Research - Rehabilitation - Re-Employment

Sgt. Shaft 09/08/2003

Dear Sgt. Shaft:
I am a veteran of the Korean War, having served with the U.S. Navy from 1949 through October 1953. I was honorably discharged and received the Korean Service Ribbon with one Star, the Navy Occupation Medal, China Service Medal, United Nations Service Medal and the National Defense Medal.

While I was in the service, I signed up for U.S. Government Life Insurance. After my discharge, I continue to pay my annual premiums to keep my insurance active. My policy pays me annual dividends and that relates to my question.

I have noticed that my annual dividends were increasing at a modest rate until the year 1992. However, since 1992, the annual dividends have been decreasing in amount each year. The dividend received in 2003 is approximately 2.2% less than the dividend received in 2002 and 16% lower than the hi-water mark of 1992.

Do you have an answer for this? Or perhaps you may point me in the direction of someone who can if you don’t have the information readily available.

I would appreciate very much hearing from you regarding this question. Thank you for your attention.

Sincerely,
Donald A.
Springfield, VA

Dear Don:
I contacted those in the know at VA and got the following answer for you.

You received dividends on each of your policies  totaling $429.60 this year as opposed to the amount you received last year, which totaled $439.20. Your total annual premium for both policies is $145.10. Even though your dividends have been declining over the years, your dividend still exceeded your combined premium payments by $284.50.

Your VA insurance program, which is known as The National Service Life Insurance (NSLI) is operated through the NSLI Trust Fund. Premiums collected and interest earned are credited to this trust fund, and benefit payments, such as death proceeds, are withdrawn from the fund. These trust fund monies are invested, by law, in special U.S. Securities that are guaranteed by the federal government.

The average interest earnings rate in the NSLI Trust Fund has been steadily declining over the years just like holdings in the commercial industry. The interest rates earned on these trust fund investments are similar to the interest rates on all long-term obligations of the U.S.

The decline in the interest rate resulted in lower interest earning in the NSLI Trust Fund. This was then reflected in lower NSLI dividends. It was necessary to have a decrease in dividends in order to make sure that all benefits could be paid on NSLI policies for the remainder of this insurance program.

Shaft Kudos

Hats off to Office of Personnel Management Director Kay Coles James for launching the Veteran Invitational Program (VIP), an educational and recruitment strategy which targets military personnel who are transitioning to civilian life.

The program is an effort by OPM and Transition Assistance offices on military bases. VIP will target veterans nationwide by providing informative educational tools and publications to Veteran Services Organizations (VSOs) and federal regional offices of Veterans' Affairs and the Department of Labor. OPM will distribute posters and pamphlets as well as providing a weblink for VSOs like American Legion and the Veterans of Foreign Wars (VFW).

"President Bush wants to make every effort to assist our veterans as they transition to civilian life," James said. "Veterans represent a loyal and dedicated workforce that Federal agencies and departments must tap into as they seek to successfully meet their goals and missions. Veterans' preference offers individuals who have served America in the armed services the ability to transfer their skills from the military service to the civil service with deserved preference through the process. The new VIP program will educate veterans and allow a timely and accurate dispersion of information on job opportunities in the federal workforce."

"It is imperative that we make this information available to our veterans," James said. "These men and women are some of the most qualified candidates in skills, talents and their commitment to our nation. They have sacrificed to secure the freedom of this great nation. As our President continues to make veterans' preference a top priority, the VIP will ensure their tireless sense of service is rewarded."

But! There is an old adage that says actions speak louder than words and as another president teddy Roosevelt once said, “speak softly, but carry a big stick". Federal agencies and their minions must be held accountable for their adherence to veteran’s preference laws. As Kay Coles James has quoted many times the words of Teddy Roosevelt, which she proudly displays in her conference room.

It is not the critic who counts;

not the man who points out how the strong man stumbles,

or where the doer of deeds could have done them better.

The credit belongs to the man who is actually in the arena,

whose face is marred by dust and sweat and blood,

who strives valiantly; who errs and comes short again and again;

because there is not effort without error and shortcomings;

but who does actually strive to do the deed;

who knows the great enthusiasm, the great devotion,

who spends himself in a worthy cause,

who at the best knows in the end the triumph of high achievement

and who at the worst, if he fails,

at least he fails while daring greatly.

So that his place shall never be with those cold and timid souls

who know neither victory nor defeat.

Send letters to Sgt. Shaft, c/o John Fales, P.O. Box 65900, Washington, D.C. 20035-5900; fax to 301-622-3330; call 202-462-4430 or email sgtshaft@bavf.org.

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