[Congressional Record Volume 150, Number 30 (Wednesday, March 10, 2004)]
[Senate]
[Page S2538]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MILITARY SURVIVOR BENEFITS IMPROVEMENT ACT

  Mr. INOUYE. Madam President, I rise to encourage my colleagues to 
support S. 1916, the Military Survivor Benefits Improvement Act. The 
purpose of this legislation is to correct a long standing inequity in 
survivor benefits paid to the widows and widowers of our military 
retirees and what is afforded survivors of other Federal retirees. This 
legislation would balance cost and equity considerations by phasing in 
an increased benefit for military surviving spouses, over a 10-year 
period, from 35 percent to 55 percent of retired pay after age 62.
  The military Survivor Benefits Plan simply does not stack up with the 
Federal civilian Survivor Benefit Plan either in benefits to survivors 
or in intended Government cost sharing to help reduce premium costs. 
When you compare survivor benefits you find that the military Survivor 
Benefit Plan provides for 55 percent of retired pay until the widow is 
62, then drops payments to 35 percent of retired pay. This dramatic 
drop can translate to as much as one third of the previous payment.
  Survivors of Federal civilian retirees under the earlier Civilian 
Service Retirement System receive 55 percent of retired pay--with no 
drop in benefits at age 62. Under the newer Federal Employee Retirement 
System, survivors receive 50 percent of retired pay, again with no drop 
at age 62. When the military Survivor Benefit Plan was enacted, the 
Congress intended a 40-percent Government subsidy for cost of military 
Survivor Benefit Plan premiums. Over time, because of conservative 
actuarial cost assumptions, the Government's cost share has declined to 
19 percent. This means that military retirees are now paying 81 percent 
of program costs from their retired pay versus the intended 60 percent. 
This contrasts with a Government Service Retirement System and 33 
percent for the current Federal Employee Retirement System.
  In closing, I submit that these inequities are unfair to the 
deserving survivors of military retirees and should be corrected by 
supporting this important measure.

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