Absent another valid election, a retiree of the United States Armed Forces begins to receive retirement income and, is enrolled in the Survivor’s Benefit Plan (SBP). With a full election of the SBP, upon the death of the retiree, up to 55% of the retiree’s retirement pay will be paid to a spouse or dependent child. Under the SBP, a “dependent child” includes an adult child that is incapable of self-support as a result of a physical or mental disability, provided such disability occurred prior to the age of 22. By making an election to provide the SBP to a dependent child, the retiree ensures a continuation of income to support the dependent child when the retiree and any surviving spouse have passed. Absent such an election, upon the death of the retiree, military retirement pay will cease.
You can revoke an election at any time; however, there are very few scenarios for which you can retroactively establish benefits. After receiving my first approval of retroactive establishment of SBP coverage for a dependent child, I now know that under certain circumstances, establishment of retroactive coverage of the SBP is possible in light of the new change in legislation. While Hook Law Center has been successful on this one occasion, we cannot guarantee approval and I anticipate approval of retroactive coverage will be limited in duration. As a result, if you are interested in making changes to your election, you should act sooner, rather than later. Furthermore, you should be prepared to pay the government a rather check to cover the monthly payment for the benefit since date of retirement.
Ask Kit Kat – Faithful Friend
Hook Law Center: Kit Kat, what can you tell us about the faithful dog in Spokane, Washington who stayed with a toddler in a house fire?
Kit Kat: Well, this is one story that doesn’t have a happy ending. However, it does reveal the faithfulness of a wonderful canine, a terrier mix, who stayed with the toddler during the fire. Unfortunately, both perished. It happened like this—a fire broke out around 11:30 PM in the Hillyard neighborhood of Spokane on Friday, October 21, 2016. A neighbor noticed the fire and heard screaming. He called 911, and immediately ran outside to fight the fire with his garden hose. Three other children and two adults escaped, but one child, a young toddler, did not make it out. His dog and a teddy bear were found with him in a 2nd story bedroom. Firefighters believe the dog stayed behind to protect him. What more can one ask than that? The dog was more than heroic!
The fire is under investigation, as the battery in the house’s smoke detector had been removed. That is all the information that the newspaper article provided. Perhaps, however, we can learn some tips for preventive action—always know where the occupants of one’s house are. If you leave your children with others, make sure they are aware of escape routes and are familiar with the property’s layout. Also, keep all smoke detectors functional. Hopefully, we can learn from this tragedy, so that it never happens again. (Martha Bellisle, “Toddler dies in fire, his dog at his side,” The Virginian-Pilot, October 23, 2016, p. 14)
Distribution of This Newsletter
Hook Law Center encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to Hook Law Center, P.C. If you are interested in a free subscription to the Hook Law Center News, then please telephone us at 757-399-7506, e-mail us at mail@hooklawcenter.com or fax us at 757-397-1267.The post Establishing Retroactive Survivor Benefit Plan Payments (SBP) for a Dependent Child first appeared on SEONewsWire.net.]]>
by Thomas D. Begley, Jr., CELA
Historically, a member of the military could arrange for a pension and provide a survivor’s benefit to a spouse or child. A problem arose where the child had a disability and was receiving means-tested public benefits such as Supplemental Security Income (“SSI”) or Medicaid. If the child with disabilities receiving those benefits or other means-tested public benefits received the pension, they would lose the benefits. This is because any income received from any source reduces the SSI income dollar-for-dollar, and if the pension exceeded the amount of SSI income, SSI would be completely lost. Medicaid is frequently linked to SSI, so that if SSI is lost, the Medicaid would be also be lost. What follows is a story of the Power of One.
An Elder and Disability Law attorney in Virginia, named Kelly Thompson, took up the cause of these beneficiaries with disabilities. Kelly enlisted help from the Special Needs Alliance, which is a national organization of lawyers practicing in the disability field and also the National Academy of Elder Law Attorneys. After several years of hard work, in late 2014 Congress enacted the Disabled Military Child Protection Act in the 2015 National Defense Authorization Act. This legislation allows military retirees and service members to designate their survivor benefit to a Special Needs Trust for the benefit of their disabled child or children.
By having the survivor pension benefits irrevocably paid into a Special Needs Trust, those funds are not counted in determining the financial eligibility of the disabled child. The net result is that the military member’s or retiree’s children with disabilities are able to benefit from the pension as well as maintain their vital public benefits.
Part of the requirements under the Disabled Military Child Protection Act is that an attorney certify that the child has previously applied for, or may in the future apply for, SSI or other benefits, and that the Special Needs Trust is compliant with all applicable state and federal laws. A template is provided for completion and signature
The post MILITARY PENSIONS AND DISABLED CHILDREN first appeared on SEONewsWire.net.]]>