Transitional Compensation (TC) for Abused Dependents, 55329-55332 [2018-23964]
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Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Proposed Rules
described in section 959(c)(2) are
reclassified as earnings and profits
described in section 959(c)(1).
(iii) Example 3. (A) Facts. (1) USP, a
domestic corporation, owns all of the
single class of stock of CFC1, and has
held such stock for five years. CFC1 has
held 70% of the single class of stock of
CFC2 for three years. The other 30% of
the CFC2 stock has been held by a
foreign individual unrelated to USP or
CFC1 since CFC2’s formation. All of the
stock of each of CFC1 and CFC2 is
treated as equity for U.S. income tax
purposes and under the laws of the
jurisdiction in which each respective
corporation is organized and liable to
tax as a resident. CFC2 has a calendar
taxable year. On December 1, Year 1,
CFC1 acquires the remaining 30% of the
stock of CFC2 for cash. On June 30, Year
2, CFC1 sells to a third party the 30%
of CFC2 stock acquired in Year 1 at no
gain. CFC2 made no distributions
during Year 1.
(2) The functional currency of CFC1
and CFC2 is the U.S. dollar. CFC2 has
$120x of undistributed earnings as
defined in section 245A(c)(2), all of
which constitute undistributed foreign
earnings. Neither CFC1 nor CFC2 would
receive a deduction or other tax benefit
with respect to any income, war profits,
or excess profits taxes on a distribution.
None of the earnings and profits of
CFC2 are described in section 959(c)(1)
or (2) or are earnings and profits
attributable to income excluded from
subpart F income under section 952(b).
CFC2’s applicable earnings (as defined
in section 956(b)(1)) are $120x. CFC2
has held an obligation of USP with an
adjusted basis of $100x on every day of
Year 1 that was acquired while USP
owned all of the stock of CFC1 and
CFC1 held 70% of the single class of
stock of CFC2.
(B) Analysis. Because USP indirectly
owns (within the meaning of section
958(a)) all of the stock of CFC2 at the
end of Year 1, USP’s aggregate tentative
section 956 amount with respect to
CFC2 for Year 1 is $100x, the lesser of
USP’s pro rata share of the average
amounts of United States property held
by CFC2 ($100x) and its pro rata share
of CFC2’s applicable earnings ($120x).
Under paragraph (a)(2)(i) of this section,
USP’s section 956 amount with respect
to CFC2 for Year 1 is its aggregate
tentative section 956 amount with
respect to CFC2 reduced by the
deduction under section 245A that USP
would be allowed if USP received an
amount equal to its aggregate tentative
section 956 amount as a distribution
with respect to the CFC2 stock that USP
owns indirectly within the meaning of
section 958(a)(2). For purposes of
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determining the consequences of this
hypothetical distribution, under
paragraph (a)(2)(ii)(A)(1) of this section,
USP is treated as owning the CFC2 stock
directly. In addition, under paragraph
(a)(2)(ii)(A)(4) of this section, the
holding period requirement of section
246(c) is applied by reference to the
period during which USP owned
(within the meaning of section 958(a))
the stock of CFC2. Therefore, with
respect to the hypothetical distribution
from CFC2 to USP, USP would satisfy
the holding period requirement under
section 246(c) with respect to the 70%
of the CFC2 stock that USP indirectly
owned for three years through CFC1, but
not with respect to the 30% of the CFC2
stock that USP indirectly owned
through CFC1 for a period of less than
365 days. Accordingly, USP’s section
956 amount with respect to CFC2 for
Year 1 is $30x, its aggregate tentative
section 956 amount ($100x) reduced by
the amount of the deduction that USP
would have been allowed under section
245A with respect to the hypothetical
distribution ($70x).
*
*
*
*
*
(g) * * *
(4) Paragraphs (a)(2) and (3) of this
section apply to taxable years of
controlled foreign corporations
beginning on or after the date of
publication of the Treasury decision
adopting paragraphs (a)(2) and (3) of
this section as final regulations in the
Federal Register, and to taxable years of
a United States shareholder in which or
with which such taxable years of the
controlled foreign corporation end.
(5) Paragraph (e)(6) of this section
applies to property acquired in
exchanges occurring on or after June 24,
2011.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2018–24140 Filed 11–1–18; 4:15 pm]
BILLING CODE 4830–01–P
NATIONAL LABOR RELATIONS
BOARD
29 CFR Chapter I
RIN 3142–AA13
The Standard for Determining JointEmployer Status
National Labor Relations Board
Proposed rulemaking; extension
of comment period.
AGENCY:
ACTION:
The National Labor Relations
Board (the Board) published a Notice of
Proposed Rulemaking in the Federal
SUMMARY:
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Register of September 14, 2018, seeking
comments from the public concerning
the standard for determining jointemployer status under the National
Labor Relations Act. The date to submit
responses to the Notice is extended for
30 days.
DATES: The comment period for the
notice of proposed rulemaking
published at 83 FR 46681 is extended.
Comments must be received by the
Board on or before December 13, 2018.
Comments replying to the comments
submitted during the initial comment
period must be received by the Board on
or before December 20, 2018.
Dated: October 31, 2018.
Farah Z. Qureshi,
Associate Executive Secretary.
[FR Doc. 2018–24134 Filed 11–2–18; 8:45 am]
BILLING CODE P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 111
[Docket ID: DOD–2016–OS–0116]
RIN 0790–AI99
Transitional Compensation (TC) for
Abused Dependents
Office of the Under Secretary of
Defense for Personnel and Readiness,
DoD.
ACTION: Proposed rule.
AGENCY:
Transitional compensation is
one of the many resources available to
victims of domestic abuse. The
Transitional Compensation for Abused
Dependents program is a
congressionally-authorized program
which provides temporary monetary
payments and military benefits to
dependents of Service members, when
the member has been separated from the
military due to a dependent-abuse or
child abuse offense. If adopted as final,
this rulemaking would establish
requirements and describes authorized
benefits for an abused spouse and/or
abused children affected by the
separation or forfeiture of pay and
allowances of a military Service
member.
DATES: Comments must be received by
January 4, 2019.
ADDRESSES: You may submit comments,
identified by docket number and/or RIN
number and title, by any of the
following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
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Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Proposed Rules
• Mail: Department of Defense, Office
of the Chief Management Officer,
Directorate for Oversight and
Compliance, 4800 Mark Center Drive,
Mailbox #24, Suite 08D09, Alexandria,
VA 22350–1700.
Instructions: All submissions received
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this
Federal Register document. The general
policy for comments and other
submissions from members of the public
is to make these submissions available
for public viewing on the internet at
https://www.regulations.gov as they are
received without change, including any
personal identifiers or contact
information.
FOR FURTHER INFORMATION CONTACT:
CDR
David T. Clark, 703–693–1068.
SUPPLEMENTARY INFORMATION:
Legal Authority for This Program
This program was established by
Congress for abused dependents of
military personnel based on (Pub. L.
103–160) in 1994. This rule consolidates
and clarifies existing procedural
requirements established by the Act and
currently found in internal DOD
guidance.
The legislation authorized temporary
payments for families in which the
active duty soldier had been courtmartialed with a qualifying sentence
(forfeiture of all pay and allowances, or
bad conduct discharge, or dishonorable
discharge, or in the instance of officers
and commissioned warrant officers,
dismissal from the Service) or was being
administratively separated from the
military as a result of a dependent-abuse
offense. DOD began authorizing
payments in August 1995 in accordance
with DoD Instruction (DoDI) 1342.24,
Transitional Compensation for Abused
Dependents which was last updated in
January 1997 and can be found at https://
www.esd.whs.mil/Portals/54/
Documents/DD/issuances/dodi/
134224p.pdf.
Eligibility Requirements for the
Program
To be eligible for the benefit a family
member (spouse or dependent child)
must have been living in the home of
the Service member. The Service
member must have been
administratively separated for a
dependent-abuse offense; or convicted
of a dependent-abuse offense and either
separated under a court-martial
sentence or sentenced to a forfeiture of
all pay and allowances.
A dependent-abuse offense must be
the basis for the administrative
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separation or conviction, although it
does not have to be the primary reason.
Active duty victims of dependent-abuse
are also eligible for transitional
compensation, when the offender is also
active duty.
Summary of Benefits Under This
Program
• Amount of the benefit: The
compensation amount is based on the
Dependency and Indemnity
Compensation, which changes annually.
Current amounts can be found at the
Department of Veterans Affairs
Dependency and Indemnity
Compensation website at https://
benefits.va.gov/compensation/typesdependency_and_indemnity.asp.
• Length of the benefit: The
transitional compensation is available
for the longer of 12 months or the
unserved portion of the Service
member’s obligated active service.
Compensation will not extend beyond
36 months.
• Maintaining eligibility: Individuals
become ineligible for compensation and
benefits if they remarry or move back in
with the former Service member while
receiving benefits.
• Recertifying eligibility: If
compensation is available for more than
12 months, recertification is required
annually to ensure eligibility for
transitional compensation.
• Other benefits: As part of the
Transitional Compensation Program,
individuals may be eligible for other
benefits including medical care,
exchange privileges and commissary
privileges.
Transitional compensation is one of
the many resources available to military
families. Each installation’s Family
Advocacy Program or legal assistance
office can help a family apply for
transitional compensation as well as
other means of assistance.
Per DoD’s Financial Management
Regulation at https://
comptroller.defense.gov/Portals/45/
documents/fmr/current/07b/07b_60.pdf,
transitional compensation payments are
not taxable. Transitional compensation
recipients should not expect to receive
a Form 1099 for tax purposes. Also,
recipients need not report transitional
compensation payments on their tax
return.
According to DoD Policy, transitional
compensation for a dependent spouse or
former spouse is at the same rate as
defined in 38 U.S.C. 1311—Dependency
& Indemnity Compensation to a
Surviving Spouse. There is also an
additional amount for children under
this section. For children without a milspouse parent, the amount is the same
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as the rate defined in 38 U.S.C. 1313—
Dependency & Indemnity Compensation
to Children. You can find annual
updates to these payments on the DoD
Comptroller’s website at https://
comptroller.defense.gov/Portals/45/
documents/fmr/Volume_07b.pdf.
Expected Impact of the Proposed Rule
The intent of this program is to
encourage victims of dependent-abuse
to come forward and report abuse,
provide assistance to victims to separate
from the abuser, inform the victims of
resources available to them as a victim
of dependent-abuse, ensure the safety
and well-being of the victims, and
ensure the Department of Defense does
not leave a spouse and family
financially destitute when the abusing
Service member is discharged from the
military for a dependent-abuse offense.
In accordance with statute, the rate of
payment varies based on the rank of the
Service member, but it is designed to
cover living expenses such as food,
clothing and housing. The Department
spends approximately $17M each fiscal
year in transitional compensation
payments. This proposed rule publishes
instructions internal to DoD without any
changes to the policies already in place,
and therefore will not result in any
changes to the number of TC recipients
or the amount they are paid.
Regulatory Procedures
Executive Order 12866, ‘‘Regulatory
Planning and Review’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review’’
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule has been
designated a ‘‘significant regulatory
action,’’ although not economically
significant, under section 3(f) of
Executive Order 12866. Accordingly,
the rule has been reviewed by the Office
of Management and Budget (OMB).
Executive Order 13771, ‘‘Reducing
Regulation and Controlling Regulatory
Costs’’
This proposed rule is not expected to
by subject to the requirements of E.O.
13771 (82 FR 9339, February 3, 2017)
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Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Proposed Rules
because this proposed rule is expected
be related to agency organization,
management, or personnel.
2 U.S.C. Ch. 25, ‘‘Unfunded Mandates
Reform Act’’
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA)
(2 U.S.C. 1532) requires agencies assess
anticipated costs and benefits before
issuing any rule whose mandates
require spending in any 1 year of $100
million in 1995 dollars, updated
annually for inflation. This rule will not
mandate any requirements for State,
local, or tribal governments, nor will it
affect private sector costs.
Public Law 96–354, ‘‘Regulatory
Flexibility Act’’ (5 U.S.C. Ch. 6)
The Department of Defense certifies
that this proposed rule is not subject to
the Regulatory Flexibility Act because it
would not, if promulgated, have a
significant economic impact on a
substantial number of small entities.
Therefore, the Regulatory Flexibility
Act, as amended, does not require us to
prepare a regulatory flexibility analysis.
Public Law 96–511, ‘‘Paperwork
Reduction Act’’ (44 U.S.C. Chapter 35)
Section 111.6(f)(1) of this proposed
rule contains information collection
requirements. These reporting
requirements have been approved by the
Office of Management and Budget and
assigned OMB Control Number 0704–
0578, ‘‘Transitional Compensation for
Abused Dependents (TCAD).’’
The applicable Systems of Records
Notice (SORN) is T7347b, Defense
Military Retiree and Annuity Pay
System Records (January 7, 2009, 74 FR
696), https://dpcld.defense.gov/Privacy/
SORNsIndex/DOD-wide-SORN-ArticleView/Article/570196/t7347b/. The
Privacy Impact Assessment (PIA) is
available at https://www.dfas.mil/dam/
jcr:5cf8a068-89c7-47eb-b8441e2020ed5f73/Defense%20Retiree%20
and%20Annuitant%20Pay%20
System%20(DRAS)%202016.pdf; or
https://www.dfas.mil/dfas/foia/
privacyimpactassessments.html.
Executive Order 13132, ‘‘Federalism’’
Executive Order 13132 establishes
certain requirements that an agency
must meet when it promulgates a
proposed rule (and subsequent final
rule) that imposes substantial direct
requirement costs on State and local
governments, preempts State law, or
otherwise has Federalism implications.
This proposed rule will not have a
substantial effect on State and local
governments.
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List of Subjects in 32 CFR Part 111
Abuse, Dependent children,
Transitional compensation.
■ Accordingly, 32 CFR part 111 is
proposed to be added to read as follows:
PART 111—TRANSITIONAL
COMPENSATION FOR ABUSED
DEPENDENTS
Sec.
111.1
111.2
111.3
111.4
111.5
111.6
Purpose.
Applicability.
Definitions.
Policy.
Responsibilities.
Procedures.
Authority: 10 U.S.C. 1059.
PART 111—TRANSITIONAL
COMPENSATION FOR ABUSED
DEPENDENTS
§ 111.1
Purpose.
This part establishes policy, assigns
responsibilities, and prescribes
procedures for the payment of monthly
Transitional Compensation (TC) to
dependents of Service members
separated for dependent abuse.
§ 111.2
Applicability.
This part applies to The Office of the
Secretary of Defense, the Military
Departments, the Office of the Chairman
of the Joint Chiefs of Staff and the Joint
Staff, the Combatant Commands, the
Office of the Inspector General of the
Department of Defense (DoD), the
Defense Agencies, the DoD Field
Activities, and all other organizational
entities in the DoD.
§ 111.3
Definitions.
Unless otherwise noted, these terms
and their definitions are for the
purposes of this part.
Dependent abuse offense. Conduct by
an individual while a Military Service
member on active duty for a period of
more than 30 days that involves abuse
of a then-current spouse or a dependent
child of the Service member and that is
a criminal offense, under the Uniform
Code of Military Justice, or another
criminal code applicable to the
jurisdiction where the act of abuse is
committed. The term ‘‘involves abuse of
the then-current spouse or a dependent
child’’ means that the criminal offense
is against the person of that spouse or
a dependent child. Crimes that may
qualify as dependent-abuse offenses
include sexual assault, rape, sodomy,
assault, battery, murder, and
manslaughter. (This is not an exhaustive
or exclusive listing of dependent-abuse
offenses, but is provided for illustrative
purposes only. The facts and
circumstances of a particular case
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55331
should always be interpreted in a
manner most favorable to the spouse or
a dependent child of the member when
determining whether the conduct
constitutes a ‘‘dependent abuse
offense.’’)
Dependent child. As defined in 10
U.S.C. 1059.
Exchange stores. The Army and Air
Force Exchange Service, the Navy
Exchange, the Marine Corps Exchange,
and the Coast Guard Exchange.
Parent. The natural father or mother,
or father or mother through adoption.
For purposes of TC, parent does not
include persons who have stood ‘‘in
loco parentis’’ to a dependent child.
Secretary concerned. Includes the
Secretary of the Military Departments
and the Secretary of the Department of
Homeland Security, when applicable.
Service member. Includes former
Service members, where appropriate.
Spouse. An individual married to a
Service member, but does not include a
domestic partner.
§ 111.4
Policy.
The DoD will make monthly TC
payments and provide other benefits
described in this part for spouses or
dependents of Service members who
meet the eligibility requirements of 10
U.S.C. 1059 and this part.
§ 111.5
Responsibilities.
(a) The Under Secretary of Defense for
Personnel and Readiness (USD(P&R)):
(1) Establishes and prescribes
procedures for the payment of TC to
dependents of Service members
separated for dependent abuse.
(2) Oversees compliance with this
part.
(b) The Secretaries of the Military
Departments and the Secretary of the
Department of Homeland Security,
when applicable:
(1) Appoint representatives to
coordinate requests for TC, approve
requests (except exceptional eligibility
requests), and forward those requests for
payment in accordance with Chapter 60,
Volume 7B of DoD 7000.14–R,
‘‘Department of Defense Financial
Management Regulations (FMRs):
Military Pay Policy—Retired Pay’’
(available at https://comptroller.defense.
gov/Portals/45/documents/fmr/Volume_
07b.pdf).
(2) Review and approve or disapprove
requests for TC benefits in accordance
with the exceptional eligibility authority
in accordance with 10 U.S.C. 1059. This
responsibility may not be delegated.
(3) Ensure dependents who are
victims of a dependent-abuse offense are
aware of their eligibility to apply for TC.
(4) Establish departmental guidance to
implement this part.
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§ 111.6
Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Proposed Rules
Procedures.
(a) Recipients of payment. The
Secretary concerned makes TC
payments to Service member
dependents, former dependents, or
court-appointed guardians as described
by 10 U.S.C. 1059. If a recipient is
incapable of handling his or her own
affairs, payments may be made only to
a court-appointed guardian.
(b) Payments.
(1) Payments begin in accordance
with 10 U.S.C. 1059.
(2) Payments must continue for at
least 12 months and no more than 36
months, as prescribed by the applicable
Secretary of the Military Department.
When the unserved portion of the
Service member’s obligated active duty
service, as of the starting date of
payment, is greater than 12 months and
less than or equal to 36 months,
payments continue for no less than the
unserved portion.
(i) For enlisted Service members,
obligated active duty service is the time
remaining on their terms of enlistment.
(ii) For officers, obligated active duty
service is indefinite unless an officer
has a date of separation established. In
that case, it is the time remaining until
the date of separation.
(3) The amount of payment will be in
accordance with 10 U.S.C. 1059. Partial
month entitlements are pro-rated. If a
recipient dies, arrears of payments are
not paid.
(4) Payments will be stopped in
accordance with 10 U.S.C. 1059.
(i) Payments will end on the first day
of the first month following the month
in which the Secretary concerned
notifies the recipient of such
transitional compensation in writing
that the payment of TC will stop.
(ii) Recipients are not required to
repay amounts of TC received before the
effective date payment is stopped, in
accordance with paragraph (b)(4)(i) of
this section; however, TC may be
recouped for erroneous payments or
payments made based on false
information provided.
(c) Forfeiture provisions. In addition
to 10 U.S.C. 1059, the following
requirements apply:
(1) The former spouse receiving TC
must notify the Defense Finance
Accounting Services (DFAS) within 30
days of remarriage or if the spouse or
former spouse begins residing in the
same household as the spouse or former
spouse.
(2) If a Service member’s dependent
child is not living in the same
household as the spouse or former
spouse who forfeits TC, payments are
made to each dependent child or his or
her court-appointed guardian.
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(3) In order to continue benefits, the
spouse or former spouse must annually
certify to DFAS that he or she is not
remarried or is not cohabitating with the
Service member separated for the abuse.
DFAS will provide a form for
recertification of benefits.
(d) Coordination of benefits. A spouse
or former spouse may not concurrently
receive TC payments and retired pay
payments pursuant to 10 U.S.C. 1059
and 1408(h), respectively. If a spouse or
former spouse is eligible for both TC
payments and retired pay payments, the
spouse or former spouse chooses which
of the two payments to receive. If the
spouse or former spouse receives TC
payments and later receives payments
from a Service member’s retired pay,
any TC received concurrently with
retired pay must be recouped.
(e) Source of funds. TC must be paid
from operations and maintenance funds
of the Department of the Service
member.
(f) Application of procedures. An
individual must initiate a request for TC
through a Service-appointed
representative. The Service-appointed
representative:
(1) Collects data and validates the
claim using DD Form 2698 (available at
https://www.esd.whs.mil/Portals/54/
Documents/DD/forms/dd/dd2698.pdf).
(2) Approves payment and forwards
the application to DFAS unless
otherwise submitted by the Secretary
concerned in accordance with 10 U.S.C.
1059.
(g) Commissary and exchange benefits
(1) A recipient of TC is entitled to use
commissary and exchange stores while
receiving payments.
(2) If a recipient entitled to use
commissary and exchange stores is also
entitled to use commissary and
exchange stores under another provision
of law, the entitlement is determined
under the other provision of law and not
paragraph (g)(1).
(h) Medical benefits.
(1) The Secretary concerned will
determine appropriate medical and
dental care eligibility for TC recipients
and affected dependents. At a
minimum, an abused dependent who is
receiving TC in accordance with
paragraph (a) of this part may receive
medical and dental care, including
mental health services, in facilities of
the military services or through the
TRICARE program as outlined in 10
U.S.C. 1076 and 1077.
(2) Dental care may be provided on a
space-available basis in facilities of the
military services.
(3) Eligible dependents of a member
who is retirement eligible, but who loses
eligibility for retirement pay because of
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dependent-abuse misconduct, may
receive medical and dental care in
accordance with 10 U.S.C. 1408(h).
Dated: October 29, 2018.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 2018–23964 Filed 11–2–18; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2018–0999]
RIN 1625–AA00
Safety Zone for Fireworks Display,
Upper Potomac River, Washington
Channel, DC
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
establish a temporary safety zone for
certain waters of the Upper Potomac
River. This action is necessary to
provide for the safety of life on these
navigable waters of the Washington
Channel adjacent to The Wharf DC,
Washington, DC, during a fireworks
display on December 1, 2018. This
proposed rulemaking would prohibit
persons and vessels from being in the
safety zone unless authorized by the
Captain of the Port Maryland-National
Capital Region or a designated
representative. We invite your
comments on this proposed rulemaking.
DATES: Comments and related material
must be received by the Coast Guard on
or before November 19, 2018.
ADDRESSES: You may submit comments
identified by docket number USCG–
2018–0999 using the Federal
eRulemaking Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section for
further instructions on submitting
comments.
SUMMARY:
If
you have questions about this proposed
rulemaking, call or email Mr. Ron
Houck, Sector Maryland-National
Capital Region Waterways Management
Division, U.S. Coast Guard; telephone
410–576–2674, email Ronald.L.Houck@
uscg.mil.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
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]]>Agencies
[Federal Register Volume 83, Number 214 (Monday, November 5, 2018)]
[Proposed Rules]
[Pages 55329-55332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23964]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 111
[Docket ID: DOD-2016-OS-0116]
RIN 0790-AI99
Transitional Compensation (TC) for Abused Dependents
AGENCY: Office of the Under Secretary of Defense for Personnel and
Readiness, DoD.
ACTION: Proposed rule.
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SUMMARY: Transitional compensation is one of the many resources
available to victims of domestic abuse. The Transitional Compensation
for Abused Dependents program is a congressionally-authorized program
which provides temporary monetary payments and military benefits to
dependents of Service members, when the member has been separated from
the military due to a dependent-abuse or child abuse offense. If
adopted as final, this rulemaking would establish requirements and
describes authorized benefits for an abused spouse and/or abused
children affected by the separation or forfeiture of pay and allowances
of a military Service member.
DATES: Comments must be received by January 4, 2019.
ADDRESSES: You may submit comments, identified by docket number and/or
RIN number and title, by any of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
[[Page 55330]]
Mail: Department of Defense, Office of the Chief
Management Officer, Directorate for Oversight and Compliance, 4800 Mark
Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
Federal Register document. The general policy for comments and other
submissions from members of the public is to make these submissions
available for public viewing on the internet at https://www.regulations.gov as they are received without change, including any
personal identifiers or contact information.
FOR FURTHER INFORMATION CONTACT: CDR David T. Clark, 703-693-1068.
SUPPLEMENTARY INFORMATION:
Legal Authority for This Program
This program was established by Congress for abused dependents of
military personnel based on (Pub. L. 103-160) in 1994. This rule
consolidates and clarifies existing procedural requirements established
by the Act and currently found in internal DOD guidance.
The legislation authorized temporary payments for families in which
the active duty soldier had been court-martialed with a qualifying
sentence (forfeiture of all pay and allowances, or bad conduct
discharge, or dishonorable discharge, or in the instance of officers
and commissioned warrant officers, dismissal from the Service) or was
being administratively separated from the military as a result of a
dependent-abuse offense. DOD began authorizing payments in August 1995
in accordance with DoD Instruction (DoDI) 1342.24, Transitional
Compensation for Abused Dependents which was last updated in January
1997 and can be found at https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/134224p.pdf.
Eligibility Requirements for the Program
To be eligible for the benefit a family member (spouse or dependent
child) must have been living in the home of the Service member. The
Service member must have been administratively separated for a
dependent-abuse offense; or convicted of a dependent-abuse offense and
either separated under a court-martial sentence or sentenced to a
forfeiture of all pay and allowances.
A dependent-abuse offense must be the basis for the administrative
separation or conviction, although it does not have to be the primary
reason. Active duty victims of dependent-abuse are also eligible for
transitional compensation, when the offender is also active duty.
Summary of Benefits Under This Program
Amount of the benefit: The compensation amount is based on
the Dependency and Indemnity Compensation, which changes annually.
Current amounts can be found at the Department of Veterans Affairs
Dependency and Indemnity Compensation website at https://benefits.va.gov/compensation/types-dependency_and_indemnity.asp.
Length of the benefit: The transitional compensation is
available for the longer of 12 months or the unserved portion of the
Service member's obligated active service. Compensation will not extend
beyond 36 months.
Maintaining eligibility: Individuals become ineligible for
compensation and benefits if they remarry or move back in with the
former Service member while receiving benefits.
Recertifying eligibility: If compensation is available for
more than 12 months, recertification is required annually to ensure
eligibility for transitional compensation.
Other benefits: As part of the Transitional Compensation
Program, individuals may be eligible for other benefits including
medical care, exchange privileges and commissary privileges.
Transitional compensation is one of the many resources available to
military families. Each installation's Family Advocacy Program or legal
assistance office can help a family apply for transitional compensation
as well as other means of assistance.
Per DoD's Financial Management Regulation at https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_60.pdf, transitional compensation payments are not taxable.
Transitional compensation recipients should not expect to receive a
Form 1099 for tax purposes. Also, recipients need not report
transitional compensation payments on their tax return.
According to DoD Policy, transitional compensation for a dependent
spouse or former spouse is at the same rate as defined in 38 U.S.C.
1311--Dependency & Indemnity Compensation to a Surviving Spouse. There
is also an additional amount for children under this section. For
children without a mil-spouse parent, the amount is the same as the
rate defined in 38 U.S.C. 1313--Dependency & Indemnity Compensation to
Children. You can find annual updates to these payments on the DoD
Comptroller's website at https://comptroller.defense.gov/Portals/45/documents/fmr/Volume_07b.pdf.
Expected Impact of the Proposed Rule
The intent of this program is to encourage victims of dependent-
abuse to come forward and report abuse, provide assistance to victims
to separate from the abuser, inform the victims of resources available
to them as a victim of dependent-abuse, ensure the safety and well-
being of the victims, and ensure the Department of Defense does not
leave a spouse and family financially destitute when the abusing
Service member is discharged from the military for a dependent-abuse
offense. In accordance with statute, the rate of payment varies based
on the rank of the Service member, but it is designed to cover living
expenses such as food, clothing and housing. The Department spends
approximately $17M each fiscal year in transitional compensation
payments. This proposed rule publishes instructions internal to DoD
without any changes to the policies already in place, and therefore
will not result in any changes to the number of TC recipients or the
amount they are paid.
Regulatory Procedures
Executive Order 12866, ``Regulatory Planning and Review'' and Executive
Order 13563, ``Improving Regulation and Regulatory Review''
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action,'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget (OMB).
Executive Order 13771, ``Reducing Regulation and Controlling Regulatory
Costs''
This proposed rule is not expected to by subject to the
requirements of E.O. 13771 (82 FR 9339, February 3, 2017)
[[Page 55331]]
because this proposed rule is expected be related to agency
organization, management, or personnel.
2 U.S.C. Ch. 25, ``Unfunded Mandates Reform Act''
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2
U.S.C. 1532) requires agencies assess anticipated costs and benefits
before issuing any rule whose mandates require spending in any 1 year
of $100 million in 1995 dollars, updated annually for inflation. This
rule will not mandate any requirements for State, local, or tribal
governments, nor will it affect private sector costs.
Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Ch. 6)
The Department of Defense certifies that this proposed rule is not
subject to the Regulatory Flexibility Act because it would not, if
promulgated, have a significant economic impact on a substantial number
of small entities. Therefore, the Regulatory Flexibility Act, as
amended, does not require us to prepare a regulatory flexibility
analysis.
Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)
Section 111.6(f)(1) of this proposed rule contains information
collection requirements. These reporting requirements have been
approved by the Office of Management and Budget and assigned OMB
Control Number 0704-0578, ``Transitional Compensation for Abused
Dependents (TCAD).''
The applicable Systems of Records Notice (SORN) is T7347b, Defense
Military Retiree and Annuity Pay System Records (January 7, 2009, 74 FR
696), https://dpcld.defense.gov/Privacy/SORNsIndex/DOD-wide-SORN-Article-View/Article/570196/t7347b/. The Privacy Impact Assessment
(PIA) is available at https://www.dfas.mil/dam/jcr:5cf8a068-89c7-47eb-b844-1e2020ed5f73/Defense%20Retiree%20and%20Annuitant%20Pay%20System%20(DRAS)%202016.pdf;
or https://www.dfas.mil/dfas/foia/privacyimpactassessments.html.
Executive Order 13132, ``Federalism''
Executive Order 13132 establishes certain requirements that an
agency must meet when it promulgates a proposed rule (and subsequent
final rule) that imposes substantial direct requirement costs on State
and local governments, preempts State law, or otherwise has Federalism
implications. This proposed rule will not have a substantial effect on
State and local governments.
List of Subjects in 32 CFR Part 111
Abuse, Dependent children, Transitional compensation.
0
Accordingly, 32 CFR part 111 is proposed to be added to read as
follows:
PART 111--TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENTS
Sec.
111.1 Purpose.
111.2 Applicability.
111.3 Definitions.
111.4 Policy.
111.5 Responsibilities.
111.6 Procedures.
Authority: 10 U.S.C. 1059.
PART 111--TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENTS
Sec. 111.1 Purpose.
This part establishes policy, assigns responsibilities, and
prescribes procedures for the payment of monthly Transitional
Compensation (TC) to dependents of Service members separated for
dependent abuse.
Sec. 111.2 Applicability.
This part applies to The Office of the Secretary of Defense, the
Military Departments, the Office of the Chairman of the Joint Chiefs of
Staff and the Joint Staff, the Combatant Commands, the Office of the
Inspector General of the Department of Defense (DoD), the Defense
Agencies, the DoD Field Activities, and all other organizational
entities in the DoD.
Sec. 111.3 Definitions.
Unless otherwise noted, these terms and their definitions are for
the purposes of this part.
Dependent abuse offense. Conduct by an individual while a Military
Service member on active duty for a period of more than 30 days that
involves abuse of a then-current spouse or a dependent child of the
Service member and that is a criminal offense, under the Uniform Code
of Military Justice, or another criminal code applicable to the
jurisdiction where the act of abuse is committed. The term ``involves
abuse of the then-current spouse or a dependent child'' means that the
criminal offense is against the person of that spouse or a dependent
child. Crimes that may qualify as dependent-abuse offenses include
sexual assault, rape, sodomy, assault, battery, murder, and
manslaughter. (This is not an exhaustive or exclusive listing of
dependent-abuse offenses, but is provided for illustrative purposes
only. The facts and circumstances of a particular case should always be
interpreted in a manner most favorable to the spouse or a dependent
child of the member when determining whether the conduct constitutes a
``dependent abuse offense.'')
Dependent child. As defined in 10 U.S.C. 1059.
Exchange stores. The Army and Air Force Exchange Service, the Navy
Exchange, the Marine Corps Exchange, and the Coast Guard Exchange.
Parent. The natural father or mother, or father or mother through
adoption. For purposes of TC, parent does not include persons who have
stood ``in loco parentis'' to a dependent child.
Secretary concerned. Includes the Secretary of the Military
Departments and the Secretary of the Department of Homeland Security,
when applicable.
Service member. Includes former Service members, where appropriate.
Spouse. An individual married to a Service member, but does not
include a domestic partner.
Sec. 111.4 Policy.
The DoD will make monthly TC payments and provide other benefits
described in this part for spouses or dependents of Service members who
meet the eligibility requirements of 10 U.S.C. 1059 and this part.
Sec. 111.5 Responsibilities.
(a) The Under Secretary of Defense for Personnel and Readiness
(USD(P&R)):
(1) Establishes and prescribes procedures for the payment of TC to
dependents of Service members separated for dependent abuse.
(2) Oversees compliance with this part.
(b) The Secretaries of the Military Departments and the Secretary
of the Department of Homeland Security, when applicable:
(1) Appoint representatives to coordinate requests for TC, approve
requests (except exceptional eligibility requests), and forward those
requests for payment in accordance with Chapter 60, Volume 7B of DoD
7000.14-R, ``Department of Defense Financial Management Regulations
(FMRs): Military Pay Policy--Retired Pay'' (available at https://comptroller.defense.gov/Portals/45/documents/fmr/Volume_07b.pdf).
(2) Review and approve or disapprove requests for TC benefits in
accordance with the exceptional eligibility authority in accordance
with 10 U.S.C. 1059. This responsibility may not be delegated.
(3) Ensure dependents who are victims of a dependent-abuse offense
are aware of their eligibility to apply for TC.
(4) Establish departmental guidance to implement this part.
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Sec. 111.6 Procedures.
(a) Recipients of payment. The Secretary concerned makes TC
payments to Service member dependents, former dependents, or court-
appointed guardians as described by 10 U.S.C. 1059. If a recipient is
incapable of handling his or her own affairs, payments may be made only
to a court-appointed guardian.
(b) Payments.
(1) Payments begin in accordance with 10 U.S.C. 1059.
(2) Payments must continue for at least 12 months and no more than
36 months, as prescribed by the applicable Secretary of the Military
Department. When the unserved portion of the Service member's obligated
active duty service, as of the starting date of payment, is greater
than 12 months and less than or equal to 36 months, payments continue
for no less than the unserved portion.
(i) For enlisted Service members, obligated active duty service is
the time remaining on their terms of enlistment.
(ii) For officers, obligated active duty service is indefinite
unless an officer has a date of separation established. In that case,
it is the time remaining until the date of separation.
(3) The amount of payment will be in accordance with 10 U.S.C.
1059. Partial month entitlements are pro-rated. If a recipient dies,
arrears of payments are not paid.
(4) Payments will be stopped in accordance with 10 U.S.C. 1059.
(i) Payments will end on the first day of the first month following
the month in which the Secretary concerned notifies the recipient of
such transitional compensation in writing that the payment of TC will
stop.
(ii) Recipients are not required to repay amounts of TC received
before the effective date payment is stopped, in accordance with
paragraph (b)(4)(i) of this section; however, TC may be recouped for
erroneous payments or payments made based on false information
provided.
(c) Forfeiture provisions. In addition to 10 U.S.C. 1059, the
following requirements apply:
(1) The former spouse receiving TC must notify the Defense Finance
Accounting Services (DFAS) within 30 days of remarriage or if the
spouse or former spouse begins residing in the same household as the
spouse or former spouse.
(2) If a Service member's dependent child is not living in the same
household as the spouse or former spouse who forfeits TC, payments are
made to each dependent child or his or her court-appointed guardian.
(3) In order to continue benefits, the spouse or former spouse must
annually certify to DFAS that he or she is not remarried or is not
cohabitating with the Service member separated for the abuse. DFAS will
provide a form for recertification of benefits.
(d) Coordination of benefits. A spouse or former spouse may not
concurrently receive TC payments and retired pay payments pursuant to
10 U.S.C. 1059 and 1408(h), respectively. If a spouse or former spouse
is eligible for both TC payments and retired pay payments, the spouse
or former spouse chooses which of the two payments to receive. If the
spouse or former spouse receives TC payments and later receives
payments from a Service member's retired pay, any TC received
concurrently with retired pay must be recouped.
(e) Source of funds. TC must be paid from operations and
maintenance funds of the Department of the Service member.
(f) Application of procedures. An individual must initiate a
request for TC through a Service-appointed representative. The Service-
appointed representative:
(1) Collects data and validates the claim using DD Form 2698
(available at https://www.esd.whs.mil/Portals/54/Documents/DD/forms/dd/dd2698.pdf).
(2) Approves payment and forwards the application to DFAS unless
otherwise submitted by the Secretary concerned in accordance with 10
U.S.C. 1059.
(g) Commissary and exchange benefits
(1) A recipient of TC is entitled to use commissary and exchange
stores while receiving payments.
(2) If a recipient entitled to use commissary and exchange stores
is also entitled to use commissary and exchange stores under another
provision of law, the entitlement is determined under the other
provision of law and not paragraph (g)(1).
(h) Medical benefits.
(1) The Secretary concerned will determine appropriate medical and
dental care eligibility for TC recipients and affected dependents. At a
minimum, an abused dependent who is receiving TC in accordance with
paragraph (a) of this part may receive medical and dental care,
including mental health services, in facilities of the military
services or through the TRICARE program as outlined in 10 U.S.C. 1076
and 1077.
(2) Dental care may be provided on a space-available basis in
facilities of the military services.
(3) Eligible dependents of a member who is retirement eligible, but
who loses eligibility for retirement pay because of dependent-abuse
misconduct, may receive medical and dental care in accordance with 10
U.S.C. 1408(h).
Dated: October 29, 2018.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2018-23964 Filed 11-2-18; 8:45 am]
BILLING CODE 5001-06-P
