Congressman Gonzalez Helps Introduce Veterans FAIR Act of 2018

WASHINGTON - Congressman Vicente Gonzalez has introduced H.R. 6281, the Veterans Flexibility of Annuities for Income Relief (FAIR) Act of 2018, to modify the Survivor Benefit Plan to extend the one-year opt-out window to six years.

The bill has garnered the support of Republicans and Democrats. Four original co-sponsors include Congressmen Don Bacon, Trent Kelly, Seth Moulton, and Don Young.

As it stands, the U.S. Department of Defense (DoD) requires retiring service members to opt into benefits packages. The Survivors Benefits Plan yields a one-year opt-out option for veterans – leaving little time for transition. After this brief opt-out period, former service members may be locked into burdensome financial obligations, including mandatory premium payments that can last an entire lifetime.

In addition to the increased opt-out period, this act intends to restructure and improve the termination of the Survivor Benefits Plan. The Survivor Benefits Plan allows the client to name a sole beneficiary. Currently, the plan requires payments to be made until the death of the client or said beneficiary. Even if the beneficiary is diagnosed as terminally ill, the client will continue making payments up until the time of death. The Veterans FAIR Act seeks to immediately cease payments when a beneficiary receives such a diagnosis.

The Veterans FAIR Act of 2018 would:

Stave off complex financial decisions until our nation's heroes have had adequate time to reintegrate into society.

• Ensure those enrolling in the Survivor Benefits Plan are well informed of the costs, risks, and payouts.
• Restructure crude language to reduce the burden on our veterans in times of grief.

The congressman hopes that his legislation will modernize the Survivor Benefits Plan and allow it to truly benefit our veterans.