SGLI Premiums in Drill/No-Pay Status

Reserve and Guard members of the Army drilling for points but in a no-pay status are still required to pay their SGLI premiums.

PVT Snuffy you have elected to drill for points per the regulatory guidance 140-1, AR 140-185, AR 37-104-4, USAR PAM 37-1, the Reserve Pay Supplemental Guidance, and finally 10 United States Code 12316. Reserve and Guard Members who are drilling for points, but not pay, are covered by Servicemembers Group Life Insurance (SGLI). When their coverage is in effect depends on their status. For example, members who are assigned to a unit and scheduled to drill at least 12 times per year have 24/7 SGLI coverage. Regardless of whether they're covered full-time or part-time, if members are drilling for points and not pay, they're still responsible for paying SGLI premiums. The VA will stop disability compensation payments to those Soldiers who do not complete and return the VA 21-8951-2. The VA will forward the VA 21-8951-2 to the UPC for those Soldiers electing waiver of military pay.

Reserve and Guard members of the Army drilling for points but in a no-pay status are still required to pay their SGLI premiums.

If you are receiving disability compensation, you must complete a VA 21-8951-2 and elect whether you want to receive disability compensation or military pay for periods of duty. The UPA must submit the VA 21-8951-2 to the UPC to record the Soldier's election on his/her MMPA.

Reserve and Guard members in a non-pay status accumulate debts for unpaid SGLI premiums on their Defense Joint Military Pay System Reserve Component Master Military Pay Account (DJMS-RC MMPA). Checks should be made payable to the U.S. Treasury. Soldiers should write their Social Security Number on their payment and include a letter that explains the check is intended to pay SGLI premiums. They are sent individual billing notices semi-annually. Soldiers with debts for SGLI should send payments to the following address:

U.S. Army Human Resources Command
Special Compensations Branch ATTN: AHRC-PDR-C
1600 Spearhead Division Ave Dept. #420
Fort Knox, KY 40122-5408

If payment is not received within 6 months, the Soldier will receive a notification of impending termination for non-payment of SGLI premiums. After an additional 6 months of non-receipt, SGLI coverage is terminated. Unpaid premiums are considered debts owed to the U.S. government. The Defense Finance and Accounting Service (DFAS) will attempt to collect outstanding debts for SGLI premiums from the final pay of separating members. Unpaid debts of service members who separate are referred to the Out of Service Debt department. DFAS reports delinquent debts to the major credit bureaus after 62 days of the initial debt notification letter. Furthermore, DFAS will forward delinquent debts to private collection agencies for assistance with collection.

Members with specific questions about their coverage status and premium payments can contact DFAS at 888-332-7411, and choose option 2 (Military Pay).

PVT Snuffy, you can make changes to your SGLI coverage. For example, Service-members can decline SGLI coverage, select a lesser amount than maximum coverage, designate beneficiaries, and/or make other changes.

Image of Page Divider Line

To contribute examples, enter them below and click Submit. Thanks!