Changes to Death Gratuity take place July 1 Published June 26, 2008 By Military Personnel Element staff MALMSTROM AIR FORCE BASE, Mont. -- Effective July 1, there will be a significant change to the Death Gratuity benefits election option for all Airmen. Airmen may select one or more persons of their choosing to receive the DG benefit. DG can be designated in 10 percent increments to anyone the Airman elects. Therefore, effective July 1, an Airman could choose to leave 20 percent to a cousin, 10 percent to a best friend and the remaining 70 percent to a spouse for a total equaling 100 percent. To be clear, effective July 1, the DG designation is no longer restricted to a spouse, child, or a blood relative. In order to implement this change, AFPC will update all vREDs to reflect a "by law" DG election. July 1, Airmen will be able to immediately make changes to this DG election should they wish to designate one or more persons by name and percentage to receive DG payment. Members are encouraged to designate specific recipients, since a "by law" selection can be very complicated. The term "by law" means that 100 percent of the DG payment is paid in the following order of precedence: 1. To the surviving spouse 2. If no surviving spouse, then DG will go to surviving child(ren) in equal amounts 3. Then the descendents of any deceased children in equal amounts 4. Then to surviving parent(s) of the service member in equal amounts 5. If no surviving parents, the DG goes to the person appointed executor or administrator of the service member's estate 6. If the service member has not appointed an executor or administrator, DG would go to the Airman's other next of kin entitled under the law(s) of domicile at the time of death. Airmen who would like to designate a specific beneficiary or multiple beneficiaries by name must access the vMPF on or after July 1 to provide the information on their beneficiaries. In order to designate a by name beneficiary for DG, Airmen will be required to enter the beneficiaries' contact information in either the next-of kin or the interested parties block if not already reflected on their vRED before making a by name election in the DG block. Airmen are responsible for keeping all beneficiary information up to date. Married Airmen may elect to leave less than 100 percent of the DG to the spouse. The law, however, now requires the spouse be notified in writing when an election of less than 100 percent to the spouse is made on or after July 1. The letter will be sent from the AFPC Contact Center whenever such an election occurs and will not disclose any percentages, or identify any additional beneficiaries. Any questions regarding Death Gratuity Beneficiary Designation on virtual Record of Emergency Data can be directed to the Military Personnel Element, Customer Support section at 731-4179, 731-2489, 731-4674 or the Base Casualty office at 731-2911. Additionally, members may visit the MPE, Customer Support section (Room 102). There they can access vMPF via the MPE Assisted Service Kiosk. MPE technicians are on hand and will walk members through the DG update process. Frequently Asked Questions What drove the change in the Death Gratuity Benefit Election? Public Law 110-81, section 645 enacted on Sept. 14, 2007, amended the designation of DG beneficiaries specified by permitting Airmen to select a person or people of their choosing to receive the DG benefit effective on 1 July 2008. How does this change in the law impact me and my Record of Emergency Data? Effective 1 July 2008 if your vRED reflects you have a spouse and/or child(ren), the Death Gratuity area of your vRED will be updated to reflect the "By Law" designation at 100 percent (no change). If you desire, you can change this "by law" designation to a "by name" designation and identify by name the person(s) you want to receive the DG benefit. If more than one person is named, the percentage you designate must be in 10 percent increments and must add up to equal 100 percent. Although designating person(s) other than your spouse is authorized effective July 1, Airmen who designate less than 100 percent to their spouse requires written notification to the spouse by the Service advising of the Airman's decision. If your current vRED shows an optional DG beneficiary in the "Remarks" section, you will need to remove the optional death gratuity election from the Remarks section of your vRED as this option ends on July 1. How is the Death Gratuity (DG) benefit paid? Unless otherwise designated, a surviving spouse, or if no surviving spouse, then child(ren) automatically receive the full death gratuity benefit (currently $100,000). The law now allows the DG amount paid to your spouse, then child(ren), to be reduced or designated to another individual altogether. The DG beneficiary does not have to be a relative, but can be anyone of your choosing and may receive up to 100 percent of the DG, to be designated in 10 percent increments (e.g. 10 percent, 20 percent, 30 percent, 40 percent, up to a maximum of 100 percent). In the absence of by name election by the member the DG will be paid "by law" as follows: Spouse, if no surviving spouse Child(ren), if none The descendents of any deceased children, if none Parent(s), if none Executor or Administrator, if none Other next of kin under the laws of the servicemember's domicile at the time of death What if I do not have a spouse or child(ren) and have not designated any beneficiaries at the time of my death? If at time of death, there is no surviving spouse or child(ren), then the DG will be paid "by law" in accordance with Section 1477 of USC as outlined above. Are there any limitations on who I can designate as a beneficiary for death gratuity? No, you may designate anyone or several people of your choosing to receive death gratuity in 10% increments for a total of 100 percent Must I make a by name DG beneficiary election under the change in law? No, if you are satisfied with the "by law" designation based on the beneficiary order of precedence above then no change is required. Can I elect a minor child under the change in law? Yes, however payment cannot be made directly to a minor child. Airmen should be aware that payment to minor child(ren) is dependent on state laws which require guardianship or a conservator to be appointed over the minor child's estate in order for payment to be made. If no court documents are provided then DG is held until the child(ren) become of legal age and can apply for payment on their own behalf. What is the advantage of the law change? Prior to the change in law, payments were restricted to the spouse, then child(ren) if applicable and then to a family member as elected by the Airman (i.e., parent(s), in loco parentis, brother(s) or sister(s) or a combination thereof. It did not allow a married Airman or Aiman with child(ren) to leave the death gratuity to anyone other than the spouse or child(ren). Since the amount of death gratuity has recently increased significantly, payment to minor child(ren) requires guardianship over the child's estate and can be a lengthy and costly process depending on the state in which the child resides. The change in law provides more flexibility to the service member in designating the death gratuity. For example, an unmarried Airmanwith children may now designate a person of his/her choice for a portion of the death gratuity. In this example, the Airman may wish to designate a parent or another person who he/she elects to be a guardian over the minor children. What if I want my spouse or child(ren) to continue to receive 100 percent of the death gratuity benefit? Do I need to elect my spouse or child(ren) under the new election option? No, if your vRED reflects DG payment be made "by law" you are not required to make a by name election for your spouse or (child(ren) if no spouse). In the event of your death, payment of the entire death gratuity amount will first be made to the surviving spouse, or if no spouse then surviving child(ren) unless you elect a different death gratuity beneficiary under this new change in law. Are there any premiums for the death gratuity? No. The death gratuity is a tax-free, lump-sum, gratuitous payment made by the Air Force to those individuals designated as a beneficiary by the active duty service member (includes Reserve or Guard members who die on Active Duty (AD), AD Training or IDT, or full-time National Guard duty. Is Death Gratuity and Servicemembers' Group Life Insurance the same program? No. SGLI is life insurance and an optional election by service members. DG is a separate death benefit. What actions will be performed by Personnel (MSS/FSS, CSS, the Casualty Assistance Representative or PERSCO)? Awareness counseling will be provided to members needing additional assistance in understanding the new DG beneficiary election options and in completing the online vRED through the vMPF application.