Financial Frontlines®

Should you get a new military ID card at age 65 or not? We recommend yes. Technically, it’s not required but it may save you some grief down the line.

ID cards for retired military members have an “indefinite” expiration date on the front of the card. On the back of the card is an expiration date for medical benefits that expires the month prior to you turning age 65. While your entitlement and access to medical benefits do not end after the expiration date, it could cause problems if you don’t update your card.

We recently received an email from a member who told us of his trip to the base pharmacy. He still used his original retired ID card with an expired medical date on the back. His card was confiscated by the pharmacy. Turns out, the base hospital implemented a local policy to confiscate cards in an effort to get cards updated for those over 65 years old.

In this fast paced, ever changing world, military ID cards have undergone several updates over the years, photos get old, and some service providers won’t understand the date on the back doesn’t render the card expired. People aren’t ID card experts. An expired date means one thing to most; game over. Save yourself the potential grief and get a new card.

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UPDATE ON REMOVAL OF SSN FROM ID CARDS–14 Jan 2011

The plan to remove Social Security Numbers from military ID cards continues.  The plan is in three stages.  Stage One was implemented as of 2008; the removal of SSN from DEPENDENT ID cards.  As dependents update their cards on normal expiration dates, their new cards will not have SSNs.  Stage Two is under way; the replacement of SSN on military member’s ID Card with a new DOD ID number.  Stage Three is replacing the SSN in ID card bar coding systems.  Total completion date is 2012.  See this DOD memo for the details:   http://www.cac.mil/assets/pdfs/SSN%20Memo%20Signed.pdf.

Each base is proceeding at different speeds so we don’t know the implementation status at each base.  Expect differences.  Want to find out the status at your base?  Search for your nearest ID card office and phone number on this site and call the ID card office for details;  http://www.dmdc.osd.mil/rsl/owa/home.

****Deadline extended again to 18 March 2011 by DOD.****

The deadline for eligible service members, veterans and their beneficiaries to apply for Retroactive Stop Loss Special Pay (RSLSP) has been extended to March 18, 2011, allowing personnel more time to apply for the benefits they’ve earned under the program guidelines.

“There was a surge of applicants as we approached our earlier deadline, but there may still be more out there who have yet to apply,” said Lernes Hebert, director, Officer and Enlisted Personnel Management. “We are pleased that this extension was included in the continuing resolution which will give those remaining the opportunity to apply as we continue to work through the current applications.”

The RSLSP was established to compensate for the hardships military members encountered when their service was involuntarily extended under Stop Loss Authority between Sept. 11, 2001, and Sept. 30, 2009. Eligible members or their beneficiaries may submit a claim to their respective military service in order to receive the benefit of $500 for each full or partial month served in a Stop Loss status.

When RSLSP began on Oct. 21, 2009, the services estimated 145,000 service members, veterans and beneficiaries were eligible for this benefit. Because the majority of those eligible had separated from the military, the services have engaged in extensive and persistent outreach efforts over the past 14 months. Outreach efforts including direct mail, engaging military and veteran service organizations, social networks and media outlets, will continue through March 4, 2011.

To apply for more information, or to gather more information on RSLSP, including submission requirements and service-specific links, go to http://www.defense.gov/stoploss.

This DOD press release has the contacts for each Service: http://www.defense.gov/releases/release.aspx?releaseid=13063

Keep spreading the word!

This impacts the Reserve Component (RC) SBP for those who have coverage while in the gray zone—not the SBP for active duty retirees.

RCSBP has two separate premium payments for some Reserve/Guard members who receive retired pay.  One premium covers the regular piece of the SBP and the other premium covers the Reserve/Guard, gray zone, piece.  A change to the Reserve piece of the premium is surprising some members.

The Reserve premium can be adjusted by DOD to ensure the program remains fiscally viable.  In May 2010, DFAS implemented new premium rates for the RC portion of the premium which reduced the rates for members.

DOD realized later, the reduced rates were only meant for retirees who retired after 1 May 2010.  Everyone else, prior to 1 May, wasn’t supposed to have a rate change.

All members who retired prior to 1 May will have their new reduced RC rate revert back to the old higher rate.  If you didn’t notice the rate reduction last summer, you may think that this is only a rate increase.

We want to clarify the issue even though DFAS sent out a letter recently to RCSBP participants explaining this issue.

It’s getting worse. Commercial financial firms are now phone soliciting for business using the VA’s survivor benefit to get their foot in the door with you. Be warned.

Originally, we heard about commercial financial firms presenting the VA’s survivor benefit to residents of retirement communities and assisted living facilities. Now these firms are directly contacting people over the phones.

Yes, the VA has a survivor benefit but there are conditions for eligibility. First off, the military member has to be deceased. I mention this because some firms try to get you to apply before the member has passed. This indicates some firms don’t even know how the VA programs work; a clear sign that the firm’s objective is not helping you with VA benefits but getting into your pocket. Eligibility for the VA’s Dependency and Indemnity Compensation (DIC) is:

• The military member’s death must be Service-connected, or,
• Immediately preceding death, the member was VA rated totally disabled for a period of least 10 years, or,
• From the date of discharge from the Service, the member was rated totally disabled for at least 5 years preceding death, or,
• Former POWs who died after 30 Sept 1999, and were totally disabled for at least 1 years preceding death.

DIC is not based on financial need. There are other VA programs for survivors that are based on financial need and by that I mean very low income—poverty level. DIC provides $1154 a month and the other programs vary but are around $650 a month. All VA benefits are tax-free.

The objective behind these financial firms is to get access to your financial data and sale you other financial products. Some of these VA programs require you to submit a financial report and that is the point of the solicitations. These firms gain your financial info in order to apply for the VA benefit and the sales pitches follow.

Some of these firms also pitch legal products like trusts to hide your assets so you appear low-income to qualify for a VA program. They will also pitch insurance, annuity and investment products. All products that produce large commissions for the firms.

These organizations are not authorized Veteran Service Organizations (VSO) yet they may lead you to believe they are. A real VSO is chartered by the VA to help people apply and follow-up on VA claims. The VSO service is free. Go to a VSO if you have questions or need help. Here’s where to find a VSO in your area:

Search for the County Veteran Service Office in your state at http://www.va.gov/statedva.htm.

A complete list of all VSOs is at http://www1.va.gov/vso/index.cfm

The VA does not solicit for your business. If you are approached to conduct business with the VA, either walk away or proceed carefully.