[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] 

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