Section 301. Additional dependency and
indemnity compensation for surviving
spouses with dependent children

Amends 38 U.S.C. § 1311, relating to the payment of Dependency and Indemnity Compensation (DIC). It adds a new transitional benefit of $250.00 payable monthly to a surviving spouse who receives DIC and has one or more children below the age of 18. The benefit is paid in addition to any other DIC payable under chapter 13 of title 38, United States Code.

• Only one $250 per month add-on is payable regardless of the number of minor children.
• The increased rate applies only to months "occurring" during the two-year period beginning on the date entitlement to DIC began.
• It ceases on the first month beginning after the expiration of the two-year period or the month in which all of the surviving spouse's children have attained the age of 18, or are removed from the award, whichever is earliest.

The letter below provides language to be included in awards letters. Effective date: Section 301(b) makes the amendment applicable to DIC payments for the first month beginning after the date of enactment, which is January 2005, and for subsequent months.

LANGUAGE FOR TRANSITIONAL BENEFIT AWARD LETTERS

Public Law 108-454 has created a new two-year benefit for surviving spouses entitled to Dependency and Indemnity Compensation (DIC) who have children under the age of 18. Your award includes an additional $250 per month for each month beginning on or after January 1, 2005, that is part of your first two years of benefits. Your entitlement to the additional $250 monthly benefit ceases whenever the first of the following events occurs

• two years have passed since you began getting DIC benefits, or
• your last minor child turns age 18, or
• your last minor child is removed from your award.

Responses to questions:

When will the $250/month. Transition fund begin?

Estimated mid-April.

Some say that their spouse died over two years ago, so will it be retroactive to the date of death? Or get the $250 after the law was passed?

The $250.00 increase will be added to the award effective January 1, 2005. The increase will terminate after expiration of the two years from the original DIC award effective date or the first of the month following the month that the last minor child is removed from the award, whichever is earlier. For surviving spouses currently in receipt of DIC, who have one or more minor children and an original DIC award effective date between February 2003 and December 1, 2004, VA will award the pro rata number of months allowed. For example, a surviving spouse with at least one child under the age of 18 and an original DIC award effective date of July 1, 2004, has entitlement ending two years later, June 30, 2006. Therefore, VA will pay an additional $250.00 per month from January 1, 2005 through June 30, 2006, or until the last minor child attains age 18 or is otherwise removed from the surviving spouses' DIC award, which ever is earlier. Another example is a spouse with at least one child under the age of 18 and an original award effective date of February 1, 2003. This surviving spouse's two-year period of eligibility for increased DIC ends on January 31, 2005. Therefore, this surviving spouse gets an additional $250.00 for the month of January 2005.

Do those whose spouse died more than two years ago get the $250/month?

A spouse with at least one child under the age of 18 and an original award effective date of February 1, 2003. This surviving spouse's two-year period of eligibility for increased DIC ends on January 31, 2005. Therefore, this surviving spouse gets an additional $250.00 for the month of January 2005. If the original award was effective prior to February 1, 2003, there will be no additional $250 benefit.

Will the family get the $250/month even if there is a step-child living with his Mom, or will the $250 be split, or will the $250 go to each "family" of the soldier.

This is a benefit for surviving spouse.

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