TREA Washington Update for April 4th 2008

This week Congress returned and focused on the economy (and the Chairman of the Federal Reserve Mr. Bernanke); gas prices (and the Chairmen of the oil companies) mortgage foreclosures (and the banks) and, of course, the elections (and the Presidential candidates and the money they have raised).

1) VA Gets Acting Secretary for Benefits

2) TREA President Patrick Corbett Testifies Before Joint Hearing of the House and Senate VA Committees

3) DoD Publishes Proposed Rule On TRICARE (Relationship Between The TRICARE Program And Employer-Sponsored Group Health Plans)

4) VA Announcements

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1) VA Gets Acting Secretary for Benefits-On Wednesday, President Bush designated Patrick W. Dunne, Acting VA Under Secretary for Benefits. Acting Secretary Dunne served in the active duty Navy for 33 years before retiring as a Rear Admiral. Since August of 2006, he has been the VA’s Assistant Secretary for Policy and Planning. The Under Secretary for Benefits is in charge of a $52 billion a year budget which provides compensation and pensions for approximately 4,000,000 veterans and survivors. He will also be responsible for administering the VA’s educational programs, the home loan programs, the VA’s life insurance program and other programs. The recently appointed search committee headed by the VA’s Deputy Secretary Gordon Mansfield is still searching for candidates for a permanent appointment.

2) TREA President Patrick Corbett Testifies Before Joint Hearing of the House and Senate VA Committees-On Thursday, TREA President Pat Corbett testified before a Joint Hearing of the House and Senate VA Committees on TREA’s legislative agenda for FY09.

The hearing was very well attended by members of both Committees. It was chaired by Chairman Senator Daniel K. Akaka (D-Hawaii). Ranking member Senator Richard Burr (R-North Carolina), Senator Lindsey Graham (R-South Carolina) also attended. Senator James Webb (D-Virginia) could not stay for the hearing but arrived early to speak to the witnesses and attendees. From the House Committee Chairman Bob Filner (D-California) and Ranking Member Steve Buyer (R-Indiana) both attended .Also attending were Representatives Hall (D-NY), Walz (D-MN) , Boozman (R-AR) and Bilbray (R-CA).

The other witnesses were from AMVETS, the Military Order of the Purple Heart, MOAA, Gold Star Wives, FRA, and the National Association of the State Directors of Veterans Affairs. The hearing covered a multitude of VA topics including, but not limited to: the need to improve the speed and accuracy of the disability adjudication process, the need for sufficient, reliable and on time funding, the need to modernize and improve education benefits, the need for a seamless transition from DoD to the VA, the need to end the offset of military retired pay by VA disability pay for all retirees, the need to improve survivor benefits including the SBP/DIC offset and much more. (a copy of TREA’s written testimony will be posted on our website: http://www.trea.org/leginfo/Testimony/20080403Corbett.pdf).

3) DoD Publishes Proposed Rule on TRICARE (Relationship Between the TRICARE Program and Employer-Sponsored Group Health Plans)-DoD published its proposed rule concerning TRICARE and retirees’ civilian employers health plans. In the FY07 NDAA Congress prohibited military retirees’ civilian employers from providing incentives for them to use TRICARE rather than their company plan. The language as written, we believe, could be read to bar military retirees from participating in any cafeteria plan or receiving any cash payments or other bona fide fringe benefits for not taking their health plan in an employment contract. The new proposed rule attempts to deal with this issue. If you are interested please go to: http://edocket.access.gpo.gov/2008/pdf/E8-6419.pdf where you can read the proposed rule in the Federal Register. You have until May 27 to send in comments.

4) VA Announcements-The VA have made several recent announcements including:

    a) New Fisher House to be Built in Chicago-A new Fisher House is going to built on the grounds of the Edward Hines Jr. VA Hospital in suburban Chicago. Fisher Houses allow families to live close to relatives while they are being treated. The one in Chicago will have 21 bedrooms and will be 100% handicapped accessible. Fisher Houses at DoD or VA facilities are paid for by the Fisher House Foundation and private donations. After they are built the VA will be responsible for all the operating costs. Other new Fisher Houses will be built at VA medical centers in St. Louis, MO, Minneapolis, MN, Washington State, and Boston, MA. Houses are presently under construction in Los Angeles, CA, Seattle, WA, Dallas, TX, and Richmond, VA.

    b) The VA Makes Announcements About New VA Cemeteries-The VA named the new Veterans Cemetery in Montavello, AL, the “Alabama VA National Cemetery” and appointed Quincy Whitehead its first director. The cemetery that will be constructed in Jacksonville, FL, will be named the “Jacksonville VA National Cemetery” and Arleen Vincenty, formally director of the Puerto Rico National Cemetery, was named its first director. In Kentucky the VA presented a check for $1,310,000 to continue to pay for the construction of the Kentucky Veterans Cemetery North.

    c) VA Puts Out More Information on the “Economic Stimulus Package-The VA put out a new press release (please see below) explaining how some veterans who normally file income tax returns may qualify for a stimulus payment of at least $300.

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Department of Veterans Affairs

News Release

For Immediate Release

Economic Stimulus Package Will Benefit Some Veterans
Peake: Special Provision for Low-Income Veterans

WASHINGTON --Veterans who last year received disability compensation, pensions or survivors’ benefits from the Department of Veterans Affairs (VA) may be entitled to an economic stimulus payment of at least $300. To qualify, veterans must file a tax return for 2007, even if they aren’t normally required to file.

“The President’s economic stimulus benefits have a special provision for low-income veterans,” said Secretary of Veterans Affairs Dr. James B. Peake. “VA is working closely with the Internal Revenue Service and the Treasury Department to get the word out about this unique benefit.”

Under the White House’s program, payments are $300 for an individual, $600 for a married couple filing joint tax returns, plus $300 for each dependent child under age 17 on Dec. 31, 2007.

To qualify, taxpayers must have at least $3,000 in income in 2007. While VA’s disability compensation, pensions and survivors benefits are not subject to income tax, the administration’s economic stimulus proposal, passed by Congress in February, allows veterans and survivors to count those payments toward the income requirement of $3,000. To claim the benefit, veterans --like other taxpayers --must file an income tax return.

For eligible veterans who do not normally file a tax return, information about claiming the economic stimulus payment is available in “Package 1040A-3,” available from IRS offices or on the Internet at http://www.irs.gov/pub/irs-pdf/k1040a3.pdf.

IRS is mailing a package of information to recipients of VA benefits who did not file a tax return last year. For more information, visit the IRS Web site at http://www.IRS.gov.

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