New legislation eliminates SBP-DIC annuity offset for eligible surviving spouses

     Congress included a phased elimination of the SBP-DIC offset in the 2020 National Defense Authorization Act, titled "Phase-Out of Reduction of Survivor Benefit Plan Survivor Annuities by Amount of Dependency and Indemnity Compensation."
     Defense Finance and Accounting Service officials have a new webpage called “SBP-DIC News” where they will post information on the status of the implementation of this new law. Officials are working on analyzing the change and making plans for the implementation. They will not be able to answer questions about the full effect of this change in the law until they obtain legal interpretation of the changes and identify all of the impacts on policy and procedures.
     Based on the NDAA, spouse SBP annuitants will see the first change in the SBP annuity payment they receive Feb. 1, 2021. Spouses do not need to notify DFAS that their SBP payment is affected by this change in the law. DFAS officials advise that the most important action SBP annuitants can take at this time is to ensure their annuity account information is up-to-date and includes their correct mailing address so DFAS can contact them, if needed. Also, if annuitants are not using myPay online, they can set up a profile now and add their email address. To create an online myPay account, visit https://mypay.dfas.mil/ and click on “Start here” next to the Create your myPay Profile heading on the lower right-hand side of the page. DFAS officials are unable to provide individual estimates of the upcoming changes in spouse SBP annuity payments because of this change in the law.
     Officials ask SBP annuitants not to call the DFAS Customer Care Center to request an individual estimate. The webpage also states that spouse annuitants who previously received a refund of SBP premiums paid because of the SBP-DIC offset won’t need to pay back that refund because of this change in the law.
     The "Repeal of Authority for Optional Annuity for Dependent Children" and "Restoration of Eligibility for Previously Eligible Spouses" in the NDAA only affect those spouses and children of service members who died on active duty when the surviving spouse previously elected to transfer the SBP annuity to a child or children. It does not affect previous or future SBP elections by retirees or SBP annuities for a retiree's beneficiaries.
     SBP provides a monthly income to eligible survivors of Airmen upon their death while DIC is paid to survivors of Airmen who die from a service-related injury or illness.

END OF THE UNFAIR DOD/SPB – VA/DIC "WIDOWS' TAX"

BY: Jennifer Barnhill December 20, 2019

‘Widow’s Tax’ finally axed when the President signed the National Defense Authorization Act for FY 2020.

As the President signed the National Defense Authorization Act Friday night, a 40-year battle to repeal the military “widow’s tax” came to an end.

Surviving families joined forces with advocates and lawmakers to pass nonpartisan legislation, with Congress putting actions in front of words and dollars in the hands of those who paid the ultimate price. The “widow’s tax” was a longstanding policy oversight that affected over 65,000 military survivors. When a service member dies while on active duty or from a military-related illness their families may be eligible for both the Survivor Benefit Plan (SBP) & Dependency and Indemnity Compensation (DIC). Because of concurrent receipt laws (provisions to avoid double-dipping in government benefits), for every dollar paid out via the DIC, one dollar was deducted or “offset” from the SBP insurance payment. This offset cost families roughly $11,000 annually. Not only have these families lived through the nightmare of losing a spouse or loved one, they have had to fight to stay afloat both emotionally and financially.

In 2013, Gold Star widow Kathy Prout started the Military Widows: SBP-DIC Offset Facebook Group as a way for survivors to share their concerns about the offset and related legislation. What began with six members grew to over 2,000 today.

“With privacy laws you can’t find anybody. You can’t find another widow unless somebody says ‘I know somebody,’” Prout said. Over time — and with the power of social media — this group grew in number and purpose.

Prout, who is a teacher, used lesson plans to create a plan of the week with assignments to call representatives who were on the fence.

“Everybody in the [Facebook] group was responsible for calling their own congressmen and senators weekly to remind them about the issue and to keep this on the front burner,” she explained.

One key focus of their effort was coupling consistency with kindness. When cosponsors signed on to support the repeal of the offset, she instructed members to write thank you letters. No one was to be shamed for not signing. Instead, they were to be educated. They didn’t take out frustrations on congressional staffers, who they now knew by name. They helped make supporting their cause easier.

“We provided all the information. Staffers have too many issues [to research] … there is no time in the day,” Prout said.

By speaking the language of government in addition to telling their own authentic stories these survivors became an unstoppable force.

Key players:
As intentional as surviving families were, they needed an advocate, someone to champion their cause. While there were many supporters, Senator Doug Jones, D-Ala. made passing this legislation a main priority. According to Jones, including the repeal of the offset in the 2020 National Defense Authorization Act (NDAA) demonstrates “our commitment to our veterans, our military service members and their families because they are the ones making the sacrifices for us. We have got to do more than just give this lip service and talk about the support for our military and throw money at modernizing our military. This is for families. This is for human beings.”

Jones emphasized the need for consistency and maintaining momentum. Because of the lack of understanding and high price tag associated with this legislation, “it wasn’t something that you could just file and make a speech on. You had to constantly work at it. That is what we did and it made a big difference,” Jones said.

His personal investment in the cause was evident as he emotionally recalled hearing from a widow in an Alabama press conference who said, “‘now my husband can finally rest in peace knowing that his commitment to me has been fulfilled.’ That was incredibly gratifying,” Jones says.

Advocacy groups:
Another resource that made 2019 more successful than the previous two decades was the unified message presented by a coalition of military service organizations, including Tragedy Assistance Program for Survivors (TAPS), VFW, National Military Family Association, Gold Star Wives of America, MOAA and others. Because of the groups’ familiarity with government along with connections to elected officials, they provided guidance and leadership to the widows-turned-activists.

“The most significant thing this year was the grassroots advocacy effort from the impacted spouses themselves. It was stellar. That is really what has been missing in the past,” Candace Wheeler, policy director for TAPS, said.

Alongside military survivors and political leaders, these organization emphasized that this was not a partisan issue. It was not even a bipartisan issue. It was a nonpartisan issue that needed to be corrected.

What’s next:
There is still work that still needs to be done. Defense Finance and Accounting Services (DFAS) will now begin to calculate what is owed to these families, an undertaking that will likely require a significant amount of work and time. There will be a phase-in process to receive this SBP benefit starting in 2021. DIC benefits will remain the same. Details:
January 1, 2021: ⅓ of owed SBP, SSIA
January 1, 2022: ⅔ of owed SBP, SSIA
January 1, 2023: full benefits, child-only option phased out & those whose children “aged out” can start to receive benefits

QUESTIONS?
Updates to the SBP-DIC Offset can be found on online or contact TAPS at policy@taps.org.

Don’t forget the ‘kiddie tax’:
Whenever there is “bad” legislation, like the offset, there are workarounds. In this case, many spouses with dependents chose to transfer SBP payments to their children to avoid the offset reduction. However, the 2017 Trump tax law moved these surviving children into a higher tax bracket, in the same category with wealthy trust-fund kids, costing survivors thousands more in taxes each year. This penalty is called the “kiddie tax.” This oversight has also been corrected with the inclusion of the Rep. Elaine Luria’s (D-Va.) Gold Star Family Tax Relief Act in another appropriations bill.  Affected families are now eligible to amend last year’s tax returns.

SITREP: C-123 Vets' Agent Orange Claims as of September 2019

Over $20,000,000 in benefits won thus far by C-123 veterans!

That's great, but the best part of our gaining VA acknowledgement for Agent Orange exposure is medical care, always our primary objective for the estimated 2100 C-123 aircrew, aeromedical, life support and maintainers.

Last week's news included a flight nurse's appeal won for squamous cell carcinoma, and a widow's claim for her husband's Dependents Indemnity Compensation (DIC.) Her late husband died twelve years ago, well before the VA date of 19 June 2015 for recognizing our exposure, but VA accepted the fact of his lung cancer as an Agent Orange illness. I've contacted the few widows I could reach and they've also won DIC benefits (about $1300/month tax-free) but I'm afraid most have never heard of their entitlements. Can you help get the word out?

Other welcome successes include a couple Rickenbacker maintainers' claims honored by VA. I've seen some Pittsburgh veterans' claims being honored but as a group, these folks have been invisible to us...no communication other than one senior NCO. And no help from them, either, but it would be so very welcome to help get their folks informed. If ever they need a seminar on Agent Orange and the C-123 issues, all they have to do is ask!!

So far, out of about 2100 potentially eligible C-123 veterans, about 210 have had their VA Agent Orange claims honored. Sadly, as time goes along, more and more of us develop one or more of the Agent Orange presumptive illnesses and add to this number. Some retroactive awards have been well over $150,000, and our military retirees have also benefited from either Combat Related Special Compensation or Concurrent Receipt of Special Compensation.

Let me  know if I can help with anything. I'm looking forward to joining with other old 74th Aeromedical Evacuation Squadron members at our October 12 dinner in Springfield, MA. Care to join us??

Meanwhile, loving my Tesla Model 3 electric vehicle...best car I've ever had! I'm proud that the USA can invent, build, market and support a car that has earned Tesla the top safety award, goes 315 miles between "fill-ups," and is so cool.

Cliff Turcotte's Widow Approved for VA Agent 0range Survivors Benefits! Thank you, VA!

A few minutes ago, Cliff Turcotte's widow Norma phoned to tell me her good news: The VA approved her survivor benefits based on his service aboard our former Agent Orange spray C-123 aircraft.

Earlier this year, on hearing of her loss I suggested she apply for the benefits. His death is now considered by both the Air Force and the VA to be related to his toxic exposures while on duty with the 74th AES.

The VA calls it Dependents Indemnity Compensation (DIC,) awarded survivors of active duty or retired personnel in the amount of $1240. DIC is in lieu of survivors benefit compensation unless DIC is the lesser amount. For all, DIC is tax-free.

Cliff died before applying for any Agent Orange exposure benefits but on my urging his wife contacted the Agawam Town veteran service office and completed the necessary paperwork. VA awarded her the benefit retroactive to the date of her application, and this was just the greatest news I could hope for this morning!

Norma gave me her permission to tell everyone about this, and together we urge all C-123 veterans or their survivors to apply to the Department of Veterans Affairs if they have any of the presumptive illnesses associated with Agent Orange.

This can be done online, or through state or county veterans service officers or through any of the veterans organizations such as Disabled American Veterans and Veterans of Foreign Wars. The veterans organizations provide this as a free service as part of their congressional charters. Their VA-accredited representatives can usually be contacted through VA medical centers.

I don't know the list of our comrades' survivors but I know that Paul Bailey, Cliff Turcotte, Ed Kosakoski, Dick Matte and our other friends now lost to us would all want this benefit to protect their loved ones. Yet, every widow I've spoken with has been reluctant to apply, concerned that it could be unseemly to seek this important financial protection, or the benefits provided by state or local governments such as property tax relief.

Let's put that fear to rest! Serving in the military it's done out of patriotic motivation and also for the opportunity to earn the benefits important to our lives. Our military retirement pensions, TriCare medical coverage and base shopping privileges are some examples we appreciate and have earned.

DIC and other survivor benefits are just as important and every servicemember wants these earned protections for our families. I assured Norma that Cliff probably headed over to get another beer from the refrigerator up in Heaven when he heard the good news!

We must give credit where credit is due and acknowledge the Agawam veterans service officer and also the VA itself for the prompt attention given the claim.

A personal note: Cliff and I joined the 74th AES the same day, and were welcomes aboard by Marv Proctor and Vinny Macrave. Cliff was a prior service Navy corpsman, and I was a prior service medic with the Army and as California Air National Guard, and both of us were staff sergeants. Cliff completed his education and was commissioned as a flight nurse, retiring as a major.

Once again today, Cliff's family told me how much he loved flying and loved the squadron.

Why C-123 Veterans Are Seeking VA Service Connection for Agent Orange Illnesses

I was asked today by one of our veterans why are we requesting VA Agent Orange benefits.

The question was put to him by a local reporter during an interview last week in Phoenix.

I'm no expert but here's what I think apply but do your own research to be sure. The VA and DOD both have comprehensive web sites.

1. Proper honoring of your hazardous service to the Country
2. Most of our C-123 veterans are not retired military nor otherwise VA disabled, so the VA service connection for their Agent Orange-presumptive illnesses means VA medical care and compensation they don't now receive
3. All veterans with 50% or more VA disability can receive optical care, audio, prosthetics and other benefits not provided under Tricare. At 100% disability there is also dental care. At 80% disability plus unemployability, certain long term health considerations. I have been blessed with VA protection for two decades and am grateful for the skill and dedication of every health care practitioner I've encountered! VA care is not sought because it is free but because it is excellent!
4. VA compensation is tax-free and may "shelter" all or most of the military retiree's service pension
5. Most states have significant benefits for disabled veterans, such as property tax relief, motor vehicle registration, etc.
6. Survivors of veterans who die of service-connected illnesses and injuries, or who are totally disabled for ten years or more, are eligible for Dependent's Indemnity Compensation of approximately $1250 per month, tax exempt
7. If the military retiree was paying for survivor benefits and the survivor is also eligible for VA's DIC, the premiums withheld from the military pension are refunded to the survivor
8.  VA medical care to veterans who have to travel certain distances is reimbursed
9. Agent Orange illnesses make military retirees eligible for "combat related special compensation" and can mean keeping certain percentages of both the military pension and the VA pensions
10. Most of us are past having children in college, but eligible dependents have generous federal and often, state educational benefits
11. Disabled dependents of disabled veterans have certain benefits, including benefits which survive the veteran

There are certainly more reasons to seek a VA disability claim than are listed here...and an hour on the Internet or spent visiting a veteran's service officer from your state or DAV,VFW or Legion will be more informative.

"Exit Folder" - getting your affairs in order, just in case

Most of us have some sort of "exit folder" containing the details needed to manage your final care and wishes...our wills, DD-214, birth certificate, insurance, funeral arrangements and such details are commonly part of that folder. I think we need to add one more detail of importance to our survivors, and that is to alert our final physician as to the cause of death determination.

Why? The language of your medical records, including death certificate, can affect the VA's survivor benefit program called Dependents Indemnity Compensation (DIC). Your passing due to a service-connected disability may entitle your survivor (and minor or disabled adult children) to a modest tax-free pension of about $1300 per month for life.

If you believe you suffer from an Agent Orange-presumptive illness such as prostate cancer, it may be very important to have a discussion with your physician to ask that your medial records describe the disease as caused by toxic exposure to Agent Orange, or words to that effect. Further, the records must show a degree of medical certainty as to both the diagnosis and causation...words such as "may" or "possibly" are taken by the Veterans Administration to be of the dreaded "less likely to than not" opinion and are useless to the veteran. Work with your doctor on this, and stress the importance...write it out, even!

In my case, I have discussed with my doctors the need annotate my medical records and death certificate specifically in reference my exposure to toxic Agent Orange as an underlying cause of death, if in accordance with their own ethics and judgment. Further, I have a letter to whoever completes my death certificate all the details about my dioxin exposure, the VA-recognized illnesses associated with dioxin and a list of the illnesses I have been treated for. I specifically ask that, if in accordance with his/her judgment, my cause of death be "(cause), due to toxic Agent Orange exposure."