Today, Rep. Joseph Heck (R-NV), Chairman of the House Armed Services Subcommittee on Military Personnel, made the following remarks on the hearing titled "Concurrent Receipt of Survivor Benefit Plan (SBP) and Dependency and Indemnity Compensation (DIC):"
"We are here today to hear from military and veterans service organizations on the significant policy and financial issues that are associated with the Survivor Benefit Plan and Dependency and Indemnity Compensation, most notably the issue of concurrent receipt.
As originally created in 1972, the military Survivor Benefit Plan (SBP) was designed to provide an annuity to the survivors of retirement-eligible military personnel. Congress expanded the coverage to the survivors of individuals who die while on active duty.
Dependency and Indemnity Compensation (DIC) was established in 1956 for survivors of certain service members and veterans. This benefit is administered by the Department of Veterans Affairs (VA). DIC is a monthly tax-free cash payment to survivors and dependents of service members killed while on active military duty. Certain eligible veterans who die from service-related conditions are also eligible for DIC.
The significant policy issues that are associated with these benefits include: the DIC offset of Survivor Benefit Plan payments, often referred to as the 'widow's tax'; adequacy of the payments for survivors compared with other retirement systems' payments to surviving spouses; the remarriage age of 57; and maximum DIC payment for parents based on income levels that have not been adjusted for inflation.
Our panel was asked to share their views and that of their members and help inform us about the impacts on survivors of these policy issues.
We are joined today by:
Ms. Chris Kinnard Co-Chair Government Relations Committee Gold Star Wives of America
Mr. Steve Strobridge, Col., USAF (Ret.) Director, Government Relations Military Officers Association of America
Mr. Jon Ostrowski, Senior Chief, USCGR (Ret.) Director, Government Affairs Non Commissioned Officers Association of the United States
Mr. Joe Davis Director of Public Affairs Veterans of Foreign Wars of the United States"
