Veterans' View
Congress to phase out "widows' tax"
by Dan Woods, Veterans Services Officer, Holmes County
Congress will include an important provision in the FY 2005 Defense Authorization Act (H. R. 4200) ending the Survivor Benefit Plan (SBP) "widows’ tax," which reduces benefits by as much as one-third after the widowed survivor reaches age 62.
The SBP "widows’ tax" will be phased out over the next three-and-a-half years. Under legislation signed into law Oct. 28, the minimum age 62 annuity will rise from 35 percent to 40 percent of covered retired pay Oct. 1, 2005; to 45 percent April 1, 2006; to 50 percent April 1, 2007; and to 55 percent April 1, 2008. About 255,000 widows of military retirees draw benefits under the current plan. No action is required by SBP annuitants; they will receive these increases automatically.
CRDP Update 28:It appears that those who are being paid at the 100 percent disability level because of Individual Unemployability (IU) will not benefit from the change in law that will award those with 100 percent without IU the full Concurrent Receipt of their retired pay. Apparently, there was resistance in the Senate on including the IU and the big association/VSO issue was SBP, not CRDP. If this interpretation prevails, only about 14,000 of the 30,000 VA paid at the 100 percent rate will see the full increase in January.
Rating Limitation of Flexion and Extension of the Leg
Background
On Sept. 17, General Counsel issued a precedent opinion concerning the rating of knee conditions under two separate diagnostic codes involving ,imitation of motion. Specifically, General Counsel held that separate ratings under diagnostic code 5260 (leg, limitation of flexion) and diagnostic code 5261 (leg, limitation of extension) may be assigned for a disbability of the same knee.
Key Points
Where a veteran meets the requirements for a zero percent or higher evaluation under diagnostic code 5260 (limitation of flexion) and under diagnostic code 5261 (limitation of extension), an evaluation under each diagnostic code may be assigned. All knee examinations must record range of motion findings in both flexion and extension, in accordance with the Disability Examination Worksheets. Although it is permissible to assign multiple evaluations under multiple diagnostic codes for the same knee, the amputation rule (38 CFR 4.68) must always receive compliance.
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