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State Rep. James Arciero, a long-time member of the Veterans Affairs Committee, has filed legislation which would clarify annuity payments to Gold Star families. The bill calls for exempting any annuity paid to a Gold Star family from being considered income for any state benefit or service. Currently, the annuity is considered income and is added to any recipient’s income level when applying for other benefits offered by the Commonwealth.
“This issue was brought to my attention by one of my constituents whose son was killed in Afghanistan. The $2,000 payment she was receiving as a Gold Star mother in honor of her son’s sacrifice for our nation was being considered income by Mass Health in their application for coverage. This additional income put her over the threshold to qualify for this benefit. A Gold Star family member should not have to choose between health care and accepting a small token of appreciation from our country for their family member’s ultimate sacrifice. I do not believe this was the intent of the Gold Star annuity program.” said Arciero.
“In my discussions with several veterans and veteran organizations, I discovered that this was a gray area and wanted to clarify the law for my constituent and for all Gold Star families across the Commonwealth. This annuity payment is in honor of the ultimate sacrifice made by those who give their lives in the service of this country. It is a small payment for a debt that American’s can never repay these very special families. I am hopeful that we can all agree that this should not be considered “income” in the traditional sense of the word,” added Arciero, who filed the bill with 42 legislators who agreed to be co-sponsors of the legislation.
According to the annuity letter each Gold Star recipient receives, the annuity payment is not taxable and non-reportable to the Internal Revenue Service. It is unclear whether such a designation is made in the case of the Massachusetts Department of Revenue for state taxation purposes. This bill’s goal is to clarify the matter to insure that under no circumstances are such annuity payments subject to any form of state taxation or used in the computation of eligibility for any state services or benefits.
“I am a strong supporter of this legislation being passed. It is one more step we can take as a society to ensure that our loved ones who gave their lives for their nation are honored and that those left behind are remembered as well for what they have lost because of the bravery and sacrifice of their spouse or child,” said Karen Lounsbury, President of the American Gold Star Mothers of Massachusetts/Rhode Island.
The Gold Star designation for families who have lost love ones in combat was started during World War I, when it was customary to have Blue Stars showing which families had members in the military. As the war progressed and many service members were killed, it became the accepted usage to change the Blue Star to a Gold Star to honor the fallen hero for their sacrifice.
The Gold Star annuity is a bi-annual payment made to spouses or parents of American military personnel who have been killed in combat during wartime. Each payment is in the amount of $1,000 dollars and is given in February and August of each year by the Massachusetts Department of Veterans’ Services.
“No one chooses to be a Gold Star Family. The cost of membership is far too high. The Greater Boston Chapter of Gold Star Wives of America supports any effort that eases the burdens these families bear,” said Peggy Griffin, President of the Greater Boston Chapter of the Gold Star Mothers.
“I am proud to support Gold Star families and this legislation which would make sure that these families receive the annuity benefit they deserve. This small clarification will make a big difference and will guarantee that these funds are not compromised in any way and that no one will be denied any benefits because of these payments,” said Seth Bai, the Veterans’ Service Officer for the city of Newton and President of the Massachusetts Veterans’ Service Officers Association.
The legislation, House Bill 1921: An Act Relative To Exempting Gold Star Annuity Payments is currently before the Joint Committee on Veterans Affairs awaiting a public hearing.
