Order Code RL32769
CRS Report for Congress
Received through the CRS Web
Military Death Benefits:
Status and Proposals
Updated August 31, 2005
David F. Burrelli
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Jennifer R. Corwell
Research Associate in Defense Resources
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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Military Death Benefits: Status and Proposals
Summary
Department of Defense (DoD) benefits for survivors of deceased members of
the armed forces vary significantly in purpose and structure. Benefits such as the
death gratuity provide immediate cash payments to assist these survivors in meeting
their financial needs during the period immediately following a member’s death.
Similarly, the Servicemembers’ Group Life Insurance (SGLI) provides the life
insurance policy value in a lump sum payment following the service member’s death.
Other benefits such as the Veteran’s Administration Dependency and Indemnity
Compensation (DIC) and the Survivor Benefit Plan (SBP), are designed to provide
long-term monthly income. Additional death benefits provided by the DOD for
survivors and dependents include housing assistance, health care, commissary and
exchange benefits, educational assistance, and burial, funeral, and related benefits.
Survivors may also receive death benefits from Social Security.
In response to P.L. 108-375, February 1, 2005, DOD presented proposed
changes during a Senate Armed Services Committee hearing. DOD recommended
an increase in the death gratuity benefit from its current amount of $12,420 to
$100,000, limited to service members killed in an area or operation designated by the
Secretary of Defense. In addition, the DOD also recommended an increase in
Servicemembers’ Group Life Insurance (SGLI) coverage from $250,000 to $400,000,
with the premiums for the additional $150,000 coverage paid for by the government
for troops serving in areas or operations designated by the Secretary of Defense.
Military personnel not serving in such designated areas could receive the additional
coverage, but at their own expense through higher monthly premiums. As proposed
by DOD, both of these measures would be made retroactive to October 7, 2001, when
U.S. military operations began in Afghanistan. It has been reported that DOD has
estimated that its plan would cost about $280 million in retroactive payments alone.
(Graham, Bradley, “Military Chiefs Criticize Curbs In Plan to Raise Death Benefits,”
Washington Post, Feb., 2, 2005: 20.) The President proposed these same increases as
part of his FY2005 Supplemental Appropriations request. The Death Benefits
Enhancements (P.L. 109-13) increased the Death Gratuity to $100,000 and the SGLI
to $400,000 for those who die from wounds, injuries or illness that are combat or
combat-training related.
This report describes the various death benefits from the Department of
Defense, Department of Veterans Affairs (VA), and Social Security available to
certain survivors of members of the Armed Forces who die on active duty. (This
report does not consider benefits available to civilian employees of the Department
of Defense.) Benefits are listed, along with their purpose, how they are calculated,
and where appropriate, recent changes. Legislative proposals in the 109th Congress
regarding death benefits are also described. Finally, two hypothetical examples for
determining a level of death benefits, a Government Accountability Office (GAO)
summary comparing military and other death related benefits, and congressional
language from the Fiscal Year (FY) 2005 National Defense Authorization Act are
presented in the Appendices. The report will be updated as events warrant.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Death Gratuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Social Security Survivors’ Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Servicemembers’ Group Life Insurance (SGLI) . . . . . . . . . . . . . . . . . . . . . . . . . . 3
VA Dependency and Indemnity Compensation (DIC) . . . . . . . . . . . . . . . . . . . . . 5
Military Survivor Benefit Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Commissary and Exchange Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Survivors’ and Dependents’ Educational Assistance Program (DEA) . . . . . . . . . 8
Burial, Funeral, and Related Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Legislative Proposals in the 109th Congress, 1st Session,
on Military Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendix A. Two Hypothetical Examples for Determining a Level
of Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Appendix B. Government Accountability Office (GAO) Summary
on Military and Civilian Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Appendix C. Death Benefit Assessment Provisions
in the National Defense Authorization Act for FY2005 . . . . . . . . . . . . . . . 21
List of Tables
Table 1. Corporal’s (E-4) Death Benefitsa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Table 2. Lieutenant Colonel’s (O-5) Death Benefitsa . . . . . . . . . . . . . . . . . . . . . 17

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Military Death Benefits:
Status and Proposals
Introduction
Department of Defense (DOD) benefits for survivors of deceased members of
the armed forces vary significantly in purpose and structure. Benefits such as the
death gratuity provide immediate cash payments to assist these survivors in meeting
their financial needs during the period immediately following a member’s death.
Similarly, the Servicemembers’ Group Life Insurance (SGLI) provides the life
insurance policy value in a lump sum payment following the service members’ death.
Other benefits such as the Veteran’s Administration Dependency and Indemnity
Compensation (DIC) and the Survivor Benefit Plan (SBP), are designed to provide
long-term monthly income. Survivors may also receive death benefits from Social
Security.
As a part of the FY2005 National Defense Authorization Act, Congress directed
the Administration to assess and recommend enhanced benefits for deceased
members of the armed forces. (See Appendix C for a discussion of that legislation.)
In response, on February 1, 2005, the Department of Defense (DOD) presented
proposed changes to the Senate Armed Services Committee. Specifically, DOD
proposed to increase death benefit payments by nearly $250,000 to families of U.S.
troops killed in designated combat zones. This proposed increase would effectively
double the cash that survivors can receive in immediate government payments and
life insurance proceeds to $500,000. Defense officials are also asking that these
benefits be made retroactive to October 2001 for relatives of U.S. troops killed in
Iraq and Afghanistan. It has been reported that DOD has estimated that its plan
would cost about $280 million in retroactive payments alone.1 The President
proposed these same increases as part of his FY2005 Supplemental Appropriations
request.2 The Death Benefits Enhancements3 increased the Death Gratuity to
$100,000 and the SGLI to $400,000 for those who die from wounds, injuries or
illness that are combat or combat-training related.
Listed below is a description of the various death benefits from the Department
of Defense, Department of Veterans Affairs (VA), and Social Security available to
certain survivors of members of the Armed Forces who die on active duty. The
1 Graham, Bradley, “Military Chiefs Criticize Curbs In Plan to Raise Death Benefits,”
Washington Post, Feb., 2, 2005: 20.
2 U.S. President, George W. Bush, FY2005 Supplemental Appropriations Request, February
14, 2005.
3 P.L. 109-13, May 11, 2005.

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following describes each benefit’s specific purpose, as well as current policy
regarding the level of benefits available to survivors. It should be noted that some
benefits, such as the Survivor Benefit Plan (SBP) and the Veteran’s Administration
(VA) Dependency and Indemnity Compensation (DIC), may offset one another (i.e.
whenever a surviving spouse of an SBP participant is also entitled to DIC, the
spouse’s monthly SBP annuity is reduced by the amount of the DIC payment). Thus,
calculating the level of some benefits usually involves a number of variables which
can make each case different from another.
Death Gratuity4
Purpose: “To provide an immediate cash payment to assist survivors of deceased
members of the armed forces to meet their financial needs during the period
immediately following a member’s death and before other survivor benefits, if
any, become available.”5
In FY2004, a tax-free, lump sum of $12,420 was paid by DOD in the event of
a death while the member was serving on active duty (including certain members of
the reserve components during training). It was paid to one of various “eligible
survivors” as described in law.6 The designated survivor of virtually all deceased
DOD military personnel receives this gratuity immediately. In Fiscal Year (FY)
2004, the death gratuity statute was amended to provide that the gratuity be adjusted
upward by the same amount as any increase in military basic pay.7 As part of what
was formally called the Death Benefits Enhancement,8 the Death Gratuity was
increased to $100,000 in a case of death resulting from wounds, injuries or illnesses
that occur in a combat zone (as designated by the Secretary of Defense) or in combat-
related activities (including training, hazardous conditions or situations involving an
instrumentality of war). This increase was made retroactive for deaths that occurred
on or after October 7, 2001. These additional payments are scheduled to terminate
on September 30, 2005. This increase in benefits may be extended for FY2006 and
ultimately be made permanent. According to a House report9 “...the [Appropriations]
Committee provides...sufficient funds in support of enhanced levels of the Death
Gratuity and Servicemembers Group Life Insurance program....” Section 1523 of the
House version of the National Defense Authorization Act for Fiscal Year 2006 would
make the increased Death Gratuity permanent as of October 1, 2005. Therefore, the
House Appropriators have added funds for the continuation of these benefits, and the
4 10 U.S.C. §§ 1475-1480; P.L. 108-136, Stat. 1520, section 646, November 24, 2003.
5 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed. , September 1996: 621.
6 10 U.S.C. § 1477.
7 P.L. 108-375, Sec. 643, October 8, 2004: 708-709.
8 P.L. 109-13; sec. 1013; May 11, 2005.
9 H.Rept. 109-119, Making Appropriations for the Department of Defense for the Fiscal
Year Ending September 30, 2006 and for other Purposes (H.R. 2863).

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Armed Services Committee has added language that would make the increased Death
Gratuity permanent.
Social Security Survivors’ Benefits
Purpose: “To require employees and employers — in the present case, members
of the uniform services and the Federal Government, respectively — to jointly
finance a Federal Old-Age, Survivors, Disability, and Health Insurance
(OASDHI) program in order to provide pre- and post-retirement income and
security to covered employees and their families.”10
Active duty military personnel have been fully covered by Social Security and
have paid Social Security taxes since January 1, 1957. In addition to providing
monthly benefits to civilian retirees and retired military personnel, the social security
program provides benefits to the widows and widowers of deceased military and
civilian retirees. Social Security survivor benefits are based on a spouse’s (or former
spouse’s) employment, including military service, and are first payable at age 60; at
age 50, if the surviving spouse is totally disabled; or, at any age if and as long as
there are children under the age of 16.
In 2004, the average monthly Social Security benefit for a surviving parent of
a minor was $662. The average benefit for a child of a deceased parent was $607.
This monthly benefit is payable to a surviving dependent unmarried child who is
either: (1) under age 18, (2) a full time elementary or secondary school student under
age 19, or (3) a disabled person age 18 or older whose disability began before the age
of 22.11 A surviving widow with one child therefore would receive an average
monthly benefit of $1,269. Existing rules limit the maximum family benefit, so it
would not necessarily increase by $607 for each additional child.
Servicemembers’ Group Life Insurance (SGLI)12
Purpose: “To make life insurance protection available to members of the
uniformed services at a reasonable cost.”13
All members of the uniformed services are automatically insured for the
maximum coverage under Servicemembers’ Group Life Insurance. The maximum
coverage is $250,000, which is paid in a lump sum. The cost of this coverage is
10 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 671.
11 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 679-680.
12 38 U.S.C. §§ 1965 et seq.
13 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 615.

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$0.65 per $10,000 of coverage per month.14 Service members can decline coverage
entirely or opt for less than the maximum coverage. According to the Office of the
Deputy Under Secretary of Defense (Military Personnel Policy), as of November
2004, only 8.4% of active duty servicemen declined full coverage of SGLI.15
As noted above in the “Death Gratuity” section, the SGLI was increased up to
$400,000 at no additional cost for those who die from wounds, injuries, or illnesses
that occur in a combat zone (as designated by the Secretary of Defense) or in combat-
related activities (including training, hazardous conditions or situations involving an
instrumentality of war). This increase was made retroactive for deaths that occurred
on or after October 7, 2001, and would terminate on September 30, 2005. Further,
a member with a spouse may not elect less than the maximum coverage without the
written consent of the member’s spouse. An unmarried member who opts for less
than the maximum coverage, will have their designated next of kin or designated
beneficiary notified. Again, as noted above, language was included in the FY2006
Defense Appropriations Act to fund this increase for FY2006. Thus, the increase in
SGLI would likely continue at least for the next fiscal year. P.L. 109-13 also changed
the coverage increments that may be provided from $10,000 to $50,000.
Conversely, the House Armed Services Committee has proposed language in the
National Defense Authorization Act for FY2006 that would afford certain members
of the armed forces an allowance which recognizes the cost of SGLI coverage. As
described in H.Rept. 109-8916
This section [Sec. 1528] would require the secretaries concerned to pay members
serving in the theater of operations for Operation Enduring Freedom (OEF) and
Operation Iraqi Freedom (OIF) a monthly allowance equal to the deduction in
pay required to pay the premium for Servicemembers’ Group Life Insurance
(SGLI) coverage obtained by the member, or an amount equal to the deduction
in pay the member would incur if the member had elected the maximum amount
of coverage under the SGLI. The section would also require the secretaries to
provide information about the allowance to members serving in OEF and OIF
theaters and members projected to serve there and to afford such members the
opportunity to obtain SGLI coverage or increase their existing coverage.
In a separate action, on July 26, 2005, the House passed H.R. 3200. Among its
provisions, this bill repeals the language in P.L. 109-13 regarding SGLI and in its
place makes permanent the increase in this benefit from $250,000 to $400,000. In
addition, H.R. 3200, repeals the ‘spousal consent’ language regarding those who opt
for less than the maximum coverage under SGLI and instead requires ‘spousal
notification.’ Notification of designated next-of-kin or other designated beneficiaries
would continue for unmarried servicemembers. H.R. 3200 requires the Secretary to
14 For more information see the website, online at [http://www.insurance.va.gov/SgliSite/
SGLI/sgliPremiums.htm].
15 Tom Tower, Directorate of Compensation, Office of the Deputy Under Secretary of
Defense (Military Personnel Policy), (703) 693-1059, February 2, 2005.
16 U.S. Congress, House Committee on Armed Services, National Defense Authorization Act
for Fiscal Year 2006, H.Rept. 109-89, 109th Cong., 1st Sess., May 20, 2005.

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make a good faith effort to provide notification, but a lack of notification does not
invalidate the serevice member’s decision. Finally, H.R. 3200 would make
permanent the change in increments of SGLI coverage from $10,000 to $50,000.
VA Dependency and Indemnity Compensation (DIC)
Purpose: “To authorize a payment to the surviving dependents of a deceased
military member partially in order to replace family income lost due to the
member’s death and partially to serve as reparation for the death.”17
VA Dependency and Indemnity Compensation benefits are integrated with the
military Survivor Benefit Plan or SBP (see below). In other words, payment received
via DIC brings about a dollar-for-dollar reduction in SBP benefits. DIC benefits can
also be terminated as a result of remarriage by the surviving spouse. The DIC benefit
is $993 per month for the surviving spouse and $247 per month for each child (plus
if there are children under the age 18 they receive an additional $250 per month for
two years) as of January 1, 2005 for the survivors of members who died on or after
January 1, 1993.18 Additional benefits may be provided to a spouse if the spouse is
housebound, has dependents under age 18, or between the ages of 18 and 23 and
attending school, or the dependent became permanently incapable of self-support
before the age of 18 due to a mental or physical disability.19 Surviving parents in
some cases may also be eligible for DIC benefits, depending on the parents’ income
and marital status.20
Military Survivor Benefit Plan21
Purpose: “To establish a program to insure that the surviving dependents of
military personnel who die...will continue to have a reasonable level of
income.”22
As originally created, the military Survivor Benefit Plan (SBP) was designed to
provide an annuity to the survivors of retirement-eligible military personnel.
17 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 627.
18 Prepared Statement of the Honorable David, S.C. Chu, OUSD(P&R), Before the Senate
Armed Services Committee, February 1, 2005.
19 For additional information, see [http://www.vba.va.gov/bln/21/Milsvc/Docs/Diceg.doc].
20 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 636.
21 10 U.S.C. §§ 1447 et seq.
22 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 683.

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However, recent legislation23 has expanded the coverage to the survivors of
individuals who die while on active duty, effective September 10, 2001. Under these
provisions, the surviving spouses of active duty personnel who die are provided an
annuity. This annuity for an active duty (non-retirement-eligible) member is
determined by assuming the individual would have been eligible to retire with a total
(100%) disability at the time of death (under sec. 1201, title 10 USC).24 The
surviving spouse’s annuity is based on the amount of disability retired pay the service
member would have received. Currently, the spouse’s share is 55 percent of the
member’s disability retired pay if the surviving spouse is under age 62, and 35
percent if age 62 or over. As a result of language included in the FY2005 National
Defense Authorization Act, this reduction in benefits for those survivors age 62 and
over is scheduled to be phased out by April 1, 2008.25 Depending on when the
individual entered the service, the computation base may be either the terminal
monthly basic pay (for those who entered service on or before September 7, 1980)
or the average of the 36 months (or “high three” years) during which the member
earned the highest rate of basic pay (for those who entered the service after
September 7, 1980). The amount of monthly disability pay is computed either by
multiplying the determined amount of basic pay by the percentage disability, or by
computing 2.5 percent of basic pay times the member’s years of service, whichever
is higher. However, this amount cannot exceed 75 percent. Since the legislation
assumes the level of disability is total (100%), the amount of basic pay (or “high
three”) used would be multiplied by 75 percent.
For an active duty member who is eligible to retire, the SBP benefit is computed
to be 55 percent of the retired pay they would have been eligible to receive had they
retired at the time of their death.
A surviving spouse who remarries prior to age 55 loses SBP eligibility. In
addition, as noted above, SBP annuities may be offset or reduced by the amount
received from DIC.26
Housing27
Purpose: “To provide a cash allowance to military personnel not provided with
government quarters adequate for themselves and their dependents to enable such
personnel to obtain civilian housing as a substitute.”28
23 P.L. 107-107; 115 Stat. 1151-1152, December 28, 2004.
24 Under these provisions, the member’s disability may not be the result of intentional
neglect or misconduct.
25 P.L. 108-375; 118 Stat. 1811; October 28, 2004.
26 For more information on the SBP, see Burrelli, David F., The Military Survivor Benefit
Plan: A Description of Its Provisions, CRS Report RL31664, December 9, 2004.
27 2003 Uniformed Services Almanac, 43rd Edition: 183; 37 U.S.C. § 403 (l).
28 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
(continued...)

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Family members of a military member who dies in the line of duty are allowed
180 days’ free occupancy of Government quarters or 180 days of Basic Allowance
for Housing (BAH) if they live in civilian housing.29 P.L. 109-13 (sec. 1022)
extended these housing benefits to 365 days. BAH varies in accordance with whether
military personnel have dependents or are single. It is based on annual surveys of
housing costs in several hundred metropolitan areas around the United States.
The surviving spouse and dependent children receive an additional benefit
entitling them to “...move one time at Government expense. Household goods will
not be moved a greater distance than the personal travel. One motor vehicle can be
shipped at Government expense.”30
Health Care31
Purpose: “To make medical care available to members of the uniformed
services and their dependents in order to help ensure availability of physically
acceptable and experienced personnel in time of national emergency; to provide
incentives for armed forces personnel in time of national emergency; to provide
incentives for armed forces personnel to undertake military service and remain
in that service for a full career, and to provide military physicians and dentists
exposure to the total spectrum of demographically diverse morbidity necessary
to support professional training programs and ensure professional satisfaction for
a medical service career.”32
Unremarried surviving spouses and minor children of deceased military
personnel remain eligible to receive military health care benefits subject to certain
limitations. As the DOD website on military health care benefits, known as
TRACER, states, “[s]urviving family members of deceased active duty service
members remain eligible for TRACER benefits at the active duty dependent rates for
a three-year period. At the end of the three-year period, TRACER eligibility
continues, but at the retiree dependent rates.”33 Surviving spouses remain eligible for
TRACER benefits throughout their lifetime if they do not remarry. Surviving
unmarried dependents remain eligible for TRACER benefits until the age of 21, or
until the age of 23 if they are a full-time student. Eligibility for TRACER may also
28 (...continued)
Background Papers, 5th ed., September 1996: 81.
29 2003 Uniformed Services Almanac, 43rd Edition: 183.
30 Statement by General Richard A. Cody, Vice Chief of Staff United States Army, before
the Senate Armed Services Committee, February 1, 2005.
31 10 U.S.C. §§ 1072 et seq.
32 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers,5th ed., September 1996: 661.
33 See [http://www.tricare.osd.mil] for more information. See also CRS Issue Brief
IB93103, Military Medical Care Services: Questions and Answers, by Richard Best,,
updated regularly.

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be extended for a dependent if the child is incapable of self-support because of a
mental or physical disability and the condition existed prior to age 21.34
Commissary and Exchange Benefits35
Purpose: “To provide quality merchandise and necessary services to authorized
patrons at moderate prices and to generate reasonable earnings to supplement
appropriated funds for the support of Department of Defense morale, welfare,
and recreation (MWR) programs.”36
Under regulations, a surviving spouse of a member who dies while on active
duty remains eligible to use commissary (military supermarkets) and exchange
(military department stores) stores until the spouse remarries. Unmarried dependent
children retain commissary and exchange store privileges until the age of 21, or until
the age of 23 if they are a full-time student. Eligibility for commissary and exchange
stores may be extended for a dependent if the child is incapable of self-support
because of a mental or physical disability and the condition existed prior to age 21.37
Child Care38
Purpose: “Quality child and youth programs are vital to Service families. Child
care is a workforce issue which impacts the effectiveness and readiness of the
force.”
Children of a military member who dies in the line of duty are allowed to
continue attending military child care facilities for 180 days.
Survivors’ and Dependents’ Educational Assistance
Program (DEA)39
Purpose: “...providing opportunities for education to children whose education
would otherwise be impeded or interrupted by reason of the disability or death
of a parent from a disease or injury incurred or aggravated in the Armed
Forces...the educational program extended to the surviving spouses of veterans
34 See [http://www.tricare.osd.mil/Factsheets/viewfactsheet.cfm?id=174] for more
information.
35 10 U.S.C. §§ 1061 et seq.
36 U.S. Department of Defense, Office of the Secretary of Defense, Military Compensation
Background Papers, 5th ed., September 1996: 703.
37 DOD 1330.17-R, Armed Services Commissary Regulations (ASCR), April 1987.
38 Witte, Janice, Director of the Office of Children and Youth, DUSD(MPP), (703) 614-
3330.
39 See [http://www.gibill.va.gov/education/C35pam.htm] for more information.

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who died of service-connected disabilities and to spouses of veterans with a
service-connected total disability permanent in nature is for the purpose of
assisting them in preparing to support themselves and their families at a standard
of living level which the veteran, but for the veteran’s death or service disability,
could have expected to provide for the veteran’s family.”40
Dependents’ Educational Assistance (DEA) provides education and training
opportunities to eligible dependents of certain veterans, including the surviving
spouse and children of a service member who died of a service-connected disability
(the disability must have arisen from active service in the Armed Forces). This VA
program offers up to $803 a month for a maximum of 45 months to pay for education
benefits.41 These benefits may be used for degree and certificate programs,
apprenticeship, and on-the-job training, as well as correspondence courses for
surviving spouses. Remedial, deficiency, and refresher courses may be approved
under certain circumstances. The surviving spouse’s eligibility to receive these
benefits ends 20 years from the date the VA finds them eligible.42 In addition, a
surviving spouse’s eligibility for this benefit ends if she/he is remarried before the
age of 57. However, the termination of a surviving spouse’s remarriage, either by
death or divorce, will reinstate DEA benefits to the surviving spouse.43 Dependent
children of the veteran may receive the benefits of attending school or job training
between the ages of 18 and 26. In certain instances, it is possible to begin receiving
the benefit before they reach the age of 18 and to continue receiving it after the age
of 26. Also, marriage is not a bar to this benefit for children of the deceased or
disabled veteran.44
In addition to DEA, the “VA will also pay a special Montgomery GI Bill death
benefit to a designated survivor in the event of a service-connected death of an
individual while on active duty or within one year after discharge or release. The
deceased must either have been entitled to educational assistance under the
Montgomery GI Bill program or a participant in the program who would have been
so entitled but for the high school diploma or length of service requirement. The
amount paid will be equal to the participant’s actual military pay reduction, less any
education benefits paid.”45
40 38 U.S.C. §§ 3500 et seq.
41 Christenson, Sig, “GIs’ Families Not Left Destitute,” San Antonio Express-News,
February 3, 2005.
42 38 U.S.C. § 3512(b)(1)(C) as amended by P.L. 108-452.
43 Statement of Epley, Robert J., Associate Deputy Under Secretary for Policy and Program
Management, Veterans Benefits Administration, Department of Veterans Affairs before the
Senate Committee on Armed Services, February 1, 2005.
44 See [http://www.gibill.va.gov/education/C35pam.htm] for more information.
45 Federal Benefits for Veterans and Dependents, Department of Veteran Affairs, 2004
edition, p. 56.

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Burial, Funeral, and Related Benefits
Under law, the responsibilities of the Federal Government are the
following:46
[T]he Secretary [of the military department] concerned may provide for the
recovery, care and disposition of the remains of personnel who die while on
active duty including the following:
! Recovery and identification of the remains.
! Notification of the next of kin or other appropriate person.
! Preparation of the remains for burial, including cremation if
requested by the person designated to direct the disposition of the
remains.
! Furnishing of a uniform or other clothing.
! Furnishing of a casket or urn, or both, with outside box.
! Hearse service.
! Funeral director’s services.
! Transportation of the remains, and round trip transportation and
prescribed allowances for an escort of one person, to the place
selected by the person designated to direct disposition of the remains
or, if such a selection is not made, to a national or other cemetery
which is selected by the Secretary and in which burial of the
decedent is authorized.
! Interment of the remains.10. Presentation of a flag of the United
States to the person designated to direct disposition of the remains,
except in the case of a military prisoner who dies while in custody
of the Secretary and while under a sentence that includes a
discharge.
! Presentation of a flag of equal size to the flag presented under
paragraph 10 (above) to the parents or parent, if the person to be
presented a flag under paragraph 10 is other than the parent of the
decedent.
When a service member dies, the DOD’s Casualty Assistance Office (CAO)
sends personnel to notify the next-of-kin of the loss. This representative then works
with the family following notification of the loss, through funeral preparations,
burial and the entire process of determining benefits and compensation. They
provide counseling, arranging for the military funeral (if desired), serving as an
official representative if/when problems arise, and ensuring that the families receive
the benefits and compensation due to them.47 Families have access to their CAO
46 10 U.S.C. § 1481 et seq.
47 Prepared Statement of the Honorable David S.C. Chu, OUSD(P&R), Before the Senate
Armed Services Committee, February 1, 2005.

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representative during the days, weeks, months and years after the service member’s
death.48
Further, if an individual pays any expense payable by the United States the
Secretary is authorized to reimburse the individual or her/his representative. The
payment of these expenses is limited to amounts not larger than what would have
normally been incurred by the Secretary in furnishing the supply or service
concerned.
Although not a “death benefit” per se, special rules apply to those whose
remains can not be recovered, as well as situations in which commingled remains
cannot be identified. In these circumstances, burial of the remains in a common
grave at a national cemetery may be considered necessary.
Military honors are provided at the time of burial. Headstones and markers are
also provided. Those who die on active duty may be buried at Arlington National
Cemetery. In addition, the member’s spouse and dependent children may also be
buried at Arlington subject to limitations.49 Provisions for burial in other national
cemeteries or in state veterans cemeteries vary.
Legislative Proposals in the 109th Congress, 1st
Session, on Military Death Benefits
H.R. 292. Representative Spencer Bachus et al. Introduced January 20, 2005.
Purpose: To amend title 10, United States Code, to increase the amount of the
military death gratuity from $12,000 to $100,000. This bill was referred to the
Committee on Armed Services.
H.R. 377. Representative Terry Everett. Introduced January 26, 2005.
Purpose: To improve death benefits for the families of deceased members of the
armed forces, and for other purposes. This bill was referred to the Committee on
Armed Services.
H.R. 407. Representative Richard Pombo. Introduced January 26, 2005.
Purpose: To authorize space-available transportation on Department of Defense
aircraft for an individual who is a surviving spouse or dependent child of a member
48 Statement by General Richard A. Cody, Vice Chief of Staff United States Army, before
the Senate Armed Services Committee, February 1, 2005.
49 The surviving spouse, minor child, or permanently dependent child of any person already
buried in Arlington National Cemetery may also be buried there. In addition, a widow or
widower of the following may be buried in Arlington National Cemetery: a member of the
Armed Forces who was lost or buried at sea or officially determined to be missing in action;
a member of the Armed Forces who is interred at a U.S. military cemetery overseas that is
maintained by the American Battle Monuments Commission; a member of the Armed
Forces who is interred at Arlington National Cemetery as part of a group burial. For more
information on burial limitations in Arlington National Cemetery, see 2004 Uniformed
Services Almanac, 44th ed.: 179-180.

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of the Armed Forces who died on active duty when that individual is traveling with
a relative of the deceased member who is otherwise eligible for such space-available
transportation. This bill was referred to the Committee on Armed Services.
H.R. 447. Representative Marsha Blackburn. Introduced February 1, 2005.
Purpose: To increase the amount of the military death gratuity to $100,000. This bill
was referred to the Committee on Armed Services.
H.R. 460. Representative Chet Edwards. Introduced February 1, 2005.
Purpose: To amend title 38, United States Code, to increase the maximum coverage
under the Servicemembers’ Group Life Insurance and Veterans’ Group Life
Insurance programs from $250,000 to $500,000. This bill was referred to the
Committee on Veterans’ Affairs.
H.R. 493. Representative Silvestre Reyes. Introduced February 1, 2005.
Purpose: To establish an allowance to cover the cost of premiums for
Servicemembers’ Group Life Insurance for members of the Armed Forces serving in
combat zones, for junior enlisted members, and for certain other members. This bill
was referred to the Committee on Armed Services.
H.R. 502. Representative Christopher H. Smith. Introduced February 1, 2005.
Purpose: To increase the amounts payable under the Department of Defense death
gratuity program and the Servicemembers’ Group Life Insurance program. This bill
was referred to the Committee on Armed Services, and in addition to the Committee
on Veterans’ Affairs, for a period to be determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the committee
concerned.
H.R. 666. Representative John M. Spratt, Jr. Introduced February 8, 2005.
Purpose: To establish a new allowance for members of the Armed Forces serving in
Iraq or Afghanistan to cover the premiums for Servicemembers’ Group Life
Insurance coverage obtained by the members. This bill was referred to the Committee
on Armed Services.
H.R. 808. Representative Henry E. Brown, Jr. Introduced March 14, 2005.
Purpose: To amend title 10, United States Code, to repeal the offset from surviving
spouse annuities under the military Survivor Benefit Plan for amounts paid by the
Secretary of Veterans Affairs as dependency and indemnity compensation. This bill
was referred to the Committee on Armed Services.
H.R. 832. Representative Maxine Waters. Introduced February 15, 2005.
Purpose: To amend title 10, United States Code, to increase to $100,000 the amount
payable under the Department of Defense death gratuity program and to amend title
38, United States Code, to increase to $400,000 the maximum coverage under
Servicemembers’ Group Life Insurance program. This bill was referred to the
Committees on Armed Services and Veterans’ Affairs.
H.Res. 271. Representative Chet Edwards. Introduced May 11, 2005. Purpose:
Providing for consideration of the bill (H.R. 808) to amend title 10, United States
Code, to repeal the offset from surviving spouse annuities under the military Survivor

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Benefit Plan for amounts paid by the Secretary of Veterans Affairs as dependency
and indemnity compensation. This bill was referred to the Committee on Rules.
H.R. 968. Representative Jim Saxton. Introduced February 17, 2005. Purpose:
To amend title 10, United States Code, to change the effective date for paid-up
coverage under the military Survivor Benefit Plan from October 1, 2008, to October
1, 2005. This bill was referred to the Committee on Armed Services.
H.R. 1268. Representative Jerry Lewis. Introduced March 11, 2005. Became
P.L. 109-13, May 11, 2005. An Act Making Emergency Supplemental
Appropriations for Defense, the Global War on Terror, and Tsunami Relief, for fiscal
year ending September 30, 2005, and for other purposes.
H.R. 1815. Representative Duncan Hunter. Introduced April 26, 2005.
National Defense Authorization Act for Fiscal Year 2006. Referred to the
Committee on Armed Services.
H.R. 2046. Representative Steve Buyer. Introduced May 3, 2005.
Servicemembers’ Health Insurance Protection Act of 2005. Referred to the
Committee on Veterans’ Affairs.
H.R. 2131. Representative Chet Edwards. Introduced May 5, 2005. Purpose:
To improve benefits for members of the Armed Forces and veterans and for their
dependents and survivors. This bill was referred to the Committees on Veterans’
Affairs, Ways and Means, and Armed Services.
H.R. 2747. Representative Bob Filner, Introduced June 7, 2005. Disabled
Veterans Life Insurance Enhancement Act of 2005. This bill was referred to the
House Veterans’ Affairs Committee.
H.R. 2986. Representative Robert E. Andrews. Introduced June 20, 2005.
Purpose: To amend title 10, United States Code, to allow a participant in the military
Survivor Benefit Plan who has designated an insurable interest beneficiary under the
plan to designate a new beneficiary upon the death of the previously designated
beneficiary. This bill was referred to the Committee on Armed Services.
H.R. 3200. Representative Jeff Miller. Introduced July 11, 2005.
Servicemembers’ Group Life Insurance Enhancement Act. This bill was referred to
the House Committee on Veterans’ Affairs, passed in the House and referred to the
Senate Committee on Veterans’ Affairs. This bill was passed by the House (424-0)
on July 26, 2005 and sent to the Senate where it was referred to the Committee on
Veterans’ Affairs.
S. 3. Senator Judd Gregg. Introduced January 24, 2005. Purpose: To increase
the automatic maximum coverage under Servicemembers’ Group Life Insurance
from $250,000 to $300,000. This bill was referred to the Committee on Finance.
S. 11. Senator Carl Levin. Introduced January 24, 2005. Purpose: To ensure
that the strength of the Armed Forces and the protections and benefits for members
of the Armed Forces and their families are adequate for keeping the commitment of

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CRS-14
the people of the United States to support their service members, and for other
purposes. This bill was referred to the Committee on Finance.
S. 42. Senator George Allen. Introduced January 24, 2005. Purpose: To
increase the death gratuity payable with respect to deceased members of the Armed
Forces, and for other purposes. This bill was referred to the Committee on Armed
Services.
S. 44. Senator Chuck Hagel. Introduced January 24, 2005. Purpose: To
increase the death gratuity from $12,000 to $100,000. This bill was referred to the
Committee on Armed Services.
S. 77. Senator Jeff Sessions. Introduced January 24, 2005. Purpose: To
increase the death benefits for families of deceased members of the armed forces, and
for other purposes. This bill was referred to the Committee on Armed Services.
S. 121. Senator Mike DeWine. Introduced January 24, 2005. Purpose: To
improve benefits for survivors of deceased members of the Armed Forces, and for
other purposes. This bill was referred to the Committee on Armed Services.
S. 185. Senator Bill Nelson. Introduced January 26, 2005. Purpose: To repeal
the requirement for the reduction of certain Survivor Benefit Plan annuities by the
amount of dependency and indemnity compensation. This bill was referred to the
Committee on Armed Services.
S. 418. Senator Michael B. Enzi. Introduced February 17, 2005. Military
Personnel Financial Services Protection Act. This bill was referred to the Committee
on Banking, Housing and Urban Affairs.
S. 423. Senator Rick Santorum. Introduced February 17, 2005. Purpose: A bill
to amend title 38, United States Code, to make a stillborn child an insurable
dependent of the Servicemembers’ Group Life Insurance program. This bill was
referred to the Committee on Veterans’ Affairs.
S. 460. Senator John F. Kerry. Introduced February 18, 2005. Purpose: A bill
to expand and enhance benefits for members of the Armed Forces and their families,
and for other purposes. This bill was referred to the Committee on Finance.
S. 523. Senator Ken Salazar. Introduced March 3, 2005. Purpose: A bill to
amend title 10, United States Code, to rename the death gratuity payable for deaths
of members of the Armed Forces as fallen hero compensation, and for other
purposes. This bill was referred to the Committee on Armed Services.
S. 806. Senator Larry E. Craig. Introduced April 14, 2005. Purpose: A bill to
amend title 38, United States Code, to provide a traumatic injury protection rider to
servicemembers insured under 1967(a)(1) of such title. This bill was referred to the
Committee on Veterans’ Affairs.
S. 871. Senator Carl Levin. Introduced April 21, 2005. Standing With Our
Troops Act of 2005. Placed on the Legislative Calendar.

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CRS-15
S. 1028. Senator Hillary Rodham Clinton. Introduced May 12, 2005. Military
Personnel Financial Services Education Act of 2005. This bill was referred to the
Committee on Armed Services.
S. 1042. Senator John Warner. Introduced May 17, 2005. National Defense
Authorization Act for Fiscal Year 2006. This bill was referred to the Committee on
Armed Services. Senate floor action has occurred and the bill was returned to the
Calendar.
S. 1043. Senator John Warner. Introduced May 17, 2005. Department of
Defense Authorization Act for Fiscal Year 2006. This bill was referred to the
Committee on Armed Services and placed on the Legislative Calendar.
S. 1235. Senator Larry E. Craig. Introduced June 14, 2005. Purpose: A bill to
amend chapters 19 ad 37 of title 38, United States Code, to extend the availability of
$400,000 in coverage under servicemembers’ life insurance and veterans’ group life
insurance programs, and for other purposes. This bill was referred to the Committee
on Veterans’ Affairs.

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CRS-16
Appendix A. Two Hypothetical Examples
for Determining a Level of Death Benefits
Determining the value of death benefits to survivors is highly dependent upon
individual circumstances. Such variables include increases in benefits resulting from
annual cost of living adjustments, possible changes in eligibility (such as remarriage),
tax implications, etc. In addition, such an assessment would need to take into
consideration all benefits incurred as a result of military service of the decedent. (As
noted above, these would include social security benefits.) Since Dependency and
Indemnity Compensation are integrated with SBP, these benefits are considered here.
Social Security benefits have been excluded from these examples because the
primary focus of this report is to examine the death benefits provided by the
Department of Defense and the Department of Veteran Affairs. Any computation of
death benefits based on a hypothetical situation is unlikely to be representative of the
“average” or “typical” benefits received by the survivors of military personnel who
die while on active duty. Indeed, the value of many of the benefits, such as health
care and commissary/exchange privileges, cannot be quantified.
The following examples are, at best, rough estimates, and are intended for
illustrative purposes only.
The first example consists of a Marine Corps Corporal (E-4) who is killed while
on active duty in Iraq. The Corporal has been in the service for four years. Given the
above, the Corporal’s spouse could receive a $100,000 death gratuity. Assuming the
Corporal had maintained full participation in the SGLI, the surviving spouse would
also receive an additional $400,000.
The basic DIC benefit for this Corporal’s spouse is $993 per month. The 2004
basic pay of the Corporal is $1,814.10 per month. This is the figure used in
determining the SBP benefit, although the actual figure would be slightly less since
it would be based on the average 36 months of basic pay (high three). The disability
pay of such an individual is 75 percent of basic pay, or $1,360.58 per month. Under
SBP coverage, the surviving spouse would receive 55 percent of this amount, or
approximately, $748 per month. However, because there is a dollar-for-dollar offset
with DIC, the entire SBP is offset by DIC and the spouse receives only the monthly
DIC benefit of $993. Nevertheless, the spouse remains eligible to receive SBP as
long as he/she does not remarry prior to reaching the age 55. Further, SBP benefits
are subject to annual cost of living increases. Assuming the surviving spouse is 30
years old at the time of the Corporal’s death, assuming no cost of living adjustments,
and assuming the spouse does not remarry and lives to the age of 74, it is possible to
compute an approximate life time benefit from SBP/DIC. Such an individual could
expect to receive approximately $524,304 from SBP/DIC. If the Death Gratuity and
SGLI are added, the total is $1,024,304.

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Table 1. Corporal’s (E-4) Death Benefitsa
Death Gratuity
$100,000
SGLI
$400,000
DIC (monthly)
$993
SBP (monthly, spouse under age 62)
$748 less $993 DIC
$0
offset
Total (spouse under age 62)
DIC only
$993
SBP before 2008 (monthly, spouse 62 or over)
$476 less DIC offset
$0
Total (monthly, spouse 62 or over)
DIC only
$993
The second example consists of an Air Force Lieutenant Colonel (O-5), with
eight years of service, who dies while on active duty. The basic DIC benefit for the
Lieutenant Colonel’s spouse is $993 per month. As in the case above, the Lieutenant
Colonel’s spouse would be eligible to receive both the death gratuity ($100,000) and
the full SGLI benefit ($400,000). The basic pay of this officer is $4,431.60 per
month. Using the same assumptions as those in the above case, the officer’s spouse
can expect to receive approximately $1,828.04 per month (from SBP) until age 62.
If the spouse reaches age 62 before 2008, this monthly SBP amount may be reduced.
After 2008, it will remain at 55 percent. For the purpose of this example, SBP will
remain at the 55 percent level. Finally, given the above assumptions, such an
individual could expect to receive a lifetime benefit of approximately $965,184 from
SBP/DIC. With the Death Gratuity and SGLI, the total is $1,465,184.
Table 2. Lieutenant Colonel’s (O-5) Death Benefitsa
Death Gratuity
$12,420
SGLI
$250,000
DIC (monthly)
$993
SBP (monthly, spouse under age 62)
$1,828 less $993 DIC offset
$835
Total (spouse under age 62)
DIC + SBP
$1,828
SBP before 2008 (monthly, spouse 62
$1,163 less $993 DIC offset
$170
or over)
Total (monthly, spouse 62 or over)
DIC + SBP
$1,163
a. Amounts are rounded to the nearest dollar.

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Again, it must be emphasized that these examples are for broad illustrative
purposes only and can not incorporate the full range of variables that could apply in
any specific instance. Indeed, the amount received can be increased by including
social security benefits. In addition, many surviving spouses have designated their
child(ren) as SBP beneficiary(ies), thus eliminating any offset that occurs when the
spouse receives DIC. Finally, it is not possible to incorporate the full range of in-
kind benefits such as health care, housing, etc., that may substantially increase the
actual value of these benefits.

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Appendix B. Government Accountability Office
(GAO) Summary on Military and
Civilian Death Benefits
In July 2004, the Government Accountability Office (GAO) released a report
comparing death benefits of military and civilian government employees.50 The
following is a verbatim reproduction from the summary of that report “What GAO
Found” (summary page):
The military provides survivor benefits that are comparable in type but not in
amount to those provided by 61 civilian government entities (federal government, 50
states and the District of Columbia, and 9 cities with populations of at least 1 million)
when employees die in the line of duty.
! Social Security payments, a death gratuity, burial expenses, and life
insurance are four types of lump sum survivor benefits provided by
the military and at least some government entities; the federal
government and some states additionally provide a lump sum
payment through their retirement plans. Recurring payments are
also provided by Social Security to the survivors for deceased
service members and most deceased government employees in 61
civilian government entities GAO studied. Other types of payments
are specific to the military or civilian government entities. GAO
identified two programs with recurring payments for the military and
two other types of programs for the civilian government entities.
! For the four hypothetical situations GAO used to examine the
amount of cash payments provided to survivors, survivors of
deceased service members almost always obtain higher lump sums
than do the survivors of deceased employees from 61 civilian
government entities. The amount of recurring payments to deceased
service members’ survivors in three of the four situations exceeds
those provided by the federal government, typically exceeds those
provided by at least one-half of the states, but are typically less than
those provided by one-half the cities.
! The military also provides more types of noncash survivor benefits
than do civilian government entities, with some benefits being
comparable in type and others differing among the entities.
The survivors of civilian government employees in some high-risk occupations may
receive supplemental benefits — a death gratuity, higher life insurance, higher
benefits from the retirement plan, or a combination of the three — beyond those that
the entities provide to civilian government employees in general. For example,
50 United States Government Accountability Office, Military Personnel, Survivor Benefits
for Servicemembers and Federal, State, and City Government Employees, GAO-04-814,
July 2004, summary page. Highlights of the report may be obtained at [http://www.gao.gov].

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CRS-20
survivors of federal, state, and city government law enforcement officers and
firefighters who die in the line of duty may be entitled to a lump sum payment of
more than $267,000 under the Public Safety Officers’ Benefits Act. Further, 34
states and 5 cities provide survivors of employees in high-risk occupations with
additional cash benefits that are not available to survivors of state and city employees
in general. The addition of these supplemental cash benefits to those provided to the
survivors of deceased general government employees can result in lump sum and
recurring payments being generally higher for survivors of government employees
in high-risk occupations than for service members’ survivors.

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Appendix C. Death Benefit Assessment
Provisions in the National Defense Authorization
Act for FY200551
In the FY2005 National Defense Authorization Act (P.L. 108-375; October
28, 2004; 118 Stat. 1811) Congress included language instructing DOD to:
...transmit to Congress assessments and recommendations regarding
legislation on proposals that would provide enhanced death benefits for
survivors of deceased members of the uniformed services. Those
assessments and recommendations regarding legislation shall include
provisions for the following:52
(1) Increase the maximum benefit amount of Servicemembers’ Group Life
Insurance to $350,000, provide a minimum benefit amount of $100,000 at no cost to
the insured members of the uniformed services who elect maximum coverage, and
subject these benefits to annual adjustments.
(2) Each member of the uniformed services who dies while on the line of
active duty, should receive a minimum death gratuity that totals the amount of basic
pay, allowances and special pays which the deceased member would have been
entitled to receive if the member had not died but continued to serve on active duty
for an additional year.
(3) Uniformed service members who die as a result of an injury caused by or
incurred while exposed to hostile action (including any hostile fire or explosion and
any hostile action from a terrorist source), should receive twice the amount of
benefits described in the paragraph above.
(4) These benefits should be made retroactive to members who died on or
after October 7, 2001 while deployed on active duty supporting Operation Enduring
Freedom and to members who die on active duty on or after March 19, 2003 while
deployed in support of Operation Iraqi Freedom.
Congress has also expressed general support for “...any other new death
benefits or enhancement of existing death benefits that the President recommends.”53
51 Congressional Record, October 8, 2004: H9229-H9230.
52 Congressional Record, October 8, 2004: H9229.
53 Congressional Record, October 8, 2004: H9230.

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