Financial Frontlines®

Are you eligible for the new Post 9-11 GI Bill?  Make sure your understand the key changes that are on the way for the 2011-12 school year.

Major changes include:

• Title 32 full-time National Guard/Reserve time counting for benefit level qualification (effective October 1, 2011)
• End of unlimited tuition reimbursement for Active Duty and Active Duty Spouses (became effective on March 5, 2011)
• Reimbursement for entrance exams (such as LSAT, GMAT, ACT and SAT) and multiple certification exams (effective August 1, 2011)
• Opening up non-degree granting programs for Post 9-11 GI Bill use (effective October 1, 2011)

For a full list of coming changes, please visit the VA Post 9-11 GI Bill Website and make sure you have the latest information.

Phil Dyer, CFP®, RLP®, CPCC

The program to remove Social Security numbers (SSNs) from military ID cards continues to roll along. The program actually began in 2009 and will continue through 2013 and become standard operating procedure from then on.

Do not rush to your closest ID card office to replace your cards. All ID cards will be replaced over the normal course of updating cards as they expire. Those with indefinite expiration dates (INDEF) may get a new card by making an appointment at your ID card office. If your expiration is INDEF, you can update your card at any time however, you probably want to wait until the final phase is implemented.  See this web site to find your closest ID card office by zip code: http://www.dmdc.osd.mil/rsl/.

The program is planned to remove SSNs over time in 3 separate phases.

• Phase I started in 2009 with the removal of dependents’ printed SSNs from their ID cards. The sponsors’ SSNs remain for now.
• Phase II starts June 2011. This time all printed SSNs will be removed from the cards. The SSNs will be replaced by DOD ID numbers.
• Phase III is expected to begin in late 2012. This is the final phase. SSNs will be removed from the barcodes on the back of ID cards. At this point, no SSN will be on ID cards in any format.

Make sure you bring 2 forms of ID when you go to the ID card office—see this site for types of ID, http://www.uscis.gov/files/form/i-9.pdf, and scroll to page 5. For those of you getting close to age 65, note your expiration date is just prior to your 65th birthday.

Need Long Term Care insurance? Health not the best, or not sure whether you can pass medical underwriting? Check out the Federal Long Term Care Insurance Program (FLTCIP). It’s offering an Open Enrollment Season, running from today, April 4, until June 24, 2011. The opportunity is that for the first time since this program was inaugurated in 2002, abbreviated insurance underwriting will be used during this Open Season.

Abbreviated underwriting is only available to folks still in uniform (which includes SELRES) or working for the federal government as a civilian employee. For a full explanation of eligibility during this Open Season visit http://www.ltcfeds.com/FLTCIP_OpenSeason.html If you’re health isn’t the best and you’re concerned about passing the underwriting requirements for a long term care insurance policy, this might be a good opportunity for you.

Non-enrolled annuitants, which include retired military and other qualified relatives, can still apply for FLTCIP coverage at any time, but must complete a full underwriting application. Again, abbreviated underwriting during this open season is only for employees still working for Uncle Sam.

All MOAA members should realize that Medicare and Tricare for Life, like most major medical plans, do not cover Long Term Care expenses. Many financial advisers consider a financial plan incomplete if it fails to address protection against the potentially devastating costs of Long Term Care.

If you haven’t looked into coverage in the past, start with the MOAA-endorsed Long Term Care Insurance Program. You can speak to a counselor well acquainted with MOAA-endorsed LTC plans by calling 1-800- 698-7943.

The federal plan provides excellent value as well and can be a good benchmark against other plans. Keep in mind that the federal plan is not subsidized by the federal government in any way, even though the plan is administered by the Office of Personnel Management. The coverage is underwritten by a commercial insurance  firm. Many life insurance companies also offer long term care riders on their life insurance policies.

Use MOAA’s Long Term Care comparison worksheet (PDF) to compare the federal long term care plan with other plans.

If this open season can benefit you, take advantage of the opportunity. If not, consider looking into another solution to protect your family’s finances should you someday need Long Term Care.