[Congressional Record Volume 153, Number 30 (Friday, February 16, 2007)]
[Senate]
[Pages S2172-S2173]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 663. A bill to amend title 10, United States Code, to repeal the 
statutory designation of beneficiaries of the $100,000 death gratuity 
under section 1477 of title 10, United States Code, and to permit 
members of the Armed Forces to designate in writing their beneficiaries 
of choice in the event of their death while serving on active duty; to 
the Committee on Armed Services.
  Mr. McCAIN. Mr. President, today I am introducing legislation to fix 
a serious problem that has recently come to light with respect to the 
administration of the so-called Death Gratuity. The legislation is 
designed to ensure that a service member can designate to whom a death 
gratuity benefit is awarded.
  Today's Washington Post includes an informative yet troubling article 
describing the plight of the mother of Petty Officer Second Class Jaime 
S. Jaenke, U. S. Navy, who died in Iraq in June 2006 as a result of an 
IED attack. Petty Officer Jaenke was a member of the Navy Reserve and a 
medic assigned to a Seabee Construction Battalion. She left behind a 
young daughter, Kayla, who is in the care of Kayla's grandmother, Susan 
Jaenke.
  Regrettably, because of the manner in which death benefits are 
administered, a hardship situation has been created for Mrs. Jaenke. 
The article spells out that while the insurance proceeds have been set 
aside by the State court for the benefit of Kayla, they have not yet 
been made available. So in the meantime her grandmother is left trying 
to make ends meet because she is not allowed to receive the gratuity 
benefit that her daughter thought she would be providing, should the 
service member's unfortunate death occur.
  The article describes a very difficult situation for the person on 
who Petty Officer Jaenke depended. The financial difficulties Mrs. 
Jaenke is experiencing is due in part by confusion about how the death 
gratuity benefit--a sum of $100,000--is being administered under law.
  Under current law, the recipient of the $100,000 is dictated by the 
statute. It provides that a benefit is first awarded to an existing 
spouse. If there is no spouse, it then is provided to the children, and 
so on. It's a scheme that was set up to permit speedy resolution of 
what used to be a very modest benefit. In today's world, however, with 
the complex needs of service members, it does not comport with the 
realities of many of our service members and their families. It needs 
to be changed.
  The legislation I am introducing would replace the statutory order of 
beneficiaries with provisions identical to that used to select 
beneficiaries under the Servicemembers' Group Life Insurance--SGLI. The 
bill would give service members the power to select precisely who will 
receive the $100,00 death gratuity. It would require the Secretary of 
Defense to, no later than April 1, 2007, to prepare regulations and 
create election forms that will enable service members to designate who 
will receive this benefit.
  I hope we can move this legislation quickly and ensure that the 
intentions of our service members regarding the well being of their 
children and families can be carried out. We owe at least that much to 
those who are giving their lives for our nation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 633

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. MODIFICATION OF SCHEME FOR PAYMENT OF DEATH 
                   GRATUITY PAYABLE WITH RESPECT TO MEMBERS OF THE 
                   ARMED FORCES.

       (a) Findings.--Congress makes the following findings:
       (1) The death gratuity authorized under sections 1475 to 
     1480 of title 10, United States Code, was intended, when 
     originally enacted to provide an immediate cash payment to 
     assist survivors of deceased members of the Armed Forces to 
     meet their financial needs during the period immediately 
     following a member's death and before other survivor benefits 
     become available.
       (2) The death gratuity, when first implemented in 1908, 
     amounted to six months of a service member's pay and, until 
     1991, could not exceed $3,000.
       (3) However, following the attacks of September 11, 2001, 
     and the initiation of Operation Enduring Freedom and 
     Operation Iraqi Freedom, Congress determined that the death 
     benefits available to survivors of members of the Armed 
     Forces should be substantially increased.
       (4) The National Defense Authorization Act for Fiscal Year 
     2006, which was enacted on January 6, 2006, as Public Law 
     109-163, increased the amount of the death gratuity to 
     $100,000, effective retroactively to October 7, 2001.
       (5) Under section 1477 of title 10, United States Code, the 
     law authorizing the death gratuity, those living relatives of 
     deceased members of the Armed Forces who shall receive the 
     death gratuity are specifically designated. Service members 
     are not provided with the opportunity to make an election 
     choosing a beneficiary other than those set forth in section 
     1477 of title 10, United States Code.
       (6) The increased death gratuity, in combination with 
     benefits available under the Servicemembers' Group Life 
     Insurance program, the Survivor Benefit Plan, and Dependency 
     and Indemnity Compensation provide significant support and 
     compensation to the next of kin of deceased members of the 
     Armed Forces. Individual members are best qualified to 
     determine who the beneficiaries for death benefits should be 
     and should be afforded the opportunity to make these 
     selections at appropriate times throughout military service 
     and particularly prior to mobilization or deployment to a 
     combat zone.
       (7) Under the current system, many members of the Armed 
     Forces have designated individuals as beneficiaries for the 
     death gratuity in a manner not provided for by law. In these 
     cases, the wishes of these members regarding the disposition 
     of the death gratuity has in many cases not been implemented, 
     to the detriment of their children and other loved ones.
       (b) Sense of Congress.--It is the sense of Congress that 
     all members of the Armed Forces should be given the 
     opportunity to affirmatively select who shall receive the 
     death gratuity and that the Secretary of Defense and the 
     Secretaries of the military departments should take prompt 
     action to afford members the opportunity to make an election 
     in writing about the disposition of the death gratuity 
     proceeds and to provide appropriate and timely counseling 
     about the manner in which the proceeds of the death gratuity 
     and other forms of insurance will be administered.
       (c) Modification.--
       (1) In general.--Subsection (a) of section 1477 of title 
     10, United States Code, is amended by striking all that 
     follows ``on the following list:'' and inserting the 
     following:

[[Page S2173]]

       ``(1) To any individual designated by the person in 
     writing.
       ``(2) If there is no person so designated, to the surviving 
     spouse of the person.
       ``(3) If there is none of the above, to the children (as 
     prescribed by subsection (b)) of the person and the 
     descendants of any deceased children by representation.
       ``(4) If there is none of the above, to the parents (as 
     prescribed by subsection (c)) of the person or the survivor 
     of them.
       ``(5) If there is none of the above, to the duly appointed 
     executor or administrator of the estate of the person.
       ``(6) If there is none of the above, to other next of kin 
     of the person entitled under the laws of domicile of the 
     person at the time of the person's death.''.
       (2) Conforming amendments.--Such section is further 
     amended--
       (A) in subsection (b), by striking ``Subsection (a)(2)'' in 
     the matter preceding paragraph (1) and inserting ``Subsection 
     (a)(3)'';
       (B) by striking (c) and inserting the following new 
     subsection (c):
       ``(c) For purposes of subsection (a)(4), parents include 
     fathers and mothers through adoption. However, only one 
     father and one mother may be recognized in any case, and 
     preference shall be given to those who exercised a parental 
     relationship on the date, or most nearly before the date, on 
     which the decedent entered a status described in section 1475 
     or 1476 of this title.''; and
       (C) by striking subsection (d).
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (4) Applicability.--Notwithstanding paragraph (3), the 
     provisions of section 1477 of title 10, United States Code, 
     as in effect on the day before the date of the enactment of 
     this Act, shall continue to apply to each member of the Armed 
     Forces covered by such section until the earlier of the 
     following--
       (A) the date on which such member makes the designation 
     contemplated by paragraph (1) of section 1477(a) of such 
     title (as amended by paragraph (1) of this subsection); or
       (B) January 1, 2008.
       (d) Regulations.--
       (1) In general.--Not later than April 1, 2007, the 
     Secretary of Defense shall prescribe regulations to implement 
     the amendments to section 1477 of title 10, United States 
     Code, made by subsection (c).
       (2) Elements.--The regulations required by paragraph (1) 
     shall include forms for the making of the designation 
     contemplated by paragraph (1) of section 1477(a) of title 10, 
     United States Code (as amended by subsection (c)), and 
     instructions for members of the Armed Forces in the filling 
     out of such forms.
                                 ______