[Congressional Record (Bound Edition), Volume 158 (2012), Part 4]
[Extensions of Remarks]
[Page 4680]
[From the U.S. Government Publishing Office, www.gpo.gov]




           THE DISABLED MILITARY CHILD PROTECTION ACT OF 2012

                                 ______
                                 

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                        Thursday, March 29, 2012

  Mr. MORAN. Mr. Speaker, I rise today to introduce the Disabled 
Military Child Protection Act of 2012. To put it simply, this bill will 
permit military retirees the ability to place their self funded 
Survivor Benefit Plan into a Special Needs Trust to ensure their 
surviving dependent child's future.
  This is an equity and fairness issue. Civilians are allowed to create 
a Special Needs Trust for their permanently disabled children to ensure 
they receive care beyond the guardian's death but under current law, 
military personnel with severely disabled children are legally 
prohibited from establishing a Special Needs Trust to ensure their 
surviving dependent child's future care.
  This bill will provide veterans with the ability to direct their 
Survivor Benefit Plan annuity payments to a Special Needs Trust. The 
creation of an SNT will ensure that a dependent, disabled child will 
continue to qualify for means-tested benefits, such as Social Security 
Disability Insurance and Medicaid. Assets placed into a Special Needs 
Trust are not generally counted as income or assets, allowing dependent 
children to remain eligible for these benefits throughout their 
lifetime.
  This bill would impact approximately 1,065 military dependents who 
are incapacitated beneficiaries under Survivor Benefit Plan and with 
individual care costs for a disabled child exceeding $100,000 a year, 
this additional benefit will increase their quality of life 
significantly.
  For those who believe this bill may contribute to abuse, it must be 
noted that a Special Needs Trust is administered under both federal and 
state law. Appointed fiduciaries are subject to auditing and are 
responsible for managing a benefit for a specific group. Annuities are 
also placed in Special Needs Trusts that are subject to income tax. 
Therefore, beneficiaries are shielded from abuse considering each trust 
has significant oversight.
  Finally, I am proud that this bill has 4 esteemed public servants as 
original co-sponsors: Congressmen Capps, Polis, Rangel, and Rothman. 
This bill is also supported by the Military Officers Association of 
America.

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