S. 274: Next of Kin Collections Protection Act of 2025

This bill, titled the Next of Kin Collections Protection Act of 2025, aims to amend existing laws regarding the payment of certain benefits administered by the Secretary of Veterans Affairs that are affected by the death of an individual who is receiving those benefits. Here are the key provisions of the bill:

Changes to Benefit Payment Timing

The bill modifies the rules around when benefits are reduced or discontinued after the death of a payee (the individual receiving benefits). The main changes are:

• Pension Under Existing Rating: If a payee receiving pension benefits passes away, the reduction in benefits will now take effect at the end of the month in which the death occurs, instead of immediately.
• Clarification of Terms: The bill clarifies that these new rules apply specifically to pension benefits linked to an existing rating or decision made by the Veterans Affairs.

Payment for the Month of Death

In cases where a payee dies, the bill ensures that any payment applicable for the month of the payee's death will still be processed. This means that if a veteran or their dependent passes away, they or their estate will receive payment for the month in which the death occurred prior to any reductions.

Effective Date of the Amendments

The changes outlined in the bill will apply to any benefits relating to a death that occurs on or after the date the bill is enacted.

Summary of Intent

The legislation is designed to provide clarity and protection to beneficiaries by ensuring that beneficiaries do not lose essential support immediately upon the death of a payee. It aims to provide a more equitable timeframe for the transition of benefits in such sensitive situations.

Relevant Companies

None found.