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Press Release

April 1, 2009

Susan Davis Praises Bill to Reduce "Widow's Tax" for Surviving Military Spouses

Washington, DC – Congresswoman Susan Davis (D-San Diego) praised the passage of legislation to reduce the “widow’s tax,” a benefits offset that affects the surviving spouses of service members who have died as a result of service-connected conditions.  The bill was approved on voice vote by the U.S. House of Representatives.

“Earlier this year, spouses of service members from current and past wars stood up during a Military Personnel hearing to share their stories about how the offset has impacted their lives.  Their stories were compelling and demonstrated why the goal of eliminating this offset is so important. 

“While the enhancement of the monthly payments under the Special Survivor Indemnity Allowance provided in this bill does not end the so called ‘widow’s tax,’ it is a strong step in the right direction. 

“I believe more needs to be done, and I intend to keep searching for opportunities to make improvements with the hope that someday we can find a permanent solution.”

H.R. 1804 would increase the monthly amounts paid under the Special Survivor Indemnity Allowance to surviving spouses or former spouses of deceased service members who are denied the full amount of their annuity under the Survivor Benefit Program (SBP) because of a required offset by the receipt of Dependency and Indemnity Compensation (DIC) from the Department of Veterans Affairs. 

H.R. 1804 would incrementally increase the Special Survivor Indemnity Allowance, beginning in fiscal year 2010, with a $35 increase resulting in a monthly payment of $95.  The increase will conclude in fiscal year 2016 with a $245 increase resulting in a monthly payment of $345.

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