Mr. Chairman, I move to strike the last word. (Mr. BUYER asked and was given permission to revise and extend his remarks.) Mr. Chairman, I have some concerns about provisions in section 1113 of the bill relating to Service Members Group…
Mr. Chairman, I move to strike the last word.
(Mr. BUYER asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I have some concerns about provisions in section 1113 of the bill relating to Service Members Group Life Insurance, which I will now referral to as SGLI.
Neither the Department of Veterans Affairs nor the House Committee on Veterans' Affairs, the authorizing committee with jurisdiction over VA insurance programs, was consulted prior to the administration's submitting the insurance proposals in the war supplemental. I recognize that it placed the gentleman from California (Mr. Lewis) and the gentleman from Wisconsin (Mr. Obey) in very difficult positions, because they always come to the floor to talk about authorizing on appropriations bills; but that is what you are doing exactly here.
There are two primary points of concern with regard to these sections. Number one, it would authorize retroactive insurance coverage in cases of servicemembers who die having declined insurance coverage; and, second, it would require a spouse to concur with the servicemember's insurance coverage election.
The administration proposed to provide for a retroactive payment to give the same level of benefits proposed for prospective maximum SGLI to those who have died since the beginning of combat operations on October 7, 2001. At the appropriations markup, the gentleman from Wisconsin (Mr. Obey) offered an amendment, which was accepted, to limit retroactive payment to those who died in performance of duty.
By restricting payments to deaths that the Service Secretary concerned determines in the performance of duty, we would then expect that deaths which occurred during the performance of an assigned military duty would be compensated, but that deaths not associated with assigned military duties would not qualify.
Another qualifier, though, that perhaps should have been considered during this markup, would have been in addition to dying in performance of military duties, the servicemember must have had maximum insurance coverage at the time of death. The Committee on Veterans' Affairs has established a record in this regard.
When we increased the SGLI coverage from $200,000 to $250,000 with a delayed effective date in Public Law 106-419, then in reaction to the terrorist attack on the USS Cole we did, in fact, make a retroactivity in Public Law 107-14 for servicemembers who died in performance of duty that had maximum SGLI at the time of their death. We should not be providing the maximum amount of insurance posthumously if the servicemember declined coverage, hence, never paid premiums, or elected a lesser amount.
This is a policy change that could have detrimental effects. The bottom line is that it changes the identity and substance of the SGLI program. SGLI is neither an indemnity nor a gratuity program. It is an insurance program.
Second, I have great concern regarding the administration's proposal to include in H.R. 1268 that a spouse must concur with a servicemember's insurance election. Life insurance is a contract. Requiring a spouse who is not a party to the contract to assent to a servicemember's decision concerning whether to enter into a contract and the amount of that contract violates the principles of contractual law and the nature of life insurance. Requiring the spouse to concur with the servicemember's decision, as included in H.R. 1268, would in fact make SGLI a volunteer program for single servicemembers, and an involuntary program for married servicemembers.
Life insurance policies are fundamentally different from the protection to surviving spouses rightfully provided under some other retirement programs.
There are plenty of substantive concerns with regard to this provision: one, giving the spouse veto power over the amount of insurance that gives him or her greater say than the servicemember. Number two, SGLI would in fact be a voluntary program for singles, involuntary for married. Three, the concurrence policy would force the servicemember to pay premiums and keep the spouse as a beneficiary, even in situations of pending divorce, spousal abuse, drug abuse, child abuse. I mean, let your mind go. Fourth, the spousal concurrence as drafted in the bill would prevent a servicemember from naming children, children from a previous marriage, parents, grandparents, guardians of grandchildren, let your mind go, from participating in insurance.
The Supreme Court has upheld the right of the insured to name whoever he or she wants as a beneficiary, even if it is in violation of a State court divorce decree.
There are administrative concerns as well, the substantial administrative costs that would be added in the day-to-day running of this program, as well as has been added to its greater complexity. If a servicemember there says that there is no spouse or names another beneficiary and declines coverage, a spouse could come forward after the servicemember's death.
Another concern is the program may be liable to pay maximum amounts if no premiums were collected or if a separate beneficiary already had been paid. And if there is a delay in getting a spouse to agree to insurance coverage or the amount and the servicemember dies, then who receives the benefits?
These are many, many issues that need to be resolved, and I look forward to working with the gentleman from California (Chairman Lewis) as we proceed forward to the conference to address many of these issues.
Mr. Chairman, I include the following letter from the Military Officers Association of America for the Record.
Military Officers Association
of America,
Alexandria, VA, March 11, 2005.
Hon. Steve Buyer,
Chairman, Committee on Veterans Affairs, House of
Representatives, Washington, DC.
Dear Mr. Chairman: On behalf of the 370,000 members of the
Military Officers Association of America (MOAA), I am writing
to inform you that, after discussing the issue extensively
with the Committee's majority and minority staff, MOAA has
reconsidered its position on the Servicemen's Group Life
Insurance (SGLI) spousal consent requirement, as included in
the Appropriations Committee's markup of the FY2005 Defense
Supplemental Appropriations Act.
We believe there is merit to the staff's view that the
Appropriations Committee's language is excessively stringent
and could inappropriately preclude servicemembers' ability to
make reasonable insurance decisions--especially in
circumstances where it may be reasonable and appropriate for
a member to designate children as beneficiaries instead of
the current spouse.
MOAA believes Congress is doing the right thing in
expediting passage of improved death benefits coverage in the
Supplemental Appropriations Act, and we have no wish to slow
that process in any way.
Therefore, MOAA urges your support for a floor amendment
that would either substitute a provision requiring spousal
notification (instead of spousal consent) or strike the
spousal consent requirement to allow the Committee to develop
more appropriate language that could be offered in conference
or another appropriate legislative venue.
Sincerely,
Steven P Strobridge,
Colonel, USAF (Ret),
Director, Government Relations.
Mr. Chairman, will the gentleman yield?
I had a very good discussion with the gentleman from California (Mr. Lewis). I did not come here to the floor to strike these provisions from the bill. I will work with the administration. I will work with the Committee on Appropriations. I am going to do that as an authorizer. I am not claiming jurisdictional grounds. I am not going to play games with the gentleman from Wisconsin (Mr. Obey) at all.
I thought what the gentleman from Wisconsin (Mr. Obey) did by making a performance of duty was a wise thing. I think that was a wise move of the gentleman. I do not know why the gentleman would be upset with regard to my remarks on performance of duty because what the gentleman from Wisconsin (Mr. Obey) did is followed what we, the gentleman from Illinois (Mr. Evans) and I, had also recommended. Performance of duty is a good thing.
I do not have a problem with the performance of duty. I have come to the floor to express some concerns with regard to the identification of an insurance product. We are turning it into an indemnity and a gratuity with regard to an insurance product. We have to be smart about our business with regard to how we proceed. That is my purpose of being here. It is not to reach into the Treasury and just say we are going to give this money out.
But it does and I gave the example because you can have someone who has an accidental death or a duty nonperformance in the service.
No, the gentleman's amendment.
I will be more than happy to get the gentleman legal counsel so he can understand what he has written.
Mr. Chairman, will the gentleman yield?
I thank the gentleman. What the gentleman from Wisconsin (Mr. Obey) did with regard to performance----
Mr. Chairman, will the gentleman yield?
I believe that the performance of duty that is in the bill, what it does, it does identify with regard to who will receive payment and who do not receive payments. That was why I used the word ``limited'' or ``restricted'' because you could have an individual, Mr. Chairman, of whom died in an auto accident, was murdered, or something happened to them and they do not qualify.
Mr. Chairman, will the gentleman yield?
Absolutely. That is why what we have here are two individuals of whom understand what we are talking about but probably have a, well, anyway, let us not use semantics.
What I do wish to do as we proceed forward as we go to conference working with the Senate is work also with the administration, work with the Department of Defense, the VA and OMB to make sure that we bring a proper identity with regard to service and group life insurance that also subsidizes veterans group life insurance, and that is what I want to work with the chairman on.