Draft 5-2-05, Rose Lee For May 10, 2005 Hearing

Good Morning Chairman Scott and other distinguished members of the Veterans Disability Benefits Commission. Gold Star Wives appreciate the opportunity to testify before you today.

Gold Star Wives of America is a federally chartered organization whose members are surviving spouses of those killed in combat, those that have died on active duty, or those who have died from a service-connected disability. Almost all of our members are receiving Dependency and Indemnity Compensation or DIC as it is commonly known. We have been working on Capitol Hill to maintain and improve the benefits for survivors since 1945.

We really work not only for the benefit of our members but also for the additional 318,000 survivors receiving DIC.

Generally, survivors whose spouses died after January 1, 1993 receive compensation from the Department of Veterans Affairs in the form of monthly DIC payments that are set at $993.

A new law effective January 1, 2005 provides an additional transition amount of $250 per month of DIC payable for two years to surviving spouses who have minor children. However, these funds are only being distributed to DIC recipients whose military spouses died on or after February 1, 2003. Eligibility is limited to the two year period prior to the laws enactment. Therefore, many surviving families are only eligible for a limited number of months, not the two full years. Additionally, many survivors from the War on Terror have been left out because their spouse died two years before the effective date of January 1, 2005. We request that the law be changed to make it effective to October 7, 2001, the beginning of the War on Terror.

There are disparities in medical benefits. Many survivors also get their health care through the TRICARE or VA's CHAMPVA for Life. Some new widows are confused with TRICARE. They are told they have three years then are put on the retired list for TRICARE. When one widow tried to use her TRICARE, she was told she couldn't be on the retired list for TRICARE because she was too young - in her twenties. Some are disturbed that they are unable to use the Military Dental Plan with United Concordia because their spouse did not purchase it before his death. We request that the Military waive such policy - what ever happened to the policy that the Military will take care of its own?

There are many bills introduced to increase Death Gratuity to $100K and SGLI to $400K. However, the Administration appears to favor those who died in combat zones only. There are soldiers who die in training with the impending anticipation of being deployed. We favor providing the same benefits to all widows - one death one benefit.

Still, some of our members have expressed the feeling that there was a rush to over-compensate the survivors of the disasters of September 11, 2001.

Now, Congress is similarly motivated to rush to compensate today's survivors of the War on Terror - which we welcome..

There is a growing concern that military survivors of our nation's past wars are being left on the sidelines when it comes to giving bigger benefits. Yet, they make up the vast majority of those getting survivors' benefits. The bulk of our members are widows of disabled veterans versus KIA or died on active duty. So, we are asking for a review of the current DIC payment amounts. Many of our widows may be living below the poverty level if they are dependent only on their monthly DIC check.

There's disparity in DIC payments too. For example, there is currently a two tier DIC. One for those who were KIA, died on active duty are authorized the flat rate of $993/month and the top tier is for those whose military spouse was disabled and the surviving spouse was married to him for those eight years before his death, is authorized an additional $213/month. We believe that those who died on active duty should be given the same top rate - what is more disabled than dead! None of this DIC can ever make up for the loss of our husband but we encourage this Commission to make it more equitable for all widows.

We have not forgotten about the work of the Department of Veterans Affairs on behalf of survivors. It is translated into truly distinctive improvements in the quality of hundreds of thousands of lives. The VA's dedication and the dedication of its staff members have made a considerable and direct impact on the day-to-day lives of our members and all military survivors.

Our current top legislative priority is to end the offset of the Survivor Benefit Plan, or as it is commonly called, SBP. SBP annuities are offset by DIC payments. Survivors of retirees have paid for their SBP benefit and then upon eligibility for DIC, lose a majority -- or all too often -- the entire amount of their monthly SBP annuity. Many military members have paid for SBP and have the most obvious of expectations to receive what was paid for. Surprisingly, that's not what happens. Usually they completely lose their paid for benefit and are refunded their premiums with no interest -- and as if that is not enough of a blow -- this refund is then taxed. This unfair offset currently affects approximately 52,000 survivors of retirees who are dually eligible for SBP and DIC and it needs to end.

Since the War on Terror, the "new" widows are also affected by this offset to SBP/DIC. The law now provides SBP to them, even though their spouse never lived long enough to retire. Most of these young widows never see any SBP because their spouse had little time-in-grade, which means they get no SBP as the $993 DIC is more than their SBP. Their SBP is completely offset by their DIC. So why is there a law to provide these new widows with SBP and a law that provides DIC, then another law or policy that provides for the offset so they can't get their SBP?

The law also provides for the new widow whose husband died after November 2003 to select spouse or child option to receive SBP. Widows are now finding out that even a three year old child must pay taxes on her Daddy's retirement. What do these young widows do when the child turns 18 and she hadn't remarried and the benefits stop? Why should her husband have earned his retirement only to have VA DIC deducted from it. One widow said she receives a check of $28 SBP due to the offset. It seems to me that the Government spends more money just to cut this $28 SBP check. The offset must be stopped.

We also wish to bring to your attention that those widows whose husband was KIA in previous wars, i.e., WWII, Korea, Vietnam and other wars, do not receive SBP. So there's a very wide disparity on who is eligible for SBP. This should also be corrected.

We also want to bring to your attention the fact that currently there is no central focus or location within either the DoD or the VA that a survivor or family member can go to with questions or concerns about survivors' benefits. The VA's regional offices are often inadequate at providing information concerning survivors' benefits. DoD likewise has no central location for the new survivor to turn to should their CAO be without such information. There is virtually no coordination between DoD and VA that survivors can count on. Consequently, there is a need for a Survivors' Office that can carry out these critical functions from a central location. Inasmuch as DoD should be considered the traditional employer and benefit provider, it is recommended that such an office be located in the DoD. And, we suggest a Hotline for Benefits be established to assist these new young widows.

Thank you for this opportunity and I gladly welcome any questions you may have.

Gold Star Wives of America, Inc. is a nonprofit national military widows service organization chartered by the United States Congress.