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: [email protected] – 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: [email protected]
Web: www.moaa.org