VGLI changes in SBP and VGLI Issues Forum

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VGLI changes

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navet	VGLI changes		Lead	[-]
Posts: 2 Feb 9 11 10:46 PM	The VA has changed how they manage the VGLI policies. The previous method was a five year term at the end of which your rate would change as you had crossed a new age bracket. I have documentation of this and it is what the VA handbook says. Now, as you cross an age bracket you will have your rate increased whether you have completed your current term or not. According to the VA report for 2009, there are 432,000 VGLI policies and a good number of them will be affected by this change and not in a good way. If one assumes a perfect statistical distribution of the policies, there are 86,400 policies that will not be impacted, 86,400 policy holders who will pay a higher rate than they should for one year, 86,400 policy holders who will pay a higher rate for two years, 86,400 who will pay a higher rate for three years and 86,400 who will pay a higher rate for four years. This change does not benefit the members who hold these policies. In conversations with the VA I have been completely ignored when I asked for their authority to change the term of a policy. I cannot find any authority there is for this change. My congressional delegation is not interested in looking into this either. The government cannot control the private sector pay but can the military retirees and veterans and this is a case of the government recouping money at the expense of veterans while saying they are holding taxes steady. I have also asked the VFW to look into this and have been ignored by them also. Their comment had something to do about whiners. In other words, they are not interested in helping veterans who are being financially cheated. If anyone else has had this situation occur, please write your congressional delegation and ask they not allow veterans to be cheated in such a manner. We need to stand together as a bloc or more of this will happen as this administration tries to fund programs for people who did not sacrifice as veterans have.
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nmfxstc		#1	[url]	[-]
Posts: 25190 Feb 10 11 7:41 PM	Can you please provide a reference/link for these increases??? Fillean meal ar an meallaire.
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navet	VGLI payment change data	#2	[url]	[-]
Posts: 2 Feb 11 11 12:28 PM	The first datum is a letter from OSGLI 00325 dated 07/18/97; This is directly quoted from About Your Premium paragraph, sentences 3 and 4. "Your new premium rate is based on your age as of the date your coverage renewed. These rates are subject to change at the end of each five-year term and will increase as you get older." The next datum is the first indication I had of a change to policy. It is OSGLI letter dated June 25, 2008; From the Why the Premium is Changing paragraph, sentence 2. "Under VGLI, your premium will rise as you get older and reach a new age bracket, and/or change to reflect any rate increases or decreases as directed by the Department of Veterans' Affairs". VGLI policy holders should be receiving similar letters on the anniversary of their policy or when they cross a new age bracket and if they have maintained their documents can clearly find this change to policy if the paragraph (second down from this) showing this change from the VA isn't enough. The next indication was when my premium changed (increased to conform with a new age bracket) three years into my term instead of on the anniversary and renewal as had been the case for over fifteen years. The following is the response of the VA to a request on my behalf from the VFW. It is from an e-mail forwarded to me from the VFW dated10/4/2010 2:28 PM. "We are responding from the Veterans Affairs Regional Office and Insurance Center in Philadelphia and are responsible for supervision of the Veterans Group Life Insurance (VGLI) program. The primary answer to the question of why we switched from 5-year term rates to age-based rates is that age-based rates more accurately reflect the cost of insurance". It then goes on to blow smoke about the change. The specifics of the smoke seem to intimate the actuaries the VA uses to determine rates and terms do not know what they are doing and set up a bad system. This e-mail also gives a Point of Contact whom I called and was promised an answer the following week to my other question which was where in US Code does the Secretary find this authority. I can only find where he/she has the authority to set rates, not change term dates or term policy. I have yet to receive any answer. I also have a copy of my payment record back over ten years that shows where my payments increased at the three year mark of my latest term whereas they were only changing at the end of the term previously. The 2009 VA Report was on the VA website.
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