Two new laws were signed in October 2008 that benefit military personnel and veterans. The first is Public Law 110-389, the Veterans’ Benefits Improvement Act of 2008, which has a number of provisions to help veterans concerning disability claims, VA mortgages, educational benefits, and assistance for those severely disabled while serving after September 11th, 2001. The second, Public Law 110-438, the National Guard and Reservists Debt Relief Act, is intended to help National Guard and Reserve members who have been adversely impacted by strict bankruptcy rules.
The Veterans’ Benefits Improvement Act of 2008, PL 110-389, was signed by President Bush on October 10, 2008. It addresses a number of issues for recent veterans. Here are some of the things the law does:
• Compensation and Pension. Requires the VA to develop better (more case-specific) notices to claimants. Also, whenever there is an increase in benefits payable under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act, the VA must increase by the same percentage the amounts it pays as veterans' disability compensation, additional compensation for dependents, clothing allowance for certain disabled adult children, and dependency and indemnity compensation for surviving spouses and children.
• Housing. Provides a temporary increase (through December 31st, 2011) to the maximum VA loan guaranty amount (from 90% to 100%) for certain loans. Increases the maximum percentage of a veteran’s existing loan that the VA will refinance. Extends through FY2012 the VA’s ability to offer adjustable rate and hybrid adjustable rate mortgages, and allows the VA to provide residence assistance grants to active-duty personnel with a service-related disability.
• Labor and Employment. Allows extension beyond the normal 24-month limit for independent living services and assistance for severely-disabled veterans who served on active duty and were disabled after September 11th, 2001. Makes some changes to the Uniformed Service Employment & Reemployment Rights Act of 1994 (USERRA), regarding complaint processing and case reporting.
• Education. Doubles the time limit (to 20 years rather than 10) for the use of VA education benefits by the spouse of a member who dies or is permanently disabled as a result of a service-connected disability. Eliminates or shortens various paperwork requirements for veteran students.
• Insurance. Makes a stillborn child an insurable dependent under Servicemembers’ Group Life Insurance (SGLI) for veterans and their survivors and dependents. Allows full-time and family SGLI coverage for certain members of the Individual Ready Reserve (IRR). Allows the VA to set premiums for SGLI coverage for IRR spouses based on the spouse's age. Terminates a dependent's SGLI coverage 120 days after a member's separation or release from service (rather than 120 days after the member's SGLI coverage ends).
• Other. Allows the VA to suspend or terminate the collection of debts owed to the United States by individuals who die while serving on active duty, and to refund to the servicemember’s estate any debt previously paid under such circumstances. Extends eligibility for memorial headstones or markers to deceased remarried surviving spouses of veterans, whether or not the remarriage ended by death or divorce. Extends through 2012 the VA’s authorization to hire non-VA physicians to do veterans’ medical disability examinations.
To learn more about Public Law 110-389, click here.
The National Guard and Reservists Debt Relief Act, PL 110-438, was signed into law on October 20th, 2008. This law is designed to help National Guard and Reserve members who are having financial problems and want to file for bankruptcy assistance when they return from deployment. According to U.S. Senator Dick Durbin (D-IL), the sponsor of the law, “this law cuts the red tape our servicemembers face if they need to file for bankruptcy and levels the playing field for our veterans.”
When the U.S. bankruptcy code was changed in 2005, it became much harder to file for bankruptcy. Filers were required to pass a means test in order to qualify for Chapter 7 bankruptcy protection. Means testing takes into consideration the filer’s income for the previous six months. National Guard and Reserve members whose small businesses and personal finances were in trouble because of repeated deployments were being evaluated, when they filed for bankruptcy, as if they were still earning the higher pay they received during deployment. The new law will not allow a bankruptcy court to dismiss or convert a bankruptcy case because of the results of a means test for returning Guard and Reserve who have been on active duty or performing a homeland defense activity for 90 days or more since September 11th, 2001. This gives the opportunity to file for bankruptcy protection if needed without being penalized by a means test that does not reflect current income. This provision is effective while the servicemember is on active duty and for 540 days after deactivation.
To learn more about Public Law 110-438, click here.
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