Faster Payments to Veterans' Survivors Act of 2022
This act modifies policies and procedures related to the payment of benefits under certain life insurance programs administered by the Department of Veterans Affairs (VA).
If a primary beneficiary has not made a claim for payment within one year (currently two years) after the death of the insured under the National Service Life Insurance (NSLI) program or the United States Government Life Insurance (USGLI) program, the VA is authorized to make payment to another designated beneficiary as if the primary beneficiary had predeceased the insured. If no designated beneficiary makes a claim within two years (currently four years) after the death of the insured, the VA is authorized to make a payment to a person the VA deems to be equitably entitled to such benefit.
The act also modifies the beneficiary designation process under NSLI and USGLI. Specifically, if a person does not designate a beneficiary for insurance, or if the designated beneficiary predeceases the insured person, the VA must determine the beneficiary in a specified order of succession.
Additionally, the act requires the VA to improve its processes and procedures with respect to identifying, locating, and paying hard-to-find beneficiaries of life insurance policies, including by improving its website search tools.
[117th Congress Public Law 313]
[From the U.S. Government Publishing Office]
[[Page 136 STAT. 4399]]
Public Law 117-313
117th Congress
An Act
To amend title 38, United States Code, to shorten the timeframe for
designation of benefits under Department of Veterans Affairs life
insurance programs, to improve the treatment of undisbursed life
insurance benefits by the Department of Veterans Affairs, and for other
purposes. <<NOTE: Dec. 27, 2022 - [H.R. 8260]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Faster Payments
to Veterans' Survivors Act of 2022.>>
SECTION 1. <<NOTE: 38 USC 101 note.>> SHORT TITLE.
This Act may be cited as the ``Faster Payments to Veterans'
Survivors Act of 2022''.
SEC. 2. TIMEFRAME FOR DESIGNATION OF ALTERNATE BENEFICIARIES AND
PAYMENT OF BENEFITS UNDER DEPARTMENT OF
VETERANS AFFAIRS LIFE INSURANCE PROGRAMS.
(a) National Service Life Insurance.--Section 1917(f)(1) of title
38, United States Code, is amended--
(1) in subparagraph (A), by striking ``two years'' and
inserting ``one year''; and
(2) in subparagraph (B), by striking ``four'' and inserting
``two''.
(b) United States Government Life Insurance.--Section 1952(c)(1) of
such title is amended--
(1) in subparagraph (A), by striking ``two years'' and
inserting ``one year''; and
(2) in subparagraph (B), by striking ``four'' and inserting
``two''.
(c) <<NOTE: 38 USC 1917 note.>> Effective Date.--The amendments
made by this section shall apply with respect to the death of an insured
person occurring on or after the date that is two years before the date
of the enactment of this Act.
SEC. 3. BENEFICIARY DESIGNATION PROCESS UNDER DEPARTMENT OF
VETERANS AFFAIRS LIFE INSURANCE PROGRAMS.
(a) NSLI.--Section 1917 of title 38, United States Code, is amended
by striking subsection (a) and inserting the following:
``(a)(1) A person who enrolls in insurance maturing on or after
August 1, 1946, may designate a beneficiary of the insurance policy. The
insured shall, subject to regulations, at all times have the right to
change the beneficiary or beneficiaries of such insurance without the
consent of such beneficiary or beneficiaries.
``(2) <<NOTE: Determination.>> If a person enrolled in insurance
maturing on or after August 1, 1946, does not designate a beneficiary
under paragraph (1) before the veteran dies, or if a designated
beneficiary predeceases
[[Page 136 STAT. 4400]]
the veteran, the Secretary shall determine the beneficiary in the
following order:
``(A) The surviving spouse of the insured person.
``(B) The children of the insured person and descendants of
deceased children by representation.
``(C) The parents of the insured person or the survivors of
the parents.
``(D) The duly appointed executor or administrator of the
estate of the insured person.
``(E) Other next of kin of the insured person entitled under
the laws of domicile of the insured person at the time of the
death of the insured person.''.
(b) USGLI.--
(1) In general.--Section 1949 of such title is amended to
read as follows:
``Sec. 1949. Beneficiaries
``(a) Designation.--A person who enrolls in United States Government
life insurance may designate a beneficiary of the insurance policy.
Subject to regulations, the insured person shall at all times have the
right to change the beneficiary or beneficiaries of a United States
Government life insurance policy without the consent of such beneficiary
or beneficiaries.
``(b) Determination in Cases of Non-Designation.--If a person
enrolled in United States Government life insurance does not designate a
beneficiary under subsection (a) before the insured person dies, or if a
designated beneficiary predeceases the insured person, the Secretary
shall determine the beneficiary in the following order:
``(1) The surviving spouse of the insured person.
``(2) The children of the insured person and descendants of
deceased children by representation.
``(3) The parents of the insured person or the survivors of
the parents.
``(4) The duly appointed executor or administrator of the
estate of the insured person.
``(5) Other next of kin of the insured person entitled under
the laws of domicile of the insured person at the time of the
death of the insured person.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 19 of such title <<NOTE: 38 USC 1901
prec.>> is amended by striking the item relating to section
1949 and inserting the following new item:
``1949. Beneficiaries.''.
(c) <<NOTE: 38 USC 1917 note.>> Effective Date.--The amendments
made by this section shall apply with respect to the death of an insured
person occurring on or after the date that is two years before the date
of the enactment of this Act.
SEC. 4. <<NOTE: 38 USC 1981 note prec.>> DEPARTMENT OF VETERANS
AFFAIRS IMPROVEMENT OF TREATMENT OF
UNDISBURSED LIFE INSURANCE BENEFITS.
(a) Improvement of Processes.--The Secretary of Veterans Affairs
shall improve the processes and procedures of the Department of Veterans
Affairs with respect to identifying, locating, and paying hard-to-find
beneficiaries of life insurance policies issued under chapter 19 of
title 38, United States Code, including by--
[[Page 136 STAT. 4401]]
(1) improving the search tools available on the website of
the Department;
(2) conducting outreach to veterans, veterans service
organizations, and the general public with respect to such
search tools;
(3) improving the processes for searching for information
relating to potential recipients through internal Department
sources and sources available through other Federal agencies,
State government agencies, and non-government entities; and
(4) <<NOTE: Deadline.>> ensuring the Department has
sufficient dedicated staff whose primary responsibilities are
identifying, locating, and paying hard-to-find beneficiaries,
with the goal of disbursing by not later than two years after
the date of the enactment of this Act, all funds that, as of the
date of the enactment of this Act, are owed to a beneficiary of
a life insurance policy issued under chapter 19 of title 38,
United States Code.
(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Veterans Affairs should work with interagency partners to
determine the types of records, reports, and other materials that may be
required to identify, locate, and disburse undisbursed life insurance
benefits to hard-to-find beneficiaries.
(c) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary shall submit to the Committees on Veterans'
Affairs of the Senate and House of Representatives a report on the
progress of the Secretary in carrying out this section.
(d) Undisbursed Life Insurance Benefits Defined.--The term
``undisbursed life insurance benefits''--
(1) means any amount of money that is owed to a beneficiary
of a life insurance policy issued under chapter 19 of title 38,
United States Code, and that has not been disbursed for a period
of two years or longer; and
(2) does not include any amount of money that--
(A) has not been disbursed due to a contested claim;
or
(B) is in dispute by two or more parties over who is
the entitled beneficiary.
SEC. 5. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the
[[Page 136 STAT. 4402]]
Congressional Record by the Chairman of the House Budget Committee,
provided that such statement has been submitted prior to the vote on
passage.
Approved December 27, 2022.
LEGISLATIVE HISTORY--H.R. 8260:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 117-463 (Comm. on Veterans' Affairs).
CONGRESSIONAL RECORD, Vol. 168 (2022):
Sept. 13, considered in House.
Sept. 14, prior proceedings vacated; considered and passed
House.
Dec. 19, considered and passed Senate.
<all>
Reported by the Committee on Veterans' Affairs. H. Rept. 117-463.
Reported by the Committee on Veterans' Affairs. H. Rept. 117-463.
Placed on the Union Calendar, Calendar No. 360.
Mr. Takano moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H7770-7772; text: CR H7770-7771)
DEBATE - The House proceeded with forty minutes of debate on H.R. 8260.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Pursuant to the provisions of H. Res. 1339, proceedings on H.R. 8260 are considered vacated.
Passed/agreed to in House: Pursuant to section 11 of H. Res. 1339, and the motion offered by Mr. Hoyer, the following bills passed under suspension of the rules: H.R. 1468, as amended; H.R. 5865; H.R. 5916, as amended; H.R. 7735, as amended; H.R. 7846; H.R. 7939, as amended; H.R. 8260, as amended; and S. 4205.
Pursuant to section 11 of H. Res. 1339, and the motion offered by Mr. Hoyer, the following bills passed under suspension of the rules: H.R. 1468, as amended; H.R. 5865; H.R. 5916, as amended; H.R. 7735, as amended; H.R. 7846; H.R. 7939, as amended; H.R. 8260, as amended; and S. 4205. (consideration: CR H7814-7822; text: CR H7820-7821)
Enacted as Public Law 117-313
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Received in the Senate, read twice.
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
Passed Senate without amendment by Unanimous Consent. (consideration: CR S7302)
Message on Senate action sent to the House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 117-313.
Became Public Law No: 117-313.