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Reid’s “Retired Pay Restoration Act” members. Here are answers to some
(S. 546) would repeal the current re- of those questions.
striction that limits concurrent receipt Who qualifies for the new HAP program?
of disability pay eligibility to those with There are three eligible categories:
50-percent or higher VA disability ratings a73 military personnel who purchased a
and extend eligibility to service-disabled home before July 1, 2006, and have made a
servicemembers who were medically re- permanent-change-of-station (PCS) move
tired with less than 20 years of service. In or currently have PCS orders;
Sen. Harry essence, it would “vest” retired pay for the a73 wounded warriors who have been or will
Reid
(D-Nev.)
latter group at 2.5-percent of pay times be retired for disability and relocated; and
years of service rendered, in addition to a73 surviving spouses of servicemembers who
their VA disability compensation. were killed in the line of duty during a de-
“It is simply absurd to deny disabled ployment or died from a wound, injury, or
veterans every dollar they deserve,” said illness incurred in the line of duty during a
Reid. “Being compensated for disability deployment on or after Sept. 11, 2001.
and for years of good service are com- What are the benefits of the HAP?
pletely separate, and one must not be held Eligible servicemembers can choose
against the other.” from one of these payments:
Nelson’s S. 535 would repeal the a73 the difference between 95 percent of the
statutory requirement to deduct VA prior fair market value and the fair market
Sen. Bill
Nelson
Dependency and Indemnity Compensa- value at the time of sale; or
(D-Fla.)
tion (DIC) — currently $1,154 a month — a73 an amount not more than 90 percent of
from SBP when the sponsor’s death was the home’s prior fair market value or the
caused by military service. Two years amount of the outstanding mortgage.
ago, Congress approved a token $50 What is “prior fair market value” versus
monthly payment to SBP-DIC widows as “fair market value”?
a fi rst step toward eliminating this ineq- This will have to be defi ned by DoD
uity but took no further action last year. regulations. At press time, those weren’t
Nelson and MOAA are determined yet available.
to make this issue a priority before the Where can I apply?
new Congress. The HAP is managed by the U.S. Army
Corps of Engineers. The corps already is
HAP Questions
accepting applications but won’t be able
to process them until it receives fi nal
Answered
DoD guidance.
Stimulus plan sparks
confusion.
Credit Unions
Get Billed
T
he newly enacted economic
New action might ease strain.
stimulus package expanded the
military Homeowner Assistance
Program (HAP) to assist servicemembers
who are upside-down on their mortgages
and being ordered to relocate. I
n March, MOAA asked members to
urge the president to help ease a fi nan-
cial burden imposed on America’s mili-
This new initiative has sparked many tary credit unions by the National Credit
questions from currently serving service- Union Administration (NCUA). The NCUA
3 6 M I L I T A R Y O F F I C E R M AY 2 0 0 9
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