SMART BOOK. Survivor Benefit. Guide. Survivor Benefit Entitlement Counseling of Family Members of Inactive Duty for Training Deaths

Transcription

1 SMART BOOK Survivor Benefit Guide Survivor Benefit Entitlement Counseling of Family Members of Inactive Duty for Training Deaths Army Retirement Services December 2017

2 TABLE OF CONTENTS a--purpose/scope/references Page 3 b--background Page 4-5 c--responsibilities Page 5-9 d--survivor Counseling Information Page 9-12 e--survivor Annuity Documents Page f-- Survivor Benefit Beneficiary Worksheet Page 14 e--active Duty Death Survivor Counseling Checklist Page 15 f--survivor BENEFIT Options Fact Sheet Active Duty Death Page 16 g--connection between DIC and Survivor Benefit Page h--spouse Counseling Options Fact Sheet Page i--spouse Statement of Desired Survivor Benefit Election Active Duty Death Page 21 j--insurable Interest Survivor Benefit Beneficiary Request/Concurrence Statement Page 22 k--statement to decline Survivor Benefit for other Insurable Interest beneficiary Page 23 l--format for Request for Adjudication of Child Only, Spouse Excluded Page 24 m--format for Request to Adjudicate Deemed Insurable Interest Page 25 n--change to Computation of High-36 Month Average for Reserve Component Members Dying while on Active Duty Page 26 o--dod Implementing Guidance p--army Implementing Guidance s--information Paper Guidance on Enabling Payment of Survivor Benefit Plan (SURVIVOR BENEFIT) Annuities to a Special Needs Trust (SNT) t--document POC 2

3 1. PURPOSE: To provide guidance and instruction on the survivor benefit counseling of family members of Soldiers who die on inactive duty for training IDT for Casualty and Mortuary Affairs Operation Division (CMAOD), Human Resources Command (HRC) Reserve Retirement Branch, Casualty Assistance Centers (CAC), Casualty Assistance Officers CAO), and Retirement Services Offices (RSO) personnel involved in the counseling and processing of inactive duty for training death survivor benefits. The guidance contained within is designed with the HRC Retirement Services Branch s knowledge of survivor benefits for Reserve Component survivor benefits to properly provide survivor benefit counseling for the survivors of Soldiers who die IDT. The (HRC Reserve Retirement Branch processes annuity requests for Reserve Component Soldiers who do not die on active duty. 2. SCOPE: Instruction is applicable to all Army RSOs, CMAOD, HRC Reserve Retirement Branch, Army and Reserve Component RSOs, CACs, and CAOs. 3. REFERENCES: a. USC, Title10, 1448(d); 1148(f) and 1072(2) b. AR , Retirement Services Program, 17 January 2017 c. DOD Instruction , dated 23 June 2009, Subject: Survivor Annuity Program Administration d. Public Law (8 Nov 85 but effective 1 Mar 86) expanded survivor benefits to Reserve Component Soldiers who die after completing 20 years satisfactory service for retirement but die before notification of eligibility (NOE) or die after NOE but within period to make RCSBP election and have not made the RCSBP election. Incorporated into Title 10, 1448(f) e. Implementing Policies, Procedures, and Responsibilities Section 644, National Defense Authorization Act for Fiscal Year 2004, Public Law , 24 Nov 03, Expanded Survivor Benefits for Inactive Duty Training Deaths in the line of duty by adding category to by adding the IDT deaths to Title 10, 1448(f). f. Public Law , 23 Dec 16, Equal Benefits Under Survivor Benefit Plan for Survivors of Reserve Component Members Who Die In the Line of Duty During Inactive-Duty Training. g. DOD Implementing Policies, Procedures, and Responsibilities. Dated 26 Apr 17, Subject: Amendments to Survivor Benefit Plan for Reserve Component Members 3

4 h. Army Information Paper. Dated 8 May 17, SUBJECT: Legislative Changes to Survivor Benefit Plan for Reserve Soldiers Who Die on Inactive Duty for Training In the Line of Duty and certain Reserve Soldiers Eligible for Non-Regular Retirement Who Die Before being Afforded the Opportunity to Elect Reserve Component Survivor Benefit Plan 4. BACKGROUND: a. Public Law (8 Nov 85), effective 1 Mar 86, expanded survivor benefits to Reserve Component Soldiers who die after completing 20 years satisfactory service for retirement but die before notification of eligibility (NOE) or die after NOE but within period to make RCSBP election and have not made the RCSBP election. The beneficiaries were designated by law and the same as active duty death as follows 1) Former Spouse if court ordered and date of the court order is prior to the Soldier s death. 2) Spouse. 3) Child Only (Only when there is no surviving spouse). 4) Insurable Interest. None. 5) For a spouse with children, Survivor Benefit only went to children at spouse s death. b. Public Law Public Law , 24 Nov 03 added IDT deaths in the line of duty on or after 24 November 2003 to USC, Title10, 1148(f). The beneficiaries remained the same: 1) Former Spouse if court ordered and date of the court order is prior to the Soldier s death. 2) Spouse. 3) Child Only (Only when there is no surviving spouse). 4) Insurable Interest. None. 5) For a spouse with children, survivor benefit only went to children at spouse s death. c. Public Law , 23 Dec 16, changed the following for the survivors of Reserve Component Soldiers whose survivor benefit is based on Title 10, 1448(f). 1) For Soldiers who died on IDT in the line of duty, the survivor benefit will be calculated as if the Soldier who died on IDT in the line of duty was on active duty and medically retired with a 100 percent disability at the time of death. The retired pay will be calculated under Title 10, The retired pay calculations will be 75 percent of the final pay or high-36 average calculated as if the Soldier was on active duty for the period. The survivors will receive 55 percent of the calculated retired pay as the survivor benefit. 4

5 2) Reserve Component Soldiers whose death was not on IDT who die after completing 20 years satisfactory service for non-regular retirement but die before receiving NOE or die after NOE but within the 90 day period to make a RCSBP election and have not made the RCSBP election will continue to have retired pay for determining the survivor benefit calculated based on Reserve retirement points IAW Title 10, ) Applies SSIA to the surviving spouse of Soldiers whose survivor benefit is based on Title 10, 1448(f). 4) Changed the beneficiary categories for all Soldier s whose survivor benefit is based on Title 10, 1448(f) as follows. a) Former Spouse, if court ordered on date of death or a pending court order involving former spouse survivor benefit is pending at Soldier s death and it awards the survivor benefit to the former spouse. b) Spouse. c) Child Only, when there is no surviving spouse, or if the spouse requests the Service Secretary to make a Child Only, Spouse Excluded election. d) If a spouse with children declines to request Child Only, the survivor benefit will automatically revert to any eligible children if that spouse becomes ineligible for survivor benefit for any reason (remarriage before age 55, death, or criminal involvement in the Soldier s death). Therefore, Public Law provides the same benefit for the children when a Reserve Component Soldier s survivor benefit is under the provision of Title 10, 1448(f) for spouse as applies to the spouse and children of a Retired Soldier who elected Spouse and Children survivor benefit or an active duty death where the surviving spouse elected to keep the survivor benefit as spouse but there are survivor benefit eligible children. e) Insurable Interest. When there is no qualified survivor under U.S. Code, Title 10, 1448f, the Chief, Army RSO can deem an election for a survivor who meets the dependent eligibility criteria of U.S. Code, Title 10, 1072(2) as the deceased Soldier s dependent. d. The Human Resources Command (HRC), Reserve Retirement Branch counselors are trained and experienced in providing RCSBP counseling, determining the correct duty status for Reserve Component Soldiers who die on IDT, and processing the annuity documentation for submittal to DFAS. e. By law, the Secretary of the Army approves survivor benefit elections under P.L and P.L for Child Only Spouse Excluded and Insurable Interest elections. The Director, Army RSO has been delegated the authority to make these elections on behalf of the Secretary of the Army. 5. RESPONSIBILITIES (Listed in Probable Order of Involvement) a. Director, Army Retirement Services will: 1) Publish the Army policy and implementation instructions for Army survivor benefit counseling and processing for IDT deaths. 5

6 2) Answer IDT death survivor benefit questions. 3) Approve Child Only Spouse Excluded and deemed insurable interest elections for IDT Deaths. 4) Provide HRC Retirement Services Branch adjudicated survivor benefit election determinations for Child Spouse Excluded or deemed Insurable Interest elections when line of duty (LOD) is completed. 5) Publish and revise the Smart Book on Survivor Benefit Counseling for Family Members of Inactive Duty for Training Deaths. 6) Army RSO USAR Liaison Officer will ensure USAR RSOs are familiar with the policy and procedures contained in this document. 7) Army RSO National Guard Liaison Officer will ensure State National Guard RSOs are familiar with the policy and procedures in this document. b. Chief, HRC Reserve Retirement Branch 1) Ensure individual counselors are trained and certified for survivor benefit counseling. 2) Identifies IDT counselors and obtains access to the MyArmyBenefits Casualty Benefits Analysis Report for IDT survivor benefit counselors. 3) Provide counseling to the survivors of all US Army Reserve and Army National Guard IDT deaths. 4) Coordinate with CMAOD, individual CACs, and CAOs to ensure the survivors of all IDT deaths are counseled by HRC Reserve Retirement Branch survivor benefit counselors. 5) Forward requests for Child Only Spouse Excluded and deemed insurable interest election determinations to Army RSO for adjudication. 6) Review, consolidate, and forward complete IDT annuity packets to DFAS for processing. c. MyArmyBenefits. 1) Prepare Casualty Benefits Analysis Report for survivors of IDT deaths based on data provided by CMAOD. (The Casualty Benefits Analysis Report is specific to the unique family structure of those survivors you are counseling and provides an estimate of the integrated life time stream of benefits from the Military Survivor Benefit Plan, the Department of Veterans Affairs (VA) Dependency and Indemnity Compensation (DIC), Social Security (SS), and a projection of the VA Education Assistance benefits for each eligible family member.) 2) Provide access to Casualty Benefits Analysis Report for IDT survivors to HRC Reserve Retirement counselors. 3) Answer questions on the IDT survivor Casualty Benefits Analysis Report for HRC Reserve Retirements, CMAOD, CAC Benefit Coordinators, CAOs, and IDT death survivors. d. The Army Casualty and Mortuary Affairs Operation Division (CMAOD). 6

7 1) Will incorporate IDT survivor benefit information into Casualty Assistance Officer (CAO) training. 2) Notifies MyArmyBenefits of IDT death and provides data needed to produce survivor Benefits calculations. 3) Notifies and coordinates with HRC Reserve Retirement Branch on IDT deaths. 4) Ensures Casualty Assistance Center (CAC) appoints a CAO for each IDT death. 5) Adjudicates the Line of Duty and provides HRC Reserve Retirements and Army RSO the determination. e. Casualty Assistance Center (CAC) Benefits Coordinator. 1) Reviews the DD Form 1300 (Report of Casualty), Block 4g (Duty Status) to ensure the death was on IDT. 2) Access and review the Casualty Benefits Analysis Report for the IDT survivors on the MyArmyBenefits website at: 3) Ensures the CAO Access and review the Casualty Benefits Analysis Report for the IDT survivors on the MyArmyBenefits website and that IDT survivors have access to the Casualty Benefits Analysis Report. 4) Benefit Coordinator will familiarize themselves with the survivor benefit policy, procedures, and benefits for IDT deaths listed in this Smart Book. 5) Ensures the CAO is trained on the IDT survivor benefit processing procedures. 6) Briefs the CAO on their responsibilities in assisting the beneficiary in applying for the survivor benefit. Trains the CAO on the procedures to process the survivor benefit determination 7) Ensures the CAO contacts HRC Reserve Retirements Branch within 10 days of appointment as a CAO and schedules a survivor benefit counseling session. 8) Provides the CAO required guidance, documents, HRC Reserve Retirement Branch contact information, and available survivor information. The HRC Reserve Retirement Section s contact number is ) Ensures CAOs familiarize themselves with the survivor benefit policy, procedures, and benefits for IDT deaths listed in this Smart Book. 10) Briefs the CAO on their responsibilities in assisting the beneficiary in applying for the survivor benefit. 11) Ensures the CAO contacts the HRC Reserve Retirement Branch within 10 days of appointment as a CAO and schedules a survivor benefit counseling session. 12) Reviews the annuity documents provided by the CAO and forwards the completed survivor benefit annuity documents to HRC, Reserve Retirement Branch for processing. 13) Assist in establishing child paternity when in question. f. CAO 7

8 1) In coordination with the CAC Benefits Coordinator, reviews available records (DEERS, personnel records, DD Form 93, SGLI election, etc.), completes the Survivor Benefit Beneficiary Worksheet (Page 14). 2) Ensures the spouse and all eligible children are listed on the DD Form 1300 (Report of Casualty). The DD Form 1300 is a source document Defense Finance and Accounting Service (DFAS) uses to determine eligible dependents for survivor benefits. 3) Review the DD Form 1300 (Report of Casualty), Block 4g (Duty Status) to ensure the duty status at death is correct and listed as IDT. 4) Access and review the Casualty Benefits Analysis Report for the survivors on the MyArmyBenefits website at: 5) Makes preliminary contact with the HRC Reserve Retirement Section at within 10 days to discuss the survivor benefit counseling and provides HRC the Survivor Benefit Beneficiary Worksheet. 6) Contacts the HRC Reserve Retirement to schedule the survivor benefit counseling when the survivors are prepared to discuss the survivor benefit. CAO needs to ensure the survivors are emotionally prepared for the counseling. 7) For cases where there is a spouse and eligible children, the RSO can provide the spouse a preliminary briefing to allow the spouse time to consider the benefits of Spouse versus Child, Spouse Excluded survivor benefit prior to making a survivor benefit decision. 8) Assists all spouses with children with completing the Spouse Statement of Desired Survivor Benefit Election IDT Death (Page 21) and acts as witness for telephonic counseling. 9) Provides the HRC Reserve Retirement Branch the IDT Death Survivor Benefit Beneficiary Worksheet prior to the counseling session to allow the RSO to prepare for the counseling session which with very few exceptions, counseling will be done telephonically. 10) Is present for all person to person and telephonic survivor benefit counseling and signs the Spouse Statement or Insurable Interest Statement as the witness if one is required. 11) Assists the survivors in preparing annuity documents. 12) Forwards annuity documents to CAC Benefits Coordinator for review and forwarding to HRC Reserve Retirements for processing. g. HRC Reserve Retirement Branch IDT Death Survivor Counselors. 1) Familiarizes themselves on the policy and procedures contained in this smart book and follows those procedures in IDT death survivor benefit counseling. 2) Reviews the DD Form 1300 (Report of Casualty), Block 4g (Duty Status) to ensure the death was on IDT. 3) Access and review the Casualty Benefits Analysis Report for the IDT survivors on the MyArmyBenefits website at: 4) Coordinates with the Benefits Coordinator and CAO to ensure the CAO provides the IDT Death Survivor Benefit Beneficiary Worksheet (Page 14). 8

9 5) Uses the Casualty Benefits Analysis Report, IDT Death Survivor Benefit Beneficiary Worksheet, and the IDT Death Survivor Benefit Counseling Checklist (Page 15) to counsel the survivors. 6) Ensures the pertinent material is covered in Survivor Benefit Options Fact Sheet for IDT Deaths (Page 16), Connection Between DIC and Survivor Benefit Annuity (Page 17), and the Casualty Benefits Analysis Report. 7) Coordinates with the CAO to set up counseling sessions with the survivors. 8) Counsels the survivors on the survivor benefits using the below survivor counseling information. 9) Ensure that all survivors are briefed that survivor benefit annuity is subject to federal income tax. 10) Forwards to Army RSO by Requests for adjudication of Child Only, Spouse Excluded (spouse excluded) elections (Page 24) and requests for adjudication of deemed Insurable Interest (Page 25). 11) Reviews the annuity packet to ensure all documentation is present and forwards completed annuity packets to DFAS for processing. 12) Establishes a follow-up plan by providing the annuitants with POCs for future questions on survivor annuity at HRC Reserve Retirements for questions on establishing the annuity, DFAS and the nearest installation Retirement Services Officer on established survivor benefit annuities. 6. Survivor Counseling Information. a. The following rules pertain to calculating survivor benefit for the survivors of IDT deaths in the line of duty (LOD): 1) The law considered Soldiers who died on active duty in the line of duty as totally disabled for purposes of calculating the retired pay "entitlement" - i.e., use 75% of final or high-36 basic pay. 2) For Reserve Component Soldiers who die in IDT status, calculate the high-36 months as if they were on active duty regardless of whether the high-36 service was active or reserve. 3) For Soldiers with less than 36 months of service, use the actual months of service, active and reserve, to calculate the retired pay. For example, service of only 15 months would be divided by 15 to calculate retired pay. 4) The survivor benefit annuity payable is 55% of what the member's retired pay entitlement would have been. 5) Lines of Duty No (LOD) determinations affect the survivor benefit for the survivors of IDT deaths. a) If a member IS NOT retirement-eligible, line of duty no (LOD-NO) results in no survivor benefits. b) If a member IS eligible for a non-regular retirement and whose death on IDT was not in the line of duty (LOD-NO), results in calculating retired pay for determining survivor benefit based on the member s years of service in accordance with Section of Title 10, USC. 9

10 b. The Comptroller General of the United States ruled that a beneficiary who feloniously kills the person whose death the survivor benefit payments are based on cannot receive the annuity. 1) The DFAS General Counsel will determine if or at what point the beneficiary forfeits the annuity entitlement. 2) A surviving spouse implicated in the possible wrongful death of the retiree, may request child only spouse excluded survivor benefit. 3) If after counseling surviving spouse with children elects spouse survivor benefit, the annuity is not payable to the spouse until DFAS determines the spouse is exonerated of the wrongful death of the Soldier. 4) If found by DFAS to be complicit in the wrongful death of the Soldier, the spouse is not eligible for survivor benefit and the survivor benefit annuity will go to any eligible children. 5) With the addition of explaining the implications for survivor benefit eligibility if the beneficiary is found complicit in the wrongful death of the Soldier, follow all other procedures to counsel, prepare annuity documents, and if applicable request child only spouse excluded or insurable interest survivor benefit approval from Army RSO. c. Survivor Benefit election categories listed in order of precedence with counseling guidance: 1) Former Spouse Counseling. a) Former spouse is the survivor benefit beneficiary if at the death of the Soldier the former spouse had court ordered former spouse survivor benefit or if there was an ongoing court case involving the survivor benefit at the IDT Soldiers death and the court case awards the former spouse the survivor benefit even if the award is after the death of the IDT Soldier. b) Former spouses do not receive Special Survivor Indemnity Allowance (SSIA). 2) Spouse, No Eligible Children. a) Counsels the spouse that they are the primary beneficiary and explains spouse survivor benefit. Since the election is by law, the spouse does not complete the Spouse Statement of Desired Election. b) Eligible children include not just the children in the spouse s household but all eligible children regardless of whose household they reside. Children that the Deceased Soldier relinquished all legal rights to in a legal adoption are not considered eligible children for survivor benefit. 3) Spouse and Children Counseling Information. a) Counsels all spouses with children on the Child Only, Spouse Excluded election option, covering pertinent information on pages b) Informs spouse, with eligible children, that survivor benefit is paid as unearned income and may have tax implications. These tax issues are 10

11 extremely complicated and require a professional tax advisor to answer correctly. c) The surviving spouses may, after counseling, defer their survivor benefit decision until they consult with a professional tax advisor. Do not advise on tax issues. d) All spouses with children must complete a Spouse Statement of Desired Survivor Benefit Election Active Duty Death (TAB i). e) Note: Since the spouse will now receive SSIA and survivor benefit was designed with the spouse as the primary beneficiary, the Army RSO will not make the Child Spouse Excluded election and deprive a spouse of SSIA unless the spouse requests the election. f) Note: If an unmarried child incapable of self-support due to a mental or physical disability existing from an age the child would have otherwise been eligible for survivor benefit, a request can be made to pay the survivor benefit payments to a special needs trust (SNT). Follow the guidance in the information paper at TAB S. g) Step children living in a parent-child relationship with the Soldier at the Soldier s death are considered survivor benefit eligible beneficiaries if they meet all other eligibility criteria. If there is a question on a stepchild s eligibility, DFAS will make the final determination. 4) Children, No Spouse or Former Spouse. a) The survivor benefit election is by law and will be shared by all eligible children. b) Note: Remember to: brief on school certification process for children who are or will be age 18 or older (DD Form 2788, Child Annuitant s School Certification); account for children between the ages of 18 and 22 as to school and marriage status. c) Note: Children who have reached the age of majority for the state of residence will sign their own annuity application, school certification, and receive the survivor benefit payment directly. 5) Child Coverage When Someone is Expecting Soldier s Child at Soldier s death. a) Counsel the spouse or someone, other than a spouse, who at the Soldier s death was expecting the Soldier s child that if: The soldier was married at the time of death and the spouse requests Child Spouse Excluded for other children IAW USC, Title 10, 1448d; the child at birth becomes an survivor benefit beneficiary. They need to contact HRC Reserve Retirements Branch to complete the required survivor benefit annuity documents. b) There were no other eligible children, after the birth of the child the spouse may request to change their election from Spouse by Law to Child Spouse Excluded. If the mother of the child was not the spouse, 11

12 the spouse must be notified by the CAC and counseled by HRC Reserve Retirement Branch on the opportunity to change their election to Child, Spouse Excluded. c) The Soldier was not married; the child will become a survivor benefit beneficiary by law. d) The CAC will assist in establishing paternity if required and updating the DD Form 1300 to reflect additional dependent child. 6) No Former Spouse, Spouse or Eligible Children (Insurable Interest). a) Counsel the next of kin of single Soldiers who die on active duty without either eligible children or a former spouse with court-ordered survivor benefit, to determine if there is a dependent of the soldier authorized a Military Dependent ID Card and not otherwise authorized survivor benefit under the Active Duty Death Law, who may be authorized as a deemed Insurable Interest beneficiary. b) Directs dependents without a Military Dependent ID Card who feel they were authorized a Military Dependent ID Card at the time of the Soldier s death to the Installation Military ID Card Section to obtain a Military Dependent ID Card or submit for dependency determination. c) For a dependent that qualifies, assist them in completing Insurable Interest survivor benefit Beneficiary Request (Page 22). d) Only one person can collect Insurable Interest survivor benefit. Other eligible dependents may sign a statement giving up the right to the Insurable Interest survivor benefit to another dependent (Page 23). e) In cases where there is more than one eligible dependent requesting the Insurable Interest survivor benefit, HQDA RSO may deem not to award a survivor benefit. f) The insurable interest election will be effective 23 Dec 16 for deaths covered by Section 1448(f) that occurred prior to 23 Dec 16 and effective on the date of death for deaths covered by Section 1448(f) that occur on or after 23 Dec 16. d. After counseling establish a follow-up plan by providing the annuitants with a POC for future questions: For questions on initial establishment of the survivor annuity POC is HRC Reserve Retirements Branch ( ). For future questions on the established survivor benefit annuity contact DFAS ( ) or the nearest installation Retirement Services Officer on established survivor benefit annuities 7. Required Survivor Annuity Documents. a. Former Spouse, Court Ordered: DD Form , DFAS-CL 1059 or voided check or FMS Form 2231 or for overseas accounts if available for that country Optional Form 1199-I, W-4P, and Court Order Awarding the survivor benefit. b. Spouse with no children or declined to request Child Only, Spouse Excluded: DD Form (Verification for Survivor Annuity), DFAS-CL 1059 (Direct Deposit 12

13 Authorization) or voided check or FMS Form 2231 (Fast Start Direct Deposit) or for overseas accounts if available for that country Optional Form 1199-I (International Direct Deposit Enrollment), W-4P (Tax Withholding Certificate), and Spouse Statement for spouse with children). c. Child, with no spouse: DD Form , DFAS-CL 1059 or voided check or FMS Form 2231 or for overseas accounts if available for that country Optional Form 1199-I, W-4P, DD Form 2790 (Custodianship Certificate), and DD Form 2788 (Child Annuitant s School Certification) for unmarried full time students of age. A court ordered guardianship is needed for children not permanently residing with a parent. d. Child, Spouse Excluded: Same as Child Only with addition of Army RSO approval and Spouse Statement of Desired Survivor Benefit Election IDT Death. Cases where a natural or parent by adoption is not the child s guardian, require court documents that establish the guardianship or custodianship that allows the management of the minor child s estate. A Conservatorship of Estate allows the right to manage the child s estate. e. Other Child Documentation. 1) For fully incapacitated children include the DD Form 2828, Physician Certification for Child Annuitant. 2) If establishing a payment to a special needs trust, provide the Attorney statement, SNT, and written signed request. 3) Note: IF guardian is not the parent of the child, court documents establishing guardianship must be provided with the SURVIVOR BENEFIT annuity application. f. Insurable Interest DD Form , DFAS-CL 1059 or voided check or FMS Form 2231 or for overseas accounts, if applicable for that country, Optional Form 1199-I, W-4P, Copy of Dependent ID Card as deceased Soldier s dependent or determination of dependent status by DFAS-IN. The insurable interest, once established, should be added to the DD Form No Beneficiary: no supporting documents required. g. All packets require a statement of service with deceased Soldiers rank history. Note: Foreign nationals receiving annuity complete either the W-4P or the W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding). 13

14 IDT DEATH SURVIVOR BENEFIT BENEFICIARY WORKSHEET After reviewing all the Soldier s pertinent documents (personnel records, DEERS, DD Form 93, SGLI election, etc.) and counseling, the of, I have identified the below listed available survivor categories. PART 1 (CAO completes and provides to RSO prior to counseling) 1. Spouse. Name 2. Former Spouse with court ordered survivor benefit Yes No. Name 3. Eligible Children. (List all of the Soldier s eligible children) Name Relationship to Soldier Spouse DOB Disabled Name Relationship to Soldier Spouse DOB Disabled Name Relationship to Soldier Spouse DOB Disabled Name Relationship to Soldier Spouse DOB Disabled Name Relationship to Soldier Spouse DOB Disabled Name Relationship to Soldier Spouse DOB Disabled Special Needs Trust for Disabled Child: Yes No. 4. Insurable Interest for dependent qualified under USC Title (2). (Complete only in the absence of a spouse, former spouse with court ordered survivor benefit, or eligible children). Name Relationship Name Relationship (CAO Signature & Date) (Typed or Printed Name and Phone Number) 14

15 IDT DEATH SURVIVOR BENEFIT COUNSELING CHECKLIST Name SSN Grade Soldier Data Estimated Retired Pay $ Married (Y or N) If married: Spouse name Date of marriage Date of Birth Spouse employed (Y or N) If divorced: Former Spouse name Date of divorce SURVIVOR BENEFIT court-ordered (Y or N) Are there eligible children (Y or N) Are they natural children with current spouse (Y or N) Are they children from a previous union (Y or N) Age of youngest child Is any child incapacitated (Y or N) If yes, child's name/dob Family Data (Spouse/Former Spouse) (Children) If yes, is a special needs trust (SNT) established for the child (Y or N) If SNT established for the child, is payment of child SURVIVOR BENEFIT for the child elected (Y or N) Is Soldier single (Y or N) Is there a possible Insurable Interest beneficiary (Y or N) If yes, Insurable Interest party's name (Insurable Interest) Authorized or in receipt of Military ID Card as Soldier s Dependent (Y or N) Remarks 15

16 SURVIVOR BENEFIT OPTIONS FACT SHEET FOR IDT DEATHS 1. A Soldier who dies on IDT in the line of duty has survivor benefit coverage. 2. A Soldier whose death is not in the line of duty and is: a. Not retirement eligible, receives no survivor benefit coverage. b. Is retirement eligible for a reserve non-regular retirement receives survivor benefit based on USC, Title 10, Section The following elections may be made for Soldiers who die on IDT: a. Former Spouse, court ordered survivor benefit awarded prior to Soldier s death or was part of a pending court case at Soldier s death. b. Spouse c. Child. d. Child, Spouse Excluded. e. Insurable Interest 4. Army RSO is involved in approving the survivor benefit election for: a. Spouses with children who request Child Only Spouse Excluded survivor benefit b. Deemed Insurable Interest survivor benefit. 5. SURVIVOR BENEFIT Calculation. a. Soldiers who die on IDT in the line of duty are considered totally disabled for the purposes of calculating the retired pay entitlement - i.e., use 75% of final or high-36 basic pay. The survivor benefit annuity payable is 55% of what the member s retired pay entitlement would have been had he/she been retired based on total service-connected disability. b. Considers Line of Duty (LOD) findings. For example: i. If a member IS NOT retirement-eligible, LOD-NO results in no survivor benefits. ii. If a member IS retirement-eligible, LOD-NO results in (Pending). 6. If the Spouse receives the survivor benefit and becomes ineligible for any reason, the survivor benefit goes to all eligible children. Offset of spouse survivor benefit by DIC is not considered ineligibility to receive survivor benefit. 7. Paragraph 6 on page 10 of this smart book also contains information on calculating the survivor benefit annuity. 16

17 CONNECTION BETWEEN DIC AND SURVIVOR BENEFIT ANNUITY Spouse: The dollar-for-dollar offset between the two annuities applies to Spouse Survivor Benefit only. Any survivor benefit amount above the DIC amount is paid to the eligible spouse in a Spouse Only survivor benefit election. Spouse receives SSIA if survivor benefit is offset by DIC. Child: There is no offset between DIC and survivor benefit for children. No SSIA paid. Negatives of Spouse and Child Elections: 1--a spouse's survivor benefit annuity is totally (or partially) offset when DIC is received. 2--the result is less total income into the household in the short term Positives of Spouse Elections: 1--may be a good long term election and they will receive SSIA. 2--remarriage before age 57 causes DIC entitlement to end regardless of age, survivor benefit can be reinstated with a spouse election if the spouse is over remarriage after age 57 results in the surviving spouse, eligible for survivor benefit and DIC, receiving both survivor benefit and DIC without an offset. They will not receive SSIA. 3--should the spouse die, eligible children receive survivor benefit if under 18 or 22. Negatives of Child Only, Spouse Excluded Election: 1--child survivor benefit is finite. It stops when the youngest child reaches age 18 or 22, if a full-time unmarried college student. (A fully incapacitated child incapable of selfsupport could receive survivor benefit for life but the survivor benefit could negatively impact other disability benefits). 2--no SSIA. 3-- Survivor benefit annuity is taxed Positive of Child Only, Spouse Excluded Election: --more total household income for the next to years, since survivor benefit is not offset by DIC for children. Fully incapacitated children incapable of self-support receive survivor benefit for life. (Note: Child survivor benefit may affect an Incapacitated child s other government disability benefits.) Each Spouse Should Consider The Following: 1--How dire is your financial situation right now; over the next several years; in the longterm? 2--What is your earning potential right now; in the future? 3--What other investments, inheritances, and insurance monies can you count on; do you know how to "grow" them? 4--Considering all three government sources or income (DOD, VA & Social Security), will there be any years when no government income is payable to your family? 17

18 Special Survivor Indemnity Allowance (SSIA). Full SSIA will be paid to the surviving spouse if they receive survivor benefit offset by DIC in an amount equal to the SSIA. SSIA is payable monthly as follows: FY 2018, $310; and with COLA increases for years following SSIA applies to IDT deaths. 18

19 IDT DEATH SPOUSE COUNSELING OPTIONS FACT SHEET 1. The decision to request Spouse versus Child, Spouse Excluded SURVIVOR BENEFIT is complicated and difficult. Before making this decision, it is important not only to consider the total dollar payments, but also the life events terminating eligibility (age, remarriage, etc.) and the tax implications. 2. DEPENDENCY & INDEMNITY COMPENSATION (DIC). a. Spouse: When death is service-connected, a qualified surviving spouse receives a monthly tax-free annuity, Dependency & Indemnity Compensation (DIC), from the Department of Veterans Affairs (VA). b. Child: Each eligible child also qualifies to receive DIC. A higher monthly amount is paid when there is no spouse DIC beneficiary. Amounts can be found at: 3. SURVIVOR BENEFIT PLAN (SURVIVOR BENEFIT) CATAGORIES. (Spouse or Spouse and Child but no Former Spouse with Court Ordered Survivor Benefit) a. Spouse no Children. This election is by law and the spouse would receive SSIA if they also receive DIC. b. Spouse with Eligible Children. In this election for the survivors of an active duty death, the spouse is the survivor benefit beneficiary. Children receive the annuity only if the spouse becomes ineligible for any reason and the children are still eligible - age 18, or 22, if a full-time, unmarried student or an eligible child who is fully incapacitated and incapable of self support. If the spouse remarries before age 55 and the survivor benefit goes to eligible children, the spouse will regain the survivor benefit if that marriage ends. Spouse will receive SSIA for period they are the survivor benefit beneficiary if survivor benefit is offset by DIC. If a surviving spouse who is eligible to receive both survivor benefit and DIC remarries after age 57, the survivor benefit offset by DIC will be restored and they will not receive SSIA. c. Estimated retired pay entitlement is: $ d. Estimated survivor benefit annuity entitlement is: $ (55% of ret pay) e. Current SSIA rate: $ 4. Child Only, Spouse Excluded. In this election, the child is the survivor benefit beneficiary. Eligible children divide the annuity equally until no eligible children remain. a. Children are eligible until age 18 or 22, if a full-time unmarried student. (A fully incapacitated child incapable of self-support could receive survivor benefit for life but the survivor benefit could negatively impact other disability benefits). Benefit could be paid to a SNT for the child to alleviate the impact on disability benefits the child may receive. 19

20 b. The annuity is payable on behalf of minor children through a Representative Payee (i.e., parent/guardian receiving the monies on the child's behalf, with accountability). When the children live with the spouse, this election increases the household income since there is no offset of Child survivor benefit by Child DIC. c. It is an election to consider for families with young children who stand to get full survivor benefit and DIC into the household for quite a few years. d. For example, if the youngest child is age 6, survivor benefit is payable until the youngest child is no longer eligible, at least 12 years or up to 16 years, if a full time unmarried student. The spouse will likely receive DIC; each child will also receive DIC. When the youngest child is no longer eligible, survivor benefit stops. The survivor benefit will not revert back to the spouse and the spouse will not receive SSIA. 5. Tax Implications of Child Only, Spouse Excluded. a. Survivor benefit is taxed as unearned income. b. The decision to elect survivor benefit - Spouse or survivor benefit Child is not an easy one. c. For tax issues, please consult a tax expert who can evaluate your particular situation. 6. Survivor Benefits for A Spouse with Children Who Elects Spouse Only Survivor Benefit a. The question has been raised as to why there is no Spouse and Children election for spouses in active duty deaths. The spouse with children of an IDT death must complete the Spouse Statement of Desired Election IDT Death electing Spouse or requesting Child Only, Spouse Excluded. However, if a spouse with children selects Spouse, the survivor benefit will automatically revert to any eligible children if the spouse becomes ineligible for survivor benefit for any reason (remarriage before age 55, death, or criminal involvement in the Soldier s death). Therefore, the law provides the same benefit for the children when an active duty death election is Spouse as when Spouse and Children is elected by a retiree. b. Prior to Public Law , 23 Dec 16, the survivor benefit for an IDT death went to the spouse first and only reverted to eligible children only if the spouse died. 20

21 SPOUSE STATEMENT OF DESIRED SURVIVOR BENEFIT ELECTION IDT DEATH After counseling by an Army Retirement Services Officer on the Survivor Benefit options available to me, I,, the surviving spouse of, SSN:, desire the following survivor benefit election on behalf of my husband/wife: 1. Spouse. I understand that Spouse survivor benefit is offset dollar for dollar by Spouse Dependency & Indemnity Compensation (DIC) received and I will be eligible to receive SSIA. I understand if I become ineligible to receive survivor benefit for any reason, survivor benefit by law reverts to any eligible children. I understand that the offset of survivor benefit by DIC does not constitute ineligibility to receive survivor benefit. 2. Child Only, Spouse Excluded. I desire the Army to make the following survivor benefit election on my behalf. I understand that this election authorizes all of my Soldier spouse s eligible children to receive an equal share of the survivor benefit annuity. All eligible children will receive the annuity until age 18 or age 22 if a full-time unmarried student, or forever if the child is incapable of self support due to a condition incurred before age 18, or age 22 until all children are ineligible. I understand I can request the survivor benefit for a child who is incapacitated at an age eligible for survivor benefit be paid to a special needs trust for the care of that child. I also understand that the survivor benefit will not revert to Spouse when the last child becomes ineligible and I will not receive SSIA. (Spouse Signature & Date) (Typed or Printed Name) (Witness, CAO, RSO, Notary, Signature & Date) (Typed or Printed Name) (HRC Counselor s Printed Name if Not the Witness) 21

22 INSURABLE INTEREST SURVIVOR BENEFIT BENEFICIARY REQUEST I,, as the authorized (Dependent s Name) (Relationship) military dependent of, meet the (Soldier's Name) requirements of the law for designation as their Insurable Interest Survivor Benefit beneficiary. Check one. 1. I have a dependent military ID Card as the deceased IDT Soldier s dependent. 2. I am in the process of obtaining a dependent military ID Card as the deceased IDT Soldier s dependent. 3. I do not qualify as the deceased Soldier s dependent for a military ID Card and therefore, do not qualify for the insurable interest survivor benefit.. Since the Insurable Interest survivor benefit can only be paid to one beneficiary, if more than one person is qualified as the Soldier s Insurable Interest survivor benefit beneficiary, they must complete a statement concurring with my receiving the Insurable Interest survivor benefit. The other Insurable Interest beneficiary have have not completed the required statement to decline the survivor benefit. Beneficiary s Signature DATE Printed Name CAO/RSO or Notary Signature DATE Printed Name *************************************************** ********************************************************** 22

23 IDT DEATH INSURABLE INTEREST CONCURRENCE STATEMENT (For Use by the Non-Beneficiary Dependent When more than one Dependent Qualifies as the Insurable Interest Beneficiary of an IDT Death) I,, authorized military dependent of (Dependent s Name), concur with the requested Survivor Benefit (Soldier's Name) Plan (SURVIVOR BENEFIT) election naming as the "natural person with Insurable Interest" beneficiary. I understand that this annuity, by law, can only be received by one dependent that otherwise is not eligible for survivor benefit other than as an Insurable Interest beneficiary. I have signed this statement of my own free will. Beneficiary s Signature DATE Printed Name CAO/RSO s or Notary Signature DATE Printed Name 23

24 IDT DEATH CHILD ONLY SPOUSE EXCLUDED FORMAT To: Cc: Subject: IDT Death Child Only Spouse Excluded Request (Rank/Name) (Soldier s rank, full name, SSN) who died on (date of death) has a spouse and child eligible for survivor benefit. The spouse, after counseling by a DA certified survivor benefit counselor in this office, signed a statement requesting a Child Only, Spouse Excluded survivor benefit election. The following data is provided in support of this survivor benefit election: Spouse Information. Name: Date of Marriage: (day, month, year) Date of Birth: (day, month, year) Child Information. (Complete for each eligible child) Name: Relationship to Soldier: Relationship to Spouse: Date of Birth: (day, month, year) Disabled: Estimated SURVIVOR BENEFIT Annuity: (Required) Remarks: This section is reserved for you to provide us with additional information. For example: children from a previous marriage or outside of the household; children residing at a different location and if the RSO in that AOR has been notified; stepchildren not in a parent/child relationship; if you were contacted by an outside agency on this particular case; electing survivor benefit for children who are older; or electing for children when there is a significant amount of survivor benefit that exceeds the spouse DIC. Also is there an incapacitated child who the spouse wants to elect the survivor benefit for the child be paid to an existing special needs trust for the child. 24

25 IDT DEATH INSURABLE INTEREST FORMAT To: Cc: Subject: IDT Death Deemed Insurable Interest (Rank/Name) (Soldier s rank, full name, SSN) who died on (date of death) was not married, had no eligible children or a former spouse with court ordered survivor benefit. XXXXX dependent(s), not otherwise eligible for survivor benefit under the IDT death survivor benefit law, were identified as eligible for a deemed insurable interest election. Dependent Information. Name: Relationship: Dependency Documentation: Date of Birth: (day, month, year) The following dependent(s) also meet qualification for Soldier s insurable interest: Dependent Information. Name: Relationship: Dependency Documentation: Date of Birth: (day, month, year) (Did/Did Not) sign statement concurring with deeming the above named individual as the Soldier s sole Insurable interest survivor benefit beneficiary. Estimated survivor benefit Annuity: (Required) Remarks: (State any information pertinent to adjudication of case) 25

26 COMPUTATION OF HIGH-36 MONTH AVERAGE FOR RESERVE COMPONENT SOLDIERS WHO DIE ON IDT IN THE LINE OF DUTY a. The 2005 National Defense Authorization Act (Public Law ) changed the computation of the high-36 month calculation to determine retired pay for reservist with a DIEMS on or after 8 September 1980 who die or retire for disability while on active duty. This change applies to reservists who: (1) While serving on active duty, become entitled to disability retired pay with an effective date on or after October 28, 2004, under 1201 and 1202 of Title 10, United States Code. (2) Die while serving on active duty on or after September 10, 2001 or die on IAD in the line of duty on or after 28 December 2016, for purposes of determining survivor benefit annuities. b. Under Public law , you compute the high-three average to determine retired pay for reservists on active duty retired for disability and the retired pay to calculate the survivor benefit annuity for reservists who die on active duty as follows: (1) For reservists with 36 or more months of service, calculate the high-36 as if the reservist had been entitled to active duty basic pay for the 36-months preceding their retirement or death, regardless of whether the member served the entire period on active duty. Generally, but not always, this will be the 36 months immediately prior. (2) For reservists with less than 36 months of service, calculate the high-36 based on the active basic pay for the actual number of months of service regardless of whether the member served the entire period on active duty. Divide by the actual number of months and any fractions of a month the reservist served before being retired or dying on active duty. c. The change in the calculation of the High-36 month average for reservists who die or are retired for disability while serving on active duty results in significantly higher retirement or annuity benefits for the affected reservists or their survivors. Previously the most recent 36 months of active duty service, without regard to the grade or date of the service, was used to calculate the high-36 month average for reservists who died on active duty or were retired for disability. 26

27 DOD Guidance 27

28 Army Guidance 28

29 Information Paper DAPE-MPL-RS 13 February 2017 SUBJECT: Analysis of Department of Defense (DOD) Guidance on Enabling Payment of Survivor Benefit Plan (SBP) Annuities to a Special Needs Trust (SNT) 1. Purpose. To provide Retirement Services Officers information and analysis of the DOD implementation guidance on SBP or RCSBP payments to a SNT for a disableddependent child. 2. References. a. Public Law , Section 624, Dated 19 Dec 14. b. United States Code (USC), Title 10, Chapter 73, Section 1447(11)(A)(ii)(III). c. USC, Title 42, Section 1382c(a)(3). d. DOD Policy and Implementation Guidance, Dated 31 December 2015, Subject: Enabling Payment of Survivor Benefit Plan (SBP) Annuities to a Special Needs Trust (SNT), (Enclosure 1). 3. Definition of Term. For this paper, the term disabled dependent child for payment of SBP or RCSBP to a SNT refers to a child who meets the definition of both United States Code (USC), Title 10, Chapter 73, Section 1447(11)(A)(ii)(III) (unmarried child incapable of self-support because of a mental or physical incapacity existing from an age the child would otherwise have been eligible for SBP or RCSBP) and the definition of disabled child under USC, Title 42, Section 1382c(a)(3) (unable to engage in any substantial gainful activity by reason of any medially determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a period of twelve months). 4. Analysis. a. Public Law amended Title 10 to allow a military Retiree who has elected SBP or RCSBP to direct the Defense Finance and Accounting Service (DFAS) pay the SBP or RCSBP annuity to a SNT that has been created for the benefit of a disableddependent child as an add on election to an existing child election. b. The SBP or RCSBP annuity is paid to children as unearned income for income tax purposes. The SBP or RCSBP annuity paid directly to disabled-dependent children may adversely affect other benefits the children receive due to their disability. When the disabled-dependent child s SBP or RCSBP annuity is paid to a SNT, the annuity does not count as income for the child to adversely affect the child s other disability related benefits. 29