VA Life Insurance: Administrative Costs for Three Programs Should Be Paid From Excess Funds
HRD-92-42
Published: Mar 10, 1992. Publicly Released: Mar 10, 1992.
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Highlights
Pursuant to a congressional request, GAO examined the feasibility of the Department of Veterans Affairs (VA) using a portion of dividends paid to policyholders in three of its life insurance programs to pay for the programs' administrative costs.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should amend 38 U.S.C. 1982 to require that the three VA insurance programs pay administrative costs from excess interest income. This could be accomplished by changing the period following "Secretary" to a semicolon and adding: "provided, however, that to the extent excess revenues (the balance of funds remaining at the end of each fiscal year, beginning with the fiscal year ending before the date of enactment of this proviso, after claims have been paid and reserves have been appropriately funded) for the programs authorized under sections 1901, 1923, and 1940 are available, the cost of administration shall be paid from such excess." | Congress has not yet acted on this recommendation. |
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Topics
Administrative costsAppropriated fundsBudgetary reservesExcess profitsFunds managementInterest ratesInvestmentsLife insuranceVeterans benefitsVeterans pensions