    [House Hearing, 119 Congress]
    [From the U.S. Government Publishing Office]

                             EXAMINING VA BENEFITS:
                           PENSION AND FIDUCIARY, AND
                           VA LIFE INSURANCE OPTIONS
    =======================================================================

                                    HEARING

                                   BEFORE THE

                        SUBCOMMITTEE ON DISABILITY
                       ASSISTANCE AND MEMORIAL AFFAIRS

                                     OF THE

                         COMMITTEE ON VETERANS' AFFAIRS

                         U.S. HOUSE OF REPRESENTATIVES

                        ONE HUNDRED NINETEENTH CONGRESS

                                 SECOND SESSION

                                   __________

                            TUESDAY, APRIL 21, 2026

                                   __________

                               Serial No. 119-56

                                   __________

           Printed for the use of the Committee on Veterans' Affairs

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                        Available via http://govinfo.gov

                                  __________

                         U.S. GOVERNMENT PUBLISHING OFFICE
    63-818                      WASHNGTON : 2026
    =======================================================================

                         COMMITTEE ON VETERANS' AFFAIRS

                         MIKE BOST, Illinois, Chairman

    AUMUA AMATA COLEMAN RADEWAGEN,       MARK TAKANO, California, Ranking
        American Samoa, Vice-Chairwoman      Member
    JACK BERGMAN, Michigan               JULIA BROWNLEY, California
    NANCY MACE, South Carolina           CHRIS PAPPAS, New Hampshire
    MARIANNETTE MILLER-MEEKS, Iowa       MORGAN MCGARVEY, Kentucky
    GREGORY F. MURPHY, North Carolina    DELIA RAMIREZ, Illinois
    DERRICK VAN ORDEN, Wisconsin         NIKKI BUDZINSKI, Illinois
    MORGAN LUTTRELL, Texas               TIMOTHY M. KENNEDY, New York
    JUAN CISCOMANI, Arizona              MAXINE DEXTER, Oregon
    KEITH SELF, Texas                    HERB CONAWAY, New Jersey
    JEN KIGGANS, Virginia                KELLY MORRISON, Minnesota
    ABE HAMADEH, Arizona
    KIMBERLYN KING-HINDS, Northern
        Mariana Islands
    TOM BARRETT, Michigan

                           Jon Clark, Staff Director
                      Matt Reel, Democratic Staff Director

           SUBCOMMITTEE ON DISABILITY ASSISTANCE AND MEMORIAL AFFAIRS

                        MORGAN LUTTRELL, Texas, Chairman

    AUMUA AMATA COLEMAN RADEWAGEN,       MORGAN MCGARVEY, Kentucky, Ranking
        American Samoa                       Member
    JACK BERGMAN, Michigan               CHRIS PAPPAS, New Hampshire
    NANCY MACE, South Carolina           MAXINE DEXTER, Oregon
    KEITH SELF, Texas                    KELLY MORRISON, Minnesota

    Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
    hearing records of the Committee on Veterans' Affairs are also
    published in electronic form. The printed hearing record remains the
    official version. Because electronic submissions are used to prepare
    both printed and electronic versions of the hearing record, the process
    of converting between various electronic formats may introduce
    unintentional errors or omissions. Such occurrences are inherent in the
    current publication process and should diminish as the process is
    further refined.
                             C  O  N  T  E  N  T  S

                                  ----------

                            TUESDAY, APRIL 21, 2026

                                                                       Page

                               OPENING STATEMENTS

    The Honorable Morgan Luttrell, Chairman..........................     1
    The Honorable Morgan McGarvey, Ranking Member....................     2

                                   WITNESSES
                                    Panel I

    Mr. Tim Sirhal, Acting Principal Deputy Under Secretary for
      Benefits, Veterans Benefits Administration, U.S. Department of
      Veterans Affairs...............................................     4

            Accompanied by:

        Ms. Jennifer Bover, Executive Director, Pension & Fiduciary
            Service, Veterans Benefits Administration, U.S.
            Department of Veterans Affairs

                                    Panel II

    Mrs. Tamra Sipes, National President, Gold Star Spouses of
      America Inc....................................................    20

    Mr. Joseph Barnet, Vice President, Office of Servicemembers Group
      Life Insurance, Prudential Financial...........................    21

                                    APPENDIX
                        Prepared Statements Of Witnesses

    Mr. Tim Sirhal Prepared Statement................................    33
    Mrs. Tamra Sipes Prepared Statement..............................    34
    Mr. Joseph Barnet Prepared Statement.............................    38

                           Statements For The Record

    Veterans of Foreign Wars of the United States Prepared Statement.    51
    Defense Credit Union Council Prepared Statement..................    53

                             EXAMINING VA BENEFITS:
                           PENSION AND FIDUCIARY, AND
                           VA LIFE INSURANCE OPTIONS

                                  ----------

                            TUESDAY, APRIL 21, 2026

       Subcommittee on Disability Assistance &
                              Memorial Affairs,
                        Committee on Veterans' Affairs,
                                 U.S. House of Representatives,
                                                        Washington, DC.
        The subcommittee met, pursuant to notice, at 1:15 p.m., in
    room 360, Cannon House Office Building, Hon. Morgan Luttrell
    (chairman of the subcommittee) presiding.
        Present: Representatives Luttrell, Self, and McGarvey.

             OPENING STATEMENT OF MORGAN LUTTRELL, CHAIRMAN

        Mr. Luttrell. The subcommittee will come to order. Without
    objection, the chair may declare a recess at any time.
        Good afternoon. I want to thank our witnesses for being
    here today. Thank you both.
        Today, we are taking a closer look at how the U.S.
    Department of Veterans Affairs (VA) administers several of the
    most important benefits programs. VA's Pension, Fiduciary, and
    Insurance programs provide critical support for many veterans
    and their families. Often our veterans and or their families
    seek to assist--seek the assistance of the benefits during a
    financial and challenging times.
        Pension is a need-based benefit. It is meant to make life
    more affordable and provide a baseline level of financial
    support for wartime veterans and surviving spouses who may not
    have other means. For some, this is what keeps the lights on
    for veterans and their families. That means the eligibility
    process needs to be clear, consistent, and work that the--and
    work that way as it was intended. This is not a small
    population we are actually talking about. It is in the
    millions. For the current benefit this year--for current
    benefits this year, the maximum net worth limit for Pensions
    eligibility is $163,699. That threshold determines whether many
    low-income wartime veterans and survivors can access this
    support.
        We will also be looking at the Fiduciary program. This is
    one of the most serious responsibilities the VA has. When a
    veteran cannot manage their own financial affairs, the VA must
    step in and appoint someone else to do that in their behalf.
    That requires a high level of trust. When that trust is broken,
    whether through misuse, fraud, or lack of oversight, the
    consequences are very real. When we are talking about veterans
    who are already in a vulnerable position, the VA must
    absolutely get this correct. That includes how fiduciaries are
    selected, how they are monitored, and how the VA responds when
    something goes wrong.
        I also want to acknowledge the Department's recent work
    related to second amendment considerations, including steps
    taken to revisit how certain beneficiaries' information is
    handled and shared across agencies. Given the subcommittee's
    engagement on this issue, we will continue to monitor VA
    actions closely and ensure that veterans' rights are protected
    across the benefits delivery system.
        At the end of the day, veterans accessing these benefits
    they have--the veterans accessing the benefits they have earned
    should not come on the expense of their constitutional
    freedoms. That is absolutely not a tradeoff. We want to make
    sure VA is getting this right and that the changes are
    implemented clearly and transparently to the veterans they
    impact. This is an area where oversight matters, and the
    committee intends to stay engaged as the Department moves
    forward.
        Finally, we will examine the VA's Life Insurance programs.
    These insurance--these insurance products are meant to provide
    financial stability for veterans and their families who,
    through their military service, may not be able to acquire life
    insurance in the private market. These programs operate on a
    real--a very real scale. In 2023 alone, Servicemembers' Group
    Life Insurance (SGLI) covered more than 2.2 million service
    members. Family Servicemembers' Group Life Insurance covered
    roughly 2.5 million spouses and dependent children. Veterans'
    Group Life Insurance (VGLI) covered more than 451,000
    individuals.
        We want to understand how these programs are being
    administered, how veterans are navigating their options, and
    whether VA is doing enough to help families make information--
    informed decisions, excuse me. We will also examine who is
    administering these benefits and if they are providing the
    right level of value and service to veterans and the taxpayers.
    At the end of the day, that comes down to a simple question: is
    VA delivering these benefits in a way that is clear,
    accountable, and centered on the veteran? If the system is too
    complicated, too slow, or not properly overseen, the people who
    feel the first--feel that first are obviously the veterans and
    their families, and that is not acceptable.
        I look forward to hearing from our witnesses today. With
    that, I yield to the Ranking Member.

          OPENING STATEMENT OF MORGAN MCGARVEY, RANKING MEMBER

        Mr. McGarvey. Thank you, Mr. Chairman, and absolutely share
    your thoughts on that about making sure we are putting the
    veterans from front and center in everything we do. Thanks for
    being here. For--we need--we need to do this. This is one we
    have got to examine, the VA's Insurance, Pension, and Fiduciary
    programs.
        Right now, the VA's Insurance program provides more than
    $1.25 trillion in coverage to more than 5.1 million
    beneficiaries. That is enormous. Despite the size and
    importance of these programs, Congress has not really taken a
    close look at them in quite some time. I am glad we are doing
    it today.
        I think that on this subcommittee, you are going to find we
    do generally good work and we work together to make sure that
    we are doing exactly what you have heard both of us say,
    putting the veteran at the heart of what we do. We try to
    conduct real oversight. We try to stay away from some of the
    theater that you might see, especially in something like this,
    because it is important. We are good at keeping the veterans at
    the heart of what we do. I think that is especially important
    as we talk about today's topic, because although pensions and
    insurance and fiduciaries might seem like sort of dry topics,
    there is a really painful story and reality behind so many of
    these numbers.
        When you think about someone who receives a life insurance
    payment, that is someone who has lost a loved one. When you
    think about someone who is in the Fiduciary program, that is
    someone who is really struggling and in pain and in need of
    help. When you think about someone who is in the Pension
    program, this is--we are usually talking about a veteran. We
    are usually talking about someone who is in the later stages of
    life who is facing real financial strain and difficulty. We got
    to make sure that these programs continue to exist, continue to
    thrive for the people who need them. For the stories behind
    these numbers.
        On the Insurance program specifically, I am happy that this
    portion of the hearing is not being driven by bad headlines or
    incriminating Inspector General (IG) reports, but rather
    because Congress is actually doing some forward-leaning
    oversight for a change. I think that is how it should be.
    Although I will also mention that I do intend to engage the
    Government Accountability Office to do a deeper dive into these
    programs, I hope you will join me in that effort, Mr. Chairman,
    I am eager to hear from you all today and to learn more about
    how this program supports our veterans, active duty service
    members, and their families.
        Shifting to the Pension and the Fiduciary programs, these
    are areas, unfortunately, that have been in the news for the
    wrong reasons. They have been the focus of multiple Inspector
    General reports, and all too often, we see criminal behavior in
    these programs. Just this past February, there was a report of
    a fiduciary stealing more than $158,000 from elderly and ill
    veterans. That is beyond unacceptable. It is exactly why this
    kind of oversight matters. The people in these programs are
    some of the most vulnerable people that the VA serves. To see
    someone who is taking advantage of people who are uniquely
    vulnerable is obviously despicable and something all agree we
    want to root out.
        The VA's got to have strong protections in place to make
    sure that these veterans are not being made victims and the
    people who try to defraud them are being held fully
    accountable. In their testimony for today's hearing, the VA
    just gave us five paragraphs, mostly basic overviews of what
    these programs are and how they work. There is very little
    about actual oversight. It gives me a little pause that the VA
    is simply stating what the programs are and that they are being
    modernized. We are talking about a system that some of the
    Nation's most vulnerable veterans rely on. To see IG reports
    titled, Lapse in Fiduciary Program Oversight Puts Some Veterans
    at Risk and failure to flag fiduciaries who are removed from
    results and risk to vulnerable beneficiaries also makes me
    deeply concerned.
        We need more from the VA than bare bones information on
    these topics. We need real, honest accounting of the challenges
    of running these programs, the risks involved in running these
    programs, and the work being done to protect veterans, their
    families, and taxpayer dollars.
        I am glad we are holding this oversight hearing today, both
    for a program that rarely makes the news and another that, when
    it does make the news, makes bad news. This will not be our end
    of--this will not be the end of our work on this and on these
    programs.
        Mr. Chairman, I am excited to continue this oversight and
    work with you today. Thank you. I yield back.
        Mr. Luttrell. Thank you, Mr. McGarvey.
        I would like to welcome our first panel. We appreciate your
    time and your willingness to speak candidly about these
    programs.
        Today on the panel, we have Mr. Tim Sirhal, Acting
    Principal Deputy Undersecretary for Benefits, Veterans Benefits
    Administration, and Ms. Jennifer Bover, Executive Directors,
    Pension and Fiduciary Services, Veterans Benefits
    Administration. Thank you.
        Again, I ask that you both stand and raise your right hand.
        Do you solemnly swear that the testimony you are about to
    provide is the truth, the whole truth, and nothing but the
    truth, so help you God?
        Thank you. Let the record reflect that the witnesses have
    answered in the affirmative.
        [Witnesses sworn.]
        Mr. Luttrell. Mr. Tim Sirhal, you are now recognized for 5
    minutes, sir.

                        STATEMENT OF TIM SIRHAL

        Mr. Sirhal. Good afternoon. Chairman Luttrell, Ranking
    Member McGarvey, and members of the subcommittee, thank you for
    the opportunity to appear before you today to discuss the
    Pension, Fiduciary, and Insurance programs within the Veterans
    Benefits Administration. I appreciate the committee's continued
    commitment to improving the lives of our Nation's veterans,
    their families, and their survivors. Joining me today from the
    Veterans Benefits Administration is Ms. Jennifer Bover,
    Executive Director, Pension and Fiduciary Service.
        At VA, we take our responsibility to serve and protect
    veterans and their families very seriously, especially those
    who may be more vulnerable and need extra support. For example,
    VA's Pension program offers vital assistance to veterans and
    their survivors, particularly in their time of need. In Fiscal
    Year 2025, VA provided over $2.8 billion in benefits to more
    than 200,000 beneficiaries. Through the dedication and hard
    work of employees and our leadership teams, we have taken great
    strides to expedite the delivery of these critical benefits.
        As a result, we have reduced processing times by more than
    110 days for veterans' Pension claims, by more than 100 days
    for Survivors Pension claims, and by more than 90 days for
    Dependency and Indemnity Compensation (DIC) claims, all while
    upholding quality standards with an accuracy rate of 96
    percent. Veterans' Pension claims are currently being completed
    in 57 days on average, and VA is completing Survivors Pension
    and Dependency and Indemnity Compensation claims in 73 days on
    average.
        Another way VA protects veterans and survivors is through
    the Fiduciary Program. The program supports more than 104,000
    veterans and survivors who are unable to manage their own VA
    monetary payments. VA appoints and oversees fiduciaries to
    manage the VA monetary benefits in the best interest of the
    veteran or survivor.
        VA also oversees several Life Insurance programs that
    provide valuable financial security for service members,
    veterans, and their families. Programs open to new applicants
    include Servicemembers' Group Life Insurance for those
    currently serving, Veterans' Group Life Insurance for those
    transitioning out of service, and our newest program, Veterans
    Affairs Life Insurance or VALife, open to all service-connected
    veterans.
        VALife launched in January 2023. Each applicant can elect
    up to $40,000 in coverage at any time up to age 80. We designed
    the VALife application process to be quick and transparent. On
    average, it takes just 11 minutes to apply and confirm coverage
    online, and more than 90 percent of applications are automated.
    VA is proud to share that the VALife Program has been a
    tremendous success. Currently, there are approximately 80,000
    active policies totaling $2.5 billion in coverage.
        Customer satisfaction is a top priority. Recent surveys
    show that well over 80 percent of respondents saying they are
    highly satisfied. Applications received are close to double
    those of the Service-Disabled Veterans Insurance program that
    the VALife program replaced. Importantly, 80 percent of
    veterans insured under VALife are 70 percent or more service-
    connected, meaning that the program is operating as designed to
    ensure those most in need are more--or who are more likely to
    struggle finding insurance coverage in the market and get their
    coverage through VA.
        Overall, VA is deeply committed to serving and protecting
    veterans and their families while ensuring we are efficient in
    delivering on our promises.
        Mr. Chairman, thank you for your oversight of these
    critical programs and for the opportunity to speak with you
    today. My colleague Ms. Bover and I welcome any questions that
    you or other members of the subcommittee may have.

        [The Prepared Statement Of Tim Sirhal Appears In The
    Appendix]

        Mr. Luttrell. The written statement of Mr. Sirhal will be
    entered into the hearing record.
        I now recognize the Ranking Member for 5 minutes of
    questioning.
        Mr. McGarvey. Thank you, Mr. Chairman.
        Mr. Sirhal, the Fairness for Service Members Act was signed
    into law last December and requires the VA to review insurance
    coverage amounts every 5 years and report to Congress about
    adjusting those amounts for inflation. The first review and
    report were due in January 2026 this year, but Congress still
    has not received it. When can we expect that review to be
    finished and the information sent to Congress?
        Mr. Sirhal. Thank you for that question, sir. The review is
    complete. It has not been provided yet. We will look into it--I
    will look into why it has not been provided yet, but the
    analysis has been completed by the actuaries.
        Mr. McGarvey. Thank you. I will not speak for the Chairman,
    but a lot of times we agree up here on what we call
    ``government speak'' and saying, `I am going to look into it.'
    That is something we hear a lot. Who has that report, and how
    do we get a hold of it?
        Mr. Sirhal. I do not know which office has the report. I
    will--I will find out.
        Mr. McGarvey. Okay, we are going to--he has it. Is it your
    job to have that report?
        Mr. Sirhal. My--the team that is under me generates the
    information for that report and then puts it through for
    release. The analysis has been completed.
        Mr. McGarvey. Okay. We--we need that report because it was
    due to us by January. Again, I am not--I did not actually plan
    on this being adversarial at all. It is your team, your team
    underneath you, that has completed the report. You do not have
    the report?
        Mr. Sirhal. I do not have the report. That is----
        Mr. McGarvey. Okay. You should have the report, right? If
    it has been completed and it was due to us in January, you
    should have it at least.
        Mr. Sirhal. I have seen the report and it has cleared my
    office.
        Mr. McGarvey. Okay. You have seen it, but you do not have
    it. Who has it?
        Mr. Sirhal. I do not know which office has it at this time.
    I will find out, though.
        Mr. McGarvey. I know. You cleared it?
        Mr. Luttrell. Who did you send it to after you cleared it?
        Mr. Sirhal. It should be with the department for final
    review.
        Mr. McGarvey. Okay.
        Mr. Luttrell. After the final review, your signature is the
    one that is going to send that to us?
        Mr. McGarvey. Yes.
        Mr. Luttrell. Forgive me.
        Mr. McGarvey. No, no, please. Please, Mr. Chairman.
        Mr. Luttrell. This is what the Ranking Member was talking
    about. You are playing a chess game with us. That is not going
    to work in this committee, sir. You are this--you are the
    official signature on the bottom of that report that your team
    is the one that created it, and you either handed it off. You
    cannot say you handed it off to the department. You mean you
    gave it to the secretary, and he is the one that has not given
    it to us. That is not how this works either. You are
    responsible for this department, and that report was due to us.
    We can play this game for a very long time, sir, and we can
    make it very uncomfortable in here. I think the answer to your
    question is, sir, most likely is, Mr. Ranking Member, I will
    have that to you by the end of the day, if you will. I will let
    you answer that question.
        Mr. Sirhal. I will find out where the report is and get it
    and make sure it is given to you as soon as I possibly can.
        Mr. Luttrell. When you say ``as soon as you possibly can''
    in your calendar, what does that look like? For me, that means
    when you walk out of here.
        Mr. Sirhal. I will make the appropriate phone calls as soon
    as I walk out here to try to move it.
        Mr. Luttrell. It was due in January.
        Mr. McGarvey. You have seen it and you have cleared it. I
    think that is kind of what we are getting at here. If you told
    me it is not finished yet, we would have been like, please get
    that finished. Can we be pushing? We need a date when it was
    due in January. You are telling me it is finished. You have
    seen it, you have cleared it, you do not know who has it, you
    do not know where it is. We will get it somehow, someway,
    somehow, at some point, which I hope you see why that seems
    evasive to us.
        Mr. Sirhal. It is not my intent to be evasive, sir. The
    actuaries have completed the information. The information has
    been validated by our financial folks. It is being cleared
    before it is released. I will find out where it is.
        Mr. Luttrell. You are the guy. You are the guy, and you
    said that. Now, if you want to take that back, you can if you
    were just trying to hope we did not--we were not paying
    attention. Is there a signature on there that we need--that you
    need that you are not telling us?
        Mr. Sirhal. I mean, there is no--I will find out where the
    report is and what signature is missing that needs to be on
    there before it gets released to you. I promise that.
        Mr. McGarvey. I will tell you we could do this all day
    long, and we might come back to this even. I think what you are
    hearing from both of us, again, I am going to go back to what I
    said in the opening. This is not--we are not--I in no way
    intended for this to be adversarial. I expected just kind of a
    plain answer. I am surprised at the answer I have been given.
    The report exists; it is finished. It is your team; you have
    cleared it. We do not have it, and you do not know where it is,
    and you cannot tell us when we are going to get it. For us,
    that--that is not acceptable because again, these reports,
    these audits, this--the reason this is a 5-year oversight, why
    we are supposed to see this is because it takes care of our
    veterans, and sometimes we get really frustrated with the VA
    because it seems like a black hole. What we really want and
    what we might even get with you offline before we get out of
    here is exactly when, and I am talking like today, tomorrow, by
    the end of the week, when we get that report, especially if it
    is finished. That is what we need.
        Mr. Luttrell. He and I, and Mr. Self here, have to answer
    these questions to every single person that is sitting behind
    you right now. We do. They deserve those answers. I can assure
    you, sometimes the conversation is a way more abrasive than
    what you are receiving right now. Because you are doing this to
    us, you are going to hear this from me as the Chairman. Do not
    dance around these answers and hope that we are not paying
    attention, sir. Do you understand?
        Mr. Sirhal. Sir, I will give you direct answers.
        Mr. Luttrell. The department, in its history, will come to
    these hearings and then walk out, and that is the end of it.
    That is not something the Ranking Member and I tolerate. Do you
    understand, sir?
        Mr. Sirhal. Sir, I fully understand, and you have my
    commitment. I will find out what is missing from that.
        Mr. Luttrell. I will hold a hearing every single day with
    you. I will make this so uncomfortable if you choose to come in
    here and do this dance with me. Do you understand?
        Mr. Sirhal. Yes, sir.
        Mr. Luttrell. Thank you.
        Mr. McGarvey. A couple more questions, and I will yield
    back because I know we have got stuff to do. Thank you, Mr.
    Chairman.
        Mr. Sirhal, I am going to ask you a few more questions. I
    am from Kentucky. It is a--it is a southern State. Sometimes
    people ask questions they mean as statements. These are actual
    questions. I do not know the answers to these questions and
    would love to get answers to these questions. In your testimony
    you state that there are approximately 104,000 beneficiaries in
    the Fiduciary program. How many total fiduciaries represent the
    104,000 beneficiaries?
        Mr. Sirhal. I would defer that question to Ms. Bover.
        Ms. Bover. Thank you for that question, sir. There are
    about 76,000 fiduciaries that oversee about the 104,000
    veterans and beneficiaries in the program.
        Mr. McGarvey. Thank you for that. I was looking through
    this stuff, getting ready for the hearing, and I am just
    curious about how this program actually operates. Is there a
    maximum number of beneficiaries a fiduciary may represent?
        Ms. Bover. Thank you for that question, sir. I had a
    similar one when I first took over this position a little less
    than 6 months ago. There is not a maximum, but there are
    additional oversight measures that are put in place if a
    fiduciary has more than one beneficiary.
        Mr. McGarvey. Okay. This is again just a--this is a legit
    question. In your experience, do you think there should be a
    maximum, or is the monitoring program you have right now, do
    you think that is sufficient?
        Ms. Bover. Based on what I know about the program right
    now, no matter how many beneficiaries a fiduciary may have,
    each beneficiary deserves to receive the same level of care. If
    we find through our oversight measures that that same level of
    care does not exist, we move to take appropriate actions.
        Mr. McGarvey. How do you find that out?
        Ms. Bover. We can find that out through a number of
    different ways. One of the ways is every single year, each
    beneficiary receives a letter from us reminding them that they
    are in the Fiduciary program, letting them know what their
    rights are, and letting them know to contact us if they think
    anything is not working as they think it should, or they are
    not receiving the care that they believe they should. They also
    receive a phone call from us as well as in person visit, and
    that alternates every year as well. Then for our fiduciaries,
    we have oversight measures where they have to complete certain
    actions in a timely manner. There are annual accountings where
    they must tell us how that money is being spent. We can do fund
    usage reports, which is 3 months' worth of bank statements, and
    we also do in-personsite visits with them as well, as
    appropriate.
        Mr. McGarvey. Okay. I will just ask one more question and
    yield back to you, Mr. Chairman. We might have time for more
    questions later. Has a Fiduciary program or the Office of
    Inspector General found that fraud and abuse is more or less
    likely with what we would consider, for lack of a better word,
    professional fiduciaries as opposed to, like, family members or
    loved ones?
        Ms. Bover. I am not sure I have the exact answer to your
    question, sir, to be honest with you. What I can tell you is
    that we always aim to assign the fiduciary of the--of the
    veteran or beneficiary's choosing. That may be a spouse, a
    family member, a friend. As a last resort, is when we assign
    professional fiduciaries, and I can tell you that it is less--
    less than 2 percent of all fiduciaries are professional.
        Mr. McGarvey. Thank you for that. Mr. Chairman, before I
    yield back, I would just be remiss if I did not say, Mr.
    Sirhal, we need that report, and we need to know exactly when
    we are going to get it. I yield back.
        Mr. Luttrell. Thank you, Mr. McGarvey.
        Mr. Self, you are recognized for 5 minutes, sir.
        Mr. Self. Thank you, Mr. Chairman.
        Mr. Sirhal, I am going to throw you a lifeline here. From
    your answers I am trying to parse them. Is this report in one
    of your boss's offices and you have no control over it?
        Mr. Sirhal. Sir, the analysis is complete on the report.
        Mr. Self. Nope. My answer is a yes or no question. I am
    trying to throw you a lifeline here. If it is not a lifeline,
    just let me know. Is it in one of your boss's offices?
        Mr. Sirhal. I will confirm what is pending signature and
    what is--what is pending review.
        Mr. Luttrell. I can assure you, you are about--I am about
    to get the hold of you again. Okay? Now, if we are in a place
    where we can no longer hold this committee hearing because you
    are way outside your comfort zone and do not want to give us
    our answers, then I will do that. I warned you earlier, sir,
    not to play this chess game with me. Okay? Are we clear?
        Mr. Sirhal. Sir, I assure you I am not trying to play a
    chess game.
        Mr. Luttrell. Mr. Self.
        Mr. Self. I agree with the Chairman. When you come here, we
    kind of need--we ask simple, direct questions. We need simple,
    direct answers.
        I want to talk about the veteran engaged in asset transfer
    to meet the Pension requirements. Okay? Now, if I--if my memory
    serves me correct, there are a couple of elder benefits that
    is, it is perfectly acceptable to divest yourself of your
    assets in order to meet the criteria. Are we talking about a
    true transfer, true asset transfer here, in other words, giving
    it all to your kids, your grandkids, or something? Are you--are
    we suggesting that you are hiding your assets in order to meet
    the criteria?
        Mr. Sirhal. I will defer that question to Ms. Bover.
        Ms. Bover. Thank you for that question, sir. In terms of
    the 3-year look-back, that is to ensure that beneficiaries, the
    veterans, or the survivors are receiving the needs-based
    benefit that they have earned and making sure that their income
    and net worth limitations are under the rate that is set by
    Congress every year, sir.
        Mr. Self. Okay, I am not sure that answers the question. I
    am trying to determine if this is consistent with our other
    policies and elder benefits. This 3-year look-back and the
    criteria, is this a statute or is this a rule in the VA? This
    requirement for no more than $163,699, is that statute or is
    that rule?
        Ms. Bover. I am going to need to look into that and get
    back to you to find out if it is in a statute or if it is
    something that the VA did prior to my time to be able to ensure
    that the veterans and the survivors were receiving the right
    amount of needs-based benefit based on their assets that they
    have.
        Mr. Self. Okay. The veteran, and I think this is true, can
    be banned for up to 5 years if they are not meeting the actual
    requirement. Is that correct?
        Ms. Bover. Thank you for that question, sir. I believe that
    is correct, sir.
        Mr. Self. Let us move on to something you might be able to
    answer. Your VALife risk. We like to talk about outputs here.
    Let me get to the right document here. You have got--you are
    very satisfied with it. You now have 2.5 billion in coverage,
    but you do not tell us--and people are very satisfied with it.
    82.6 percent are very satisfied with it. What is the loss ratio
    on this? What is the risk to the Federal Government? How does
    this--how does the loss ratio work in this particular Insurance
    policy?
        Mr. Sirhal. A life policies are whole life policies, so
    they build cash value. The program, by statute, must be self-
    supporting, which it is.
        Mr. Self. Okay.
        Mr. Sirhal. Our reserves have been building over the last 3
    years since January 2023. We have the appropriate reserves for
    the number of folks in the program, which is approximately
    80,000.
        Mr. Self. Okay. You are meeting the commercial reserve
    standards?
        Mr. Sirhal. Yes, sir. We have an actuary team who sets that
    every year and revisits premiums every year to ensure that
    premiums and expenses align with the appropriate reserves.
        Mr. Self. Okay, very good. Mr. Chairman, I yield back.
        Mr. Luttrell. Mr. Sirhal, since the Servicemembers' Group
    Life Insurance and the Veterans' Group Life Insurance programs
    were created in 1965 and respectively 1974, has VA ever sought
    additional insurance providers outside of Prudential to provide
    coverage to veterans? If not, why?
        Mr. Sirhal. Thank you for that question, sir. I cannot
    attest to whether there was competes 15-20 years ago, but I can
    tell you that there has not been formal market research in the
    last 10 years. That program, the SGLI and VGLI program under
    the current construct, has been able to consistently increase
    coverage available, most recently in 2023, with 500,000.
        Mr. Luttrell. Would it make sense in 2026 to compete these
    programs for lower costs?
        Mr. Sirhal. While testing the market could bring
    advantages, doing so would just have to be done very carefully
    so as not to inadvertently disadvantage those veterans in the--
    --
        Mr. Luttrell. I think the transition from one program to
    another, if it was more cost-effective for the VA but more
    beneficial for the veterans, would make sense.
        Mr. Sirhal. Understood.
        Mr. Luttrell. Has your office competed that in any way
    since you have been in this seat?
        Mr. Sirhal. Our office has done initial research.
        Mr. Luttrell. What does that mean?
        Mr. Sirhal. It means that we validated that under the
    current statutory construction, very few companies would be
    eligible to compete for the--for the product. Our office has
    also done analysis to ensure that administrative costs for
    Prudential are----
        Mr. Luttrell. Prudential has been there since 1965. They
    are so dug in on this, after so many years, no other company
    can carry that kind of weight?
        Mr. Sirhal. Sir, the statute has requirements of who is
    even eligible.
        Mr. Luttrell. Say that one more time?
        Mr. Sirhal. The statute has requirements on what companies
    could even compete. It is less than 10.
        Mr. Luttrell. Less than 10 companies in the continental
    United States?
        Mr. Sirhal. Based on our analysis. The requirements are,
    and they are pretty simple requirements, but they are difficult
    to satisfy. A company can only compete for this product if they
    are licensed to issue insurance in every State and DC, and they
    have 1 percent or more of the total group policy life insurance
    in place in the Nation. It is essentially the top.
        Mr. Luttrell. How often do we compete this?
        Mr. Sirhal. It has not been competed to my knowledge.
        Mr. Luttrell. Since 1974?
        Mr. Sirhal. To my knowledge, it has not. I do not know if
    there was an effort made prior to that time or prior to the
    last time.
        Mr. Luttrell. Congress needs to request a report to see if
    there is any other company besides Prudential that can lower
    the cost for the VA and increase the benefits for our veterans.
    Is that what you are telling me? Out of the 10 that you said
    exist.
        Mr. Sirhal. Sir, we have looked into and conduct robust
    oversight. We are very comfortable with our level of oversight.
    As I noted, testing the market there can definitely be
    advantages to that. However, we want to be sure that in doing
    so, we do not inadvertently do more harm than good by
    disrupting this important benefit. Which I will have to note
    that in the VGLI program, for example, that there is no
    underwriting for the first 240 days. Not only is there no
    underwriting, there is also no health questions, which is very
    unique, and the private insurers are not used to doing.
    Typically, even an insurance program in the private industry
    where they say there is no underwriting, there is still----
        Mr. Luttrell. All right, just to clarify something for me.
    We have not competed this contract since 1974?
        Mr. Sirhal. That is correct.
        Mr. Luttrell. We are okay with that?
        Mr. Sirhal. We are okay with the level of oversight and the
    performance of Prudential. Is there an opportunity to test the
    market to see if there are improvements? Yes, there is that
    opportunity.
        Mr. Luttrell. We have not done that.
        Mr. Sirhal. We have not done that as of now.
        Mr. Luttrell. That is 50 something years, right? We might
    want to take a look at that. What is the conversation rate at
    transition from SGLI coverage to VGLI coverage?
        Mr. Sirhal. Thank you for that question. In general, for
    SGLI, the application rates are around 23 to 25,000 a year, and
    the conversion rate is around between 8 and 12 percent.
        Mr. Luttrell. I does not make sense to have more options
    inside the coverage network to lower rates. Obviously not since
    we have not done it in over 50 something years.
        Mr. Sirhal. I will say, sir, that the current construct
    allows us to focus our oversight on Prudential so that we can
    ensure that their rates are competitive. VA sets the rates,
    which we have been able to drop consistently over the years.
    Our last time in July 20,000--2025, we dropped the rates for
    all active-duty service members, all veterans, and all spouses.
    It should save them, based on our projections, over $2 billion
    over the next 10 years.
        Mr. Luttrell. That is great. I mean, those are fantastic
    numbers. Just out of morbid curiosity, I would think they are,
    out of the other 10 that are--that exist that could possibly do
    this, could it be better? We do not know that because we have
    not done it in over 50 something years.
        Mr. Sirhal. The one other note I could make, if you would
    not mind, is because the contract was put in place in 1965
    without getting into the details here in a public forum, there
    are advantageous----
        Mr. Luttrell. Is it classified?
        Mr. Sirhal. It is not classified.
        Mr. Luttrell. Okay.
        Mr. Sirhal. There is advantageous provisions in that
    contract. I would want to be very careful not to disrupt that
    and inadvertently put VA in a position where we had less
    bargaining power if we were to either engage with Prudential or
    test the market.
        Mr. Luttrell. I feel like I should unpack that. You got
    anything?
        Mr. McGarvey. I am going to go kind of go into an area that
    the Chairman was just getting into a little bit as well. This
    is about the Life Insurance program. I want to raise a real
    concern I have about the transition from Service Disabled
    Veterans Insurance (SDVI) to VALife. You know, kind of what you
    are, I hope you are gathering from this committee, this
    committee is not about scoring points or getting one over on
    one another. This is about doing what is right for our
    veterans, our men and women who put on that uniform, who put
    that flag on their shoulder and said we are going to, we are
    going to serve and be willing to sacrifice everything to keep
    this country safe and free.
        When the grace period expired, veterans lost the ability to
    keep their existing SDVI coverage during the 2-year waiting
    period before VALife coverage began. Now that created a
    coverage gap. I understand, and I grant you this. It is one
    thing to apply a 2-year waiting period to new applicants,
    people who were not previously enrolled in an insurance plan.
    It is a totally different thing to talk about people who are
    doing the right thing, who were carrying life insurance, who
    were paying their premiums, but then are being told that they
    have to go without coverage for 2 years before the new plan
    kicks in. That is administrative, right? That is not
    acceptable. I do not think we should put our veterans at that
    sort of risk, a 2-year gap. We all know a lot can happen in 2
    years just because of an administrative change.
        Has the VA tracked how many SDVI policyholders have
    switched to VALife insurance since January, when the ability to
    carry both policies expired?
        Mr. Sirhal. I can confirm that number, sir.
        Mr. McGarvey. Okay. Okay, this is one we want those
    numbers. I understand you do not have it today, but we want it,
    and we want it as soon as you can gather.
        You know, just a couple of quick things I wanted to get to
    in our first round of questioning. Go back to the fiduciaries.
    You know, obviously, this is something I am very concerned
    about because for a veteran who is using a fiduciary, that is
    someone who is in trouble, right? You know, they are in crisis.
    They have something in their life where they need a fiduciary
    to handle their affairs. I want to talk about what is happening
    when fiduciaries are assigned to minors, minors related to
    veterans, because, you know, obviously, there is a lot of
    opportunity for potential wrongdoing or abuse in that type of
    system. How often does the VA review the finances of a
    fiduciary assigned to a minor?
        Ms. Bover. Thank you for that question. All of our
    fiduciaries do--we do have oversight over all the fiduciaries.
    There are, for example, annual accountings that we would do,
    and then we assign a fiduciary for a minor, as it is based in
    statute.
        Mr. McGarvey. Okay. Again, I am asking you legit questions.
    You guys are the experts on this. We are just trying to make
    sure our veterans and their families are taken care of. Tell us
    if you do not think this is the case, like we want to help. Do
    you think that--do you think that is often enough?
        Ms. Bover. I think the oversight procedures that we do have
    in place, you know, I have mentioned some of the accountings
    and fund usage reports and insight visits, also reaching out to
    the beneficiaries themselves, not if they are a minor. We also
    run clear reports on them every single year just to make sure
    that nothing has changed in their life that may lead them down
    a path that is--that is not acceptable. We also try to assign
    the fiduciary of the beneficiary's choosing.
        I do believe the oversight that we have is adequate and
    that we have to continue with what we are doing to ensure that
    every single veteran and beneficiary is being well taken care
    of and that their funds are being well managed for their own
    benefit.
        Mr. McGarvey. Thanks. That is what I mean. These are not
    trick questions, right? Like, if you think it is adequate and
    it is working, we want to know that. If you do not think it is
    adequate, we want to get you what you need to make sure that it
    is adequate.
        Ms. Bover. Yes, sir.
        Mr. McGarvey. I think, Mr. Chairman, I can--I think we can
    stop there.
        Mr. Luttrell. Mr. Self.
        Mr. Self. Thank you, Mr. Chairman.
        Mr. Sirhal, the criteria used to determine when a
    beneficiary requires a fiduciary, what due process protections
    are in place? Specifically, I want to talk about the--in the
    past, the allegations that someone that might have been able to
    handle his finances at a fiduciary because of other factors.
    Criteria, due process, and exactly who gets a fiduciary?
        Mr. Sirhal. Sir, I can address parts one and two of that
    question. Part three, I will defer to Ms. Bover.
        The new fiduciary should be appointed unless there is
    medical evidence of their incompetency to handle their--their
    VA funds. I will make that distinction. The medical
    determination is only about managing VA funds. It does not
    extend beyond that into your ability to conduct yourselves in
    any other way.
        As far as a due process, prior to any finding of a need for
    a fiduciary, there is a due process period. It is at least 60
    days. After the expiration of that 60-day notice, the veteran
    or beneficiary could submit any information or evidence to
    dispute and show that they, in fact, can handle their funds.
    After that point, if the incompetency rating is completed, it
    is referred to the Fiduciary hub, who then finds a fiduciary
    and works with the veteran or beneficiary.
        As far as the process, once the referral happens to the
    Fiduciary hub, I will defer that to Ms. Bover.
        Ms. Bover. To assign a fiduciary, we have to first do our
    due diligence to make sure that the right person is assigned
    that can appropriately care for that veteran or beneficiary. We
    do a criminal background check on the fiduciary as well as a
    credit history check. In addition, we personally meet with
    the----
        Mr. Self. No, I am sorry. My question deals with the
    veteran, him or herself. Is it only--do you decide on mental
    acuity? Are there other factors outside of a mental acuity to
    handle financial funds that you might assign a fiduciary?
        Ms. Bover. The VA does not necessarily make that
    determination. We are taking the medical evidence, as Mr.
    Sirhal said. There, for example, a doctor may state that a
    particular veteran or beneficiary, for whatever reason, is not
    able to manage their VA finances. That is what we use as our
    evidence to make a decision. We do not override what a medical
    doctor would say.
        Mr. Self. Okay. Mr. Sirhal, how many allegations of
    misconduct have you received in the last year in the fiduciary
    world?
        Mr. Sirhal. I would refer that to Ms. Bover for the data
    points.
        Ms. Bover. Thank you for that question. On average, we have
    about 165 cases a year that are substantiated for misuse.
        Mr. Self. That is confirmed misuse. 165?
        Ms. Bover. Correct. That is less than 1 percent of our
    complete portfolio.
        Mr. Self. Okay, so what is the restitution process? Is
    there one?
        Ms. Bover. Thank you for asking that. I think first and
    foremost, as we have talked about, we are always looking at out
    for the best interest of our veterans and beneficiaries. If
    misuse is substantiated, the most important thing to know is
    that that veteran or beneficiary is made whole, meaning they
    get that money back. Additionally, when that happens, we also
    refer all of these cases to the Office of Inspector General. If
    there is a surety bond on the financial account, we will go
    after getting back that money through the surety bond. We also
    encourage any time that somebody believes that some kind of
    misuse has happened to report that to the Federal Trade
    Commission as well.
        Mr. Self. Okay. Mr. Sirhal, last--in my last 30 seconds,
    why does VA allow surviving spouses who remarry but later to
    divorce to reapply for DIC and Survivors Pension?
        Mr. Sirhal. I will defer that question to Ms. Bover.
        Ms. Bover. I think your question was if there is a survivor
    that is currently receiving a Pension or DIC. I believe your
    question was what happens if they remarry? Is that correct?
        Mr. Self. No, it is the surviving spouse who remarries and
    then divorces can reapply for the benefits?
        Ms. Bover. Yes, sir.
        Mr. Self. Surviving spouse.
        Ms. Bover. Yes, sir.
        Mr. Self. Do you believe that that is what Congress
    intended with the black and white letter law?
        Ms. Bover. I believe that what we all want is for
    veterans--for surviving spouses to receive earned benefits.
        Mr. Self. Well, the question is earned benefits when they
    remarry are terminated.
        Ms. Bover. There are remarriage restrictions for both our
    Dependency and Indemnity Compensation, as well as our Pension
    benefits. For Pension benefits, if they remarry at any age,
    they lose that benefit. For Dependency and Indemnity
    Compensation, if they remarry before the age of 55, they lose
    that benefit, sir.
        Mr. Self. Right. My time is up. Without answers, Chairman,
    I yield back.
        Mr. Luttrell. Thank you, Mr. Self.
        You know, if the VA just let them keep it and did not take
    it away from them in the first place, we would not have that
    problem.
        Ms. Bover, what do you believe are the biggest
    communication challenges for surviving spouses and what they
    face with the VA today?
        Ms. Bover. I think this is an area that the VA has made
    tremendous strides in over the past year. I can tell you, since
    I have been----
        Mr. Luttrell. Over the past year?
        Ms. Bover. Since I have been here about the last 6 months,
    I have done--done my part in ensuring that I am actively
    engaging with the survivor community to hear what their
    concerns are and take action on their concerns. We want nothing
    more than to ensure that they are--they know about what
    benefits they are eligible for----
        Mr. Luttrell. How are we doing that?
        Ms. Bover [continuing]. and able to apply for them.
        Mr. Luttrell. Generationally, it can be challenging. The
    younger spouses, I do not mean any disrespect when I say this,
    but the younger generation is very engaged in digital media.
    The older generation may not be. How are we touching them both?
        Ms. Bover. I appreciate that question. While VA is moving
    more toward a digital platform, we still have our paper. So
    the--so we still send things out via mail. Surviving spouses
    are still able to come and see us in one of our public contact
    team units in-person. There is one in every State. For those
    that are comfortable, there is online resources they can apply
    online for all of our benefits, research our benefits. For
    those that are not comfortable, again, we do have paper forms
    of paper of explaining those benefits.
        Mr. Luttrell. I am sure the digital pipeline is very
    streamlined. It is start to finish from the spouse to whomever
    is on the--on the receiving end. What does a paper trail look
    like? How many hands does that have to go through? Then it has
    to be inputted digitally from somebody internal to the VA.
    Correct?
        Ms. Bover. I will--I will answer that twofold. If the
    surviving spouse goes online to VA.gov and applies, that
    information is automatically received by the VA to be worked.
    If they choose to fill out a paper form and mail that, that
    goes to our scanning vendor, and our scanning vendor then scans
    that and puts that into our system. If something is mailed,
    right, we have that delay of the postal service. It is a little
    bit quicker if they go online. If they do not have those
    resources, to your point, sir, we can assist them with that in
    one of our public contact team units in every State, or we also
    encourage them to work with an amazing veteran service
    organization.
        Mr. Luttrell. How does the VA respond, and how long to a
    spouse that submits it through the mail? Do they--they will
    have to obviously respond with a letter. If it--when it hits
    the VA, then it has to be scanned in. Then once it is scanned
    in, it will--they will--they will populate a report, or it
    says, hey, this is done. Then that report has to be mailed back
    to the spouse. Correct?
        Ms. Bover. Whether they apply online or----
        Mr. Luttrell. No, no.
        Ms. Bover [continuing]. via paper----
        Mr. Luttrell. Not online, just snail mail.
        Ms. Bover. Yes, sir. Either way that they apply, we are
    providing those decisions about 100 days sooner. Those benefits
    are getting into their hands well within under 90 days.
        Mr. Luttrell. I am kind of running in a different lane all
    of a sudden. I apologize. I want--some of the questions that we
    get is, I am not getting any response from the VA that this has
    been done. Again, my question is if snail mail comes in and is
    scanned into the system, now they are in the system, but they
    do not know that. Does the VA populate a letter and mail it
    back to them or are they just kind of?
        Ms. Bover. Great question, sir. Years ago, because
    processing times were so high, there used to be a lot of
    different communication going out so that people knew that they
    were not forgotten, and that their claim was being processed.
    Because we are processing claims so quickly now, as well as
    accurately, they do not receive as much communication because
    that time span has greatly shortened.
        Mr. Luttrell. Okay. You are still--we are still kind of
    dancing around my question here. How does my mother, who does
    not know how to turn on a computer, receive a response from the
    VA in the mail, or will she receive a letter in the mail from
    the VA----
        Ms. Bover. Yes.
        Mr. Luttrell [continuing]. that we have scanned your
    information, and it is in the system?
        Ms. Bover. Because we are processing those cases so quickly
    now, a lot of those interim communication points are no longer
    existing. However, when a decision----
        Mr. Luttrell. Does that mean no? I am sorry.
        Ms. Bover. Yes. When a decision is made, they will receive
    something via paper, sir. I can also tell you that for a
    dependent----
        Mr. Luttrell. When the decision is made, but not, hey, we
    have received your letter?
        Ms. Bover. Correct.
        Mr. Luttrell. Now, help me out on this, because where I
    live, it is country, all right? My veterans, which I have
    40,000 veterans in my district, and some of their biggest
    complaints to me, is like, I do not know if the VA has received
    me.
        Ms. Bover. One of the advances that we have made or changes
    we have made over the last year, especially with our Dependency
    and Indemnity Compensation cases, is that we are reaching out
    via telephone personally to these survivors. If we are missing
    information, we are reaching out and making sure that they
    understand what they need to get us so that we can quickly
    provide them this--the earned benefits that they have.
        Mr. Luttrell. Okay. We have got kind of an--and every
    district is different. Some of my folks do not have telephone,
    oddly enough, and they absolutely do not have a cell phone. I
    live--that is the kind of folks that I represent. They are all
    in. Do I need to have my VA--how did--they are not getting the
    information. I guess it is, basically, how I am saying this;
    they are not receiving any notifications whatsoever by mail
    because they do not have Internet. They do not do the phone
    thing. I think my question now is, does the VA respond by paper
    mail once an applicant's information is input into the system?
    That is a yes or no question.
        Ms. Bover. Understood, sir. No, not----
        Mr. Luttrell. No, they do not. Okay, we are going to have
    to--we are going to have to figure that one out. That is a big
    deal. All right? Not so much for folks who live around the city
    and can do all the live in the metaverse, but for the country
    folks that I represent, they need that. All right? We are going
    to have to figure something out. Fair enough?
        Ms. Bover. Yes, sir.
        Mr. Luttrell. All right. What are the most common financial
    mistakes or missed opportunities, the survivors, kind of--
    what--that happened to them, that is there a--is the VA
    tracking? Like, if they submit an application and it is
    processed, and they are going to resubmit, it is like, hey, you
    missed something. I think that is a breakdown of communication.
    Is there a--do we have a, oh, if you want to take a survey or
    kind of a--is there a language model that we are utilizing
    inside the VA that populates something for the spouses to say,
    hey, make sure you are taking a look at things, at this? We--we
    have noticed that most of the spouses may miss this
    opportunity.
        Ms. Bover. We do not have something like exactly what you
    are talking about. What I can tell you is that we have made a
    lot of changes over the last year. For example, we have started
    sending pre-need pre-planning information to veterans while
    they are still alive so they can have these conversations with
    their spouses on what benefits they may be eligible for. When
    we hear that a veteran has passed away, we are immediately, to
    your point, sending a letter to let them know what benefits
    they may be eligible for. I think something that is super
    important that we have done is that if, in certain
    circumstances, and I will give you an example, if a veteran is
    100 percent service-connected for more than 10 years and they
    pass away and they have a spouse on record, VA is automatically
    providing them their survivor benefits without them having to
    apply within 6 days. We have done about 100,000 of those just
    so far this fiscal year.
        Mr. Luttrell. Within 6 days?
        Ms. Bover. Yes, sir.
        Mr. Luttrell. Okay. If I pass away--just talking
    hypotheticals.
        Ms. Bover. Yes, sir.
        Mr. Luttrell. If I pass away, my spouse will receive
    benefits.
        Ms. Bover. So----
        Mr. Luttrell. There is a 6-day gap or----
        Ms. Bover. From the--again, there are certain situations.
    If we know that, for example, if you are 100 percent service-
    connected for more than 10 years and you pass away, because we
    do not have to look into whether the cause of death was related
    to service, and there was a spouse on the award, yes, sir. We
    are automatically paying those benefits from the time we find
    out about the death to that spouse on record within 6 days. In
    fact, about 40,000 of those this year have been within 1 day,
    and the spouse does not have to apply for those benefits, sir.
        Mr. Luttrell. The Survivors Pension application is roughly
    20 pages long, correct?
        Ms. Bover. The current application is. Yes, sir.
        Mr. Luttrell. In that application, does it describe every
    single Pension benefit possible for the spouses or is it
    something they got to go hunt for?
        Ms. Bover. So the----
        Mr. Luttrell. I may not be asking that right. Go ahead.
        Ms. Bover. Yes, sir. That exact form, the 21-534EZ, is a
    claim for three benefits, which is the accrued benefit pension,
    as well as Dependency and Indemnity cost.
        Mr. Luttrell. Three benefits?
        Ms. Bover. Yes, it is three benefits.
        Mr. Luttrell. Is there only three or is there more than
    that?
        Ms. Bover. There is also burial benefits, and there is a--
    there is, it is a little nuanced, there is a separate form for
    burial benefits. However, if we do grant service-connected
    death, we can also automatically pay burial benefits.
        Mr. Luttrell. Can or do?
        Ms. Bover. We do. If we grant service-connected death, we
    can automatically pay those benefits based on the form they
    submitted, sir.
        Mr. Luttrell. Why cannot we package all that together?
        Ms. Bover. That--that is our, our way of having all three
    benefits on one form. Sometimes, for burial benefits, it is not
    necessarily the surviving spouse who may have incurred that--
    that cost, or it may not be service-connected. Again, when it
    is, we are paying those benefits based on that one application.
        Mr. Luttrell. There is five total, if I understand?
        Ms. Bover. Uh----
        Mr. Luttrell. Burial is the other one you mentioned.
        Ms. Bover. There is accrued--the 21-534EZ has accrued
    Dependency and Indemnity Compensation and Pension. Three, then
    again, if we do grant service-connected DIC, we will
    automatically pay that benefit.
        Mr. Luttrell. How would a surviving spouse that lives in--
    that lives in Cold Spring, Texas, know all that is available?
    If you do not know where Cold Spring, Texas is, I mean, we are
    really excited about that. They just got power out there. We do
    not lose water. You know, that kind of thing. It is a very
    remote place. I am--if you are listening, Cold Spring, I love
    you to death. I am here for you. The surviving, those spouses
    out there, they are not--how do they--how do they know all that
    information? They are not going to get online to get it.
        Ms. Bover. Yes, sir. In those cases where we are not able
    to process automatically, we are sending them a letter. They
    will--those folks will receive a letter in the mail.
        Mr. Luttrell. Okay. You got anything? Mr. Self. Okay.
        Ms. Bover, Mr. Sirhal, thank you very much for your time
    today. Mr. Sirhal, I look forward to hearing from you, the
    Ranking Member and I. Okay? Thank you.
        [Recess.]
        Mr. Luttrell. Are we ready? Ms. Sipes, you ready?
        Mrs. Sipes. Yes, sir.
        Mr. Luttrell. It will be--it is going to be a great day. It
    is going to be a great day.
        We appreciate you guys coming to chat with us.
        I would like to introduce Ms. Tamra Sipes, National
    President, Gold Star Spouses of America, and Mr. Joseph Barnet,
    Vice President of the Office of Servicemembers' Group Life
    Insurance, Prudential Financial. I am sure you got a kick out
    of what I was just--we will talk about that.
        I ask that the witnesses please stand and raise your right
    hand?
        Do you solemnly swear that the testimony you are about to
    provide is the truth, the whole truth and nothing but the
    truth, so help you God?
        Let the record reflect that the witnesses have answered in
    the affirmative.
        [Witnesses sworn.]
        Mr. Luttrell. Ms. Sipes, you are now recognized for 5
    minutes to present the testimony on behalf of Gold Star Spouses
    of America.

                        STATEMENT OF TAMRA SIPES

        Mrs. Sipes. Thank you. Chairman Luttrell, Ranking Member
    McGarvey, and distinguished members of the subcommittee, thank
    you for the opportunity to testify today on behalf of Gold Star
    Spouses of America.
        My name is Tamara Sipes, and I serve as the National
    President. I am also a surviving spouse. Like so many others I
    represent, many here today, my life and my family's life was
    changed forever by my husband's service and sacrifice.
        For us, VA programs are not abstract benefits. They are the
    foundation of our financial stability, our access to care, and
    our ability to move forward. Surviving spouses navigate grief,
    financial transition, and complex administrative systems all at
    the same time without clear guidance, timely communication, or
    processes that reflect the realities of their lives. These are
    not minor inconveniences; they have real consequences.
        While there have been improvements, further efforts are
    needed across the Pension, Fiduciary, and VALife programs. Many
    surviving spouses are confused about how the Survivors Pension
    works, especially alongside Dependency and an Indemnity
    Compensation, DIC.
        Survivors turn to the Pension program only to find that the
    income threshold, approximately $11,700 annually, is set well
    below the poverty level. The term ``pension'' can be confusing
    for survivors as it is understood as a collective benefit, as
    opposed to just one component of possible survivor benefits. As
    a result, many survivors spend time and emotional energy
    applying only to be denied.
        The issue is not just eligibility; it is clarity. Survivors
    need plain language explanations up front so they can
    understand whether they qualify before entering the process,
    and we urge Congress to examine the current threshold for
    Survivor Pension eligibility to better align at least up to the
    Federal poverty level.
        While we appreciate the VA's efforts to modernize, a
    digital-first approach will unintentionally leave many
    survivors behind. Nearly a quarter of seniors do not regularly
    use the internet, or they live in rural areas. For many
    surviving spouses, mailed correspondence is not outdated; it is
    essential. An annual benefits letter, while many do not receive
    sent to all surviving spouses, would serve as a reliable touch
    point.
        We have also heard from survivors who were not informed
    about the 1-year window to move death gratuity and SGLI
    benefits into tax-advantaged accounts. By the time they make
    these decisions, the opportunity has often passed. Survivors
    should be proactively informed and given structured options
    before funds are distributed, rather than be expected to
    navigate these decisions during the first year of profound
    loss.
        One of the most immediate and personal issues for many of
    our members is the Fiduciary program. We have heard consistent
    concerns about burdensome and confusing requirements
    specifically involving biological children. In some instances,
    surviving spouses who were previously recognized as competent
    beneficiaries for their children are required to establish
    fiduciary arrangements solely due to remarriage. This can feel
    misaligned reality and adds unnecessary stress. While oversight
    is important, current policies create unnecessary burdens on
    surviving spouses.
        In addition, we would like to recognize and commend the VA
    for voluntarily moving the Office of Survivors Assistance (OSA)
    back under the Office of the Secretary in May 2025. Although
    this administration action alone is not a durable safeguard
    without a statutory requirement, OSA can be moved again,
    leaving survivors without consistent access, authority, and
    visibility at the department's highest level.
        We respectfully ask for action on H.R. 1228. Clarifying the
    law is necessary to ensure this does not happen again.
    Enclosing unclear communication and eligibility requirements
    can result in delayed benefits, financial instability, and
    unnecessary hardship during an already difficult chapter in
    life.
        We can better honor our surviving spouses with not only our
    gratitude, but our commitment to ensuring the systems designed
    to support them are clearly communicated, equitable, and
    responsive. Gold Star Spouses of America stands ready to work
    with this subcommittee and the VA to advance solutions.
        Thank you for your time, and I look forward to your
    questions.

        [The Prepared Statement Of Tamra Sipes Appears In The
    Appendix]

        Mr. Luttrell. The written statement of Ms. Sipes will be
    entered into the hearing record.
        Mr. Barnet, you are now recognized for 5 minutes, sir.

                       STATEMENT OF JOSEPH BARNET

        Mr. Barnet. Chairman Luttrell, Ranking Member McGarvey, and
    members of the subcommittee, my name is Joe Barnet, and I am
    Vice President of the Office of Servicemember Group Life
    Insurance. On behalf of Prudential, thank you for the
    opportunity to testify today. Prudential is proud to serve as
    the administrator of the Servicemembers Group Life Insurance
    Program, also known as SGLI. We recognize the trust the VA has
    placed in us to support service members, veterans, and their
    families during moments of profound loss, injury, and
    transition, and we take that responsibility very seriously.
        Today, the program provides approximately $1.25 trillion in
    life insurance coverage to more than 5.1 million service
    members, their dependents, and veterans. Since inception, the
    program has paid more than $35.2 billion in benefits, including
    life insurance benefits and traumatic injury payments under
    Traumatic Servicemember Group Life Insurance.
        Prudential was founded more than 150 years ago with a
    simple purpose: to help working families find peace of mind at
    a time when few financial protections existed. As our Chief
    Executive Officer (CEO), Andy Sullivan, a veteran himself,
    often notes, Prudential started with something as basic and
    human as burial insurance. While our business has evolved over
    generations, our focus remains the same: being there for people
    when it matters most.
        That commitment is reflected in Prudential's role in
    partnership with the Department of Veterans' Affairs,
    administering life insurance programs for the military
    community, beginning with Servicemember Group Life Insurance.
        The SGLI program was established by Congress to ensure that
    servicemembers have access to affordable, guaranteed issue life
    insurance. Under the statutory framework, Congress sets the
    requirements, the VA provides oversight and issues implementing
    regulations, and Prudential administers the program through the
    Office of Servicemembers' Group Life Insurance, or OSGLI in
    strict accordance with those requirements. Coverage under the
    program is automatic for servicemembers and includes
    continuation of coverage following separation, extensions for
    totally disabled service members, and protection for qualifying
    traumatic injuries.
        Through OSGLI, Prudential administers claims with care,
    processing claims initiated through military service in
    accordance with VA Policy and communicating directly with
    beneficiaries as appropriate.
        In addition, to SGLI, OSGLI disburses timely payments of
    Traumatic Servicemember Group Life insurance-or TSGLI--
    benefits, which provides tax-free lump sum financial support to
    servicemembers who suffer qualifying traumatic injuries, and
    VGLI, which allows veterans to continue their life insurance
    coverage following separation from service. OSGLI also plays a
    central role in outreach during transition, helping ensure
    awareness of continuation of coverage under VGLI after military
    service, including the opportunity to apply for coverage
    without the need to qualify medically and the potential for
    disability extension coverage.
        In closing, Prudential's role in regards to these programs
    is not simply an operational responsibility; it is a solemn
    trust. We deeply value our close partnership with the
    Department of Veterans' Affairs in fulfilling these promises to
    those who serve and the families who stand behind them.
        Thank you for the opportunity to testify, and I look
    forward to answering any questions that you might have.

        [The Prepared Statement Of Joseph Barnet Appears In The
    Appendix]

        Mr. Luttrell. The written statement of Mr. Barnet will be
    entered into the hearing record.
        Mr. McGarvey, sir, you are recognized.
        Mr. McGarvey. Thank you, Mr. Chairman.
        Ms. Sipes, thank you so much for being here. Thank you for
    your service. Thank you for your sacrifice. Thank you for
    turning that pain into purpose and for helping so many people
    across the country. I will start with you.
        You raised concerns in your testimony about the fiduciary
    program and how it treats minor children, especially those
    receiving Dependency and Indemnity Care, or DIC, as we call it,
    and who are living with a parent who just happened to remarry
    and find love again. Can you elaborate a little bit on that,
    please?
        Mrs. Sipes. Well, if you are a parent, if you are a
    surviving spouse, and you have minor children, you receive
    Dependency and Indemnity Compensation for your children, for
    yourself. There is no site visits. There is no quarterly
    reports that I have to give as a parent. There is no--I am
    their biological parent. When I--if I were to remarry or that
    surviving spouse remarries, all of a sudden, it turns into
    well, you are not the parent anymore. Now you are a fiduciary.
    You have to go through site visits, you have to go through
    quarterly reporting, you have to account for, you know, if all
    of those funds come in, where they go. As a biological parent,
    you are treated differently.
        Mr. McGarvey. Which makes no sense.
        Mrs. Sipes. Correct. Thank you.
        Mr. McGarvey. You know, it makes absolutely zero sense to
    me whatsoever. I think it highlights another aspect of how
    completely unreasonable and out of touch the remarriage penalty
    is for survivors and why passing the Love Lives On Act is so
    important for us to get done this Congress.
        Do not clap for me. The biggest champion of this in
    Washington is sitting right here at the head of the dais, and
    the Chairman, Morgan Luttrell.
        I say all that. None of those were applause lines. I mean,
    we really----
        Mrs. Sipes. We have a handful of folks.
        Mr. McGarvey. He does this, we do this because it is the
    right thing to do by our veterans and their families. Again,
    Ms. Sipes, I really appreciate your willingness to speak up. I
    know it is not easy. The fact that you are doing it is going to
    help a lot of people in this country out.
        I also want to ask you a little bit about the income limits
    for VA Pension programs. In your opinion, are those limits high
    enough?
        Mrs. Sipes. The Pension program is set up, I mean, $11,700.
    You have to be destitute. I mean, they are--they do not qualify
    for anything else. They are not even at a Federal poverty
    level. It is just an offset. If you are making $10,000, they
    are going to send you a $1,700 check for the year to get to
    that $11,700. I mean, how can you even live off of that?
        Mr. McGarvey. You cannot.
        Mrs. Sipes. No.
        Mr. McGarvey. The Federal poverty level is just above
    $15,000.
        Mrs. Sipes. Correct.
        Mr. McGarvey. This is just above $11,000. Of course, you
    are dealing with all the other complexities that go with losing
    a spouse and all of the other paperwork----
        Mrs. Sipes. Correct.
        Mr. McGarvey [continuing]. and forms, and potential needing
    to get yourself back on your feet, or whether you have a job or
    do not have a job, or can keep a job, and just everything.
    Then, you are filling out these paperwork--you fill out this
    paperwork to either one, go all the way through it, and then
    find out you do not get it.
        Mrs. Sipes. Right.
        Mr. McGarvey. Or two, find out you get it, and it is, I
    mean, I guess it is better than nothing, but it is still a
    little bit of a slap in the face that it is so low.
        Mr. Barnet, in my remaining time, I am going to switch to
    you. As I understand it, premiums in the Insurance program
    increase with 5-year age increments. They increase with age in
    5-year increments, I should say. Logically, that makes sense.
    The older someone gets, the more it costs to insure them. I
    worry that these rate increases hit just as policyholders are
    moving into their later years and often on to a fixed income.
    That makes the insurance harder to afford at the moment they
    need it most.
        Do you or VA track how many people drop their insurance
    coverage? If you do, do you get reasons for why they do it?
        Mr. Barnet. Thank you for that question, Ranking Member. I
    would be able to--I do not have that information with me right
    now--I would be able to go back and bring that to the
    committee.
        Mr. McGarvey. Yes. I think, you know, having both the
    numbers--having the number is helpful just in and of itself. To
    the extent you have the reasons why, also instructive for us.
    Again, the goal of this committee is to do right by our
    veterans and find out what is happening to them, what is
    impacting their lives, what we can do to make that better and
    easier for their service.
        What kind of flexibility are you able to offer when a
    policyholder is having trouble making payments?
        Mr. Barnet. Thank you for that question. With respect to
    policyholders who are struggling with payments, what we--what
    we would do is, you know, counsel the individual. They have the
    opportunity to lower their coverage, obviously, to save cost. I
    know that is not necessarily the best solution, but as
    individuals age, they may not have a need for a higher level of
    insurance coverage. Other than that, what we do is we operate
    the program, under the terms as dictated in Title 38, statute,
    and the regulations approved by the VA.
        Mr. McGarvey. I will just ask you one more question, Mr.
    Chairman, if I can. One of the selling points of VA's Insurance
    programs that they offer better rates and better premiums than
    most private sector insurance. That is not true in every
    circumstance, is it?
        Mr. Barnet. Generally speaking, with respect to, you know,
    what is available in the open market versus what the VGLI
    program represents, the again, with guaranteed issue coverage
    at time of separation for a servicemember, provided you apply
    within a 240-day window, there is no need to provide evidence
    of good health. What we have under the VGLI program is a mix of
    individuals who are healthy and a mix of individuals who may
    not be and would not be able to receive, you know, private
    insurance in the open market. It really is going to depend on
    the underlying insured whether or not they would be able to
    obtain those rates in the market.
        Mr. McGarvey. Normally, I do not accept ``it depends'' as
    an answer, but in this particular instance, I know that it is a
    little bit complicated with how it does. I think what I want
    you to take away from my question, and hopefully what you have
    heard throughout today's testimony, we want to do everything we
    can to help our veterans. We want to do everything we can to--I
    think, it is an honor we made. We make our veterans two
    promises. All right? We make them a promise: we are going to be
    there for them. That promise is a legal promise, and, in my
    opinion, that promise is a moral promise, and I think we have
    to honor both of those.
        Mr. Chairman, I yield back.
        Mr. Luttrell. Thank you, Mr. McGarvey.
        Mr. Barnet, how much does Prudential collect off the
    veteran community as opposed to they pay out each year?
        Mr. Barnet. Thank you, Chairman, for that question.
        Mr. Luttrell. You said that you are going to drop rates on
    someone who cannot make the payments. I am curious on how much
    money you guys make as opposed to how much you pay out.
        Mr. Barnet. Yes, sir.
        Mr. Luttrell. Would you actually have to take that money
    from the veterans if they are in need?
        Mr. Barnet. Yes, yes. First thing, if I could just refer
    back to the last question. You know, premium rates are set by
    the Department of Veterans' Affairs. Prudential simply serves
    as administrator of those. With respect to VGLI, we would be
    providing the billing, you know, the recordkeeping and billing
    for those. We are not responsible and do not influence what
    those rates are.
        With respect to--I am sorry, can you repeat your question?
        Mr. Luttrell. How much do you guys collect?
        Mr. Barnet. Oh, yes. Prudential receives premium under the
    contract. Right?
        Mr. Luttrell. Which is how much?
        Mr. Barnet. For premium, we receive about $1.4 billion in
    premium.
        Mr. Luttrell. $1.4 billion each year is how much you guys
    collect?
        Mr. Barnet. $1.2-1.4 billion in premium.
        Mr. Luttrell. How much goes out?
        Mr. Barnet. $1.2-1.4 billion.
        Mr. Luttrell. You pay out? Every penny you bring in, you
    pay out each year?
        Mr. Barnet. Yes, sir. For the way in which the program
    works under statute, is it needs to be self-sustaining. Right?
    That means the premiums need to be able to support the
    administrative expenses and the claims being paid under the
    program. It is defined by statute; it is a regulation.
        Mr. Luttrell. All right. Administrative expenses aside----
        Mr. Barnet. Okay.
        Mr. Luttrell [continuing]. how much do you pay out to the
    spouses?
        Mr. Barnet. To the beneficiaries?
        Mr. Luttrell. Yes.
        Mr. Barnet. Yes, approximately $1.25 billion last year.
        Mr. Luttrell. What do you pay your admin? Admin expenses
    aside, because if I understand how you just said that, you take
    in $1.2 billion and you pay out $1.2 billion. Aside of admin
    costs, how much go to the beneficiaries?
        Mr. Barnet. $1.4----
        Mr. Luttrell. Do you pay your admin staff $1 billion, and
    you pay the spouses $2----
        Mr. Barnet. No.
        Mr. Luttrell [continuing]. $ 2million?
        Mr. Barnet. No, the claims----
        Mr. Luttrell. I am just throwing that at you. I know it is
    not the case.
        Mr. Barnet. Out the door is the claims being paid is $1.2
    billion.
        Mr. Luttrell. Claims being paid----
        Mr. Barnet. Yes.
        Mr. Luttrell [continuing]. is $1.2 billion?
        Mr. Barnet. Yes. If I could? Premiums come in, claims get
    paid out, administrative expenses get paid out. In the instance
    that there is a net gain in that situation, that money is
    retained by the program and held under a reserve under the
    group policy to protect against adverse mortality in the
    future. That means if there was a situation where all of a
    sudden, death claims----
        Mr. Luttrell. Skyrocketed.
        Mr. Barnet. Yes.
        Mr. Luttrell. Okay. Still trying to do the math on $1.2 is
    taken in, $1.2 is given to the beneficiaries, and I am trying
    to figure out where the admin money is.
        Mr. Barnet. Oh, so Prudential--yes. One other thing is,
    right, so Prudential, in taking in this premium and holding
    this money in reserves, we do invest those funds within
    Prudential. We are subject to regulatory oversight by the New
    Jersey Department of Banking and Insurance, again, under strict
    insurance regulations, with the VA approving how returns are
    reflected through the crediting rate. At the beginning of every
    policy year, Prudential declares a crediting rate for the
    reserves held under the group policy, and then that is applied
    to the reserves that are being held.
        Mr. Luttrell. Seems like I need to take a deeper dive on
    this. Does Prudential--I am assuming you guys are aware of each
    beneficiary in the program, correct? Their names on your books
    and how much is going out, correct?
        Mr. Barnet. Yes.
        Mr. Luttrell. All right, here is my question. The VA is a
    very large machine.
        Mr. Barnet. All right.
        Mr. Luttrell. Please do not take away what happened earlier
    today. It is normally not the case, but when they warrant the
    wire brushing, they will absolutely get it from the Ranking
    Member and I. Okay? As large as this machine is, and Ms. Sipes
    even hit on this, communication to each beneficiary is very
    challenging. Does Prudential engage in communications or is all
    communications to the beneficiaries done by, with, and through
    the VA only?
        Mr. Barnet. This would be through Prudential.
        Mr. Luttrell. It will be?
        Mr. Barnet. It is through Prudential.
        Mr. Luttrell. You are the one reaching out to all the
    beneficiaries, not the VA?
        Mr. Barnet. Correct.
        Mr. Luttrell. Then you are the problem.
        Mr. Barnet. With respect to?
        Mr. Luttrell. Well, the lovely young lady sitting next to
    you says that the beneficiary is receiving--receiving
    information is not adequate. If it is not adequate, it is got
    to be coming from you guys, which you just said it was. Now my
    conversation is directed at you, not the VA.
        Mr. Barnet. I did not hear that specific to the Life
    Insurance programs.
        Mr. Luttrell. Did I miss something?
        Mr. Barnet. What was it?
        Mrs. Sipes. Specific to the--the--my apologies. To the----
        Mr. Luttrell. No, you are good.
        Mrs. Sipes. Insurance programs in regards to options
    available for
        Mr. Barnet. Oh.
        Mrs. Sipes [continuing]. investments within the 1 year
    after their loss.
        Mr. Barnet. Yes. What Prudential does is, right, we will
    provide a Beneficiary Election Form to individuals. They are
    able to elect whether they receive that payment via Electronic
    Funds Transfer (EFT) or check. We do offer beneficiary
    financial counseling services to those individuals under the
    terms of the program. Again, this is all under the oversight of
    the VA. You know, it is a non-solicitous program that allows
    for 20 hours of financial counseling for individuals. We do
    send those under the oversight of the VA. I am not aware of--
    this is the first time I am hearing of that being an issue.
        With respect to being able to place those funds into----
        Mrs. Sipes. Like a Roth or something.
        Mr. Barnet. Yes, a Roth.
        Mrs. Sipes. Yes, yes.
        Mr. Barnet. We are unable as Prudential to provide
    financial advice or solicit any type of products under the SGLI
    program.
        Mr. Luttrell. I will come back to you, Mr. Barnet. Thank
    you.
        Mr. Barnet. Sure thing.
        Mr. Luttrell. Ms. Sipes, this is a request.
        Mrs. Sipes. Mm-hmm.
        Mr. Luttrell. The amount of information that you and the
    other young ladies and gentlemen in the room have, because
    again, you are on the receiving end of all this. As hard as the
    VA works--and they do. I will say that all day long. They do.
    The amount of information that they can kind of take in and
    process is coming from every direction, a thousand different
    directions from a thousand different issues. Okay.
        How do we, to help the VA navigate these challenging
    waters, how do we get out in front of it, so to speak? How do
    we take all the information that you all have that is
    challenging for you all and put that in a place that the VA can
    either--either it may exist already, and they just need a
    little streamlining, or is there a way that we can provide that
    information to remove the problem entirely? By the time it
    shows up here, it is a problem. Do you have the ability to
    communicate with the VA openly, and are they listening?
        Mrs. Sipes. They are listening. They are. I do believe they
    are. They are trying, and they are trying to find some
    solutions. However, I can tell you that if you asked everyone
    in this room, even on the--on if they receive a letter of
    benefits or not, you are going to have a different response.
        Mr. Luttrell. Say it one more time?
        Mrs. Sipes. That you are going to have a different response
    on surviving spouses on whether or not they receive annual
    benefits letters, on what is on that letter, on the
    communication that they receive from the VA. Having clear
    communication has been our most challenging. It really has
    been. The 1-year timeframe for folks to be able to invest
    funds, the SGLI, the Death Gratuity, there are spouses that
    have not been able to do that within that 1-year timeframe.
    They did not even know it was available.
        Mr. Luttrell. Mm-hmm.
        Mrs. Sipes. We do have a--it is a communication----
        Mr. Luttrell. How do we help the spouses that do not know
    that? Do not throw it back at the VA.
        Mrs. Sipes. Right?
        Mr. Luttrell. They are on there, they are going to--I got
    it. How else can we fix that problem? How else can we
    communicate to our servicemembers and the spouses to kind of,
    hey, front-load this issue? I am going to be dead 1 day. I know
    that.
        Mrs. Sipes. Well, we have moved the Office recently of the
    Survivor's Assistance back to under the Secretary.
        Mr. Luttrell. What is the best way to get that information
    to folks that do not get it on the World Wide Web?
        Mrs. Sipes. They need to mail it.
        Mr. Luttrell. They need to mail it, yes.
        Mrs. Sipes. They need--the need to do a multi-
    communication. They need to do a digital and a mail. They need
    to get the information because there is not a lot of us.
        Mr. Luttrell. You know, and we are transitioning into a
    generation that knows nothing but digital. It is our older
    veterans that are absent of that. I have had conversations with
    many folks, good, better, and different. How long do you wait
    to make the full transition, or do you go, put it in place, and
    do whatever you can to make sure that our World War II, Korea,
    Vietnam, and Gulf War veterans are taken care of? That is a
    very hard question to ask because, where we currently sit with
    the advancements in machine learning and artificial
    intelligence, everybody in this room has got a phone in your
    pocket. That is where we are going. We are there. We are not
    going. We are there. We are on, the VA, on a daily basis to say
    you need to upgrade and advance your Artificial Intelligence
    (AI) systems to take care of our veterans, and you leave a
    small segment of those--of those veterans behind because they
    do not--they do not touch the digital space.
        Back to the question that asked you is like, how do we
    continue to do that? Now the VA will mail out as best they can,
    and touch those folks.
        Mrs. Sipes. Rather than--rather than automatic, can they
    not have an opt-in? Can they not--can they not work alongside
    the rest of the world? How they choose to opt in to something
    electronic?
        Mr. Luttrell. We are talking about a generation that is
    already--and we can do that with servicemembers that are
    entering into the VA space now. What about the ones that are--
    we got to, you know, then we would have to find them.
        Mrs. Sipes. Right. Well, there is that, yes.
        Mr. Luttrell. That is the challenging part.
        You got anything?
        Mr. McGarvey. Mr. Chairman, as usual, I appreciate your
    work and your advocacy in all these areas.
        Ms. Sipes, I could not help but when thinking about some of
    the things you are talking about right now and these issues, as
    you said, Mr. Chairman, for the people, not just you, but all
    the people behind you and all the people who are not in this
    room, who I know are working on this. You guys have a lot of
    really valuable insight and input to share. There is a
    Veterans, Family, Caregivers, and Survivors Advisory Committee
    within the VA. I just looked it up really quickly. From what I
    can tell online, it has not met since June 2024. Is that
    correct? Am I missing something there?
        Mrs. Sipes. Well, I am not aware of it.
        Mr. McGarvey. Okay. Do we know who was appointed to that
    committee?
        Mrs. Sipes. We do not. I am sure that our--the office could
    tell us who that was, but----
        Mr. McGarvey. Okay. I think that is a--we have that there
    for a reason. I think that is something we should also look
    into. Mr. Chairman, I yield back.
        In closing, after being here and hearing some of the things
    we have heard today, I am actually--aside from the promise we
    have made to our veterans to honor their service, to honor
    their sacrifice, to be there for them after they have served
    us, to keep us safe and free--I am reminded actually of a quote
    I sometimes use from an old John Prine song: ``It don't make no
    sense that common sense don't make no sense no more.'' I think
    we could use a lot of common sense on some of these issues, Mr.
    Chairman.
        When you have Gold Star spouses, they do not--they need to
    be treated as heroes and as parents, not as guardians and
    fiduciaries. When we have Gold Star spouses, they should be
    allowed to remarry without penalty of losing their benefits.
    When we have reports that are due to Congress by January 2026,
    and apparently, they are completed, reviewed, and cleared, we
    should know where they are and be able to see them and feel
    like we have a partnership, not a black hole in certain areas.
        The commonsense thing to do is again to take care of our
    veterans. I think that is something that you will see us
    continue to do, and Mr. Chairman, something I appreciate your
    approach to these matters on, and look forward to working with
    you with.
        Mr. Luttrell. Absolutely. Thank you, sir.
        The VA staff is still with us, and your job is never
    supposed to be easy. I am saying that as a veteran. You get up
    every single morning and you show up to work, and it is a
    grind. You are never going to have the right answer. You are
    always going to make somebody upset. You keep showing up and
    you keep grinding. For that, you have my utmost respect. Thank
    you so much.
        In this wonderful place that we live in, there has to be
    oversight. There has to be the hard questions. You have to
    field those questions because you touch the veterans directly.
    We hear from our veterans. You are the touch point. It will
    never be easy. If it is easy, you are in the wrong department.
    It is necessary. The Ranking Member and I have made an
    agreement when we got in this thing together that we would be
    unified on our efforts to hold the VA accountable for
    everything that our veterans are asking for. We will not stop
    because they deserve it.
        To our Gold Star families that are in the room with us
    today, we pray for you every single day. I do not have the
    right answers. I do not have the perfect thing to say, and I
    never will. The weight that you carry every day and the things
    that you ask for are very warranted. No one will ever know that
    more so than you. Period.
        Mr. McGarvey and I and the rest of the members in this
    subcommittee and on the main committee will do everything in
    our power to get you what you ask for, because we know you
    deserve. We do. That communication goes from us. It goes to the
    VA, goes to the secretaries, it goes to the president, it goes
    to the vice president, goes to everyone because there is no
    more chairs to asset in the United States of America than the
    veterans, service members, and their families. Period. We would
    not be sitting here today if it was not for you. I am no longer
    in the game of fist fighting, but I would argue that with
    anybody all day long.
        This oversight hearing pulled out a lot of information that
    we are going to be paying attention to. Ms. Sipes, God bless
    you. Mr. Barnet, I am not going to ask you if you are the
    greatest insurance provider on the planet, because you have
    been doing this for over 60 years for our veterans. Obviously,
    you are doing something right. Okay?
        Mr. McGarvey, that is all I have got. With that, this
    hearing is adjourned.
        [Whereupon, at 2:52 p.m., the subcommittee was adjourned.]
    =======================================================================

                             A  P  P  E  N  D  I  X

    =======================================================================

                        Prepared Statements of Witnesses

                                  ----------

                        Prepared Statement of Tim Sirhal

        Chairman Luttrell, Ranking Member McGarvey, and other Members of
    the Subcommittee, thank you for inviting us to discuss the
    administration of the Department of Veterans Affairs (VA) Pension,
    Fiduciary, and Insurance programs within the Veterans Benefits
    Administration. Joining me is Ms. Jennifer Bover, Executive Director,
    Pension and Fiduciary Service, Veterans Benefits Administration. VA
    takes the protection of our most vulnerable beneficiaries very
    seriously, and we are grateful for the opportunity to share with the
    Subcommittee our commitment to safeguarding those served by these
    programs.

    Pension Program

        Pension is a tax-free, income-based monthly benefit paid to
    eligible Veterans or survivors of Veterans. Pension also considers non-
    service-connected disabilities for Veterans, net worth, wartime
    service, and in the case of survivors, dependency requirements. Pension
    payments are designed to supplement a beneficiary's income by helping
    with daily living expenses and improving overall quality of life.
        Continued eligibility for Pension is regularly assessed to ensure
    the accurate payment of benefits. VA relies on Federal data sharing
    agreements and information reported by beneficiaries to ensure payment
    accuracy. Once benefits are approved, VA continues to use this
    information to adjust benefits in a timely manner and avoid
    overpayments.
        VA is committed to working with beneficiaries to provide a better
    understanding of the Pension program. Specific efforts include
    improvements to forms, letters, and customer experience by providing an
    electronic submission method through VA.gov for certain claims. Over
    the past year, we have also made significant progress in modernizing
    and accelerating the processing of Pension claims. Since January 20,
    2025, the average processing time for Veterans Pension claims and
    Survivors Pension claims has been reduced by 113 days and 99 days,
    respectively. As of March 31, 2026, it is currently taking
    approximately 57 days to complete a Veterans Pension claim and 73 days
    to complete a Survivors Pension claim.

    Fiduciary Program

        VA's Fiduciary Program protects over 104,300 Veterans and other
    beneficiaries who are unable to manage their own VA benefit payments
    because of injury, disease, advanced age, or being under the age of
    majority. VA protects these vulnerable beneficiaries by appointing and
    overseeing fiduciaries who manage a beneficiary's VA benefits. The VA
    Fiduciary Program has undergone significant modernization focused on
    expediting processes while ensuring the well-being of beneficiaries
    remains protected.
        These modernization efforts include improvements to letters,
    technology, and overall customer experience. Examples include sending
    automated annual written contact letters to every beneficiary in the
    program to remind them of their rights and that a Fiduciary is managing
    their VA payments; the August 2020 release of the Fiduciary Accountings
    Submission Tool, which streamlines the review of financial documents;
    and the establishment of a dedicated Fiduciary Contact Center, which
    has handled all fiduciary-related calls since April 2024.

    VALife Insurance

        VA administers and provides oversight of several life insurance
    programs that provide financial security for Service members, Veterans,
    and their families. Programs that are open to new applicants include
    Servicemembers' Group Life Insurance (SGLI), Family Servicemembers'
    Group Life Insurance (FSGLI), Servicemembers' Group Life Insurance
    Traumatic Injury Protection (TSGLI), Veterans' Group Life Insurance
    (VGLI), and Veterans Affairs Life Insurance (VALife). Prudential
    administers SGLI, FSGLI, TSGLI, and VGLI under contract with VA. VA
    administers all other insurance programs available to Veterans,
    including VALife.
        Established under P.L. 116-315, VA launched VALife on January 1,
    2023, as a guaranteed acceptance whole life insurance program for
    Veterans with service-connected disabilities aged 80 and under. The
    maximum amount of coverage per applicant was and remains at $40,000,
    with lesser amounts available in $10,000 increments.
        VALife is a self-funded program for service-connected Veterans who
    may have difficulty obtaining commercial life insurance coverage due to
    their medical conditions. When implementing VALife, a key objective for
    VA was to provide a streamlined application process for Veterans.
    VALife applications take an average of 11 minutes to complete, and more
    than 90 percent of all applications are fully automated.
        VA is proud to share that implementation of the VALife program has
    been a tremendous success. As of March 1, 2026, there are 78,053 active
    accounts totaling $2.5 billion in coverage. On January 1, 2025,
    policyholders first became eligible to receive full coverage following
    their initial waiting period, and VA has paid out 269 such claims.
    While VA is always looking for ways to improve, customer satisfaction
    with VALife has been strong. According to VSignals, a survey and data
    analytics tool that collects and analyzes customer experience data and
    insights, VALife has an average survey score of 4.53/5 for new
    insurance applications, which means 82.6 percent of respondents are
    highly satisfied. Service recovery efforts have shown that Veterans who
    were not highly satisfied primarily indicated two primary concerns:
    that VA does not offer enough coverage, or that the cost of coverage
    was too high. In response, Insurance Service has focused on increasing
    education around the differences between whole life and term life
    coverage to help Veterans make informed decisions.

    Conclusion

        Chairman Luttrell, Ranking Member McGarvey, and Members of the
    Subcommittee, thank you for your oversight of these critical programs
    and for the opportunity to testify today. I look forward to your
    questions.

                       Prepared Statement of Tamra Sipes

        Chairman Luttrell, Ranking Member McGarvey, and distinguished
    members of the Subcommittee, thank you for the opportunity to testify
    today on behalf of the members of Gold Star Spouses of America.
        Gold Star Spouses of America, Inc. (GSSA) represents surviving
    spouses of our Nation's fallen servicemembers, individuals whose lives
    were permanently changed in service to this country. While their
    spouses wore the uniform, they carried the weight of service at home,
    and now carry the lifelong responsibility of preserving their legacy
    while rebuilding their own lives.
        The programs administered by the Department of Veterans Affairs
    (VA) are the foundation of financial stability, access to resources,
    and, in many cases, a measure of whether a surviving spouse can move
    forward with dignity and security.
        Surviving spouses often navigate grief, financial transition, and
    administrative requirements at the same time. They are too often left
    to navigate complex systems without clear guidance, timely information,
    or processes that reflect the realities of their lives. These are not
    administrative inconveniences; they directly affect the financial
    stability, access to benefits, and long-term security of surviving
    spouses.
        GSSA remains committed to ensuring that surviving spouses receive
    not only the benefits they have earned, but also the clarity and
    support they deserve. We are proud to continue advocating for our top
    legislative priorities, including the Sharri Briley and Eric Edmundson
    Veterans Benefits Expansion Act (H.R. 6047), the Caring for Survivors
    Act (H.R. 2055 & S. 611), and the Love Lives On Act (H.R. 1004 & S.
    410). As we do so, we appreciate the opportunity to share our
    perspective on key VA benefits that directly impact the lives of
    surviving spouses across the country.

    Survivors Pension

        GSSA members report ongoing confusion regarding the interplay
    between Dependency and Indemnity Compensation (DIC) and the Survivors
    Pension. While DIC is the primary benefit for our members, as it is
    predicated on a service-connected death, many survivors find themselves
    navigating the Survivors Pension program if service connection is
    denied or still being adjudicated.
        The Survivors Pension is reserved for surviving spouses of wartime
    veterans whose deaths were not service-connected, provided their income
    falls below the Maximum Annual Pension Rate (MAPR). For a surviving
    spouse with no children, the MAPR, set by Congress, is currently
    $11,699.\1\ This threshold sits significantly below the 2026 Federal
    Poverty Level of $15,960 for a single-person household,\2\ effectively
    excluding thousands of survivors who are struggling financially but do
    not meet this restrictive definition of indigence.
    ---------------------------------------------------------------------------
        \1\ U.S. Department of Veterans Affairs, Survivors Pension Rate
    Tables, effective December 1, 2025, https://www.va.gov/pension/
    survivors-pension-rates/.
        \2\ U.S. Department of Health and Human Services, ``2026 Poverty
    Guidelines,'' Office of the Assistant Secretary for Planning and
    Evaluation, last modified January 2026, https://aspe.hhs.gov/poverty-
    guidelines.
    ---------------------------------------------------------------------------
        As a result, surviving spouses often spend time completing
    applications only to learn that their income exceeds the eligibility
    threshold. Many describe the program as effectively requiring near-
    poverty to qualify, but this is not clearly communicated at the outset.
        GSSA supports efforts to improve transparency in how eligibility is
    explained. Providing plain-language guidance, including examples of
    income thresholds and how countable income is calculated, would allow
    applicants to better assess eligibility before applying. GSSA also
    recognizes that the VA has taken steps to automatically consider
    applicants for both DIC and Survivors Pension. While this is a positive
    development, many survivors remain unaware that this review is taking
    place and would benefit from clearer communication about how their
    claims are being evaluated.
        GSSA encourages Congress to examine whether the MAPR should be more
    closely aligned with the Federal Poverty Level to ensure that surviving
    spouses are not excluded from support despite clear financial need.

    Outreach and Communication

        While we appreciate the VA's shift toward ``Digital First''
    communication, this overlooks a significant portion of GSSA's
    constituency. As of 2023, there are more than 350,000 surviving spouses
    receiving DIC or Pension benefits,\3\ a large percentage of whom are
    over the age of 65.
    ---------------------------------------------------------------------------
        \3\ Veterans Benefits Administration, Annual Benefits Report:
    Fiscal Year 2024 (Washington, DC: U.S. Department of Veterans Affairs,
    2025), 10-12.
    ---------------------------------------------------------------------------
        Data suggests that nearly 25 percent of seniors do not use the
    internet,\4\ meaning a digital-only notification strategy effectively
    disenfranchises nearly 90,000 survivors from receiving critical updates
    about their livelihood.
    ---------------------------------------------------------------------------
        \4\ Michelle Faverio, ``Internet Use Climbs Among Older Adults,''
    Pew Research Center, last modified May 2024, https://
    www.pewresearch.org/internet/2024/05/internet-use-among-seniors/.
    ---------------------------------------------------------------------------
        GSSA members have confirmed that many surviving spouses are not
    effectively reached through digital communication. Some do not have
    reliable access to online systems, while others are not comfortable
    navigating VA websites. As a result, survivors may not receive timely
    or complete information about available benefits or changes that affect
    them.
        GSSA supports expanding the use of direct communication to
    survivors. For many surviving spouses, particularly those without
    reliable access to digital platforms, mailed correspondence remains the
    most dependable and sometimes only source of information about their
    benefits. The VA's annual benefits letter could provide a consistent
    point of contact and could be strengthened to include more detailed,
    survivor-focused information. Clear explanations of available benefits,
    eligibility requirements, and recent changes would help ensure that
    survivors are not left unaware of programs they have earned and may
    depend on for financial stability.
        GSSA recommends that the VA adopt a multi-channel communication
    standard, ensuring that all critical benefit information is delivered
    through both digital and non-digital methods.
        Gold Star Spouses of America also applauds the VA for its decision
    to return the Office of Survivors Assistance (OSA) to the Office of the
    Secretary. This long-overdue correction restores OSA to its intended
    role as a direct advisor to VA leadership on the needs of surviving
    spouses and dependents, as envisioned in the Veterans' Benefits
    Improvement Act of 2008. For years, surviving spouses have raised
    concerns about the marginalization of OSA within the VA's bureaucracy,
    which has limited its ability to advocate effectively on their behalf.
    Reestablishing OSA within the Secretary's office has strengthened
    accountability and created an opportunity to improve how information is
    communicated to survivors across the VA system.

    Life Insurance Programs

        GSSA members have also identified concerns related to beneficiary
    designations and structural differences between VA life insurance
    programs and civilian policies.
        Many servicemembers and their families do not fully understand that
    life insurance beneficiary designations are separate from a will. A
    will does not override the named beneficiary. In some cases,
    servicemembers did not update their beneficiary designation after
    marriage, resulting in benefits being paid to a parent rather than a
    surviving spouse. Survivors often believed the will would control
    distribution, leading to more confusion and unintended outcomes that
    create financial hardship for spouses at a time when stability is most
    critical.
        GSSA also has concerns regarding limited awareness of the tax-
    advantaged protections provided under the Heroes Earnings Assistance
    and Relief Tax (HEART) Act of 2008. This law allows survivors to roll
    over death gratuity and SGLI payments into a Roth IRA or Coverdell
    Education Savings Account without being subject to standard
    contribution limits. However, this must be done within 1 year of
    receiving the funds.
        Many survivors report they were never informed of this strictly
    enforced 12-month window. By the time they are able to focus on long-
    term financial planning, this opportunity for tax-free growth has often
    expired.
        GSSA is exploring legislative options to extend or provide
    flexibility in the 1-year rollover window, recognizing the realities of
    grief and delayed financial decision-making. In the best interest of
    the survivor we recommend pursuing a policy that automatically directs
    the VA to provide the two options to a survivor prior to distribution
    of funds. They have a choice on whether the funds are put into a Roth
    IRA or into an Alliance account. This would ensure spouses can fully
    benefit from this unique tax-advantaged opportunity without requiring
    immediate action during their first year of profound loss.
        Additionally, GSSA is concerned about the growing disparity between
    VA life insurance programs and private-sector standards, particularly
    regarding Waiver of Premium provisions.
        In the private sector, approximately 85 percent of group life
    insurance plans include a provision where premiums are waived if the
    insured becomes totally disabled.\5\ Historically, the VA offered this
    through the Service-Disabled Veterans Insurance (S-DVI) program.
    However, with the sunsetting of S-DVI and the 2023 launch of VALife,
    this critical safety net has been eliminated for new enrollees.
    ---------------------------------------------------------------------------
        \5\ Bureau of Labor Statistics, ``Employee Benefits in the United
    States--March 2025,'' news release no. USDL-25-1850, September 25,
    2025, https://www.bls.gov/news.release/pdf/ebs2.pdf.
    ---------------------------------------------------------------------------
        Historically, the VA offered this through the S-DVI program, which
    waived all premiums for veterans deemed totally disabled. However, with
    the sunsetting of S-DVI and the 2023 launch of VALife, this critical
    safety net has been eliminated for new enrollees. VALife requires
    premiums from all veterans, regardless of the severity of their
    service-connected conditions.
        Similarly, veterans transitioned to Veterans' Group Life Insurance
    (VGLI) find that no such waiver exists, nor has historically,
    regardless of a 100 percent P&T (Permanent and Total) disability
    rating. By removing or failing to include these waivers in modern
    programs like VALife and VGLI, the VA places a significant financial
    burden on the most severely disabled veterans and their surviving
    spouses at the exact moment their earning potential disappears.

    Fiduciary Program

        GSSA has significant concerns regarding recent actions related to
    the fiduciary program.
        At the end of Fiscal Year 2024, the VA identified more than 3,000
    beneficiary accounts that needed a fiduciary established and issued
    letters requiring such, so benefits could continue. Approximately 1,000
    of those cases involved dependent children who were living with someone
    who was not receiving DIC. In many instances, the individuals with whom
    the children were living were actually biological parents who were not
    receiving DIC due to remarriage, essentially implying that upon
    remarriage, a biological parent becomes untrustworthy to manage his or
    her child's welfare and benefits.
        Members have also reported challenges in meeting required
    timelines. In one case, a surviving spouse was given 30 days to
    complete all requirements, including interviews, approval, and
    establishment of a fiduciary account. Her financial institution
    indicated that the process would take approximately 5 weeks. She was
    informed that failure to meet the deadline could result in a
    determination of noncompliance and loss of benefits.
        GSSA members understand the purpose of the VA fiduciary program and
    support the need for oversight when benefits are paid on behalf of a
    minor. However, concerns arise in cases where biological parents who
    were previously recognized by the VA as competent beneficiaries while
    receiving DIC are suddenly subject to fiduciary requirements solely due
    to remarriage. These parents have been continuously responsible for the
    care and well-being of their children, and remarriage alone does not
    inherently change their capacity or trustworthiness.
        The current process can be burdensome and, at times, feels
    misaligned with the lived reality of these families. GSSA does not seek
    to eliminate the VA's ability to provide oversight, but instead
    encourages a more streamlined and proportional approach for biological
    parents in these circumstances. Options such as a simplified fiduciary
    designation, reduced administrative requirements, or an annual
    certification process similar to existing Department of Defense
    verification practices would preserve accountability while reducing
    unnecessary barriers. A more efficient process may also reduce
    administrative workload for VA staff by limiting the need for extensive
    review and account establishment in cases that present low risk.
        A more balanced approach would reinforce trust in surviving
    families, minimize administrative strain, and allow the VA to maintain
    appropriate safeguards without disrupting benefits or placing undue
    burden on those who have consistently acted in the best interest of
    their children.
        GSSA supports clearer guidance regarding when fiduciary
    arrangements are required, how determinations are made, and what steps
    beneficiaries must take to comply. Additionally, we would support the
    development of a streamlined program for biological parents. Timelines
    should reflect the realities of financial institutions and
    administrative processing. When timelines do not align with real-world
    processes, surviving spouses risk being found noncompliant through no
    fault of their own and may face unnecessary disruption or loss of
    benefits.

    Conclusion

        Thank you again for the opportunity to provide testimony today and
    for your continued attention to the needs of surviving military
    families. The issues we have outlined are not isolated concerns; they
    represent systemic challenges that affect surviving spouses across the
    country.
        For many of our members, these programs are essential. When
    communication is unclear, when trimlines are unrealistic, or when
    eligibility requirements are difficult to understand, the result is not
    simply frustration; it can mean delayed benefits, financial
    instability, and unnecessary hardship during an already difficult
    chapter of life.
        There are meaningful opportunities to improve these systems through
    clearer communication, more accessible processes, and thoughtful policy
    adjustments that better reflect the realities faced by surviving
    spouses.
        Gold Star Spouses of America stands ready to work with this
    Subcommittee and the VA to advance solutions that strengthen these
    programs and ensure they serve survivors as intended.
        We owe surviving spouses not only our gratitude, but our commitment
    to ensuring that the systems designed to support them are clear, fair,
    and responsive.

    Gold Star Spouses of America, Inc.

    Gold Star Spouses of America is a national nonprofit organization
    dedicated to supporting the surviving spouses of military service
    members and veterans who have made the ultimate sacrifice in defense of
    our country. Our mission is to provide meaningful support, advocacy,
    education, and a sense of community for Gold Star families. Through our
    programs, we work to ensure that the needs of these spouses and their
    families are heard, addressed, and prioritized by policymakers at the
    Federal, State, and local levels.

    GSSA is listed as an approved resource in the National Resource
    Directory (NRD.gov). GSSA is also recognized by the Department of
    Veterans Affairs for volunteer opportunities within the department's
    Center for Development and Civic Engagement.

                      Prepared Statement of Joseph Barnet
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                           Statements for the Record

                                  ----------

      Prepared Statement of Veterans of Foreign Wars of the United States

        Chairman Luttrell, Ranking Member McGarvey, and members of the
    subcommittee, on behalf of the men and women of the Veterans of Foreign
    Wars of the United States (VFW) and its Auxiliary, thank you for the
    opportunity to testify on these vital benefits. These programs provide
    critical financial security during times of hardship and serve as an
    essential safety net, particularly for our most vulnerable veterans,
    service members, and their families.
        The Department of Veterans Affairs (VA) administers several life
    insurance programs that serve active duty service members, veterans,
    and in certain cases their families. Due to service-connected
    disabilities, many veterans are either uninsurable in the commercial
    market or face prohibitively high premiums. In recognition of this
    reality, VA provides guaranteed acceptance life insurance options that
    ensure access to coverage regardless of health status.
        The VFW supports the creation of Veterans Affairs Life Insurance
    (VALife) as a significant modernization of VA's life insurance
    offerings. This program provides guaranteed acceptance whole life
    coverage of up to $40,000 available in $10,000 increments for veterans
    with service-connected disabilities rated at zero percent or higher.
    VALife replaced Service-Disabled Veterans Insurance (S-DVI) and does
    not require proof of good health. There is no time limit to apply for
    veterans age 80 and under, while those age 81 and older must apply
    within 2 years of receiving a new service-connected disability rating.
    While the program represents meaningful progress in expanding access,
    the 2-year waiting period before full coverage takes effect remains a
    concern, particularly for veterans facing serious or terminal
    conditions.
        Servicemembers' Group Life Insurance (SGLI) provides low-cost term
    coverage of up to $500,000 for eligible service members. Upon
    separation, most service members receive 120 days of free coverage with
    an extension of up to 2 years available for those who are totally
    disabled. Family Servicemembers' Group Life Insurance (FSGLI) extends
    coverage to spouses and dependent children, ensuring that military
    families have access to essential financial protection.
        Veterans may convert SGLI coverage to Veterans' Group Life
    Insurance (VGLI) to maintain continuous coverage after leaving service.
    However, this conversion is not automatic. Veterans must apply within 1
    year and 120 days of separation. Those who apply within 240 days are
    not required to provide evidence of good health. After that period,
    they must provide proof of insurability.
        While VGLI offers an important bridge to continued coverage, its
    premium structure presents a significant challenge. Premiums increase
    in 5-year age bands, resulting in substantial cost escalation over
    time. In some cases, these premiums may eventually exceed comparable
    private market options, forcing veterans to choose between
    affordability and continuity of coverage. Veterans' insurance needs do
    not always align with rigid enrollment deadlines. Many veterans are
    navigating the complex transition to civilian life, managing new
    disabilities, or pursuing VA disability compensation claims. Survivors
    of military sexual trauma in particular may delay filing claims for
    years, which can hinder awareness of eligibility for programs such as
    VALife. Access to life insurance benefits should not be constrained by
    arbitrary timelines that fail to account for these realities.
        To improve these programs, the VFW recommends eliminating or
    extending the 240-day window for guaranteed VGLI enrollment without
    requiring evidence of good health, reducing or eliminating waiting
    periods for programs such as VALife, and modernizing premium structures
    to mitigate steep age-based increases. Alternative pricing models
    should be considered to ensure long-term affordability and
    sustainability for elderly veterans. Also, during Transition Assistance
    Program briefings, facilitators must emphasize the need for
    transitioning service members to fully understand the limits of their
    active duty insurance and take proactive steps to ensure continuous
    coverage throughout their transition.
        Enhanced administrative oversight would also strengthen these
    programs. Routine audits of beneficiary records and improved data
    accuracy would help ensure timely and correct payment of claims.
    Survivors must be able to access benefits quickly and without
    unnecessary administrative burden, particularly during the immediate
    period following a veteran's death when financial needs are often most
    urgent.
        In addition to life insurance programs, VA pension benefits serve
    as a critical safety net for low-income wartime veterans and their
    survivors. These means-tested benefits are designed to ensure a minimum
    level of income sufficient to meet basic needs, including housing and
    health care. However, the complexity of income and net worth
    determinations continues to create barriers to access. The VFW supports
    policies that promote clear and transparent income calculations,
    reasonable asset look-back periods, and consistent guidance regarding
    unreimbursed medical expenses and net worth thresholds.
        Finally, the VFW strongly supports legislation to ensure that
    survivors receive the full final month of a veteran's pension,
    regardless of the date of death. This common-sense, modest, but
    meaningful reform would provide critical financial stability during a
    time of grief and help families cover immediate end-of-life expenses.
        Chairman Luttrell, Ranking Member McGarvey, this concludes my
    testimony. Thank you for the opportunity to present the VFW's views on
    these important programs.

    Information Required by Rule XI2(g)(4) of the House of Representatives

    Pursuant to Rule XI2(g)(4) of the House of Representatives, the VFW has
    not received any Federal grants in Fiscal Year 2026, nor has it
    received any Federal grants in the two previous Fiscal Years.

    The VFW has not received payments or contracts from any foreign
    governments in the current year or preceding two calendar years.

               Prepared Statement of Defense Credit Union Council
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                                     [all]