S 274119th CongressIn Committee

Next of Kin Collections Protection Act of 2025

Introduced: Jan 28, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Next of Kin Collections Protection Act of 2025 (S. 274) would adjust when certain U.S. Department of Veterans Affairs (VA) benefits stop or continue after the death of a payee, and would clarify related monthly payments to cover the death month. Specifically, it makes a targeted exception for pensions under an existing rating or decision, extending the cessation of such pension benefits to the last day of the month in which the payee dies. It also clarifies that, for the month of death, payments may be made as applicable to the beneficiary, and it updates cross-references accordingly. The changes would take effect for deaths occurring on or after the enactment date. In short, the bill aims to prevent an abrupt end to certain pension benefits at the moment of death by allowing or requiring continuation through the end of the month, while also ensuring proper treatment of the month-of-death payment and aligning related statutory provisions.

Key Points

1Amends 38 U.S.C. 5112(b) to modify the timing of reductions/discontinuances of compensation, DIC, and pension payments upon the death of a payee, with an exception for pensions under an existing rating or decision.
2Adds a new paragraph in 5112(b) stating that, for pensions under an existing rating or decision, the cessation shall be the last day of the month in which the death occurs.
3Makes a conforming cross-reference change in 38 U.S.C. 1832(b)(4) to reflect the renumbered paragraphs.
4Adds language to 38 U.S.C. 5310(b) to address payments for the month of the payee’s death, clarifying the eligibility for the month-of-death payment under 5112(b)(2).
5Effective date: applies to payments affected by death that occur on or after the date of enactment.

Impact Areas

Primary group/area affected: Veterans, survivors, and other beneficiaries who receive VA compensation, DIC (dependency and indemnity compensation), and pension payments; particularly those who would otherwise experience an abrupt termination of benefits at death.Secondary group/area affected: VA administrative processes and adjudication staff responsible for implementing 5112(b) and 5310(b) provisions; may affect overpayment handling and month-of-death payments.Additional impacts: Potential financial and administrative implications for estates and survivor benefits, as well as clarity in state and local agencies that interact with VA benefit payments. The bill’s changes could reduce disputes or delays related to the month of death, while potentially increasing payments for the month of death in some cases.

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