The post 9-11 GI Bill is a pretty good benefit. It can provide for an education for a service member who leaves active duty or for those who desire, while still on active duty. In addition to providing the service member an education, the Services were given the opportunity to use the GI Bill as a retention tool by allowing the service member to transfer benefits to spouses or children. In order to make the transfer, the service member must commit to stay on Active Duty.
DoD Attempted to Limit Post 9-11 Transfer Options
In 2019, DoD apparently decided that there really isn’t a problem with retaining service members once they reach 16 years of service. In early 2019 they announced a new policy that would not allow service members with 16 or more years of service to transfer benefits, regardless of how long the service member commits to staying on Active Duty. The policy was set to go into effect in July of 2019
There was significant blowback about the policy from military organizations and from Congress as well. DoD delayed the implementation date to January 2020.
Congress Limits DoD's Ability to Limit Transfer GI Bill Benefits
That wasn’t good enough for Congress and the 2020 NDAA included language to limit that policy. Specifically, the act says:
Section 3319(j) of title 38, United States Code, is amended by adding at the end the following new paragraph:
``(3) The Secretary of Defense may not prescribe any regulation that would provide for a limitation on eligibility to transfer unused education benefits to family members based on a maximum number of years of service in the Armed Forces.''.
In essence, Congress said, “No you won’t limit access for those with 16 or more years of service.”
If you have 16 or more years of service and you haven’t transferred benefits, this is a good deal for you. You might want to take care of it pretty soon though as there still can be an Active Duty Service Commitment.
Is Your Financial Advisor Up-to-Date on Military and Veteran Benefits?
Military and Veteran Benefits change constantly. We think if you’re in or retired from the military, your financial advisor or planner should spend a lot of time keeping up with those benefits.
If you found this article useful, you might like the following blog posts:
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.