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Reply #4: It gets complicated. [View All]

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NNN0LHI Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-15-11 01:26 PM
Response to Reply #1
4. It gets complicated.
Any explanation starts with the Survivor Benefit Plan, an insurance program offered by the military that pays a monthly benefit based on a veteran's retirement pay. It was meant to provide financial security to surviving children or spouses.

If the veteran's death was related to service, then the spouse also became eligible for a benefit from the Department of Veterans Affairs called the Dependency and Indemnity Compensation program.

But there was a catch.

The spouse couldn't fully collect both benefits at the same time. The government deducted the monthly Dependency and Indemnity Compensation benefit from the monthly Survivor Benefit Plan check survivors were getting.

The net loss for spouses was $1,154 every month.

But Uncle Sam then refunded a portion of the premiums paid into the Survivor Benefit Plan through the years. That's why Green got a $41,000 check.

But a walk down the aisle changes all that.

more here: http://www.tampabay.com/news/military/article1143324.ece
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