Statement of Deborah Kline Fryar Deputy Director, Government Relations National Military Family Association Alexandria, Virginia Before the Veterans Disability Benefits Commission May 10, 2005 Not for publication until released by the Committee
The National Military Family Association (NMFA) is the only national organization whose sole focus is the military family and whose goal is to influence the development and implementation of policies that will improve the lives of those family members. Our mission is to serve the families of the seven uniformed services through education, information and advocacy. Founded in 1969 as the Military Wives Association, NMFA is a non-profit 501(c)(3) primarily volunteer organization. NMFA today represents the interests of family members and the active duty, National Guard, Reserve, and retired personnel of the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service, and the National Oceanic and Atmospheric Administration. NMFA volunteer Representatives in military communities worldwide provide a direct link between military families and NMFA s staff in the nation s capital. Representatives are the eyes and ears of NMFA, bringing shared local concerns to national attention. NMFA receives no federal grants and has no federal contracts. NMFA s web site is located at http://www.nmfa.org. Deborah Kline Fryar, Deputy Director, Government Relations Ms. Fryar was hired as a Deputy Director of Government Relations for the National Military Family Association (NMFA) in March 2004. She began as a volunteer with NMFA in 1996 after being appointed as an NMFA Representative for Kaiserslautern, Germany and continued her service as a representative in Stuttgart, Germany, and Ft. Lewis, Washington. In that position, she monitored issues relevant to the quality of life of families of the uniformed services and represented the Association at briefings and other meetings. She was appointed to the NMFA Professional Development Program Committee (PDP) in May 2002. Ms. Fryar currently serves on the Department of Defense s Beneficiary Advisory Panel for the Uniform Formulary, which is a congressionally mandated Federal Advisory Panel. She also serves as part of the Force Management Oversight Committee (FMOC) Working Group of the Marine for Life Injured Marine Program. In June 2000, Ms. Fryar was a recipient of the Commander s Award for Public Service for her work in the Stuttgart Military Community. Then in August 2001, she received the Commander s Award for Public Service in recognition of her work with Army Family Team Building (AFTB). She was awarded The Commanding General s Superior Citizen Service Award for volunteer service and contributions to the Ft. Lewis community and Army families in 2002 and was awarded The Outstanding Civilian Service Medal by the Department of the Army in 2003. She received the Presidential Volunteer Service Award in 2004. A Texas transplant, Ms. Fryar earned a B.S. in Nursing from West Texas A&M University in Canyon, Texas. She has spent the past sixteen years as a military spouse. One of the most important parts of her life is her husband, Ron, who is also a strong advocate of military families. She has been involved at all levels of the AFTB program including being a Department of the Army AFTB Core Instructor and Master Trainer and has served in various leadership roles 1
within the AFTB program. Ms. Fryar has been involved in a myriad of other volunteer family programs to include Health Services Auxiliaries at various military hospitals, American Red Cross, Army Family Action Plan (AFAP), Marines Toys for Tots, Compassionate Ministries, Ladies Ministries and a Military and Uniformed Services Support Group at her church. 2
Mr. Chairman and distinguished members of the Veterans Disability Benefits Commission, the National Military Family Association (NMFA) appreciates your interest in the families of veterans, especially the survivors of those who have made the ultimate sacrifice and the families of the servicemembers who have been disabled and injured. NMFA is grateful for the opportunity to present testimony about the needs of those families. NMFA would also like to recognize and thank the Veteran Service Organizations for their long history of service through the various support programs they offer to the families of the deceased and disabled servicemembers. There have been recent improvements to survivor benefits passed in the Veterans Improvement Act of 2004 (P.L. 108-454), including the increase to Dependency and Indemnity Compensation (DIC), extension of education benefits from 10 to 20 years for the survivors of those killed on active duty, and provision of an additional $250 monthly to surviving spouses with children under the DIC program for a two year transition period. Each of these improvements enhances the benefit package provided to the surviving families. Survivor Benefits We believe that the obligation as articulated by President Lincoln, to care for him who shall have borne the battle and for his widow and his orphan, is as valid today as it was at the end of the Civil War. The Commission s willingness to provide a forum for discussion of benefits for survivors of active duty deaths serves an important purpose. NMFA has seen in media reports and in questions we hear from military families and others concerned about military families that there is a lot of misinformation and confusion about what the complete benefit is for those whose servicemembers have made the ultimate sacrifice. We know that there is no way to compensate them for their loss, but we do owe it to these families to help ensure a secure future. A scene is becoming all too common as America wages the global war against terrorism. Brave servicemembers are sacrificing their lives in service to their country. It may happen on a dusty battlefield or village in Iraq or Afghanistan or may be the result of an unfortunate helicopter crash at Fort Hood, Texas. While specifics vary by Service, the overall process is the same. The family is visited by the casualty notification team consisting of the chaplain and a member of the servicemember s unit. This family will never be the same again. A casualty assistance officer is assigned to help the family cope with the trying days ahead. Funeral arrangements are made. The memorial service is conducted with military honors and the spouse is presented a flag on behalf of a grateful nation. The bugler blows Taps and the family goes home. The spouse encounters a confusing array of decisions that must be made, the consequences of those decisions influences her life and the lives of her children for years to come. What can be done to alleviate the stress and confusion facing the family? What changes can be made to the present package of benefits to recognize the service and sacrifice of the 3
servicemember and family and provide appropriate compensation that promotes the financial stability of the family? NMFA believes the benefit change that will provide the most significant long term advantage to the family s financial security would be to end the Dependency Indemnity Compensation (DIC) offset to the Survivor Benefit Plan (SBP). The DIC is a special indemnity (compensation or insurance) payment that is paid by the Department of Veterans Affairs (VA) to the survivor when the servicemember s service causes his or her death. It is a flat rate payment of $993 for the surviving spouse and $247 for each surviving child. The SPB annuity, paid by the Department of Defense (DoD) reflects the longevity of the service of the military member. It is ordinarily calculated at 55% of retired pay. Military retirees who elect SPB pay a portion of their retired pay to ensure that their family has a guaranteed income should the retiree die. If that retiree dies due to a service connected disability, their survivor is also eligible for DIC. Two years ago, survivors of servicemembers killed on active duty were made eligible to receive SBP. The amount of their annuity payment is calculated as if the servicemember were medically retired at 100% disability. The equation is the basic pay times 75% times 55%. The annuity varies greatly, depending on the servicemember s longevity of service. As the law is written presently, if the amount of SBP is less than $993, the surviving spouse receives the DIC payment of $993 per month. If the amount of SBP is greater than $993, the surviving spouse receives the DIC payment of $993 per month (which is non-taxable) plus the difference between the DIC and the SBP. For example, if the SBP is $1500, the surviving spouse receives $993 from DIC (non-taxable) and $507 from SBP that is subject to tax each month. The DIC payment of $247 for each child is not offset. Surviving active duty spouses can make several choices dependent upon their circumstances and the ages of their children. By law, the SBP benefit is awarded to the spouse. It is paid for the spouse s lifetime unless he/she remarries. Because SBP is offset by the DIC payment, the spouse may choose to waive this benefit and select the child only option. In this scenario, the spouse would receive the DIC payment and her children would receive the full SBP amount until the last child turns 18 (23 if in college), as well as the individual child DIC until each child turns 18 (or 23 if in college). Once the children have left the house, this leaves the spouse who has chosen this option with an annual income of $11,916 (in 2005 dollars). In each case, this is a significant drop in income from what the family had been earning while on active duty. The percentage of loss is even greater for survivors whose servicemembers had served longer. Those who give their lives for their country deserve fairer compensation for their surviving spouses. As you can see, the interaction between SPB and DIC is a complex procedure to understand. Consider trying to make decisions about this payment distribution a month after losing your spouse, while still in a state of shock and denial. NMFA recommends that the DIC offset to SPB be eliminated. Doing so would recognize the length of commitment and service of the career servicemember and spouse and relieve the spouse of making hasty financial decisions at a time when he or she is emotionally vulnerable. 4
There are corrections that need to be made to improve the quality of life for veterans widows who do not qualify for SBP or other federal programs. While the DIC is adjusted annually with cost of living increases, the base amount could be examined to see if it sufficiently meets the needs of survivors. Catastrophically Disabled Veterans, whose spouses serve as primary care givers, receive additional allowances due to the severity of their service-connected multiple disabilities. These spouses perform full-time duty which precludes them from regular work towards a retirement or Social Security benefits in their own right. When the veteran dies, the widow s income is reduced to the same DIC payment that other surviving spouses of veterans receive, whose death was service connected. The percentage of replacement income can be as little as 15%. The income replacement of other federal survivors benefit plans are closer to 50% of the benefit upon which they are based. The VA Survivors Death Pension is paid to widows of non-disabled veterans of armed conflicts who meet certain minimum income level requirements. The current amount paid to eligible survivors is well below the government established poverty level. NMFA along with the Military Coalition, supports a legislative change to link death pension benefits to the federal poverty level determined each year by the Department of Health and Human Services. NMFA recommends that the commission review all aspects of the DIC and Survivors Death Pension programs. Many of the problems faced by surviving families could be corrected by educating the servicemember and spouse about the total survivor benefit package. While some commanders or family readiness group leaders are reluctant to talk about this with families because they feel it will induce added stress or concern, the opposite is true. If the families have an overview of what benefits are available in case of the death of the servicemember, it can help relieve the stress when they go over the what if scenarios during a deployment. NMFA has a concise overview of survivor benefits in fact sheet format available on its website. We feel, however, that a more in depth overview or explanation, like the yearly updated benefits book provided by the VA, be made available in pamphlet form and on-line to educate servicemembers and their families. The DoD booklet should focus on the survivor benefits available from all federal sources and not get caught up in the minutiae of individual Service procedures. NMFA recommends a DoD handbook similar to the annual VA Benefits Handbook to provide easy access to survivor benefit information to servicemembers and spouses. To a child, the loss of a parent is a life-changing event. As he or she goes through the process of grieving for the parent some help may be required. The VA offers grief counseling to families. NMFA would hope that the VA would identify the needs of surviving children and promote programs and initiatives to support those needs. NMFA recommends that DoD and the VA identify the emotional needs of surviving spouses and children, especially in the area of grief counseling, and promote programs and initiatives to support those needs. 5
The Services need to educate young servicemembers on the importance of signing up for the Servicemembers Group Life Insurance (SGLI) and updating beneficiary information. Information provided to NMFA indicates that more than 90% of active duty servicemembers sign up for the maximum amount of SGLI. The opt-out system, wherein the servicemember needs to show why he or she does not require SGLI, goes a long way in accomplishing this. We are, however, less sure that National Guard and Reserve members are signing up at the same high rate. The election of insurance is a family decision. Spouses should be included in the decision making process. We all have heard of the unfortunate instances where the servicemember had opted out of SGLI when first offered it, then marries and does not sign up for it. There are also cases where servicemembers do not change their beneficiary or primary next of kin (PNOK) on the paperwork when they marry. While beneficiary information is supposed to be reviewed periodically, in actuality some people fall through the cracks. NMFA proposes a trigger mechanism, perhaps tied to DEERS registration that would prompt the servicemember to update his survivor information when he or she has a change in marital status or adds a dependent. Many proposals are surfacing to increase the amount of SGLI. Any proposals to increase the maximum SGLI should be designed to ensure an incentive for the servicemember to take the maximum amount, for example, an additional $100,000 coverage premium free at back end not front end. The payment should also be available to the survivors of all servicemembers killed in on active duty. NMFA recommends that spouses be involved in the discussion process when the servicemember elects SGLI. We also suggest a trigger mechanism to have the servicemember update survivor information, i.e. designation of primary next of kin, election of SGLI or change of beneficiary, when family status changes. We also recommend that increased coverage be designed to ensure that the servicemember take the maximum amount and that the amount be paid equally to all survivors of those killed on active duty. The surviving family is presented with a large payment ($250,000 SGLI plus the $12,420 death gratuity) when the servicemember dies. The management of that large sum of money is a huge responsibility, especially if young children are involved. The bereaved spouse may be especially vulnerable to unscrupulous or uninformed advisors, friends or family members who may try to take advantage and help the surviving spouse spend or invest the inheritance. The need for unbiased and fair financial counseling has never been greater. At the present time, the VA offers the free services of a financial counseling service Financial Point for one year after the servicemember is killed. We understand that many families are not taking advantage of this program. The surviving spouse also needs to make decisions that impact the family for many years. The access to a long term counseling service without a financial stake in the outcome could help the surviving families establish an investment plan and make sound decisions about what they should do that is best for their family. NMFA recommends that surviving spouses be offered sufficient professional financial counseling and educated about the long term importance of the counseling. 6
Counsel and advice on a continuing basis needs to be available. The surviving family will have questions as the years go by and their need for different benefits changes. The young widow with a toddler has too many immediate concerns to think about the child s college education 15 years from now. However, that family will be looking for information at that time about those benefits. Will she be able to access that information and advice in an easy manner with someone who is an expert in benefits for families? Will she walk into an office where the counselor is more familiar with VA health benefits for veterans than about education benefits for surviving children? The surviving spouse needs information unique to her family not a cookie cutter, one size fits all answer. Entities that provide this type of survivor-focused service do exist. For example, Armed Forces Services Corporation (AFSC) has supported the military community for years and is renowned for its expertise in government and military survivor benefits and the unparalleled survivorship services provided to their military members and families. AFSC s staff are experts in survivor and retirement benefits and provide assistance in matters related to military benefits, Social Security, Veterans Affairs, and the military Survivor Benefit Plan, death gratuity, SGLI/VGLI, among others. The centerpiece of AFSC s services is their unique software program that provides a personalized projection of the family s integrated stream of government and military survivor benefits including changes to the benefit amounts throughout the surviving family s lifetime. A service such as this would ensure that surviving families would be able to understand and coordinate their benefits in the years to come. Such a service is so valued that presently Army Emergency Relief and the Navy Marine Corps Relief Society present all surviving families of those killed on active duty with lifetime memberships in the Armed Forces Services Corporation to guarantee that they receive the counseling and advice they require. NMFA recommends the establishment of a Survivor Office within the VA to provide longterm information and support for surviving spouses and children and offer individualized information about each surviving family s benefit package. Servicemembers killed on active duty have made the ultimate sacrifice. Their surviving families deserve the most comprehensive package of benefits that a grateful nation can provide. This package should reflect the obligation of the government to provide long term financial stability that recognizes longevity of service and compensates for short term needs. It is imperative that benefits be distributed to the survivors of all servicemembers killed on active duty in an equitable manner. Wounded Servicemembers Have Wounded Families Post-deployment transitions could be especially problematic for servicemembers who have been injured and their families. NMFA asserts that behind every wounded servicemember is a wounded family. Wounded and injured servicemembers and their families deserve no less support than survivors. Spouses, children, and parents of servicemembers injured defending our country experience many uncertainties, including the injured servicemember s return and reunion with their family, financial stresses, and navigating the transition process to the Department of Veterans Affairs (VA). 7
Support, assistance, and above all, counseling programs, which are staffed by real people who provide face to face contact, are needed for the families of wounded/injured servicemembers. Whenever feasible, Military OneSource should be used as a resource multiplier. Mental health services and trained counselors need to be available and easily accessible for all servicemembers and their families who may suffer invisible injuries like combat stress and PTSD. Distance from MTFs or VA Centers should not preclude servicemembers and their families from seeking and receiving care. Respite care options should be provided and accessible for family members who care for the seriously wounded. NMFA recommends the following changes to support wounded and injured servicemembers and their families: Direct the military Services, OSD, and the VA to improve their coordination in support of the wounded servicemember and family. Consider initiatives to enhance the short term financial stability of the wounded servicemember s family, such as: continuing combat pays and tax exclusion, creating a disability gratuity, or implementing a group disability insurance program. Extend the three-year survivor health care benefit to servicemembers who are medically retired and their families. Enhance servicemember and spouse education benefits and employment support Expand access to grief counseling for spouses, children, parents, and siblings through Vet Centers, OneSource, and other community-based services. Both immediate and long term financial pressures affect the family of a wounded/injured servicemember. The initial hospitalization and recovery period often requires the servicemembers' family to leave work for an extended period of time in order to be with their loved one, thus potentially losing a source of income and incurring tremendous travel expenses, childcare costs and other unexpected living expenses during an already stressful time. Although servicemembers continue to draw basic pay and some other allowances during their hospitalization, some families need financial assistance in the immediate period following the injury or during the critical transition until eligibility for VA benefits and disability compensation programs is established or until the servicemember is returned to active duty. NMFA supports establishing a premium-based Servicemember Group Disability Insurance Program as a rider on the Servicemembers Group Life Insurance Program, to provide a lump sum or monthly payment while the servicemember is recovering. Mental Health Counseling In the recently completed Guard Family Action Plan (GFAP), the number one issue was the need for follow-on counseling after return to station. The Family Action Plan is a grass roots effort to identify issues and surface them to Service leaders for solutions and/or resolution. NMFA is concerned that much of the research on mental health issues and readjustment has focused on the servicemember. More needs to be done to study the effects of deployment and the servicemembers post-deployment readjustment on family members. Families also tell us 8
they need more information and training on how to recognize signs of combat stress and Post Traumatic Stress Disorder (PTSD) in their servicemember and how to handle the situations they are told may be common after the servicemember s return. While return and reunion training is getting better and more families are participating, some family members are saying more must be done to support families following the return. According to one spouse: The problem comes in when it's you and hubby at home and he just woke up screaming, or threw an object across the room because he's angry or freaks out in a crowd. Yes, they tell you it could happen, but what do you do when it does? Where is the help when this stuff happens? We don't think the problem is the reunion classes, it's the follow-up. Return and reunion concerns are long-term issues. NMFA believes more also needs to be done to ensure proper tracking of the adjustment of returning servicemembers. This tracking becomes more difficult when servicemembers are ordered to a new assignment away from the unit with which they deployed. Post-deployment assessments and support services must also be available to the families of returning Guard and Reserve members and servicemembers who leave the military following the end of their enlistment. Although they may be eligible for transitional health care benefits and the servicemember may seek care through the Veterans Administration, what happens when the military health benefits run out and deployment-related stresses still affect the family? Mr. Chairman, NMFA is grateful to this Commission for the opportunity to raise awareness of survivor benefits and issues affecting wounded servicemember s families. We realize that many of the issues we have raised overlap with areas that have traditionally been the purview of the Department of Defense. However, the unique problems and concerns that have arisen from the increased use of the Guard and Reserve and the long term needs faced by the severely injured and their families cry out for a coordinated effort, not only with DoD and the VA but with community based resources as well. 9