SEPTEMBER HOT NEWS
CLICK TO RETURN
Widows Beat US Government
On August 26, the U.S. Court of Appeals for the Federal Circuit issued a decision in the case of Sharp v. the United States, a lawsuit brought by a group of widows over a recent law change that they say makes them eligible to receive Survivor Benefit Plan (SBP) annuities from DoD and VA Dependency and Indemnity Compensation (DIC), without any offset between the two.
At issue is a 2004 law that restored DIC payments to veterans' surviving spouses who remarry after their 57th birthday. Before the law change, survivors lost DIC upon remarriage at any age.
In restoring eligibility for DIC, the language of the new law barred deduction of DIC from other veterans’ benefits for these widows “under any other provision of law.”
When VA restored their DIC, but the Pentagon continued deducting it from their SBP annuities, three widows took the government to court, claiming violation of the new law. DoD rejected that interpretation, in essence claiming that SBP is a DoD benefit rather than a veterans’ benefit.
On June 12, 2008 the U.S. Court of Federal Claims ruled in favor of the widows. The government filed an appeal, and the U.S. Court of Appeals heard the case on June 4.
The Appeals Court’s ruling for the widows this week said what MOAA has been saying all along: “Perhaps [the 2004 law change] simply represents a first step in an effort to eventually enact full repeal [of the SBP-DIC offset]. After all, the servicemember paid for both benefits: SBP with premiums; DIC with his life”.
This is a remarkable ruling and a poignant victory for the three widows involved.
But the case isn’t necessarily over yet, because it remains to be seen whether the government will appeal the decision to the US Supreme Court.
We again commend these brave survivors for their tenacity. This important case can only help in our continuing crusade to repeal the SBP/DIC offset.
On August 26, the U.S. Court of Appeals for the Federal Circuit issued a decision in the case of Sharp v. the United States, a lawsuit brought by a group of widows over a recent law change that they say makes them eligible to receive Survivor Benefit Plan (SBP) annuities from DoD and VA Dependency and Indemnity Compensation (DIC), without any offset between the two.
At issue is a 2004 law that restored DIC payments to veterans' surviving spouses who remarry after their 57th birthday. Before the law change, survivors lost DIC upon remarriage at any age.
In restoring eligibility for DIC, the language of the new law barred deduction of DIC from other veterans’ benefits for these widows “under any other provision of law.”
When VA restored their DIC, but the Pentagon continued deducting it from their SBP annuities, three widows took the government to court, claiming violation of the new law. DoD rejected that interpretation, in essence claiming that SBP is a DoD benefit rather than a veterans’ benefit.
On June 12, 2008 the U.S. Court of Federal Claims ruled in favor of the widows. The government filed an appeal, and the U.S. Court of Appeals heard the case on June 4.
The Appeals Court’s ruling for the widows this week said what MOAA has been saying all along: “Perhaps [the 2004 law change] simply represents a first step in an effort to eventually enact full repeal [of the SBP-
This is a remarkable ruling and a poignant victory for the three widows involved.
But the case isn’t necessarily over yet, because it remains to be seen whether the government will appeal the decision to the US Supreme Court.
We again commend these brave survivors for their tenacity. This important case can only help in our continuing crusade to repeal the SBP/DIC offset.