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First Congressional District of New Mexico
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ask.heather@mail.house.gov

In Washington DC
442 Cannon House
Office Building
Washington, DC
20515
202-225-6316 Phone
202-225-4975 Fax
In Albuquerque
20 First Plaza NW
Suite 603
Albuquerque, NM
87102
505-346-6781 Phone
505-346-6723 Fax

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Congresswoman Heather Wilson, First Congressional District of New Mexico


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Wilson Works for Boost in Survivor Benefit Plan Payments May 14, 2004
 
Bill Eliminates “Widow’s Tax”


Washington, DC – Congresswoman Heather Wilson announced today that the House Armed Services Committee has approved an increase for the Survivor Benefits Plan.

The change was cosponsored by Wilson and eliminates the Social Security offset under the Survivor Benefit Plan (SBP) by increasing the annuities paid to survivors of military retirees who are 62 or older. The SBP provision was included in H.R. 4200, the Fiscal Year 2005 National Defense Authorization Act, which was passed by the Committee late last evening.

“We are making important progress for our veterans and their families,” Wilson said. “Fixing the inequity in the Survivor Benefit this year will build on last year’s improvements to concurrent receipt and increased funding for veterans’ health care.”

The bill now moves on to the entire House and is expected to be considered as soon as next week.

Currently, uniformed services survivor benefits do not match what was promised and provided to survivors of other federal retirees, based on premiums paid. Restoring equity requires an increase in the SBP annuity. SBP was enacted more than three decades ago in 1972. Under the current plan, survivors are faced with a 20% drop in their annuity once they reach age 62. The typical recipient experiences a reduction in their annuity from 55% of the retiree’s pay to 35%. Thousands of these survivors were never told about this annuity cut and the unexpected loss of income is often financially devastating.

The legislation would eliminate the social security offset under SBP and, over four years, increase the annuities paid to survivors of military retirees who are 62 or older from 35 percent of retired pay to the percentages indicated for the following periods:

(1) For months after September 2005 and before April 2006: 40 percent

(2) For months after March 2006 and before April 2007: 45 percent

(3) For months after March 2007 and before April 2008: 50 percent

(4) For months after March 2008: 55 percent

Restoring SBP equity over this period will cost $2 billion. The effort has broad bipartisan support in the House.

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