Military Death Benefits: Status and Proposals

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RL32769

CRS Report for Congress

Prepared for Members and Committees of Congress

Military Death Benefits: Status and Proposals

Summary

Department of Defense (DOD) benefits for survivors of deceased members of the armed forces

vary significantly in purpose and structure. Benefits such as the death gratuity provide immediate

cash payments to assist these survivors in meeting their financial needs during the period

immediately following a member’s death. Similarly, the Servicemembers’ Group Life Insurance

(SGLI) provides the life insurance policy value in a lump sum payment following the

servicemember’s death. Other benefits such as the Veterans Affairs Dependency and Indemnity

Compensation (DIC) and the Survivor Benefit Plan (SBP), are designed to provide long-term

monthly income. Additional death benefits provided by the DOD for survivors and dependents

include housing assistance, health care, commissary and exchange benefits, educational

assistance, and burial, funeral, and related benefits. Survivors may also receive death benefits

from Social Security.

In response to P.L. 108-375, February 1, 2005, DOD presented proposed survivor benefit changes

during a Senate Armed Services Committee hearing. DOD recommended an increase in the death

gratuity benefit from its current amount of $12,420 to $100,000, limited to servicemembers killed

in an area or operation designated by the Secretary of Defense. In addition, the DOD also

recommended an increase in Servicemembers’ Group Life Insurance (SGLI) coverage from

$250,000 to $400,000, with the premiums for the additional $150,000 coverage paid for by the

government for servicemembers serving in areas or operations designated by the Secretary of

Defense. Military personnel not serving in such designated areas could receive the additional

coverage, but at their own expense through higher monthly premiums. As proposed by DOD,

both of these measures would be made retroactive to October 7, 2001, when U.S. military

operations began in Afghanistan. The President proposed these same increases as part of his

FY2005 Supplemental Appropriations request. The Death Benefits Enhancements (P.L. 109-13)

increased the Death Gratuity to $100,000 and the SGLI to $400,000 for those who die from

wounds, injuries or illness that are combat or combat-training related. P.L. 109-80 and P.L. 109163 made these benefits permanent for nearly all active duty deaths.

This report describes the various death benefits from the Department of Defense, Department of

Veterans Affairs (VA), and Social Security available to certain survivors of members of the

Armed Forces who die on active duty. (This report does not consider benefits available to civilian

employees of the Department of Defense.) Benefits are listed, along with their purpose, how they

are calculated, and where appropriate, recent changes. Finally, two hypothetical examples for

determining a level of death benefits and a Government Accountability Office (GAO) summary

comparing military and other death related benefits are presented in the Appendices. The report

will be updated as events warrant.

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Military Death Benefits: Status and Proposals

Contents

Introduction ................................................................................................................................1

Death Gratuity ............................................................................................................................2

Social Security Survivors’ Benefits .............................................................................................3

Servicemembers’ Group Life Insurance (SGLI) ...........................................................................4

VA Dependency and Indemnity Compensation (DIC) ..................................................................5

Military Survivor Benefit Plan ....................................................................................................6

Housing ......................................................................................................................................7

Health Care.................................................................................................................................8

Commissary and Exchange Benefits............................................................................................8

Child Care ..................................................................................................................................9

Survivors’ and Dependents’ Educational Assistance Program (DEA) ...........................................9

Burial, Funeral, and Related Benefits ........................................................................................ 10

Tables

Table A-1. Corporal’s (E-4) Death Benefits ............................................................................... 14

Table A-2. Lieutenant Colonel’s (O-5) Death Benefits ............................................................... 14

Appendixes

Appendix A. Two Hypothetical Examples for Determining a Level of Death Benefits ............... 13

Appendix B. Government Accountability Office (GAO) Summary on Military and

Civilian Death Benefits .......................................................................................................... 15

Contacts

Author Contact Information ...................................................................................................... 16

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Military Death Benefits: Status and Proposals

Introduction

Department of Defense (DOD) benefits for survivors of deceased members of the armed forces

vary significantly in purpose and structure. Benefits such as the death gratuity provide immediate

cash payments to assist these survivors in meeting their financial needs during the period

immediately following a member’s death. Similarly, the Servicemembers’ Group Life Insurance

(SGLI) provides the life insurance policy value in a lump sum payment following the

servicemembers’ death. Other benefits such as the Veterans Affairs Dependency and Indemnity

Compensation (DIC) and the Survivor Benefit Plan (SBP), are designed to provide long-term

monthly income. Survivors may also receive death benefits from Social Security.

As a part of the FY2005 National Defense Authorization Act, Congress directed the

Administration to assess and recommend enhanced benefits for deceased members of the armed

forces. (See Appendix C for a discussion of that legislation.) In response, on February 1, 2005,

DOD presented proposed changes to the Senate Armed Services Committee. Specifically, DOD

proposed to increase death benefit payments by nearly $250,000 to families of U.S.

servicemembers killed in designated combat zones. This proposed increase would have

effectively doubled the cash that survivors can receive in immediate government payments and

life insurance proceeds to $500,000. Defense officials also requested that these benefits be made

retroactive to October 2001 for relatives of U.S. troops killed in Iraq and Afghanistan. It has been

reported that DOD had estimated that its plan would cost about $280 million in retroactive

payments alone. 1 The President proposed these same increases as part of his FY2005

Supplemental Appropriations request. 2 The Death Benefits Enhancements3 increased the Death

Gratuity to $100,000 and the SGLI to $400,000 for those who die from wounds, injuries or illness

that are combat or combat-training related. Public Law 109-163, January 6, 2006, made these

changes permanent for nearly all active duty deaths, retroactive to October 7, 2001. P.L. 109-80

(September 30, 2005) and P.L. 109-163 (January 6, 2006) made these benefits permanent for

nearly all active duty deaths. In addition, P.L. 110-1184 increased the benefits for survivors of

retired or retirement-eligible service members by providing a monthly allowance of $50 in 2009

and increasing by $10 each year after that until 2013.

Listed below is a description of the various death benefits from the Department of Defense,

Department of Veterans Affairs (VA), and Social Security available to certain survivors of

members of the Armed Forces who die on active duty. The following describes each benefit’s

specific purpose, as well as current policy regarding the level of benefits available to survivors. It

should be noted that some benefits, such as the SBP and the VA Dependency and Indemnity

Compensation (DIC), may offset one another (i.e., whenever a surviving spouse of an SBP

participant is also entitled to DIC, the spouse’s monthly SBP annuity is reduced by the amount of

the DIC payment). Thus, calculating the level of some benefits usually involves a number of

variables which can make each case different from another.

Graham, Bradley, “Military Chiefs Criticize Curbs In Plan to Raise Death Benefits,” Washington Post, February 2,

2005: 20.

U.S. President, George W. Bush, FY2005 Supplemental Appropriations Request, February 14, 2005.

P.L. 109-13, May 11, 2005.

Sec. 644, January 22, 2008.

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Death Gratuity5

Purpose: “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, if any, become available.”6

In Fiscal Year (FY) 2004, a tax-free, lump sum of $12,420 was paid by DOD in the event of a

death while the member was serving on active duty (including certain members of the reserve

components during training). It was paid to one of various “eligible survivors” as described in

law. 7 The designated survivor of virtually all deceased DOD military personnel receives this

gratuity immediately. In FY2004, the death gratuity statute was amended to provide that the

gratuity be adjusted upward by the same amount as any increase in military base pay.8 As part of

what was formally called the Death Benefits Enhancement,9 the Death Gratuity was increased to

$100,000 in a case of death resulting from wounds, injuries or illnesses that occur in a combat

zone (as designated by the Secretary of Defense) or in combat-related activities (including

training, hazardous conditions or situations involving an instrumentality of war). This increase

was made retroactive for deaths that occurred on or after October 7, 2001. These additional

payments were scheduled to terminate on September 30, 2005. Public Law 109-7710 provided that

the provisions of, and amendments made with regard the Death Gratuity by Public Law 109-13

shall continue in effect through the earlier of: (1) the date specified in section 106(3) [November

18, 2005] of this joint resolution; or (2) with respect to any such section of Public Law 109-13,

the date of the enactment into law of legislation that supersedes the provisions of, or the

amendments made by, that section.

On January 6, 2006, the National Defense Authorization Act for Fiscal Year 200611 permanently

increased the Death Gratuity in all cases for servicemembers who die on active duty. This

increase was made retroactive to October 7, 2001.

Under law, the beneficiary(ies) are designated in order of eligibility with the surviving spouse

first, followed by the children, etc. If so designated by a service member, others can receive this

benefit including parents or siblings. Recently, it was reported that a service member, a single

parent, died while on active duty and that her financially struggling parents who had custody of

the surviving child were unable to access this benefit. P.L. 110-28 (May 25, 2007) contained

language that allows a covered service member to designate up to 50 percent of the death gratuity

(in 10% increments) to a person other than the recipient under law. This authority ended

September 30, 2007.

10 U.S.C. §§ 1475-1480; P.L. 108-13; Stat. 1520; section 646; November 24, 2003.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 621.

10 U.S.C. § 1477.

P.L. 108-375; sec. 643; October 8, 2004: 708-709.

P.L. 109-13; sec. 1013; May 11, 2005.

P.L. 109-77; sec. 115; September 27, 2005.

P.L. 109-163; sec. 664; January 6, 2006.

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On January 22, 2008, the National Defense Authorization Act for Fiscal Year 200812 modified the

law by striking the existing list of beneficiaries and replacing it with a new list by the order of

eligible beneficiaries (subject to certain qualifications): 1) any individual designated in writing, 2)

the surviving spouse, 3) children, 4) parents, 5) an executor or administrator of the estate, and, 6)

other next of kin. The Senate also included report language addressing the need for predeployment counseling on survivor benefits and directing the Secretary of Defense to review such

counseling. Further, this provision is effective no later than July 1, 2008; requires the notification

of the spouse if an election were made under this authority that would exclude a current spouse

from any portion of the death gratuity benefit; provides for partial designations in 10 percent

increments; and provides that death gratuity elections made before the enactment of P.L. 110-28,

would remain lawful and effectual.

Social Security Survivors’ Benefits

Purpose: “To require employees and employers—in the present case, members of the

uniform services and the Federal Government, respectively—to jointly finance a Federal

Old-Age, Survivors, Disability, and Health Insurance (OASDHI) program in order to provide

pre- and post-retirement income and security to covered employees and their families.”13

Active duty military personnel have been fully covered by Social Security and have paid Social

Security taxes since January 1, 1957. In addition to providing monthly benefits to civilian retirees

and retired military personnel, the social security program provides benefits to the widows and

widowers of deceased military and civilian retirees. Social Security survivor benefits are based on

a spouse’s (or former spouse’s) employment, including military service, and are first payable at

age 60; at age 50, if the surviving spouse is totally disabled; or, at any age if and as long as there

are children under the age of 16.

In 2007, the average monthly Social Security benefit for a surviving parent of a minor was $742.

The average benefit for a child of a deceased parent was $691. This monthly benefit is payable to

a surviving dependent unmarried child who is either: (1) under age 18, (2) a full time elementary

or secondary school student under age 19, or (3) a disabled person age 18 or older whose

disability began before the age of 22.14 A surviving widow with one child therefore would receive

an average monthly benefit of $1,433. Existing rules limit the maximum family benefit, so it

would not necessarily increase by $691 for each additional child.

P.L. 110-181; sec 6, January 22, 2008.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 671.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 679-680.

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Servicemembers’ Group Life Insurance (SGLI)15

Purpose: “To make life insurance protection available to members of the uniformed services

at a reasonable cost.”16

All members of the uniformed services are automatically insured for the maximum coverage

under Servicemembers’ Group Life Insurance. The maximum coverage was $250,000, which

was/is paid in a lump sum. The cost of this coverage is $0.65 per $10,000 of coverage per

month. 17 Service members can decline coverage entirely or opt for less than the maximum

coverage. According to the Office of the Deputy Under Secretary of Defense (Military

Personnel Policy), as of November 2004, only 8.4% of active duty servicemen declined full

coverage of SGLI.18

As noted above in the “Death Gratuity” section, the SGLI was increased up to $400,000 at no

additional cost for those who die from wounds, injuries, or illnesses that occur in a combat zone

(as designated by the Secretary of Defense) or in combat-related activities (including training,

hazardous conditions or situations involving an instrumentality of war). This increase was made

retroactive for deaths that occurred on or after October 7, 2001, and would terminate on

September 30, 2005. Further, a member with a spouse may not elect less than the maximum

coverage without the written consent of the member’s spouse. An unmarried member who opts

for less than the maximum coverage, will have their designated next of kin or designated

beneficiary notified. Again, as noted above, language was included in the FY2006 Defense

Appropriations Act to fund this increase for FY2006. Thus, the increase in SGLI would likely

continue at least for the next fiscal year. P.L. 109-13 also changed the coverage increments that

may be provided from $10,000 to $50,000.

On July 26, 2005, the House passed H.R. 3200. Among its provisions, this bill repeals the

language in P.L. 109-13 regarding SGLI and in its place makes permanent (effective September 1,

2005) the increase in this benefit from $250,000 to $400,000. In addition, H.R. 3200, repeals the

‘spousal consent’ language regarding those who opt for less than the maximum coverage under

SGLI and instead requires ‘spousal notification.’ Notification of designated next-of-kin or other

designated beneficiaries would continue for unmarried servicemembers. H.R. 3200 requires the

Secretary to make a good faith effort to provide notification, but a lack of notification does not

invalidate the servicemember’s decision. Finally, H.R. 3200 would make permanent the change in

increments of SGLI coverage from $10,000 to $50,000.

P.L. 109-163 sought to make the increase to $400,000 in SGLI permanent for all military active

duty deaths. However, as noted above, H.R. 3200 made the increase permanent effective

September 1, 2005. However, as constructed and considering the varying “effective” dates of the

above laws, the SGLI increase is made permanent and retroactive to October 7, 2001, except for

those non-qualifying (e.g., not related to OEF, OIF) deaths that occurred between May 11, 2005

38 U.S.C. §§ 1965 et seq.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 615.

For more information see the website, online at http://www.insurance.va.gov/SgliSite/SGLI/sgliPremiums.htm.

Tom Tower, Directorate of Compensation, Office of the Deputy Under Secretary of Defense (Military Personnel

Policy), [redacted], February 2, 2005.

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and September 1, 2005. Discussions with both DOD and congressional staff seem to indicate that

this may have been an oversight that could be the subject of reconsideration.

In addition, P.L. 109-163 also contained a provision (sec. 613) that requires the Secretary of

Defense, in the case of a member participating in SGLI and who is serving in OEF or OIF, to pay

an allowance equivalent to the monthly amount deducted from the member’s pay for the first

$150,000 of SGLI (or a lesser amount if the servicemember opted to participate at a reduced

level, for example). Further, this language gave the Secretary of Defense permissive authority to

cover up to an additional $250,000 in SGLI coverage for those who have SGLI coverage and are

participating in OEF or OIF.

The National Defense Authorization Act for Fiscal Year 2007 expanded on the FY2006 provision

by requiring the services to fund up to $400,000 of SGLI coverage for all service members

serving in OEF or OIF.19 SGLI coverage is available in $50,000 increments up to $400,000 with

premiums of $0.07 per $1,000 coverage.

VA Dependency and Indemnity

Compensation (DIC)

Purpose: “To authorize a payment to the surviving dependents of a deceased military

member partially in order to replace family income lost due to the member’s death and

partially to serve as reparation for the death.”20

VA Dependency and Indemnity Compensation benefits are integrated with the military Survivor

Benefit Plan or SBP (see below). In other words, payment received via DIC brings about a

dollar-for-dollar reduction in SBP benefits. DIC benefits can also be terminated as a result of

remarriage by the surviving spouse. The DIC benefit is $1,091 per month for the surviving spouse

and a children’s payment of $271 per month for each child (plus if there are children under the

age 18 the surviving spouse receives an additional $250 per month for two years) as of January 1,

2006 for the survivors of members who died on or after January 1, 1993.21 Add $233 if the

veteran at the time of death was entitled to disability compensation rated as total disability

(including a rating based on unemployability) for the eight years immediately preceding the death

and if the veteran was married to the same spouse for the same eight years. Additional benefits

may be provided to a spouse if the spouse is housebound, has dependents under age 18, or

between the ages of 18 and 23 and attending school, or the dependent became permanently

incapable of self-support before the age of 18 due to a mental or physical disability.22 Surviving

parents in some cases may also be eligible for DIC benefits, depending on the parents’ income

and marital status.23

P.L. 109-364, October 17, 2006, sec. 606.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 627.

Prepared Statement of the Honorable David, S.C. Chu, OUSD(P&R), Before the Senate Armed Services Committee,

February 1, 2005.

For additional information, see http://www.vba.va.gov/bln/21/Milsvc/Docs/Diceg.doc.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 636.

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Military Survivor Benefit Plan24

Purpose: “To establish a program to insure that the surviving dependents of military

personnel who die...will continue to have a reasonable level of income.”25

As originally created, the military Survivor Benefit Plan (SBP) was designed to provide an

annuity to the survivors of retirement-eligible military personnel. However, recent legislation26

has expanded the coverage to the survivors of individuals who die while on active duty, effective

September 10, 2001. Under these provisions, the surviving spouses of active duty personnel who

die are provided an annuity. This annuity for an active duty (non-retirement-eligible) member is

determined by assuming the individual would have been eligible to retire with a total (100%)

disability at the time of death (under sec. 1201, title 10 USC).27 The surviving spouse’s annuity is

based on the amount of disability retired pay the servicemember would have received. Currently,

the spouse’s share is 55% of the member’s disability retired pay if the surviving spouse is under

age 62, and 40% if age 62 or over. As a result of language included in the FY2005 National

Defense Authorization Act, this reduction in benefits for those survivors age 62 and over is

scheduled to be phased out by April 1, 2008.28 Depending on when the individual entered the

service, the computation base may be either the terminal monthly base pay (for those who entered

service on or before September 7, 1980) or the average of the 36 months (or “high three” years)

during which the member earned the highest rate of base pay (for those who entered the service

after September 7, 1980). The amount of monthly disability pay is computed either by

multiplying the determined amount of base pay by the percentage disability, or by computing

2.5% of base pay times the member’s years of service, whichever is higher. However, this amount

cannot exceed 75% base pay. Because the legislation assumes the level of disability is total

(100%), the amount of base pay (or “high three”) used would be multiplied by 75%.

For an active duty member who is eligible to retire, the SBP benefit is computed to be 55% of the

retired pay they would have been eligible to receive had they retired at the time of their death.

When a survivor is also eligible to receive both SBP and DIC (see above), they do not receive the

full amount of both benefits. Rather, the SBP benefit is offset or reduced on a dollar-for-dollar

basis by any DIC benefits received. If the DIC benefit is larger than the SBP benefit, then the

survivor receives only the DIC benefit. If, however, the SBP benefit is larger than the DIC

benefit, the survivor receives the full DIC benefit and any SBP benefits less an amount equivalent

to the DIC benefit. As a result of legislation enacted in 2003,29surviving spouses of active duty

personnel are allowed to designate their children, if any, as the recipient of the SBP benefit in

order to avoid this offset. This change was effective November 23, 2003. (Children remain

eligible to receive SBP until they reach age 18 or 22; or for life if mentally or physically

incapacitated and if the incapacitating condition existed prior to age 18. Eligibility terminates if

10 U.S.C. §§ 1447 et seq.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 683.

P.L. 107-107; 115 Stat. 1151-1152, December 28, 2004.

Under these provisions, the member’s disability may not be the result of intentional neglect or misconduct.

P.L. 108-375; 118 Stat. 1811; October 28, 2004.

P.L. 108-136, November 24, 2003.

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the child marries.) The National Defense Authorization Act for Fiscal Year 200730 changed the

effective date of designating children as the SBP beneficiaries for active duty survivors to

October 7, 2001. Any benefits as a result of this change is payable for months after the enactment

of this language. A surviving spouse who remarries prior to age 55 loses SBP eligibility.31

Language was included in the Senate version of the National Defense Authorization Act for Fiscal

Years 2006 and 2007 to repeal this SBP/DIC offset. This language was dropped by the

Conference Committee each time. 32 Again, language was included in the Senate version of the

National Defense Authorization Act for Fiscal Year 2008 to repeal this SBP/DIC offset. This

language, too, was dropped by the Conference Committee and in its place language was enacted

that provided a survivor indemnity allowance to survivors of service members who were entitled

to retired pay, or would be entitled to reserve component retired pay but for the fact they were not

yet 60 years of age. Beginning in FY2009, the monthly allowance of $50 would be increased by

$10 each year through FY2013.

Housing33

Purpose: “To provide a cash allowance to military personnel not provided with government

quarters adequate for themselves and their dependents to enable such personnel to obtain

civilian housing as a substitute.”34

Previously, family members of a military member who dies in the line of duty were allowed 180

days’ free occupancy of Government quarters or 180 days of Basic Allowance for Housing

(BAH) if they live in civilian housing.35 P.L. 109-13 (sec. 1022) extended these housing benefits

to 365 days. BAH varies in accordance with whether military personnel have dependents or are

single. It is based on annual surveys of housing costs in several hundred metropolitan areas

around the United States. P.L. 109-163 ( sec. 611) codified this enhanced benefit.

The surviving spouse and dependent children receive an additional benefit entitling them to

“...move one time at Government expense. Household goods will not be moved a greater distance

than the personal travel. One motor vehicle can be shipped at Government expense.”36

P.L. 109-163 also increased the period of time allowed for a surviving family of servicemembers

who die on active duty to select a residence for which they may receive travel and transportation

allowances from one year to three years after the death of the member.

P.L. 109-364, October 17, 2006, sec. 644.

For more information on the SBP, see CRS Report RL31664, The Military Survivor Benefit Plan: A Description of

Its Provisions, by (name redacted).

U.S. Congress, Conference Committee, National Defense Authorization Act for Fiscal Year 2006, H.R. 1815, Rept.

109-360, 109th Congress, 1st Sess., December 18, 2005: 738, and, U.S. Congress, Conference Committee, National

Defense Authorization Act for Fiscal Year 2007, H.R. 5122, Rept. 109-702, 109th Congress, 2nd Sess., September 29,

2006: 755.

2003 Uniformed Services Almanac, 43rd Edition: 183; 37 U.S.C. § 403 (l).

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 81.

2003 Uniformed Services Almanac, 43rd Edition: 183.

Statement by General Richard A. Cody, Vice Chief of Staff United States Army, before the Senate Armed Services

Committee, February 1, 2005.

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Health Care37

Purpose: “To make medical care available to members of the uniformed services and their

dependents in order to help ensure availability of physically acceptable and experienced

personnel in time of national emergency; to provide incentives for armed forces personnel in

time of national emergency; to provide incentives for armed forces personnel to undertake

military service and remain in that service for a full career, and to provide military

physicians and dentists exposure to the total spectrum of demographically diverse morbidity

necessary to support professional training programs and ensure professional satisfaction for a

medical service career.”38

Unremarried surviving spouses and minor children of deceased military personnel remain eligible

to receive military health care benefits subject to certain limitations. As the DOD website on

military health care benefits, known as TRICARE, states, “[s]urviving family members of

deceased active duty servicemembers remain eligible for TRICARE benefits at the active duty

dependent rates for a three-year period. At the end of the three-year period, TRICARE eligibility

continues, but at the retiree dependent rates.”39 Surviving spouses remain eligible for TRICARE

benefits throughout their lifetime if they do not remarry. Surviving unmarried dependents

remain eligible for TRICARE benefits until the age of 21, or until the age of 23 if they are a fulltime student. Eligibility for TRICARE may also be extended for a dependent if the child is

incapable of self-support because of a mental or physical disability and the condition existed prior

to age 21.40

P.L. 109-163 contained two provisions concerning military survivors. First, sec. 713 would

expand eligibility for survivor benefits under the TRICARE dental plan to include the active duty

spouse of a member who dies on active duty and had served for a period of more than 30 days.

Second, sec. 715 authorized any surviving dependent child of a deceased member to continue to

receive benefits under TRICARE Prime as if the servicemember parent were still alive, and

without annual premiums, until age 21 or 23 if enrolled in an educational program.

Commissary and Exchange Benefits41

Purpose: “To provide quality merchandise and necessary services to authorized patrons at

moderate prices and to generate reasonable earnings to supplement appropriated funds for

the support of Department of Defense morale, welfare, and recreation (MWR) programs.”42

Under regulations, a surviving spouse of a member who dies while on active duty remains

eligible to use commissary (military supermarkets) and exchange (military department stores)

10 U.S.C. §§ 1072 et seq.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 661.

See http://www.tricare.osd.mil for more information. See also CRS Report RL33537, Military Medical Care:

Questions and Answers, by (name redacted).

See http://www.tricare.osd.mil/Factsheets/viewfactsheet.cfm?id=174 for more information.

10 U.S.C. §§ 1061 et seq.

U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation Background Papers, 5th ed.,

September 1996: 703.

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stores until the spouse remarries. Unmarried dependent children retain commissary and exchange

store privileges until the age of 21, or until the age of 23 if they are a full-time student. Eligibility

for commissary and exchange stores may be extended for a dependent if the child is incapable of

self-support because of a mental or physical disability and the condition existed prior to age 21.43

Child Care44

Purpose: “Quality child and youth programs are vital to Service families. Child care is a

workforce issue which impacts the effectiveness and readiness of the force.”

Children of a military member who dies in the line of duty are allowed to continue utilizing

military child development facilities. Installation commanders review each case and support, to

the maximum extent possible, continued attendance at child development centers.

Survivors’ and Dependents’ Educational Assistance

Program (DEA)45

Purpose: “...providing opportunities for education to children whose education would

otherwise be impeded or interrupted by reason of the disability or death of a parent from a

disease or injury incurred or aggravated in the Armed Forces...the educational program

extended to the surviving spouses of veterans who died of service-connected disabilities and

to spouses of veterans with a service-connected total disability permanent in nature is for the

purpose of assisting them in preparing to support themselves and their families at a standard

of living level which the veteran, but for the veteran’s death or service disability, could have

expected to provide for the veteran’s family.”46

Dependents’ Educational Assistance (DEA) provides education and training opportunities to

eligible dependents of certain veterans, including the surviving spouse and children of a

servicemember who died of a service-connected disability (the disability must have arisen from

active service in the Armed Forces). This VA program offers monthly benefits for a maximum of

45 months to pay for education benefits.47 These benefits may be used for degree and certificate

programs, apprenticeship, and on-the-job training, as well as correspondence courses for

surviving spouses. Remedial, deficiency, and refresher courses may be approved under certain

circumstances. The surviving spouse’s eligibility to receive these benefits ends 20 years from the

date the VA finds them eligible.48 In addition, a surviving spouse’s eligibility for this benefit ends

if she/he is remarried before the age of 57. However, the termination of a surviving spouse’s

remarriage, either by death or divorce, will reinstate DEA benefits to the surviving spouse. 49

DOD 1330.17-R, Armed Services Commissary Regulations (ASCR), April 1987 and DOD Instruction 1330.21,

Armed Services Exchange Regulations.

Witte, Janice, Director of the Office of Children and Youth, DUSD(MPP), [redacted].

See http://www.gibill.va.gov/education/pamphlets/CH35/CH35_Pamphlet.htm for more information.

38 U.S.C. §§ 3500 et seq.

Christenson, Sig, “GIs’ Families Not Left Destitute,” San Antonio Express-News, February 3, 2005.

38 U.S.C. § 3512(b)(1)(C) as amended by P.L. 108-452.

Statement of Epley, Robert J., Associate Deputy Under Secretary for Policy and Program Management, Veterans

Benefits Administration, Department of Veterans Affairs before the Senate Committee on Armed Services, February 1,

(continued...)

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Military Death Benefits: Status and Proposals

Dependent children of the veteran may receive the benefits of attending school or job training

between the ages of 18 and 26. In certain instances, it is possible to begin receiving the benefit

before they reach the age of 18 and to continue receiving it after the age of 26. Also, marriage is

not a bar to this benefit for children of the deceased or disabled veteran.50

In addition to DEA, the “VA will also pay a special Montgomery GI Bill death benefit to a

designated survivor in the event of a service-connected death of an individual while on active

duty or within one year after discharge or release. The deceased must either have been entitled to

educational assistance under the Montgomery GI Bill program or a participant in the program

who would have been so entitled but for the high school diploma or length of service

requirement. The amount paid will be equal to the participant’s actual military pay reduction, less

any education benefits paid.”51

Burial, Funeral, and Related Benefits52

Under law, the responsibilities of the Federal Government are the following:53

[T]he Secretary [of the military department] concerned may provide for the recovery,

care and disposition of the remains of personnel who die while on active duty including

the following:

1. Recovery and identification of the remains.

2. Notification of the next of kin or other appropriate person.

3. Preparation of the remains for burial, including cremation if requested by the person

designated to direct the disposition of the remains.

4. Furnishing of a uniform or other clothing.

5. Furnishing of a casket or urn, or both, with outside box.

6. Hearse service.

7. Funeral director’s services.

8. Transportation of the remains, and round trip transportation and prescribed allowances for

an escort ..., to the place selected by the person designated to direct disposition of the

remains or, if such a selection is not made, to a national or other cemetery which is selected

by the Secretary and in which burial of the decedent is authorized. [Changes made in the

National Defense Authorization Act for Fiscal Year 200754 affect the transportation of

(...continued)

2005.

See http://www.gibill.va.gov/education/pamphlets/CH35/CH35_Pamphlet.htm for more information.

Federal Benefits for Veterans and Dependents, Department of Veteran Affairs, 2004 edition, p. 56.

For additional information, see CRS Report RS21545, Military Funeral Honors and Military Cemeteries: Frequently

Asked Questions, by Mari-Jana “M-J” Oboroceanu.

10 U.S.C. § 1481 et seq.

P.L. 109-364, October 17, 2006, sec. 562.

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Military Death Benefits: Status and Proposals

remains of service members who die in a combat theater of operations and who are

transported by air to Dover Air Force Base, Delaware. Unless directed otherwise, when the

remains are transported by air, the remains shall be transported by a military or militarycontracted aircraft and the transportation of said remains shall be the primary mission of that

aircraft. This language also included provisions for an Honor Guard, in addition to the escort

mentioned above, to travel with the remains or to meet the remains at the place to which the

transfer is made.]

9. Interment of the remains.

10. Presentation of a flag of the United States to the person designated to direct disposition

of the remains, except in the case of a military prisoner who dies while in custody of the

Secretary and while under a sentence that includes a discharge.

11. Presentation of a flag of equal size to the flag presented under paragraph 10 (above) to

the parents or parent, if the person to be presented a flag under paragraph 10 is other than the

parent of the decedent.

When a servicemember dies, the Service’s Casualty Assistance Office (CAO) sends personnel to

notify the next-of-kin of the loss. This representative then works with the family following

notification of the loss, through funeral preparations, burial and the entire process of determining

benefits and compensation. They provide counseling, arranging for the military funeral (if

desired), serving as an official representative if/when problems arise, and ensuring that the

families receive the benefits and compensation due to them. 55 Families have access to their CAO

representative during the days, weeks, months and years after the servicemember’s death.56

Further, if an individual pays any expense payable by the United States the Secretary is

authorized to reimburse the individual or her/his representative. The payment of these expenses is

limited to amounts not larger than what would have normally been incurred by the Secretary in

furnishing the supply or service concerned.

Although not a “death benefit” per se, special rules apply to those whose remains can not be

recovered, as well as situations in which commingled remains cannot be identified. In

these circumstances, burial of the remains in a common grave at a national cemetery may be

considered necessary.

Military honors are provided at the time of burial. Headstones and markers are also provided.

Those who die on active duty may be buried at Arlington National Cemetery. In addition, the

member’s spouse and dependent children may also be buried at Arlington subject to limitations.57

Provisions for burial in other national cemeteries or in state veterans cemeteries vary.

Prepared Statement of the Honorable David S.C. Chu, OUSD(P&R), Before the Senate Armed Services Committee,

February 1, 2005.

Statement by General Richard A. Cody, Vice Chief of Staff United States Army, before the Senate Armed Services

Committee, February 1, 2005.

The surviving spouse, minor child, or permanently dependent child of any person already buried in Arlington

National Cemetery may also be buried there. In addition, a widow or widower of the following may be buried in

Arlington National Cemetery: a member of the Armed Forces who was lost or buried at sea or officially determined to

be missing in action; a member of the Armed Forces who is interred at a U.S. military cemetery overseas that is

maintained by the American Battle Monuments Commission; a member of the Armed Forces who is interred at

Arlington National Cemetery as part of a group burial. For more information on burial limitations in Arlington National

Cemetery, see 2004 Uniformed Services Almanac, 44th ed.: 179-180.

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P.L. 109-163 (sec. 564) directed the Defense Department to implement revisions to DOD

Instruction 1300.18 requiring that military members designate, in writing, a person authorized to

direct disposition of their remains. The Secretary of Defense was required to report on actions to

implement this policy by September 1, 2006.

Finally, P.L. 109-163 (sec. 662) modified titles 10 and 38, of the United States Code, to expand

the prohibition against the interment of anyone in a national cemetery, as well as the use of

military honors, for anyone convicted of a capital offense (as defined), or when the circumstances

involved would bring discredit upon the person’s service or former service. (This language

expands upon a law Congress passed in 1997. That law barred those convicted of capital crimes

from being buried in a national cemetery. The 1997 law was ostensibly passed to prevent the

possibility of Oklahoma City bomber Timothy McVeigh, a veteran, from being buried at

Arlington. McVeigh was put to death on June 11, 2001.)

Section 404 of P.L. 109-461 required the removal of Russell Wayne Wagner’s remains from the

columbarium at Arlington National Cemetery. Although an honorably discharged Vietnam

veteran, Wagner was convicted of killing an elderly Maryland couple in 1994. Wagner died in

2005 while serving two life terms. Because he was eligible for parole, he could have an

Arlington service. Following protests from the deceased couple’s son, language was included in

the Veterans Benefits, Health Care and Information Technology Act of 2006 requiring the

removal of Wagner’s remains. In December, 2006, Wagner’s remains were removed and returned

to his sister.58

P.L. 109-36459 made changes with regard to transportation of remains for those who die in a

combat theater of operations and whose remains are returned to the U.S. First, it requires a

uniformed escort at all times. Second, it requires that the transportation of remains from Dover

Air Force Base, DE, to a military airfield shall be by military or contracted aircraft whose

exclusive mission is the transportation of remains. In addition to the above escort, there shall be a

military escort either from Dover AFB, or at the receiving airfield. This escort, or honor guard

shall be of sufficient number to transfer the casket to a hearse for local transportation, and shall

attend the remains until delivery to the next-of-kin. This escort shall consist of active duty or

Ready Reserve members of the armed forces. This law established January 1, 2007, as the

effective date.

Bahramour, Tara, “Ashes Removed Under Law Disqualifying Felons,” The Washington Post, January 4, 2007: B2.

120 Stat. 2083; sec. 562; September 29, 2006.

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Military Death Benefits: Status and Proposals

Appendix A. Two Hypothetical Examples for

Determining a Level of Death Benefits

Determining the value of death benefits to survivors is highly dependent upon individual

circumstances. Such variables include increases in benefits resulting from annual cost of living

adjustments, possible changes in eligibility (such as remarriage), tax implications, etc. In

addition, such an assessment would need to take into consideration all benefits incurred as a result

of military service of the decedent. (As noted above, these would include social security benefits.)

Since Dependency and Indemnity Compensation are integrated with SBP, these benefits are

considered here. Social Security benefits have been excluded from these examples because the

primary focus of this report is to examine the death benefits provided by the Department of

Defense and the Department of Veteran Affairs. Any computation of death benefits based on a

hypothetical situation is unlikely to be representative of the “average” or “typical” benefits

received by the survivors of military personnel who die while on active duty. Indeed, the

value of many of the benefits, such as health care and commissary/exchange privileges, cannot

be quantified.

The following examples are, at best, rough estimates, and are intended for illustrative

purposes only.

The first example consists of a Marine Corps Corporal (E-4) who is killed while on active duty in

Iraq in January 2008. The Corporal has been in the service for four years. Given the above, the

Corporal’s spouse could receive a $100,000 death gratuity. Assuming the Corporal had

maintained full participation in the SGLI, the surviving spouse would also receive an additional

$400,000.

The basic DIC benefit for this Corporal’s spouse is $1091 per month (January 2008). The 2008

base pay of the Corporal is $2,047.80 per month. This is the figure used in determining the SBP

benefit, although the actual figure would be slightly less since it would be based on the average

36 months of base pay (high three). The disability pay of such an individual is 75% of base pay,

or $1,535 per month. Under SBP coverage, the surviving spouse would receive 55% of this

amount, or approximately, $844 per month. However, because there is a dollar-for-dollar offset

with DIC, the entire SBP is offset by DIC and the spouse receives only the monthly DIC benefit

of $1091. Nevertheless, the spouse remains eligible to receive SBP as long as he/she does not

remarry prior to reaching the age 55. Further, SBP benefits are subject to annual cost of living

increases. Assuming the surviving spouse is 30 years old at the time of the Corporal’s death,

assuming no cost of living adjustments, and assuming the spouse does not remarry and lives to

the age of 74 (528 months), it is possible to compute an approximate life time benefit from

SBP/DIC. Such an individual could expect to receive approximately $576,048 from SBP/DIC. If

the Death Gratuity and SGLI are added, the total is $1,076,048.

Congressional Research Service

Military Death Benefits: Status and Proposals

Table A-1. Corporal’s (E-4) Death Benefits

Death Gratuity

$100,000

SGLI

$400,000

DIC (monthly)

SBP (monthly)

Total

$1,091

$816 less $1,067

DIC offset

DIC only

$1,091

Note: Amounts are rounded to the nearest dollar.

The second example consists of an Air Force Lieutenant Colonel (O-5), with eighteen years of

service, who dies while on active duty. The basic DIC benefit for the Lieutenant Colonel’s spouse

is $1091 per month. As in the case above, the Lieutenant Colonel’s spouse would be eligible to

receive both the death gratuity ($100,000) and the full SGLI benefit ($400,000). The base pay of

this officer is $7,212.00 per month. Using the same assumptions as those in the above case, the

officer’s spouse can expect to receive approximately $2,974 per month (from SBP) until age 62.

If the spouse reaches age 62 before 2008, this monthly SBP amount may be reduced. After

2008, it will remain at 55%. For the purpose of this example, SBP will remain at the 55% level.

Finally, given the above assumptions, such an individual could expect to receive a lifetime

benefit of approximately $1,570,272 from SBP/DIC. With the Death Gratuity and SGLI, the

total is $2,070,272.

Table A-2. Lieutenant Colonel’s (O-5) Death Benefits

Death Gratuity

$100,000

SGLI

$400,000

DIC (monthly)

SBP (monthly)

Total

$1,091

$2,974 less $1,091

DIC offset

$1,783

DIC + SBP

$2,974

Note: Amounts are rounded to the nearest dollar.

Again, it must be emphasized that these examples are for broad illustrative purposes only and can

not incorporate the full range of variables that could apply in any specific instance. Indeed, the

amount received can be increased by including social security benefits. In addition, many

surviving spouses have designated their child(ren) as SBP beneficiary(ies), thus eliminating any

offset that occurs when the spouse receives DIC. Finally, it is not possible to incorporate the full

range of in-kind benefits such as health care, housing, etc., that may substantially increase the

actual value of these benefits.

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Military Death Benefits: Status and Proposals

Appendix B. Government Accountability

Office (GAO) Summary on Military and

Civilian Death Benefits

In July 2004, the Government Accountability Office (GAO) released a report comparing death

benefits of military and civilian government employees.60 The following is a verbatim

reproduction from the summary of that report “What GAO Found” (summary page):

The military provides survivor benefits that are comparable in type but not in amount to those

provided by 61 civilian government entities (federal government, 50 states and the District

of Columbia, and 9 cities with populations of at least 1 million) when employees die in the line

of duty.

•

Social Security payments, a death gratuity, burial expenses, and life insurance are

four types of lump sum survivor benefits provided by the military and at least

some government entities; the federal government and some states additionally

provide a lump sum payment through their retirement plans. Recurring payments

are also provided by Social Security to the survivors for deceased

servicemembers and most deceased government employees in 61 civilian

government entities GAO studied. Other types of payments are specific to the

military or civilian government entities. GAO identified two programs with

recurring payments for the military and two other types of programs for the

civilian government entities.

•

For the four hypothetical situations GAO used to examine the amount of cash

payments provided to survivors, survivors of deceased servicemembers almost

always obtain higher lump sums than do the survivors of deceased employees

from 61 civilian government entities. The amount of recurring payments to

deceased servicemembers’ survivors in three of the four situations exceeds

those provided by the federal government, typically exceeds those provided by

at least one-half of the states, but are typically less than those provided by onehalf the cities.

•

The military also provides more types of noncash survivor benefits than do

civilian government entities, with some benefits being comparable in type and

others differing among the entities.

The survivors of civilian government employees in some high-risk occupations may receive

supplemental benefits—a death gratuity, higher life insurance, higher benefits from the retirement

plan, or a combination of the three—beyond those that the entities provide to civilian government

employees in general. For example, survivors of federal, state, and city government law

enforcement officers and firefighters who die in the line of duty may be entitled to a lump sum

payment of more than $267,000 under the Public Safety Officers’ Benefits Act. Further, 34 states

and 5 cities provide survivors of employees in high-risk occupations with additional cash benefits

United States Government Accountability Office, Military Personnel, Survivor Benefits for Servicemembers and

Federal, State, and City Government Employees, GAO-04-814, July 2004, summary page. Highlights of the report may

be obtained at http://www.gao.gov.

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Military Death Benefits: Status and Proposals

that are not available to survivors of state and city employees in general. The addition of these

supplemental cash benefits to those provided to the survivors of deceased general government

employees can result in lump sum and recurring payments being generally higher for survivors of

government employees in high-risk occupations than for servicemembers’ survivors.

Author Contact Information

(name redacted)

Specialist in Military Manpower Policy

[redacted]@crs.loc.gov, 7-....

Congressional Research Service

(name redacted)

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