The Disabled Military Child Protection Act of 2012
Floor Speech
Mr. MORAN. Mr. Speaker, I rise today to introduce the Disabled Military Child Protection Act of 2012. To put it simply, this bill will permit military retirees the ability to place their self funded Survivor Benefit Plan into a Special Needs Trust to ensure their surviving dependent child's future.
This is an equity and fairness issue. Civilians are allowed to create a Special Needs Trust for their permanently disabled children to ensure they receive care beyond the guardian's death but under current law, military personnel with severely disabled children are legally prohibited from establishing a Special
Needs Trust to ensure their surviving dependent child's future care.
This bill will provide veterans with the ability to direct their Survivor Benefit Plan annuity payments to a Special Needs Trust. The creation of an SNT will ensure that a dependent, disabled child will continue to qualify for means-tested benefits, such as Social Security Disability Insurance and Medicaid. Assets placed into a Special Needs Trust are not generally counted as income or assets, allowing dependent children to remain eligible for these benefits throughout their lifetime.
This bill would impact approximately 1,065 military dependents who are incapacitated beneficiaries under Survivor Benefit Plan and with individual care costs for a disabled child exceeding $100,000 a year, this additional benefit will increase their quality of life significantly.
For those who believe this bill may contribute to abuse, it must be noted that a Special Needs Trust is administered under both federal and state law. Appointed fiduciaries are subject to auditing and are responsible for managing a benefit for a specific group. Annuities are also placed in Special Needs Trusts that are subject to income tax. Therefore, beneficiaries are shielded from abuse considering each trust has significant oversight.
Finally, I am proud that this bill has 4 esteemed public servants as original co-sponsors: Congressmen Capps, Polis, Rangel, and Rothman. This bill is also supported by the Military Officers Association of America.
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