GI Bill transfer full of questions

Users of one of the most popular features of the Post-9/11 GI Bill — the option to transfer benefits to family members — will find a few quirks in how Congress designed the transfer provisions as they take effect in August.

For example, spouses of active duty members who hope to use transferred benefits to attend private colleges will be delighted at the value of the benefit for them.  It will cover full tuition and fees, with no ceiling, and therefore will be worth far more than benefits transferable to college-bound children or even benefits available to veterans using the full plan themselves.

On the other hand, active duty spouses who use transferred benefits to attend public colleges or universities will have a more modest education package than other GI Bill users including eligible children. That’s because active duty spouses will not qualify for the GI Bill’s monthly living allowance or annual stipend for books and supplies.

Another quirk about transferability has Defense officials advising service members to transfer at least a month’s worth of GI Bill benefit to every dependent before they leave service.  This will lock in an opportunity to transfer benefits to them later.  Any family member not approved for transferability before a member retires or separates will be denied the opportunity forever, unless the member re-enters service.  Likewise, veterans who remarry or have more children after leaving service will not be able to transfer GI Bill benefits to these new family members.

Bob Clark, assistant director of accession policy in the Office of Secretary of Defense, said Department of Defense has opened a secure Web site for service members to elect to transfer benefits. The address is:

www.dmdc.osd.mil/TEB

Only members who are on active duty or in the Selected Reserve on or after Aug. 1,  when the new GI Bill takes effect, will be able to make transfers. The reason, Clark explained, is that transferability was designed to help retention and avoid an exodus of careerists who might be enticed to leave service to use an improved education benefit. The feature seems to have had that effect because interest in transferring benefits to family members, in return for longer service, has been “overwhelming,” Clark said.

Members will be allowed to transfer benefits to a spouse if they have served at least six years and agree to serve four more.  They will be allowed to transfer benefits to children if they have served at least 10 years and commit to four more. Obligations under current service agreements count toward this commitment so, for instance, a member already serving under a reenlistment contract with three years remaining would only have to extend by a year to satisfy the four-year commitment on transferability.

An exception to the four-year requirement is allowed for members who have served at least 10 years and are barred by service policy or statute such as high-year tenure or mandatory retirement rules, from serving a full four years more. To be able to transfer GI Bill benefits, they only will have to serve whatever additional time is allowed by policy or law.

Tom Philpott can be contacted at Military Update, P.O. Box 231111, Centreville, Va. 20120-1111, or by e-mail at:  milupdate@aol.com