Legislative Topics

Disclaimer: TAPS brings these notices to the attention of military family survivors as information.  As an organization, TAPS takes no official position on the merits of any legislative initiatives. 

 
2008 National Defense Authorization Act (NDAA) Passed by Congress:

On December 14, 2007 the Senate approved the 2008 National Defense Authorization Act (NDAA) which the House passed earlier by a vote of 370-49. The bill now goes to the President for signature. The following is a couple of the key provisions that pertained to survivors:

2008 Defense Appropriations Bill Signed. On November 13, 2007, President Bush signed the $459.6 billion FY2008 Defense Appropriations bill into law, blocking Pentagon efforts to increase TRICARE fees and co-payments. The appropriations bill outlines spending for all major military equipment purchases next year, sets aside $2.6 billion for military family programs

2.3 Percent COLA for 2008

The Cost Of Living Adjustment (COLA) for 2008 for military retired pay, Social Security and other federal annuitants will be 2.3 percent. Last year the increase was 3.3% and 4.1% in 2006, which had been the biggest advance in 15 years.

The COLA is based on the change in consumer prices from the July-September quarter of each year compared to the same period the pre-ceding year.
DIC- Effective 12/1/07: If Veteran's Death Was On or After January 1, 1993 DIC will now be Basic Monthly Rate = $1091 (38 U.S.C. 1311(a)(1))

Senate Confirmation of Dr. James Peake

Friday, December 14, 2007 Senator Richard Burr (R-NC) thanked his Senate colleagues for their unanimous consent for confirmation of Dr. James Peake to serve as U.S. Secretary of Veterans Affairs (VA).

Veterans Disability Benefits Commission (VDBC) Final Report to Congress:

Over two years ago, Congress organized and appointed a Commission to study the various aspects of veterans' disability benefits.  Monthly meetings were held and the Commissioners traveled around the U.S. holding Town Hall meetings to address these issues.  The Commission’s 540 page final report includes 114 recommendations for DoD, VA and Congress to consider.  The final report is titled “Honoring the Call to Duty:  Veterans’ Disability Benefits in the 21st Century”.

Two major issues affect veterans and survivors.  The Commission recommends full concurrent receipt for veterans and the complete elimination of SBP-DIC offset.  In addition, the Commission also recommends a complete overhaul of the current DoD and VA disability processes.  Here are some of the major recommendations that the Commission highlighted:

Bills relating to survivor issues that have been introduced in the first session of the 110th Congress.  These bills have not been passed nor signed into law:

H.R. 1927 introduced by Rep. Henry Brown (R-1st-SC) and H.R. 1589 introduced by Rep. Solomon Ortiz (D-27th-TX) both provide for the complete elimination of the SBP/DIC offset.  H.R. 1589 also provides for the repayment of premiums that were refunded to survivors while H.R. 1927 does not have this requirement.  H.R. 1927 is a companion bill to S. 935.

H.R. 704 introduced by Rep. Gus Bilirakis (R-9th-FL) reduces the age that a surviving spouse can remarry from age 57 to 55 without terminating her DIC benefit.  SBP can be retained by the spouse if she marries after age 55.

H.R. 784 introduced by Rep. Jim Saxton (R-3rd-NJ) reduces the effective date for the paid-up coverage SBP.  This refers to effectively ending the payment of premiums by retired service members after they have paid into the SBP system for a specified amount of time (proposed 30 years).  The effective date for this to begin would be October 1, 2008, if passed.

S. 935 introduced by Sen. Bill Nelson (D-FL) provides for the complete elimination of the SBP-DIC offset for survivors.  This is a companion bill to H.R. 1927.

Explanation of Survivor Benefit Plan/Dependency and Indemnity Compensation (“SBP/DIC”) and the Offset:

One of the significant inequities that military surviving spouses face in the military survivor compensation system is the SBP/DIC offset.   Service members are encouraged to enroll in SBP when they retire.  If the service member dies while serving on active duty, their surviving spouse is automatically eligible.

The Survivor Benefit Plan insures all military survivors a continued reasonable level of income (P.L. 92-425) after the loss of their service member.  Dependency Indemnity Compensation authorizes a payment to military survivors as reparation for the service member’s death (P.L. 84-881).

SBP is offset dollar-for-dollar by DIC.  For many SBP annuitants (E-6 and below) this means their SBP annuity is completely offset.  For others, the offset means receiving only a minimal SBP annuity.  The offset has a strong financial impact on surviving families and often negates the purpose of SBP -- “a reasonable level of income”. 

The offset is detrimental to the two separate and distinct purposes of the SBP and DIC for survivors.

Explanation of Survivor Indemnity Allowance:

The House Military Personnel Subcommittee has added a Survivor Indemnity Allowance to the NDAA08.  The Allowance would provide a monthly stipend to survivors of $40 a month but only for a period of seven and one-half years until this provision ends.  This is not fix to the offset problem but it is encouraging to note that the House is aware of the detrimental effect of the offset and is attempting to provide some, albeit small, relief for survivors.

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