Legislative changes currently being discussed on the Hill could change the rules allowing service members to transfer Post-9/11 GI Bill educational benefits to immediate family member(s).

Transfer Eligibility

Right now, basic transfer-of-education benefits (TEB) eligibility covers active duty service members, both officer and enlisted, who have served at least six years since September 10, 2001, and who agree to serve an additional four years. Certain Selected Reservists also have some eligibility under the Post-9/11 GI Bill.  Go to the VA’s website to read about all of the eligibility criteria.

Early on, one of the proposed House of Representative changes to the New GI Bill would have lengthened the time served from six years to ten before a transfer request could be submitted.  The follow-on commitment would have changed from four years down to two.  However, in the final bill approved by the House, that change was thrown out and left at six and four years, respectively.

The Changes

The change that did make it through the House and is causing quite a stir, was cutting the Monthly Housing Allowance (MHA) for a child using transferred Post 9/11 GI Bill benefits in half.  Under the current rule, a dependent child receives full authorized MHA based on the zip code of the school, the number of credits taken and tier percentage; the MHA is paid at the E-5-with-dependents pay rate.

Another provision approved in the bill is a grandfather clause that allows education benefits transferred up to 180 days after the implementation date of the changes, will be paid (or continued to be paid) at the full authorized rate and will not be reduced by half.  What does this mean for service members eligible to make a transfer of benefits and have not yet done so: Sooner rather than later is recommended to take advantage of this clause.

Transfer at least one month to each child and one or more months to your spouse while you are still serving. Then you have the flexibility to move benefits around by revoking and reallocating as needed even after retiring.  However, if a dependent has never received benefits, they can’t be a recipient after you retire. Keep your options open by making a transfer to each family member now, if eligible to use the transfer benefit option. For service members not having yet served six years by the 180-day after implementation date, their dependents are not covered by the grandfather clause and will be paid at the reduced rate.

The Senate has yet to address the House-approved bill, but the sense is it will pass as-is and the President will sign it.  This could be the tip of the iceberg for more changes in the future.

Applying For TEB

If eligible to make a transfer request, go to the milConnect website and follow the directions. A Common Access Card (CAC), a DFAS PIN or a DoD Self-Service User ID is required to enter the transfer application area.  After approved, each family member receiving benefits will have to request a Certificate of Eligibility when ready to use the benefit.

Act now to lock in Post-9/11 GI Bill MHA benefits for your dependents at the current or future authorized rate.  Not doing so could result in thousands of dollars lost if the bill is approved and signed by the President.   

Related News

Kness retired in November 2007 as a Senior Noncommissioned Officer after serving 36 years of service with the Minnesota Army National Guard of which 32 of those years were in a full-time status along with being a traditional guardsman. Kness takes pride in being able to still help veterans, military members, and families as they struggle through veteran and dependent education issues.