[Congressional Record Volume 143, Number 104 (Tuesday, July 22, 1997)]
[Extensions of Remarks]
[Page E1476]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     DEPENDENCY AND INDEMNITY COMPENSATION RESTORATION ACT OF 1997

                                 ______
                                 

                       HON. CHRISTOPHER H. SMITH

                             of new jersey

                    in the house of representatives

                         Tuesday, July 22, 1997

  Mr. SMITH of New Jersey. Mr. Speaker, today I have introduced 
legislation that will begin to address an inherent unfairness under 
present law that affects the surviving widows of our Nation's veterans. 
As you know, many of these veterans gave their lives for our country, 
yet their surviving spouses are now being denied benefits that were 
promised to them.
  In 1970, Congress enacted legislation that guaranteed widows of 
military veterans who died from service-connected disability that their 
dependency and indemnity compensation [DIC] benefits would be 
reinstated upon the termination of the widow's subsequent marriage(s) 
by death or divorce.
  The apparent rationale behind this reinstatement policy was twofold: 
first, to encourage DIC widows to remarry, thereby removing them from 
the DIC rolls and saving the Federal Government money; and second, 
bring veterans' benefits statutes in line with other Federal survivor 
programs, e.g. Federal Civil Service employees, Social Security 
annuitants, which granted reinstatement rights in this instance.
  However, in 1990, Congress passed the Omnibus Budget Reconciliation 
Act of 1990 which abruptly terminated DIC reinstatement rights for 
widows who lost these benefits upon remarriage. To make matters worse, 
the Department of Veterans Affairs never formally notified DIC widows 
of their loss of reinstatement rights, thereby relegating notice to be 
disseminated by word-of-mouth or by notices in publications of military 
and retiree organizations.
  As you would suspect, many widows continued to apply to the VA for 
reinstatement of their benefits, only to learn for the first time that 
their benefits were being denied. Imagine the shock and surprise of 
these widows who were never notified of the change in the law, many 
making financial planning decisions under the mistaken assumption that 
they would be eligible for reinstatement if their subsequent marriage 
ended by death or divorce.
  Mr. Speaker, my bill will reinstate DIC eligibility for widows who 
were remarried before November 1, 1990 and whose second or subsequent 
marriage is terminated by death or divorce. Recognizing the budget 
restraints under which Congress must operate, I initially have set the 
compensation rate at 50 percent of the current DIC rate. The bill would 
also require the Department of Veterans Affairs to notify all current 
and previously eligible DIC widows of the change.
  I urge all of my colleagues to please consider supporting this bill.

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