Hearing of Committee on Veterans' Affairs on Benefits for Survivors: Is America Fulfilling Lincoln's Charge to Care for the Families of Those Killed..

Hearing of Committee on Veterans' Affairs on Benefits for Survivors: Is America Fulfilling Lincoln's Charge to Care for the Families of Those Killed in the Line of Duty?

STATEMENT OF HON. JOHN THUNE, U.S. SENATOR FROM SOUTH DAKOTA

Senator Thune. Just simply that I appreciate you holding the hearing on this very important subject and the testimony of
our distinguished panel today and look forward to hearing the rest of the testimony and an opportunity to ask questions
later. Thank you.

BREAK IN TRANSCRIPT

Senator Thune. Thank you, Mr. Chairman, and I would echo many of those same sentiments and again say thank you to you. I think this is a very appropriate topic for this hearing at a very appropriate time, and that is whether or not we are
fulfilling Lincoln's charge to care for him who shall have borne the battle, and for his widow and his orphan.

It seems to me, too, from listening, and thank you so much for your very insightful and very poignant testimony. It means
a lot for us to hear your perspective from a first-hand experience as well as the service organizations represented.
Thank you all for your sacrifice and for the tragedy that you have had to endure and for the adversity that has come since
that time.

I guess the point of all this is to figure out how do we deal not only with the quality of the benefits that are
available out there, and I am looking at the array of things, too, and thinking I had until this point not seen it laid out
like that. It seems to me that, one, there is the substance of those benefits and making sure that we don't have programs
where these offsets are disqualifying or excluding eligibility for another benefit, but secondly, just the complexity of it
and how we go about dealing with that.

So I would hope that, Mr. Chairman, as this process moves forward that we would be able to find some ways to streamline
and make more understandable these programs and these benefits and also to take a hard look at the substance and the quality of those benefits and are we really providing the assistance to these people and spouses and family members and dependents of those who have given their lives in the line of duty. There is no higher calling, and the least we can do for the brave people who have fallen defending freedom in this country is to see that their spouses and dependents and loved ones are cared for in an appropriate way.

I have a couple of just very brief questions as follow-up.

Tiffany, you had mentioned in your testimony some questions about being able to know the circumstances surrounding your
husband's death. I guess I am curious to know, and this would apply, as well, to Jennifer, the questions that were asked, did
you feel like there was information that was being withheld from you? Did you feel like you were being given straight and
honest and direct answers to your questions? I certainly would understand the need for closure and you would want to know the answers to some of these questions. Did you feel like that information was forthcoming? Was there information that was
withheld by the Casualty Assistance Officer?

Mrs. Petty. Well, I felt as though the Casualty Assistance Officer was trying to give me what information--what little information he had to me without trying to hurt my feelings. I wanted to know that my husband was not alone, that really, I
didn't want to know that he suffered. I wanted to know that he wasn't alone and that he--just everything surrounding his
death, as much as I could know to know that he was okay.

I was told that he was killed almost instantly. But then later I found out from the soldiers he was with that that was
not at all true. What happened was he was shot once and he fought for his life for two hours and he was awake and he was
able to communicate with the soldiers that he was with. He did squeeze their hand. He did moan because of the pain. And so
they were able to get him out of the pain.

He did fight. I needed to know that he wasn't alone fighting, and I was pretty upset that I was told that--what
felt like a lie, that he was killed instantly when in all actuality he was not. He did fight, and I needed to know that.

Senator Thune. Were they in your questions and response?

Mrs. McCollum. I wanted to say thank you for acknowledging that that is part of the survivor benefit, is that we do have
questions and it goes beyond financially what is tomorrow going to say in my checking account. It is deeper than that.

I had a difficult time getting information about basically personal effects. That was something that it took me a year,
and then I am the one that had to end up researching it. I can't tell you why somebody else couldn't do that for me. I had
to contact a friend who also was Air Force, obviously outside of the Marine Corps, to contact Dover Air Force Base Mortuary
Services myself, and was able to talk with a mortician who gave me more detail than I had previously. It didn't answer all the
questions I had, but it certainly was a step forward to closure.

As far as the questions that we may have had about benefits, I am not sure that there was anything being withheld.
I think that, if anything, there was a resistance in that they didn't really know all this information. That is tough for a
Marine Corps officer to say, I don't know.

Senator Thune. I would say, Mr. Chairman, it seems to me that that sort of information would be very pertinent in a
situation where you are a survivor, and I don't know what the practice of the military is, but I would think from these
ladies' standpoint, I would certainly hope that the Casualty Assistance Officer is giving them all the information that they
request with respect to the very issues and the questions that you raise in your testimony. I think that is important from a
closure standpoint.

My time is expired, too, but I would also appreciate, I guess, knowing for the record from these ladies about whether
or not when it comes to the explanation of the array of benefits and things that are out there, would more visits--is
it the amount of time that was spent? Was it just not having the knowledge or dealing with the way that the benefits were
explained, the quality of the information, quality of the explanation, that sort of thing? If there is additional information that you could shed on that, that would be very useful.

Mrs. McCollum. I think Senator Obama had a very good point in that we all go through it differently. I mean, it is the
same road. It is the same uncharted territory. But there is a different time line for each one of us and we all have initial
reactions. I know I stayed in the local area for 2 years. Another widow whose husband died alongside mine left immediately, and 3 years later, she is surfacing, if I may, to ask questions--what is survivor benefit plan and how come I am not getting it? That shouldn't be happening. Granted, she moved away from the military installation so she didn't have a direct
point of contact, but she didn't even have a phone number.

We learned so much through the widows, other widows that we talked with. Oh, by the way, have you heard about this? Hey, I just--my neighbor told me that she heard a news report that, for example, the Veterans Administration was giving $250 a
month for the next 24 months if you have a child. Do we want to hear it through neighbors? No.

Senator Thune. Right.

Mrs. McCollum. We kind of want to be the first person to know what our bank account is going to look like, I guess.

Senator Thune. Thank you. Thank you, Mr. Chairman.

BREAK IN TRANSCRIPT

Question 1: In the 108th Congress we eliminated the spousal benefit Social Security offset to provide more assistance to surviving spouses. This Congress we have been asked to eliminate the Disability and Indemnity offset for spousal benefits as well. What are the long term costs associated with such an initiative and how will it affect other veterans or defense spending priorities?

Response: The elimination of the spousal offset of payments under the Survivor Benefit Plan (SBP) due to receipt of VA Dependency and Indemnity Compensation (DIC) would have no impact on VA costs. Currently, when making an initial award of DIC benefits, VA coordinates with the Defense Manpower Data Center to determine the amount of SBP that had been paid up to the time VA prepares its award. An accrual is established in the VA DIC award to recoup the amount of SBP already
paid from the retroactive award. These recouped benefits are then transferred to the Defense Finance and Accounting Service to be returned to the appropriate account. Therefore, there would be no additional cost to VA if such a change were made. The additional costs would be borne by the Department of Defense.

Question 2: Understanding survivor benefits can be a difficult task, particularly when trying to deal with the loss of a loved one. Do you think that survivors adequately understand their options? Does the VA provide assistance to help survivors understand their rights and benefits?

Response: VA provides benefits applications to survivors of deceased veterans who had been receiving benefits at the time of their death. If the surviving spouse applies for benefits, a determination is made as to whether the survivor is entitled to DIC and/or death pension, and awards whichever is the greater benefit.

In the case of in-service deaths, working with the Department of Defense, the DD Form 1300 (Report of Casualty) is emailed to VA Central Office and then forwarded to the VA regional office casualty assistance officer (CAO) closest to the residence of the surviving spouse. Outreach visits are scheduled with the families in coordination with the assigned military casualty assistance call officer. During the personal visit, the VA CAO provides information about and assistance with applying for VA benefits. VA Pamphlet 21-02-1, Benefits and Services for Survivors of Servicemembers Who Die on Active Duty, is
left with the surviving spouse. The pamphlet explains all VA benefits and provides telephone numbers and the address of the VA website for further information and assistance. If requested, the VA CAO will conduct a follow up visit. The pamphlet is a letter size tri-fold with a pocket that can be used to save/store documents.

DIC applications based on an in-service death are faxed to a centralized unit at the Philadelphia Regional Office for processing. Our goal is to process in-service death DIC claims within 48 hours of receipt.

Bereavement counseling is also available through the VA Vet Centers. A follow-up letter is sent to the surviving spouses
approximately 6 months after a DIC award is made. Its purpose is to remind surviving spouses of the range of VA benefits available to them.

The VA Insurance Service also has a special outreach program for veterans who are recently separated and are terminally ill and the families of those veterans. Through this outreach, we assure the veterans and their families that the veteran's Servicemembers' Group Life Insurance (SGLI) is still in force during the 120-day conversion period after separation and that the veteran is entitled to the SGLI 1-year disability extension if he/she was totally disabled at separation.

SGLI beneficiaries are entitled to free, personalized, objective financial counseling called Beneficiary Financial Counseling Service (BFCS). BFCS has been in use in the SGLI and Veterans Group Life Insurance programs since October 1999 and provides the services of certified financial planners and other financial professionals who are trained and experienced in handling a wide range of financial situations.

Question 3: Based on the 2004 study DoD conducted comparing military survivor benefits to their civilian counterparts, what
deficiencies do you believe need to be addressed in order to improve the overall effectiveness of what appears to be a first class program?

Response: VA offers a comprehensive array of benefits to survivors of veterans who die in service. These include Servicemember's Group Life Insurance, DIG, Dependents Educational Assistance for the surviving spouse and children over the age of 18, educational counseling, and home loan guaranty benefits. Survivors are also entitled to civil service preference for Federal Government employment opportunities.

The supplemental appropriations request for fiscal year 2005 that the President sent to Congress on February 14, 2005, includes a proposal to increase the maximum amount of SGLI and VGLI coverage to $400,000.

BREAK IN TRANSCRIPT

Question 1: In the 108th Congress we eliminated the spousal benefit Social Security offset to provide more assistance to surviving spouses. This Congress we have been asked to eliminate the Disability and Indemnity offset for spousal benefits as well. What are the long term costs associated with such an initiative and how will it affect other veterans or defense spending priorities?

Response: The Survivor Benefits Plan (SBP) program, as enacted, ensured that payments from all Federal survivor benefits totaled at least 55 percent of the member's retired pay (or in the case of an active duty death, the amount of retired pay as if the member retired on the date of death). Both SBP and Dependency and Indemnity Compensation (DIC) for active duty deaths are fully funded by the Government. Thus, the offset of DIC from SBP avoids the duplication of Government benefits. Since retirees pay premiums to cover a portion of SBP funding, those premiums attributed to the reduction for DIC are
returned to the beneficiary, generally in a lump-sum payment.

The Fiscal Year 2004 National Defense Authorization Act did authorize survivors of members who die on active duty who have children to elect to have the SBP paid to the children. Thus, for Servicemembers who die on active duty, survivors have the option to pay DIC to the spouse and SBP in the children's name, which avoids the offset.

Eliminating the SBP offset for all widows entitled to DIC would cost the Military Retirement Fund more than $5 billion over 10 years.

Question 2: Understanding survivor benefits can be a difficult task, particularly when trying to deal with the loss of a loved one. Do you think that survivors adequately understand their options? Does the VA provide assistance to help survivors understand their rights and benefits?

Response: The Department is working to improve access to accurate survivor benefits information. There are initiatives underway to meet this goal. The Department is monitoring the Army's pilot program to implement a Servicemembers Benefit Analysis Online (SMBA) system. The Army awarded a contract to Resource Consultants, Incorporated (RCI) in September 2004 to conduct a concept validation of SMBA Online. RCI is assessing the effectiveness of existing means of benefits counseling with a focus on deploying personnel and is expected to submit its findings in July 2005.

As the Department continues to pursue technological means to provide accurate and customized benefits information, each of the Armed Services has military casualty assistance programs in place to provide Servicemembers and their families with counseling on financial assistance, military benefits, and entitlements. The casualty officer assigned to a surviving family provides valuable support and counsel to ensure that they understand the full complement of benefits that will accrue to them. The casualty officers assist the families with completing and submitting the paperwork to ensure expeditious processing of these benefits. During the casualty assistance process, the families are also provided Websites that give additional detailed
information on each benefit or entitlement.

The VA has a comprehensive pamphlet for survivors of Servicemembers who die on active duty. In addition to information on burial benefits, the pamphlet outlines programs including Vocational Rehabilitation and Employment Services, Work-Study Employment, Civil Service Preference, Education Program Refunds, Home Loan Guaranty, Dependency and Indemnity
Compensation, and Dependents' Education Assistance.

Question 3: Based on the 2004 study DoD conducted comparing military survivor benefits to their civilian counterparts, what
deficiencies do you believe need to be addressed in order to improve the overall effectiveness of what appears to be a first class program?

Response: The Department contracted with the SAG Corporation in 2004 to conduct an independent study on the Department's death benefits program. The study found the system of benefits provided to survivors of members who die on active duty to be adequate, substantial and comprehensive. However, it identified a lack of recognition for direct
sacrifice of life, as is provided by the Public Safety Officers' Benefit Act (pays over $267,000 to survivors in recognition of deaths in the performance of duty of law-enforcement officers and firefighters). Additionally, a 2004 GAO report, ``Survivor Benefits for Servicemembers and Federal, State, and City Government Employees,'' found the survivors of civilian government employees in some high-risk occupations may receive supplemental benefits for deaths while performing dangerous duties. The Department's proposed death benefits program enhancements recognize the direct sacrifice of life in service
to the Nation.

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