chapter leaders’ symposium select benefit topics

Chapter Leaders’ Symposium

Select Benefit Topics September 2015

Presented by

Shane Ostrom, CFP®

Lt Col, USAF (Ret) Deputy Director, Benefits Info Department Military Officers Association of America

What’s on your mind?... • Survivor issues • Benefits • Financial • Personal affairs—personal or chapter level • Which specific programs?

– SBP – DIC – Former spouse – Remarriage – VA, DFAS, Medicare, Tricare, Social Security

• Working outside the home • Corporate employee benefits • Self-employment • Military transition to civilian life

The Financial and Benefits

Information Office

Our Mission

Recruit, Retain & Serve MOAA members and families thru accurate, timely,

comprehensive communications:

• Outreach Programs • Print / Electronic Media • Member Service

• Benefits Counseling • Financial Education

Who’s Who in our office?

Director: Jim Carman, CAPT, USN Ret. Katherine O’Neill Tracy, CDR, USN Ret.

Paul Frost, CAPT, USN Ret. Shane Ostrom, CFP®, LtCol, USAF Ret.

Outreach Programs

Inform & Educate – Conduct 120 Presentations a year:

• Retiree Appreciation Days • A/D Transition Seminars • G/R Benefits Seminars • Legislative-Benefits Updates • Financial Education • Spouse Outreach • MOAA Chapter Visits

Financial and Benefits Info Opens Doors

• Financial Education • Active Duty Transition Seminars • Active Duty Career Courses • MOAA Chapters

• Web-based Financial Education Center • Provides timely financial information on broad range of topics

• Joint Seminars • Support TOPS Program & Career Fairs

• Answers Members’ Inquiries • General financial planning topics

Impact Online & in Print

– Military Officer Magazine (MOM) • Rapid Fire features • Financial Forum • Other financial and health education pieces

– News Exchange (Bi-weekly online news ltr) • Benefits Information Articles • Financial Education Articles

– Publications & Checklists – Financial, Benefits, Health Care & Spouse

Web Content • Financial Blog: Financial Frontlines • Health Care Blog: Health Care Happenings

Publications

On the way... Concurrent Receipt Guide

Member Services

Expertise for AD, G/R, Retired, Survivors & Families in:

• Military Benefits • TRICARE • Social Security/Medicare • Veterans Affairs • Financial Planning & Education • Personal Affairs • Research & Publications • Spouse and Family Issues

Personal Affairs

Personal Affairs Personal Level

Gather Information Today

Get the Facts:

Use creditable sources

Review Annually

Get Your Personal Affairs in order

Update your Will, Trust, Living Will

Gather Documentation

Complete ‘Personal Affairs Guide’

Personal Affairs Personal Level

Documentation Readily Available • Birth Certificates • Marriage Certificates • Divorce Decree • Changes in name • User and Passwords

• Death Certificate • Separation Documents

– DD Form 214 – Retirement Orders

• Safe deposit boxes

Personal Affairs Personal Level

Use the ‘MOAA Personal Affairs Action Guide’

Plan for Your Digital Estate

• Valued web pages • Collections of pictures • Web-based business • E-bay storefront • PayPal accounts • Social Media • Pictures, movies...

Create an Inventory

Know the user/password for all sites:

• Accounts • Shopping • Emails • Business sites • Social media • Documents • Computer log-in

Ensure trusts, POAs and wills provide access to digital assets to key survivors

Service Records

• Order on-line at www.archives.gov/veterans/ • Phone: 1-866-272-6272 • Mail

– Use SF-180; get form on-line, VSO, VA, or request at: National Personnel Records Center, 1 Archives Drive, St. Louis, Missouri 63138

– Mailing addresses are on the form • Fax form to 314-801-9195

Personal Affairs Personal Level

Money set aside – For surviving spouse – 60-90 days – Immediate living expenses after

sponsor’s death

Why PA Committees? Chapter’s first response for member care & information

– Chapter Population is Aging – Survivor Assistance is Needed – Reference Source Close to Home

Personal Affairs Committees Chapter Level

Help Your Survivors…Now!

• Potential Financial Benefits

• Entitlements • Personal Affairs • Personal Affairs

Workbook • Checklist

Military Burial Guide

• Arlington National Cemetery

• State/Overseas/VA Cemeteries

• Entitlements to Interment

• Available On-Line only

How You Can Help • Stay Informed • Advocate to improve benefit shortfalls • Promote our services, tools & publications

• Recommend us as Speakers • Network w/local AD, G/R, Ret. & Spouse/Family

activities • Provide personal POC’s in local organizations for us to

follow-up • Provide feedback - let us know:

• Your questions & concerns • How we can improve

• Support Your Chapters • Personal Affairs Committees • Auxiliary Liaisons

Veteran Affairs

General VA Topics

• Work with a Veteran Service Office (VSO) – Your County VSO or MOAA’s VSO office

• Not always about the service member… – Your situation can translate to survivor benefits

• Some don’t know about concurrent receipt – They haven’t applied to VA because they still think retired pay

will be docked

• Don’t work with a private firm – It’s a scheme to gain financial info access and cross sale

products

Aid and Attendance and Housebound Programs

• Not easy as you may think • Must qualify for VA Pension

– Low-income program plus see yellow box • A&A and Housebound increase Pension

payments • Need for long term care assistance increases

income needs and can help qualify Wartime vet AND Age 65 or older, OR Totally and permanently disabled, OR A patient in a nursing home receiving skilled nursing care, OR Receiving Social Security Disability Insurance, OR Receiving Supplemental Security Income

CHAMPVA VA Health Care for Families

• Family Members of Veterans

– Permanent & Total disability (service-connected)

– Service connected death – Die while having 100% disability

• No Tricare eligibles

CHAMPVA VA Health Care for Families

• Effect of Remarriage – Prior to age 55; lose CHAMPVA – At 55 or +; keep it

• Remarriage Terminates

– CHAMPVA Restored

Let’s Talk Military Benefits The Latest Info on Your Benefits

Tricare Update

TRICARE/TFL

The TRICARE Health Plan Serves more than 9.2 million beneficiaries!

Standard – Fee for service Extra – Preferred Provider

Prime – Managed care (HMO) Prime Remote

TRICARE For Life (TFL) – Eligible for Medicare Part A – Enrolled in Medicare Part B – Valid Military ID Card

Military Retiree Health Coverage (Under Age 65)

• TRICARE Standard (Fee For Service) – $150/$300 Deductible – 20-25% Outpatient Copay – $250/Day or 25% Inpatient Copay – On Your Own to Find Doctor

• TRICARE Prime (HMO) – $278/$556 Annual Enrollment Fee – Copay: $12 Outpatient/$11 Inpatient – Guaranteed Access Standards

TRICARE -- Pharmacy Benefit

• Military Treatment Facility (MTF)

• Tricare Retail Pharmacy (TRRx)

• Home Delivery • Not available if covered by another drug plan

• Out of Tricare network retail pharmacy

Rx Co-Pays Point of Service

Generics Brand Name

Non-Formulary

MTF $0 $0 $0

Home Delivery (<90 day supply)

$0 $16 $46

Retail Network (<30 day supply)

$8 $20 $47

Non-Network (Annual Ded. Must Be Met)

Greater of $20 or 20% of total cost

Greater of $20 or 20% of total cost

Greater of $47 or 20%

Tricare For Life Issues

• Tricare is a Medicare Supplement

• Tricare invisible to health care community • Just find a Medicare doctor • No need to mention Tricare

• Additional coverage adds complexities • Probably over insured

2015 Medicare Part B Premiums

INCOME (Based on 2013 Tax Filing)

Monthly Premium per Person

Single Filer Married Filing Jointly

$85,000/below $170,000/below $104.90

85,001 - 107,000 170,001 – 214,000 $146.90

107,001 – 160,000 214,001 – 320,000 $209.80

160,001 – 214,000 320,001 – 428,000 $272.70

Above 214,000 Above 428,000 $335.70

Medicare Part D Benefit

Military Retirees and Their Spouses or Survivors

DO NOT NEED to Participate in Medicare Part D

Programs

Mail-Order/MTF Refill Requirement

• TFL-eligibles required to use mail-order for maintenance med refills only – Can still use military pharmacy – Can revert to retail after one-year trial – 95% who try mail like/stay with it – No retail refill refusal w/o supply of meds in hand

• Exemptions: – Nursing home patients – Certain critical meds – Other meds/patients deemed by DoD

Health Care Hodge-Podge

• Tricare dental – www.trdp.org • Mail Order pharmacy – http://www.tricare.mil/Prescriptions or

(877) 363-1303

• Eye glasses – – Naval Ophthalmic Support & Training Activity – Free glasses—limited selection – Email at: NOSTRA-CustomerService@med.navy.mil – Phone at (757) 887-7600 Option 1

• Long Term Care – – Federal Long Term Care program – www.ltcfeds.com

Hearing Aids

“Retiree At Cost Hearing Aid Program” – Available at some base Audiology Clinics – Call in advance, travel and lodging not included – Usually a 2-day process – Cost is greatly reduced-- <$1000ish

Also check with VA— must be Service-connected

Survivor Benefit Program (SBP)

SBP: Social Security Offset Eliminated

SS Offset phased out April 2008 – Annuity payment is now:

• 55%* • 55% is the max payout

*Of Annuity “Base Amount” elected at retirement

Paid-Up SBP

• 360 Months of Payments • >70 years of Age • No beneficiary, no premiums, no credit

toward paid-up benefit

The SBP-DIC Offset; Still Not Fixed

• Social Security Offset was eliminated…

• The SBP-DIC Offset was not

• Offset is dollar-for-dollar:

SBP $ - DIC $ SBP “Benefit”

Congress Admits SBP-DIC Offset Inequity

2008 and 2009 First Legislative Steps Established Special Survivor Indemnity Allowance (SSIA)

– 2008: Starting 2009, extra $50/mo payment with $10/mo added each yr for 5 yrs (2013)

– 2009: Extended SSIA 2014 – 2017; $150, $200, $275, $310

All SSIA stops in 2018

Reserve Component SBP

RC-SBP has two premium payments • The RC portion – for Gray Zone coverage • Active portion – for after age 60 • Both paid at age 60

After member death… • RC premium stops now—recent change

Social Security Survivor Benefits

• Widow or widower, full retirement age or older – Full benefit

• Widow or widower, age 60 to full retirement age – Reduced amount

• Disabled widow or widower, age 50 through 59 – Reduced amount

• Widow or widower, any age, caring for a child under age 16 – Reduced amount

• A child under age 18 (19 if still in elementary or secondary school) or disabled

– Reduced amount

Permanent ID Cards

As of FY 2005... • Spouses & Survivors 75 & Older • Began Sep 05

As of FY 2007... • Disabled dependents • Began Jan 07 • Strings atchd—Financial support statement

still required

The Effects of Remarriage on

Benefits & Programs for

Surviving Spouses

Military Benefits

Upon Death of Military Member

Surviving Spouse remains eligible for all benefits

(medical care, commissary, exchange, theater, etc.)

Except space-available travel

Military Benefits

Effect of Remarriage (to a non-service member)

Upon remarriage All

military benefits suspended

Military Benefits

Remarriage Terminates all benefits

except medical will be reinstated

(if subsequent marriage ends in death or divorce)

Military Survivor Benefit Plan (SBP)

Upon Death of Military Member

If elected SBP SBP Payments Begin

SBP

Effect of Remarriage Before Age 55

SBP Payments Suspended

Remarriage Terminates SBP Payments Reinstated

SBP

Effect of Remarriage On or After Age 55

SBP Continues

Dependency & Indemnity Compensation (DIC)

DIC is awarded to a surviving spouse of a disabled veteran:

• If the death is attributed to an injury or disease incurred on active duty

– Or - • If the retiree had 100% VA disability rating – 10+ years – 5 continuous years from release of active duty

– Or - • Former POW rated 100% one year prior to death

DIC

Effect of Remarriage Before Age 57 – DIC Suspended On/After Age 57 – DIC continues

Remarriage Terminates DIC Reinstated

DIC & SBP Offset

• SBP is reduced – One $ for each $ received in DIC

• SBP premiums reimbursed –

– IF DIC is applied for within 1 year of service member’s death

SBP & DIC

Effect of Remarriage Before Age 55

SBP & DIC Suspended

SBP & DIC

Effect of Remarriage

On or After Age 55 but Before Age 57

DIC Suspended & SBP Increased*

SBP & DIC

Effect of Remarriage On or After Age 57

BOTH SBP and DIC Paid In Full Thanks to the ‘Sharp Case’

Social Security

Upon Death of Military Member

Can receive Social Security Survivor Benefits

Reduced rate Age 60

Social Security

• Effect of Remarriage Before Age 60

Not Eligible on Members Record

• Remarriage Terminates

Eligibility Restored

Social Security

Effect of Remarriage After Age 60

No Effect on

Social Security Entitlements

CHAMPVA

• Effect of Remarriage Lose CHAMPVA • Remarriage Terminates CHAMPVA Restored

Question & Answer and

Sharing

Military Officers Association of America

Financial and Benefits Information 201 N. Washington Street

Alexandria, VA 22314-2539

1 800 234-6622 Email: BenInfo@moaa.org

Web: www.moaa.org