONENT ONLY (This section refers to the decision you previously made on the DD Form 2656-5 when you were notified of eligibility to retire, in most cases you do not have the right to make a new election on this form)

Reserve/National Guard members who achieve 20 qualifying years of service make the election to participate in the Reserve Component (RC) SBP on DD Form 2656-5 within 90 days of being notified of eligibility for a non-regular retirement not when applying for retired pay, unless that member previously elected to defer coverage. You must indicate your previous election in Block 33a through 33c before proceeding to Block 34. If you previously elected Option B or Option C, DO NOT enter an election in Block 34. (Check only one in Block 33a. through 33c.)

OPTION A - Previously declined to make an election until eligible to receive retired pay (Proceed to Block 34 to make election)

OPTION B - Previously elected coverage to begin at age 60 (Do not make an election in Block 34, you have already elected coverage.)

OPTION C - Previously elected or defaulted to immediate RC-SBP Coverage (Do not make an election in Block 34, you have already elected coverage.) NOTE: If you were married at the time you were notified of eligibility for non-regular retirement and did not complete DD Form 2656-5,

you defaulted to full coverage under OPTION C – do not make an election in Block 34

Marital status has changed since your initial election to participate in RC-SBP.

Yes

No If Yes, Attach Page with Explanation

34.SBP BENEFICIARY CATEGORIES (Check one only. See Instructions and Section X.)

a. I ELECT COVERAGE FOR SPOUSE ONLY I have Dependent Child(ren)

Yes

No

b. I ELECT COVERAGE FOR SPOUSE AND CHILD(REN)

 

 

 

c. I ELECT COVERAGE FOR CHILD(REN) ONLY I have a Spouse

Yes

No

 

d. I ELECT COVERAGE FOR THE PERSON NAMED IN BLOCK 37 WHO HAS AN INSURABLE INTEREST IN ME (See Instructions)

e.I ELECT COVERAGE FOR MY FORMER SPOUSE INDICATED IN BLOCK 38 (See Instructions) Complete DD 2656-1, "Survivor Benefit Plan (SBP) Election Statement for Former Spouse Coverage"

f. I ELECT COVERAGE FOR MY FORMER SPOUSE AND DEPENDENT CHILD(REN) OF THAT MARRIAGE

g. I ELECT NOT TO PARTICIPATE IN SBP

I have eligible dependents under the plan.

Yes

No

 

If ‘Yes’, spouse concurrence is required in Part V.

 

 

35.SBP LEVEL OF COVERAGE (Check one only. Complete UNLESS Option B or Option C was selected in 33 OR Check Box 34 d or 34 g was selected. See Instructions.)

a. I ELECT COVERAGE BASED ON FULL GROSS PAY

(If I elected the Career Status Bonus under REDUX or a lump sum of retired pay under the Blended Retirement System (Part II), full gross pay is the amount of retired pay I would have received had I NOT elected the Career Status Bonus or Lump Sum.)

b. I ELECT COVERAGE WITH A REDUCED BASE AMOUNT OF $ (Spouse concurrence is required in Part V)

c. CSB /REDUX MEMBERS ONLY

I elect coverage based on my actual Reduced Retired Pay Under REDUX.

I understand that this represents a Reduced Base Amount and requires Spouse Concurrence. (See Instructions)

d. I ELECT COVERAGE BASED ON THE THRESHOLD AMOUNT IN EFFECT ON THE DATE OF RETIREMENT.

(Spouse concurrence is required in Part V)

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MEMBER NAME (Last, First, Middle Initial)

SSN

36.SPECIAL NEEDS TRUST (Check only if you intend to designate a special needs trust (SNT) as beneficiary for a child/children designated in Item 32e. as disabled. You must elect either 34b., 34c., or 34f. to be eligible to designate an SNT. See DoDI 1332.42 for procedures for designating an SNT.)

I INTEND TO DESIGNATE AN SNT AS BENEFICIARY FOR THE CHILD OR CHILDREN DESIGNATED AS DISABLED IN BLOCK 32.

(It is your responsibility to separately submit a written statement of the decision to have the annuity paid to the SNT, an attorney’s certification of that SNT, and the name and tax identification number for the SNT)

37.INSURABLE INTEREST BENEFICIARY (See instructions prior to completing this section - DO NOT complete if you have an ELIGIBLE SPOUSE or FORMER SPOUSE)

a. NAME (Last, First, Middle Initial)

b. SSN

c. DATE OF BIRTH

d. RELATIONSHIP

(YYYYMMDD)

 

e. STREET (Include apartment number)

f. CITY

g. STATE h. ZIP CODE

i. TELEPHONE (Incl. area code)

j. EMAIL ADDRESS

38.FORMER SPOUSE INFORMATION (Complete only if you have a former spouse)

a. NAME (Last, First, Middle Initial)

b. SSN

c. DATE OF BIRTH

d. DATE OF DIVORCE

(YYYYMMDD)

(YYYYMMDD)

 

 

 

 

 

 

e. TELEPHONE (Incl. area code)

f. EMAIL ADDRESS

PART IV – CERTIFICATION

SECTION XI - CERTIFICATION

39. MEMBER

Under penalties of perjury, I certify that the number of withholding exemptions claimed does not exceed the number to which I am entitled, and that all statements on this form are made with full knowledge of the penalties for making false statements (18 U.S.C. §287 and §1001) provide for a penalty of not more than $10,000 fine, or 5 years in prison, or both). Also, I understand that if I elected less than full SBP coverage for my spouse, I will need my spouse’s notarized concurrence signed no earlier than the date of my signature and prior to the date of my retirement; otherwise, by law, I will automatically be covered at the maximum spouse coverage.

a. NAME (Last, First, Middle Initial)

b. SIGNATURE

c. DATE SIGNED(YYYYMMDD)

40. WITNESS

a. NAME (Last, First, Middle Initial)

b. SIGNATURE

c. DATE SIGNED(YYYYMMDD)

d. UNIT OR ORGANIZATION ADDRESS (Include room number)

e. CITY/BASE OR POST

f. STATE g. ZIP CODE

PART V – SPOUSE SBP CONCURRENCE

Required ONLY when the member is married and elects either: (a) child only SBP coverage, (b) does not elect full spouse SBP coverage; or (c) declines SBP coverage. The date of the spouse's signature in Block 41c MUST NOT be before the date of the member's signature in Block 39c, or on or after the date of retirement listed in Part I, Section I, Block 4. The spouse's signature MUST be notarized.

SECTION XII - SBP SPOUSE CONCURRENCE

41. SPOUSE

I hereby concur with the Survivor Benefit Plan election made by my spouse. I have received information that explains the options available and the effects of those options. I know that retired pay stops on the day the retiree dies. I have signed this statement of my free will.

a. NAME (Last, First, Middle Initial)

 

 

b. SIGNATURE

c. DATE SIGNED(YYYYMMDD)

 

 

 

 

 

 

42. NOTARY WITNESS

 

 

 

 

 

 

 

 

 

 

On this

day of

, 20

, before me, the undersigned notary public, personally

 

appeared (Name of Spouse in Block 41a.)

provided to me through satisfactory evidence of identification, which were

,

to be the person whose name is signed in block 41.a. of this document in my presence.

Signature of Notary

 

My Commission Expires

NOTARY SEAL

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PREVIOUS EDITION IS OBSOLETE.

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INSTRUCTIONS

GENERAL

1.Read these instructions and Privacy Act Statement carefully before completing the data form.

2.The Defense Finance and Accounting Service (DFAS)-Cleveland will establish your retired/retainer pay account based on the data provided on this form and your retirement/transfer orders. Your personnel office, disbursing/finance office, and SBP Counselor will assist you in the proper completion and submission of this form. You should maintain these instructions along with a copy of the form as a permanent record. Please complete the form electronically or by typing or printing in ink.

3.Ensure that you promptly advise DFAS-Cleveland of changes to your marital/family status and any changes to your correspondence address or direct deposit information. Gray Area retirees should contact their Reserve Component directly to report changes. Retired members of the Coast Guard should contact the Coast Guard Pay and Personnel Center.

4.If completed electronically, this form automatically disables certain fields based on information you entered. If one of the items listed below does not appear on the form, it is due to information you previously entered that indicates this item is not applicable to you.

PART I - RETIRED PAY INFORMATION

SECTION I - PAY IDENTIFICATION.

ITEMS 1 through 3. Self-explanatory.

ITEM 4. If you are retiring from active duty, enter the date you will transfer to the Fleet Reserve or date of retirement. If you are a Reserve/National Guard member qualified to retire under 10 U.S. Code, Chapter 1223, enter either the date of your 60th birthday or, a later date on which you desire to begin receiving retired pay. If you are eligible for reduced age retirement earlier than your 60th birthday, you will need to enter that date.

ITEMS 5 and 6. Self-explanatory.

ITEM 7. Indicate whether you are (or were) a member of the Active Component (Regular Component) or a member of the Reserve Component. The Reserve Component includes all reserve and National Guard members, including full-time reservists on active duty, such as Active Guard/Reserves (AGR) and Full-Time Support (FTS).

ITEM 8. Indicate which retirement plan covers you:

If your Date of Initial Entry into Military Service (DIEMS) is prior to September 8, 1980, you should enter “Final Pay” UNLESS you elected to opt into the Blended Retirement System.

If your DIEMS is on or after September 8, 1980, but before January 1, 2018, you should enter “High-3” UNLESS you elected to participate in the CSB/ REDUX retirement plan or the Blended Retirement System (BRS).

If your DIEMS is on or after August 1, 1986, AND you elected to receive the Career Status Bonus (CSB) upon completion of 15 years of service, you should enter “CSB/REDUX.”

If you elected to opt into the Blended Retirement System, OR your DIEMS is on or after January 1, 2018, you should enter “Blended Retirement System.”

If you are retiring with a disability retirement, regardless of your DIEMS enter “Disability.”

ITEM 9. Self-explanatory.

SECTION II - DIRECT DEPOSIT/ELECTRONIC FUND TRANSFER INFORMATION.

ITEMS 10 through 13. Enter the routing and account information for your bank or financial institution. Indicate whether your account is (S) for Savings or

(C)for Checking account in Item 10. Also, provide the nine digit Routing Transit Number (RTN) of your financial institution in Item 11, your account number in Item 12, and your financial institution name and address in Item 13. This section must be completed. Your net retired/retainer pay must be sent to your financial institution by direct deposit/electronic fund transfer (DD/EFT).

ACTIVE COMPONENT RETIREES ONLY: If you are directing your retired pay to the same account number and financial institution to which you directed your active duty pay, check the box immediately below “Section II”. If you have a copy of the Direct Deposit Authorization form used to establish your DD/EFT for your active duty pay, attach a copy to this form.

SECTION III - SEPARATION PAYMENT INFORMATION.

ITEM 14. Indicate in 14.a if you previously received separation or severance pay. If you mark one of the boxes in 14.a, complete 14.b by entering the gross amount for Severance, Separation and Special Separation Bonus payments and the annual installment gross amount for Voluntary Separation Incentive payments. Attach a copy of the orders that authorized the payment and a copy of previous DD Form 214.

SECTION IV - VA DISABILITY COMPENSATION.

ITEM 15. All retirees must read and acknowledge Item 15.a. Note that if you later apply for and are awarded VA disability compensation, you must notify DFAS of the amount of the award. Indicate in Item 15.b if you are currently, or have previously, received VA disability compensation. If you mark YES in 15.b, complete 15.c, and 15.d.

SECTION V - DESIGNATION OF BENEFICIARIES FOR UNPAID RETIRED PAY.

ITEM 16. Upon your death, 10 U.S.C. §2771 provides that any pay due and unpaid will be paid to the surviving person highest on the following list: (1) beneficiary(ies) designated in writing; (2) your spouse; (3) your children and their descendants, by representation; (4) your parents in equal parts, or if either is dead, the survivor; (5) the legal representative of your estate, and (6) person(s) entitled under the law of your domicile. You may choose to designate your spouse as the primary beneficiary for 100% of your unpaid retired pay by checking the box directly below “Section V” and leaving blocks 16.a through 16.e blank. If you choose to designate a different beneficiary or beneficiaries, you must complete Items 16.a through 16.e. If you designate multiple beneficiaries, you can either provide a SHARE percentage to be paid to each person or leave the SHARE percentage blank. If you leave the SHARE percentage blank, any retired pay you are owed when you die will be divided equally among your designated beneficiaries. If you list more than one person with a 100% SHARE, the beneficiaries will be paid in the order as you list them on the form. If, for example, you designate two beneficiaries, then the SHARE percentage must either be 100% for each beneficiary, or the SHARE percentages when added together must equal 100%. If you designate more than one person, and the total percentage designated is greater than 100%, the person listed first is considered the primary beneficiary. If you check the box designating your spouse as 100% beneficiary, that election will take precedence over any designation made in Item 16a through 16e.

If you do not designate a beneficiary or beneficiaries in Item 16, or all designated beneficiaries have died before the date of your death, any unpaid retired pay will be paid to the living person or persons in the highest category of beneficiary listed above, as required by law.

SECTION VI - FEDERAL INCOME TAX WITHHOLDING INFORMATION. Complete this section after determining your allowed exemptions with the aid of your disbursing/finance office, or from the instructions available on IRS Form W-4, or other available IRS publications. Leave Items 17 through 19 blank if completing Item 20.

ITEM 17. Mark the status you desire to claim.

DD FORM 2656 INSTRUCTIONS, OCT 2018

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PREVIOUS EDITION IS OBSOLETE.

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ITEM 18. Enter the number of exemptions claimed.

 

PART III - SURVIVOR BENEFIT PLAN.

 

ITEM 19. Enter the dollar amount of additional Federal income tax you desire

It is very important that you are counseled and are fully aware of your options

under the Survivor Benefit Plan (SBP). SBP pays your eligible beneficiary or

withheld from each month's pay. Leave blank if you do not desire additional

beneficiaries an inflation-protected annuity, based on your retired pay, in the

withholding.

 

 

 

 

event of your death. The cost of SBP is subsidized by the government, but you

ITEM 20. Enter the word "EXEMPT" in this item only if you meet all the

will be required to pay a portion of the cost of SBP through deductions from

your retired pay. All retiring active duty members and all members of the

following criteria: (1) you had no Federal income tax liability in the prior year;

Reserves / National Guard who complete 20 qualifying years of service are

(2) you anticipate no Federal income tax liability this year; and (3) you therefore

automatically fully covered under the SBP or the Reserve Component SBP

desire no Federal income tax to be withheld from your retired/retainer pay.

(RC-SBP) unless electing to reduce or decline this coverage. There are

NOTE: You must file a new exemption claim form with DFAS - Cleveland by

special requirements for reducing or declining coverage that are covered in

February 15th of each year for which you claim exemption from withholding.

Part III.

 

 

 

 

 

ITEM 21. If you are not a U.S. citizen, provide, on an additional sheet, a list of

SECTION IX - DEPENDENCY INFORMATION.

 

all periods of ACTIVE DUTY served in the continental U.S., Alaska, and

 

 

 

Hawaii. Indicate periods of service by year and month only. List only service at

ITEM 29. Provide your spouse's name, SSN, and date of birth. If no current

shore activities; do not report service aboard a ship.

 

 

spouse, enter "N/A" and proceed to Item 32.

 

 

 

 

 

For example:

DUTY STATION

TO (Year/Month)

ITEMS 30 and 31. Enter the date and location of your marriage to your current

FROM (Year/Month)

spouse. In Item 30, if marriage occurred outside the United States, include city,

1994/02

NAVSTA, Norfolk, VA

1995/01

province, and name of country.

 

 

 

 

 

NOTE: This information may affect the portion of retired/retainer pay which is

ITEM 32. If you do not have dependent children, enter "N/A" in this item. If you

taxable in accordance with the Internal Revenue Code if you maintain a

do have dependent children, provide the requested information. Designate

permanent residence outside the U.S., Alaska, or Hawaii.

 

 

which children resulted from marriage to a former spouse, if any, by indicating

SECTION VII - VOLUNTARY STATE TAX WITHHOLDING.

 

(FS) after the relationship in Item 32.d.

 

 

 

 

Complete this section only if you want monthly state tax withholding. If you

ITEM 32.e. Enter YES or NO as appropriate. A disabled child is an unmarried

choose not to have a monthly deduction, you remain liable for state taxes, if

child who meets one of the following conditions: a child who has become

applicable.

 

 

 

 

incapable of self-support before the age of 18, or, a child who has become

ITEM 22. Enter the name of the state for which you desire state tax withheld.

incapable of self-support after the age of 18 but before age 22 while a full-time

student. If answering yes, attach documentation.

 

ITEM 23. Enter the dollar amount you want deducted from your monthly retired/

SECTION X - SURVIVOR BENEFIT PLAN (SBP) ELECTION.

retainer pay. This amount must not be less than $10.00 and in whole dollars

In this section, you will be able to indicate your desired SBP election and

(Example: $50.00, not $50.25).

 

 

designate the beneficiary for SBP in the event of your death. If you make no

ITEM 24. Enter only if different from the address in Item 9.

 

election, you will automatically receive maximum coverage for all eligible family

 

members (spouse and/or children). If you elect to reduce or decline your

PART II - LUMP SUM ELECTION.

 

coverage, your spouse will have to concur with that decision. You may

 

discontinue your SBP participation within one year after the second

OPTIONAL. Only complete Part II if you are:

 

anniversary of the commencement of retired/retainer pay. Termination of SBP

 

is effective the first of the month after DFAS-Cleveland receives the SBP

 Covered under the Blended Retirement System; AND,

 

disenrollment request. There will be no refund of SBP costs paid for the period

 Want to elect a partial lump sum of retired pay

 

 

before the SBP disenrollment. You are advised to consult with a SBP

If you are not covered under the Blended Retirement System or do NOT want

Counselor or Retirement Services Officer prior to completing this section.

 

 

to elect a partial lump sum, proceed to PART III of the form.

 

ITEM 33. RESERVE COMPONENT ONLY. Information to complete this

SECTION VIII - BLENDED RETIREMENT SYSTEM LUMP SUM ELECTION.

section can be found on the DD Form 2656-5 you submitted when you were

first notified that you had completed 20 years of creditable service, known as

ITEM 25. Indicate in Item 25.a OR 25.b whether you intend to receive a 25

your “Notification of Eligibility.” Reserve or National Guard members who

previously completed 20 qualifying years of service are automatically covered

percent or 50 percent lump sum of retired pay.

 

under the RC-SBP unless electing, within 90 days of receiving their Notification

ITEM 26. If indicating in Item 25.a or 25.b that you desire to receive a lump

of Eligibility, to decline this coverage. Indicate in Item 33.a., 33.b., or 33.c. your

previous election. If you elected immediate coverage (Item 33.c, or “Option

sum of retired pay, indicate in 26.a through 26.d whether you would like that in

C”), elected coverage to begin at age 60 (Item 33.b, or “Option B”) or made no

one payment or a series of equal, annual installments over 2, 3, or 4 years.

election previously, this remains your coverage and cannot be changed.

ITEM 27. Before signing in Item 28, you must read the considerations listed in

However, Reserve/National Guard members who declined to make an election

until reaching the age of eligibility to receive retired pay (Item 33.a, or “Option

Item 27. You are highly encouraged to review your options with a financial

A”), or who were unmarried and had no eligible children at initial RC-SBP

professional and compare your estimated retirement benefits with or without a

election and made no subsequent RC-SBP election must complete Items 34

lump sum using the online calculator located at

 

and 35 (and Items 36 through 38 if applicable). If you elected either Immediate

http://militarypay.defense.gov/calculators/BRS.

 

 

(Option C) or Deferred (Option B) RC-SBP coverage and the elected

ITEM 28. If you mark Items 25 and Items 26, you must sign in the block at

beneficiary is no longer eligible, provide supporting documentation with this

form.

 

28.a, and indicate the date you are signing in 28.b. The date in 28.b must be

 

 

at least 90 days prior to the date of your retirement or the date you transfer to

ITEM 34. Enter your desired coverage in Items 34.a through 34.g. You may

the Fleet Reserve (shown in Item 4, this is also the same date indicated on

only select one item. If you elect 34.a, 34.c, or 34.g, you MUST also indicate

your DD 108 request for retirement). If you are a Reserve/National Guard

whether you are declining coverage for other eligible dependents.

member qualified to receive retired pay with a non-regular retirement, the date

 

 

in 28.b must be 90 days prior to the date upon which you will be eligible to

 

 

begin receiving retired pay (shown in Item 4, this is also the same date

 

 

indicated on your DD 108 request for retirement).

 

 

 

If you are NOT electing a lump sum of retired pay, DO NOT SIGN Item 28.

 

 

 

 

 

 

DD FORM 2656 INSTRUCTIONS, OCT 2018

PREVIOUS EDITION IS OBSOLETE.

Page 2 of 3

 

 

AEM LiveCycle Designer

ITEM 34.d. Mark if you are not married and desire coverage for a person with an insurable interest in you, and provide the requested information about that person in Item 37. An election of this type must be based on your full gross retired/retainer pay. If the person is a non-relative or as distantly related as a cousin, attach evidence that the person has a financial interest in the continuance of your life. Under provisions of Public Law 103-337, you are permitted to withdraw from insurable interest coverage at any time. Such a withdrawal will be effective on the first day of the month following the month the request is received by DFAS - Cleveland. Therefore, no refund of SBP costs collected before the effective date of withdrawal will be paid.

ITEMS 34.e and 34.f. Mark Item 34.e if you elect coverage for a former spouse. Mark Item 34.f if you desire coverage for a former spouse and dependent child(ren) of that marriage, and provide the requested information about these children in Item 32 as appropriate. Provide a certified photocopy of final decree that includes separation agreement or property settlement which discusses SBP for former spouse coverage. The DD Form 2656-1, "Survivor Benefit Plan (SBP) Election Statement for Former Spouse Coverage," must also be completed and accompany the completed DD Form 2656 to DFAS - Cleveland.

ITEM 34.g. Mark if you decline coverage under SBP. If married and declining coverage, Items 41 and 42 of Part V, Section XI MUST be completed.

ITEM 35. This item allows you to designate the amount of your retired pay that will be the “base amount” for determining your SBP premiums and the resulting SBP annuity. If you make no entry, you will default to the full base amount.

ITEM 35.a. Mark if you desire the coverage to be based on your full gross retired/retainer pay. For members who previously elected the Career Status Bonus (CSB) or members covered by the Blended Retirement System who elect a lump sum of retired pay, the full gross retired/retainer pay is what your retired pay would have been had you not elected (CSB) or the lump sum.

ITEM 35.b. Mark if you desire the coverage to be based on a reduced portion of your retired/retainer pay. This reduced amount may not be less than $300.00. If your gross retired/retainer pay is less than $300.00, the full gross pay is automatically used as the base amount. Enter the desired amount in the space provided to the right of this item.

ITEM 35.c. Used by a REDUX member who wants coverage based on actual retired pay received under REDUX. If this option is selected, proceed to Section XII, if married.

ITEM 35.d. Mark if you desire the higher threshold amount in effect on the date of your retirement to be used as your base amount.

ITEM 36. You may elect payment of the SBP benefit, for beneficiary categories designated in Items 34.b, 34.c, or 34.f, to a special needs trust (SNT) who meets the criteria of a disabled child for SBP, and is indicated as such in Item 32.e of these instructions. You must provide to DFAS-Cleveland a copy of the SNT established for the child, documents to support the child is incapable of self-support, age when incapacitated, and if temporary or permanent, and separate statement from an actively licensed attorney certifying that the Trust is a SNT created for the benefit of the child and is in compliance with all applicable federal and state laws. Additional procedures for establishing an SNT as SBP beneficiary is in DoDI 1332.42.

ITEM 37. Enter the information for insurable interest beneficiary. See instruction for Item 34.e

ITEM 38. Enter the information for your former spouse, if applicable.

PART IV - CERTIFICATION.

SECTION XI - CERTIFICATION

ITEM 39. Read the statement carefully, then sign your name and indicate the date of signature. For your SBP election to be valid, you must sign and date the form prior to the effective date of your retirement/transfer, or the date you are eligible to begin receiving retired pay. (Note: if you elected a lump sum of retired pay in Part II, this form must be signed and dated no later than 90 days prior to your retirement/transfer date, or the date you are eligible to begin receiving retired pay).

ITEM 40. A witness to your signature must also sign and provide their information in Items 40.a through 40.g. A witness cannot be named as beneficiary in Sections V, IX or X.

PART V - SPOUSE SBP CONCURRENCE

SECTION XII - SBP SPOUSE CONCURRENCE.

Completion of this section is required only in certain circumstances if you declined to elect SBP coverage, elected less than the maximum coverage, or elected child-only coverage while having an eligible spouse. If you are completing this form electronically and this section does not appear, you do not have to obtain spousal concurrence.

ITEM 41. 10 U.S.C. §1448 requires that an otherwise eligible spouse concur if the member declines to elect SBP coverage, elects less than maximum coverage, or elects child-only coverage. Therefore, a member with an eligible spouse upon retirement, who elects any combination other than items 34.a or 34.b AND 35.a must obtain the spouse's concurrence in Section XI. By signing Item 41, you are concurring with the Survivor Benefit Plan election made by your spouse.

ITEM 42. A Notary Public must witness the signature of the spouse in Item 41. This witness cannot be a named beneficiary in Section V, IX, or X. The spouse's concurrence must be obtained and dated on or after the date of the member's election, but before the retirement / transfer date. If concurrence is not obtained when required, maximum coverage will be established for your spouse and child(ren) if appropriate.

DD FORM 2656 INSTRUCTIONS, OCT 2018

Page 3 of 3

PREVIOUS EDITION IS OBSOLETE.

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➤ PDF Form

Form Information

Fact Name Description
Form Identification The form is known as DD Form 2656, or the Data for Payment of Retired Personnel.
Purpose This form is used by military retirees to apply for retired pay.
Required Information Retirees must provide personal identification information, direct deposit information, tax withholding preferences, and beneficiary details.
Submission Timing It must be submitted prior to the retirement date to ensure timely processing of benefits.
Federal Governing Law The administration and processing of the DD Form 2656 are governed by federal law, as it pertains to military benefits.
User Audience The primary users are members of the United States military who are approaching retirement or have just retired.
Submission Method The completed form can be submitted to the appropriate military finance center via mail or, in some cases, electronically.

Detailed Guide for Writing DD 2656

Upon completing their service, individuals transitioning from military to civilian life face various administrative tasks, one of which involves ensuring they receive the benefits they've rightfully earned. The Data for Payment of Retired Personnel form, commonly known as DD Form 2656, plays a crucial role in this process. Accurately completing this document is critical for initiating retirement pay. The steps outlined below are designed to simplify this task, ensuring that individuals can submit their form correctly and efficiently.

  1. Start by gathering all necessary documentation, including your retirement orders, proof of service, and any other relevant personal identification documents. These will not be submitted with the form but are essential for accurately completing it.
  2. Locate Section 1 of the form, "Personal Information." Here, fill in your full legal name, Social Security Number (SSN), date of birth, and contact information, ensuring all details mirror those in your official records.
  3. In Section 2, "Pay Information," specify your desired retirement pay start date and select the retirement plan under which you are receiving benefits.
  4. Proceed to Section 3, "Withholding Election," to indicate your federal income tax withholding preference. Use the IRS tables and worksheets to decide the amount you want withheld from your retirement pay.
  5. Section 4, "Former Spouse's Information," requires attention only if applicable. If you have a court order related to military retirement pay as property division, fill in the details of the former spouse(s).
  6. In Section 5, "Direct Deposit," provide the routing number, account number, and account type for the bank account where you wish to receive your payments. This ensures your retirement pay is securely and promptly deposited.
  7. Section 6, "Survivor Benefit Plan Election," is where you designate beneficiaries. Decisions here affect whether and how your dependents receive benefits upon your passing. Consider your choices carefully.
  8. The "Certification" section requires your signature and date, validating the accuracy of the information provided. Ensure all details are correct before signing.
  9. Finally, review the entire form to check for any errors or omissions. When satisfied, submit the completed form to the appropriate military pay office as directed on the form's instructions.

Completion and submission of DD Form 2656 is a pivotal step in securing your military retirement benefits. Thorough attention to detail and adherence to the instructions ensure that the process moves forward without delays, allowing you to transition smoothly into retirement. Remember, assistance is available through your branch's personnel support office if you encounter difficulties at any stage of this process.

Important Points on DD 2656

What is the DD 2656 form used for?

The DD 2656 form, also known as the Data for Payment of Retired Personnel form, is used by military retirees to set up retirement pay. This form is essential for initiating the process to receive retirement benefits, including the method of payment and tax withholdings.

When should the DD 2656 form be submitted?

This form should be submitted upon retirement or immediately after a member of the military has been notified of retirement eligibility. It's important to submit it in a timely manner, preferably at least 60 days before the retirement date, to ensure uninterrupted payment of retirement benefits.

Who needs to fill out the DD 2656 form?

Any member of the United States Armed Forces who is retiring and wishes to receive retirement pay must fill out the DD 2656 form. This includes members from all branches of the military.

What information is required on the DD 2656 form?

The form requires personal information, including full name, social security number, service branch, and contact details. Additionally, retirees must provide their chosen method of payment, tax withholding preferences, and beneficiary details for the Survivor Benefit Plan (SBP) if applicable.

How can one obtain a DD 2656 form?

The form can be obtained from the Defense Finance and Accounting Service (DFAS) website, military retirement offices, or through a military personnel officer. It is also available in a downloadable PDF format online for convenience.

Can the DD 2656 form be submitted electronically?

In many cases, yes, the DD 2656 form can be submitted electronically through secure military portals provided by the Defense Finance and Accounting Service (DFAS). However, it's advisable to check the latest submission guidelines on the DFAS website or consult with a military personnel officer for specific instructions.

What happens if the DD 2656 form is not submitted?

If the form is not submitted, retirement pay cannot be processed and disbursed. It is crucial for retiring military personnel to submit this form to ensure they receive their retirement benefits without any delay.

Can corrections be made to the DD 2656 form after submission?

Yes, corrections can be made. If a retiree needs to update information or correct an error after submission, they should contact the Defense Finance and Accounting Service (DFAS) or their military personnel office immediately. They may be required to submit a new form or additional documentation depending on the type of correction.

Is assistance available for completing the DD 2656 form?

Assistance is available through various channels. Retirees can seek help from their military personnel office, the Defense Finance and Accounting Service (DFAS), or Veterans Affairs offices. Many military and veteran organizations also offer resources and guidance on completing retirement paperwork.

What are the consequences of filling out the DD 2656 form incorrectly?

Filling out the form incorrectly can delay the processing of retirement pay and potentially result in the incorrect disbursement of benefits. To avoid such issues, it's important to carefully review all information before submission and seek assistance if there are uncertainties about how to complete the form accurately.

Common mistakes

Filling out the DD 2656 form, also known as the Data for Payment of Retired Personnel form, is a critical step for service members transitioning to retired status. However, some common errors can lead to delays in processing or incorrect benefit payments. It is crucial to avoid these mistakes to ensure a smooth transition to retirement.

One of the most common mistakes is leaving sections of the form incomplete. Every question on the DD 2656 form is important. If an item doesn't apply, it's better to enter "N/A" rather than leave it blank. This shows that the question wasn't overlooked, but consciously considered and deemed not applicable.

Another error involves not verifying bank account information for direct deposit. Retirees must provide accurate routing and account numbers to ensure their retirement pay is deposited correctly. A single incorrect digit can send your money to the wrong account. It's advised to double-check these numbers against a recent bank statement.

Incorrect or outdated beneficiary information is also a common issue. Life changes such as marriage, divorce, or the birth of a child can affect who you want as beneficiaries for your Survivor Benefit Plan or Arrears of Pay. Keeping this information updated is vital.

Failure to sign and date the form is an easily overlooked mistake. An unsigned DD 2656 form cannot be processed, as it lacks the necessary verification of the retiree's intentions. Furthermore, the date next to the signature helps establish the timeline for retirement benefits to kick in.

Many retirees neglect to attach necessary supporting documents. Depending on your situation, you may need to include a marriage certificate, divorce decree, or other legal documents. Not supplying these can hold up the entire process.

Choosing the wrong options for tax withholding without consulting a tax professional can lead to an unpleasant surprise come tax season. It's important to understand the implications of your choices on your financial health.

A simple error that can cause big problems is using a pencil or non-permanent ink to fill out the form. Documents should be completed in black or blue ink to ensure they are legible and that none of the information can be altered after submission.

Submitting the form without reviewing it thoroughly is a mistake. Once the DD 2656 form is submitted, correcting errors can be time-consuming. Taking the time to go over the form carefully before submission can save a lot of hassle.

Finally, not keeping a copy of the completed form for personal records can lead to difficulties if there are any questions or issues with the submitted information. It’s always a good idea to have a personal copy for reference.

By avoiding these common mistakes, retirees can help ensure their transition is as smooth as possible, paving the way for a stable financial future.

Documents used along the form

When individuals prepare to retire from the military, ensuring that all necessary documentation is in order constitutes a significant step toward a smooth transition. One form often at the center of this process is the DD Form 2656, or "Data for Payment of Retired Personnel." This document is essential as it facilitates the initiation of retired pay. However, it is not the only document required during this critical time. Several other forms and documents often accompany the DD 2656 to complete the retirement puzzle. Each serves a unique purpose, catering to various facets of the retirement and benefits process.

  • SF 1199A - "Direct Deposit Sign-Up Form": Used by retirees to establish direct deposit for their retirement pay, ensuring that their monthly payments are deposited directly into their designated bank account.
  • DD 2656-1 - "Survivor Benefit Plan (SBP) Election Statement for Former Spouse Coverage": Required if the retiree elects to provide SBP coverage for a former spouse, detailing the specifics of the coverage.
  • DD 2656-2 - "Survivor Benefit Plan (SBP) Termination Request": Allows retirees to request the termination of their SBP coverage under certain conditions.
  • DD 2648 - "Pre-separation Counseling Checklist": Helps service members prepare for separation or retirement by ensuring they have received counseling on various benefits and services available to them.
  • IRS W-4P - "Withholding Certificate for Pension or Annuity Payments": Enables retirees to determine the amount of federal income tax to be withheld from their retirement pay.
  • DD 2807-1 - "Report of Medical History": A comprehensive account of the retiree's medical history, required for processing medical benefits and claims.
  • DD 214 - "Certificate of Release or Discharge from Active Duty": This critical document summarizes the retiree’s service, including the period of service, rank at discharge, and reasons for leaving, and is necessary for accessing veterans’ benefits.
  • VA Form 22-1990 - "Application for Education Benefits": Used by veterans to apply for education benefits under the GI Bill.
  • SGLV 8286 - "Servicemembers' Group Life Insurance Election and Certificate": Allows service members to outline their life insurance preferences, including beneficiary information.

Navigating the retirement process entails more than just a single form or action; it involves a collection of documents, each with its own set of instructions and implications for the retiree's future. By understanding the purpose and requirements of each form accompanying the DD Form 2656, retirees can better ensure that they are fully prepared for the next chapter in their lives, minimizing the risk of delays or issues with their retirement pay and benefits.

Similar forms

The DD 2656 form, known as the Data for Payment of Retired Personnel form, is essential for military retirees to begin receiving their retirement benefits. Similarly, the W-4 form is crucial for all employees to determine their tax withholdings from their paychecks. Both forms involve personal financial data and are pivotal for individuals to manage their finances correctly. The W-4, like the DD 2656, requires individuals to provide accurate information to ensure the correct amount of money is received or withheld each pay period.

Another document resembling the DD 2656 form is the Social Security Benefits Application. This form is used when individuals apply for retirement, disability, or survivor benefits under the Social Security program. Both the Social Security Benefits Application and the DD 2656 are essential for accessing financial benefits in retirement, necessitating detailed personal information to ensure the applicant receives the appropriate benefits.

The VA Form 21-526EZ, Application for Disability Compensation and Related Compensation Benefits, also shares similarities with the DD 2656. Both forms are used by veterans, albeit for different purposes: the VA form for disability benefits and the DD 2656 for retirement pay. Each form collects detailed personal information and military service data to determine the benefits the applicant is eligible for.

The TSP-70 form, Request for Full Withdrawal, used by participants in the Thrift Savings Plan (TSP), is akin to the DD 2656 in that it deals with retirement funds. While the DD 2656 form initiates military retirement pay, the TSP-70 form is for withdrawing retirement savings. Both are critical for financial planning and require careful completion to ensure funds are properly managed and disbursed.

The IRS Form 1040, U.S. Individual Income Tax Return, is another document sharing common ground with the DD 2656. Both involve financial disclosures crucial for determining monetary outcomes — in one case, retirement pay, and in the other, tax liability. The information provided on these forms affects an individual's financial standing with federal entities.

The Direct Deposit Sign-up Form (SF 1199A) for federal payments bears a resemblance to the DD 2656 form in its purpose regarding the arrangement of payments. The SF 1199A is paramount for anyone receiving federal payments, such as social security or veterans benefits, to set up direct deposit. Direct deposit is equally essential in the DD 2656 form, ensuring retired personnel receive their benefits promptly.

The Beneficiary Designation Form for life insurance, like the option on the DD 2656 to designate beneficiaries for the Survivor Benefit Plan, is another comparable document. Both forms serve the critical function of designating who will receive benefits upon the policyholder's or the retired individual's death. Accurate completion is crucial to ensure the intended parties receive these benefits.

The Health Insurance Marketplace Application used under the Affordable Care Act for obtaining health insurance is akin to the DD 2656 in the sphere of personal data collection for eligibility and benefits determination. Though one deals with health insurance and the other with retirement pay, both require extensive personal information to determine the best plans or benefits for the individual.

Lastly, the FAFSA (Free Application for Federal Student Aid) form shares similarities with the DD 2656, as both require detailed financial information to assess eligibility for benefits. The FAFSA determines a student's eligibility for financial aid for education, while the DD 2656 assesses entitlements for retired military personnel. Completing these forms accurately can significantly impact the financial assistance received.

Dos and Don'ts

Filling out the DD 2656 form, also known as the Data for Payment of Retired Personnel form, is a crucial step for service members transitioning to retirement. To ensure a smooth and error-free submission, here are the things you should and shouldn't do.

Do:

  • Review the entire form before starting to understand what information is required.

  • Use black ink or type your responses to ensure readability.

  • Double-check your personal information, including your full legal name, Social Security Number (SSN), and contact details for accuracy.

  • Consult with a finance officer or retirement services officer if you have any questions or need clarification on any section of the form.

  • Include all necessary documentation, such as marriage certificates or divorce decrees, if applicable, to support your entries.

  • Sign and date the form in the designated areas to validate your submission.

  • Retain a copy of the completed form and any supporting documents for your records.

  • Contact the Defense Finance and Accounting Service (DFAS) if you need to make changes after submission.

  • Ensure that your designated beneficiaries are aware of their designation.

  • Submit the form in a timely manner to avoid delays in retirement pay.

Don't:

  • Rush through the form without understanding the implications of your entries.

  • Use pencil or colors other than black ink, as this can lead to processing errors.

  • Leave mandatory fields blank. If a section does not apply to you, indicate with "N/A" or "Not Applicable."

  • Forget to update your contact information and next of kin, as these are critical for ongoing communication.

  • Overlook the necessity to update your Survivor Benefit Plan (SBP) elections, which can significantly impact your family's financial future.

  • Assume the form submission alone is sufficient. Follow up to confirm receipt and processing by DFAS.

  • Disregard privacy and security measures when sending your form, especially if it contains sensitive information.

  • Submit the form without reviewing for mistakes or omissions that can delay processing times.

  • Ignore the deadlines for submission, as failing to submit on time can affect your retirement benefits.

  • Fail to seek assistance when facing difficulties filling out the form or if you encounter complex issues.

Misconceptions

The DD 2656 form, also known as the Data for Payment of Retired Personnel form, is a crucial document for those nearing retirement from the military. Its importance cannot be understated, yet there are many misconceptions about it. Below, we debunk some common myths to bring clarity to its purpose and process.

  • Misconception 1: The DD 2656 form is only for Army retirees.

    • This is incorrect. The DD 2656 form is used by all branches of the United States Armed Forces. It's essential for retirees from the Army, Navy, Air Force, Marine Corps, and Coast Guard to complete this form to initiate retirement pay.

  • Misconception 2: The form must be submitted immediately after retirement.

    • While it's beneficial to submit the DD 2656 form promptly, retirees have a window in which to submit it. Ideally, it should be submitted at least six months before retirement to ensure timely processing of benefits.

  • Misconception 3: You can only submit the form via mail.

    • This used to be the case, but now retirees have several options for submitting their DD 2656 form, including online portals and, in some cases, email, depending on the specific service branch's procedures.

  • Misconception 4: Spouse information is not needed if you’re not electing Survivor Benefit Plan (SBP) coverage.

    • Even if not electing SBP coverage, information about the spouse is required. The form gathers this data to ensure all potential benefits and options are considered and accurately processed.

  • Misconception 5: Beneficiary information is only for life insurance benefits.

    • The DD 2656 form covers more than life insurance; it's also used to designate beneficiaries for final military pay and any unpaid allowances. This information is crucial for settling a retiree's affairs after their passing.

  • Misconception 6: The DD 2656 form is the only document needed for retirement processing.

    • The retirement process is comprehensive and requires multiple documents. The DD 2656 is vital but often accompanied by medical records, service records, and other forms depending on individual circumstances.

  • Misconception 7: Corrections on the form cannot be made after submission.

    • Corrections can be made after submission, though it's best to avoid errors. If mistakes are discovered, contact the appropriate military pay office as soon as possible to submit an amended form.

  • Misconception 8: Digital signatures are not accepted on the DD 2656 form.

    • Many branches of the military now accept digital signatures on the DD 2656 form, recognizing the need for more accessible and flexible submission methods in the digital age.

  • Misconception 9: The form doesn't need to be updated unless you retire.

    • Life changes such as marriage, divorce, or the birth of a child necessitate updating the DD 2656 form. Keeping information current ensures benefits are accurately distributed according to the retiree's wishes.

  • Misconception 10: Personal financial information is not necessary for the form.

    • The DD 2656 requires some level of personal financial information, such as bank account details for direct deposit of retirement pay. This data is essential to ensure the timely and correct payment of benefits.

Understanding the DD 2656 form and dispelling these misconceptions ensures that military retirees can navigate their retirement process more smoothly and securely. It is a key step in transitioning from active duty to retirement, with significant implications for a retiree's future well-being and financial security.

Key takeaways

Understanding how to properly fill out and use the DD 2656 form is critical for ensuring that those serving in the military and their beneficiaries receive the retirement benefits to which they are entitled. Here are five key takeaways that individuals should keep in mind:

  1. Accuracy is paramount: When completing the DD 2656 form, it's crucial to provide accurate information in every section. This form determines your retirement pay and any benefits your beneficiaries might receive, making accuracy not only important for your financial future but also for the security of your loved ones.

  2. Update personal information: Ensure that all personal information, including contact details and beneficiary information, is current. Changes in your life, such as marriage, divorce, or the birth of a child, should prompt an update to the form to reflect your current situation accurately.

  3. Understand your benefit options: The DD 2656 form allows you to select various retirement and survivor benefit options. Fully understanding each option and its implications for your retirement pay and beneficiaries is essential. Consider consulting with a financial advisor to make informed decisions.

  4. Submission deadlines are critical: Be aware of the submission deadlines for the DD 2656 form. Failure to submit the form on time can result in delays or even loss of certain benefits, impacting your retirement pay rollout and potentially causing financial strain.

  5. Keep a copy for your records: After submitting the DD 2656 form, ensure you keep a copy for your records. This documentation can be invaluable for future reference, especially if there are any disputes or issues regarding your retirement benefits or beneficiary designations.

By focusing on these key takeaways, individuals can better navigate the complexities of their retirement planning and ensure they maximize their benefits and secure their financial future.

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