Faster Payments to Veterans' Survivors Act of 2022
Bill: H.R.8260 | Sponsor: Rep. Pappas, Chris (D-NH)
Policy area: Armed Forces and National Security

Summary:
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.

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