[Congressional Record Volume 153, Number 48 (Tuesday, March 20, 2007)]
[Senate]
[Pages S3371-S3372]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida (for himself, Mr. Hagel, Mr. Bingaman, 
        Ms. Mikulski, Mrs. Lincoln, Mr. Biden, Mr. Vitter, Mr. 
        Domenici, Mr. Kerry, Mr. Martinez, Mr. Salazar, Ms. Snowe, Mr. 
        Brown, Mrs. Feinstein, Mrs. Murray, and Mrs. Clinton):
  S. 935. A bill to repeal the requirement for reduction of survivor 
annuities under the Survivor Benefit Plan by veterans' dependency and 
indemnity compensation, and for other purposes; to the Committee on 
Armed Services.
  Mr. NELSON of Florida. Mr. President, on behalf of myself and 
Senators Hagel, Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter, 
Domenici, Martinez, Salazar, Snowe, Brown, Feinstein, Murray, and 
Clinton, I am honored to introduce legislation today that we are 
convinced is necessary to fix a long-standing problem in our military 
survivors benefits system.
  President Lincoln's words are as relevant and moving today as they 
were during the Civil War: ``as God gives us to see the right, let us 
strive on to finish the work we are in; to bind up the nation's wounds; 
to care for him who shall have borne the battle, and for his widow, and 
his orphan.''
  Our Nation continues to be engaged in a violent struggle against 
brutal and vicious enemies around the world. Sadly, Americans are lost 
every day. We must never forget that the families left behind by our 
courageous men and women in uniform bear the greatest pain. Their 
survivors face a life forever altered, and a future left unclear. They 
suffer the greatest cost of the ultimate sacrifice, and the nation that 
asked for that sacrifice must honor it.
  Back in 1972, Congress established the military survivors' benefits 
plan--

[[Page S3372]]

or SBP--to provide retirees' survivors an annuity to protect their 
income. This benefit plan is a voluntary program purchased by the 
retiree or issued automatically in the case of servicemembers who die 
while on active duty. Retired servicemembers pay for this benefit from 
their retired pay. Upon their death, their spouse or dependent children 
can receive up to 55 percent of their retired pay as an annuity.
  For over five years, I've been talking about the unfair and painful 
offset between SBP and the Department of Veterans Affairs' Dependency 
and Indemnity Compensation, or DIC, which is received by the surviving 
spouse of an active duty or retired military member who dies from a 
service-connected cause. Under current law, even if the surviving 
spouse of such a servicemember is eligible for SBP, that purchased 
annuity is reduced by the amount of DIC received. Another inequity in 
the current system is the delayed effective date for ``paid-up status'' 
under SBP. We should act to correct these injustices this year.
  We have made progress, but even with the important changes made over 
the last few years, the offset still fails to take care of our military 
widows and surviving children the way it should. We have considered and 
adopted increased death gratuity benefits for the survivors of our 
troops lost in this war, and we have changed the law to enable these 
survivors to automatically enroll in SBP. However, now we see the pain 
caused when at the same moment a widow is enrolled in SBP she is hit 
with the DIC offset.
  The SBP offset is no less painful for the survivors of our 100 
percent disabled military retirees. SBP is a purchased annuity plan. 
Before coming to the U.S. Senate, I served as Insurance Commissioner 
for the State of Florida, and I know of no other purchased annuity 
program that can then turn around and refuse to pay you the benefits 
you purchased on the grounds that you are getting a different benefit 
from somewhere else.
  Our Federal civil servants receive both their purchased survivor 
income protection annuity and any disability compensation for which 
they may be entitled--without offset. Why on earth would we treat our 
100 percent disabled military retirees any differently, especially 
after they have given the best years of their lives and their health in 
service to the Nation?
  Let me be clear about this: survivors of servicemembers are entitled 
in law to automatic enrollment in SBP; 100 percent disabled military 
retirees purchase SBP. Survivors stand to lose most or even all of the 
benefits under SBP only because they are also entitled to DIC.
  This legislation also accelerates an improvement we made earlier to 
the SBP program. We have already agreed that military retirees who have 
reached the age of 70 and paid their SBP premiums for thirty years 
should stop paying a premium, but we delayed the effective date for 
this relief until 2008. We should not delay their relief any further.
  The United States owes its very existence to generations of soldiers, 
sailors, airmen, and marines who have sacrificed throughout our history 
to keep us free. The sacrifices of today are no less important to 
American liberty or tragic when a life is lost in the defense of 
liberty everywhere.
  We owe them and their surviving family members a great debt.
  Unfortunately, it is too often that we fall short on this care. We 
must meet this obligation with the same sense of honor as was the 
service they and their families have rendered.
  We will continue to work to do right by those who have given this 
Nation their all, and especially for the loved ones they may leave to 
our care.
  I appreciate the co-sponsorship of my colleagues--Senators Hagel, 
Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter, Domenici, Martinez, 
Salazar, Snowe, Brown, Feinstein, Murray, and Clinton--and look forward 
to working with my colleagues in the days ahead.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                 S. 935

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

     SECTION 1. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR 
                   ANNUITIES BY DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       (a) Repeal.--
       (1) In general.--Subchapter II of chapter 73 of title 10, 
     United States Code, is amended as follows:
       (A) In section 1450, by striking subsection (c).
       (B) In section 1451(c)--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (2) Conforming amendments.--Such subchapter is further 
     amended as follows:
       (A) In section 1450--
       (i) by striking subsection (e); and
       (ii) by striking subsection (k).
       (B) In section 1451(g)(1), by striking subparagraph (C).
       (C) In section 1452--
       (i) in subsection (f)(2), by striking ``does not apply--'' 
     and all that follows and inserting ``does not apply in the 
     case of a deduction made through administrative error.''; and
       (ii) by striking subsection (g).
       (D) In section 1455(c), by striking ``, 1450(k)(2),''.
       (b) Prohibition on Retroactive Benefits.--No benefits may 
     be paid to any person for any period before the effective 
     date provided under subsection (f) by reason of the 
     amendments made by subsection (a).
       (c) Prohibition on Recoupment of Certain Amounts Previously 
     Refunded to SBP Recipients.--A surviving spouse who is or has 
     been in receipt of an annuity under the Survivor Benefit Plan 
     under subchapter II of chapter 73 of title 10, United States 
     Code, that is in effect before the effective date provided 
     under subsection (f) and that is adjusted by reason of the 
     amendments made by subsection (a) and who has received a 
     refund of retired pay under section 1450(e) of title 10, 
     United States Code, shall not be required to repay such 
     refund to the United States.
       (d) Repeal of Authority for Optional Annuity for Dependent 
     Children.--Section 1448(d)(2) of such title is amended--
       (1) by striking ``Dependent children.--'' and all that 
     follows through ``In the case of a member described in 
     paragraph (1),'' and inserting ``Dependent children.--In the 
     case of a member described in paragraph (1),''; and
       (2) by striking subparagraph (B).
       (e) Restoration of Eligibility for Previously Eligible 
     Spouses.--The Secretary of the military department concerned 
     shall restore annuity eligibility to any eligible surviving 
     spouse who, in consultation with the Secretary, previously 
     elected to transfer payment of such annuity to a surviving 
     child or children under the provisions of section 
     1448(d)(2)(B) of title 10, United States Code, as in effect 
     on the day before the effective date provided under 
     subsection (f). Such eligibility shall be restored whether or 
     not payment to such child or children subsequently was 
     terminated due to loss of dependent status or death. For the 
     purposes of this subsection, an eligible spouse includes a 
     spouse who was previously eligible for payment of such 
     annuity and is not remarried, or remarried after having 
     attained age 55, or whose second or subsequent marriage has 
     been terminated by death, divorce or annulment.
       (f) Effective Date.--The sections and the amendments made 
     by this section shall take effect on the later of--
       (1) the first day of the first month that begins after the 
     date of the enactment of this Act; or
       (2) the first day of the fiscal year that begins in the 
     calendar year in which this Act is enacted.

     SEC. 2. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER SURVIVOR 
                   BENEFIT PLAN.

       (a) Survivor Benefit Plan.--Section 1452(j) of title 10, 
     United States Code, is amended by striking ``October 1, 
     2008'' and inserting ``October 1, 2007''.
       (b) Retired Serviceman's Family Protection Plan.--Section 
     1436a of such title is amended by striking ``October 1, 
     2008'' and inserting ``October 1, 2007''.
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