A veterans’ benefits FAQ

By Don Mustard
Published: September 16, 2008

This month I will share a few of the questions I frequently hear from my clients in hopes they will help you. 
Q: I am the widow of a deceased military retiree and receive benefits under the Survivor Benefit Program (SBP). My benefits were reduced when I began receiving Social Security benefits. Has there been any change in the Social Security offset?
A: Yes. You probably know by now, as a result of legislation that became law about four years ago, the minimum SBP annuity for survivors ages 62 and older was increased to 40 percent of retired pay as of Oct. 1, 2005; to 45 percent on April 1, 2006, to 50 percent on April 1, 2007, and to 55 percent on April 1, 2008. This legislation brought an end to the infamous “widows’ tax” long associated with SBP benefits.
Q: I heard recently there were changes in the issue of ID cards for dependents and survivors of military retirees. Do you have any details?
A: I believe you are referring to the implementation of a permanent ID card for retirees, spouses and survivors ages 75 and older. Beginning in 2005, ID card renewal included a permanent ID card of those 75 or older. You should be aware that your ID cards can be renewed without leaving Lynchburg. The Marine Corps Reserve, C Company Fourth Engineer Battalion, 314 Graves Mill Road, provides this service by appointment only. To schedule an appointment, call (434) 239-1719.
Q: I am the widow of a service member killed during the Gulf War and have used some of the educational benefits provided under the Dependency and Indemnity Compensation Program. I have heard of a change in the period for a survivor to use these educational benefits. I am nearing the ninth year in my program and will need more than one year to complete all degree requirements. Is it possible to get an extension of the period to use these benefits?
A. Legislation passed last year recognized this problem and has extended the period for survivors to use these education benefits to 20 years from the current 10.
Q: I was previously receiving VA benefits under the Improved Pension Program. However, I inherited a sum of money and informed VA as to the amount. Shortly afterward, I received a letter advising that my VA benefits were to be suspended as a result of this inheritance. This was more than one year ago. When will my benefits be resumed?
A: You should discuss this with VA or a veteran’s benefit counselor. The normal process is for VA to suspend your benefits for one year. They are not automatically reinstated, but do require that you submit a written request for restoration of benefits.
Q: I am a veteran and considering a VA Home Loan. What are the procedures?
A: First, you must obtain a certificate of eligibility from VA. To do this, contact any veterans benefits counselor. Legislation signed late last year included increases in the maximum VA home loan guaranty amount to $417,700, reinstated VA-backed adjustable rate mortgages and extended authority for hybrid adjustable rate mortgages through 2008.

— Source: VA Booklet “Federal Benefits for Veterans and Dependents.” 2008 edition.

For more information, contact VA at (800) 827-1000 or the service officer for DAV Chapter 8 and VFW Post 8184 at (434) 316-0229. The office, at 2337 Lakeside Drive, Lynchburg, is open for walk-ins 10 a.m. to 3 p.m. on Tuesdays and by appointment on Thursdays.