Financial Management: Review of VA's Actuarial Model for Veterans' Compensation Benefits
AIMD-99-46
Published: Jan 29, 1999. Publicly Released: Jan 29, 1999.
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Highlights
Pursuant to a legislative requirement, GAO reviewed the Department of Veterans Affairs' (VA) revised actuarial model for veterans' compensation benefits, focusing on whether: (1) VA's revised actuarial model complies with Statement of Federal Financial Accounting Standards (SFFAS) No. 5; and (2) future liability estimates can be improved.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Veterans Affairs | The Secretary of Veterans Affairs should direct the Under Secretary for Benefits to further improve its model for estimating VA's liability for veterans' compensation benefits by refining the estimates by continuing to evaluate the actual experience of the compensation programs and expanding the period over which experience is studied. |
Closed – Implemented
VA improved its FY 1999 model for estimating VA's liability for veterans compensation benefits. VBA has worked annually with a contractor to refine the model to include changes and developments in veterans disabilities over an expanded period of time.
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| Department of Veterans Affairs | The Secretary of Veterans Affairs should direct the Under Secretary for Benefits to further improve its model for estimating VA's liability for veterans' compensation benefits by considering the impact of conflict-related exposures and the time lag between discharge and date of initial award, in addition to age and type of veterans and beneficiaries, as indications of the propensity for veterans to secure compensation benefits. |
Closed – Implemented
VA improved its FY 1999 model for estimating VA's liability for veterans compensation benefits. VBA worked annually with a contractor to determine the impact of conflict-related exposures and developed time lag information between the time military personnel are discharged and award of benefits, in addition to age and type (i.e., veteran, surviving spouse, or child)of beneficiaries.
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Topics
Accounting standardsActuarial tablesFinancial recordsFinancial statement auditsFuture budget projectionsGovernment liability (legal)Internal controlsMilitary benefits claimsVeterans benefitsVeterans