Rule2025-23682
Servicemembers' Group Life Insurance Traumatic Injury Protection Program Amendments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 23, 2025
Effective
January 22, 2026
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) is amending its regulations that govern the Servicemembers' Group Life Insurance (SGLI) Traumatic Injury Protection (TSGLI) program to correct an unintended amendment to the TSGLI Schedule of Losses for payments for inability to perform at least two activities of daily living (ADL) for 15, 30, 60, and 90 consecutive day periods as a result of a traumatic injury other than a traumatic brain injury.
Full Text
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<title>Federal Register, Volume 90 Issue 244 (Tuesday, December 23, 2025)</title>
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[Federal Register Volume 90, Number 244 (Tuesday, December 23, 2025)]
[Rules and Regulations]
[Pages 59977-59979]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23682]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
[Docket No. VA-2024-VBA-0014]
RIN 2900-AS12
Servicemembers' Group Life Insurance Traumatic Injury Protection
Program Amendments
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is amending its
regulations that govern the Servicemembers' Group Life Insurance (SGLI)
Traumatic Injury Protection (TSGLI) program to correct an unintended
amendment to the TSGLI Schedule of Losses for payments for inability to
perform at least two activities of daily living (ADL) for 15, 30, 60,
and 90 consecutive day periods as a result of a traumatic injury other
than a traumatic brain injury.
DATES: This final rule is effective January 22, 2026.
[[Page 59978]]
FOR FURTHER INFORMATION CONTACT: Samantha Yerdon, Program Analyst,
Insurance Service, Veterans Benefits Administration, (215) 842-2000,
ext. 5494.
SUPPLEMENTARY INFORMATION: On March 15, 2023, VA published a final rule
in the Federal Register that amended its regulations governing the
TSGLI program. 88 FR 15907. As part of this rulemaking, VA recodified
the TSGLI Schedule of Losses and amended the eligibility standards for
certain losses covered under the schedule. Following publication of the
final rule, VA discovered that it had inadvertently changed the
Schedule of Losses for inability to perform at least two ADLs as a
result of a traumatic injury other than a traumatic brain injury.
Neither the preamble to the proposed rule nor the preamble to the final
rule addressed this change to the TSGLI regulation. See 85 FR 50973; 88
FR 15907. On July 24, 2024, VA published a proposed rule to correct
this inadvertent change. 89 FR 59865. VA received one comment from the
National Veterans Legal Services Program (NVLSP), which we address
below.
The comments submitted by NVLSP assert that VA should leave the
inadvertent change in the Schedule of Losses for the following reasons:
(1) the TSGLI program is in good financial health as evidenced by the
fact that VA has not needed to increase the TSGLI premium since
inception; therefore, more generous benefits for this loss will not
hurt the program; (2) the TSGLI program's focus should be on caring for
wounded Service members and should not distinguish between temporary
and permanent injuries; and (3) VA is not legally required to consult
with the Department of Defense (DoD) in updating the TSGLI regulations
published in March 2023.
Financial Health of TSGLI
TSGLI became effective on December 1, 2005. The program provides
payments to Service members and Veterans who are insured by SGLI and
suffer a serious traumatic injury in service resulting in a loss that
qualifies for payment under TSGLI. TSGLI benefits are also payable
retroactively to any member who suffered a traumatic injury from
October 7, 2001, to November 30, 2005, resulting in a qualifying
injury, regardless of whether they had SGLI coverage at the time of the
injury. TSGLI premiums are $1.00 per month and are intended to cover
only the civilian incidence of such injuries. The uniformed services
fund the cost of claims in excess of premiums collected, with such
claims attributed to the extra hazards of military service. Extra
hazards funding in TSGLI was needed during periods of U.S. military
involvement in Iraq and Afghanistan. In addition, the uniformed
services pay for the total cost of retroactive claims. The TSGLI fund
balance as of June 30, 2024, was $60.1 million. Of this, $28 million
was contributed by DoD as start-up funds when the program began and is
therefore earmarked for extra hazards costs. In addition, a portion of
the remaining fund balance must be set aside to account for the lag in
reporting of claims.
An analysis of the claims experience for policy years 2015 to 2024
indicates that TSGLI payments using the shorter time periods for the
TSGLI Schedule of Losses for Other Traumatic Injury (OTI) resulting in
inability to perform ADLs (15, 30, 60, 90 days) would have resulted in
an additional 1,385 claims and an increase of $34.6 million in payout.
Additionally, the shorter time period for payment would have resulted
in claims and administrative expenses exceeding premium collections for
eight of the past 10 policy years. The additional claim payments using
the shorter timeframes average approximately $3.5 million per year over
the past 10 policy years. Assuming that OTI ADL loss experience trends
similarly going forward, premium collections will cover only about 81%
of claims and administrative expenses. Consequently, use of the shorter
time periods for the Schedule of Losses for OTI would put upward
pressure on the TSGLI premium rate in the long term. While program
surplus can be used to supplement this deficit in the short term, it is
necessary for the program to maintain a sufficient fund balance to
guard against the risk of future conflicts or events resulting in
significant injuries that may cause spikes in claims.
Temporary and Permanent Injuries
VA explained in the proposed rulemaking that leaving the shorter
payment intervals as they currently are codified could ``potentially
result in higher payout amounts to individuals with severe but
temporary injuries than those paid to injured servicemembers who have
permanent injuries.'' 89 FR at 59866. As required by 38 U.S.C.
1980A(j), VA has consulted with the uniformed services, and DoD does
not support the inadvertent change to the payment standard. VA and DoD
note that in the original TSGLI interim final rulemaking published on
December 22, 2005 (70 FR 75940, 75943), VA stated, ``As required by 38
U.S.C. 1980A(d), the amount of the payment in the schedule . . . is
based on the severity of the member's loss.'' Severity includes not
only the length of recovery period for the loss but the nature of the
injury itself, such as its permanence. Program experience demonstrates
that the time periods of 15, 30, 60, and 90 days of loss of ADL due to
traumatic brain injury (TBI) clearly indicate a severe injury with
lasting impacts on the member's functions. However, the same cannot be
said for the time period of 15 days of loss of ADL due to OTI. Since
the inception of the program, denied claims that do not meet the time
period of 30 days' loss of ADL due to OTI show less severe injuries of
a more temporary nature, including bone fractures, lacerations, and
torn ligaments. DoD and VA both agree that the initial justification
for the payment standard should remain as valid rationale for
maintaining the standard at the lower, instead of higher, payment
amount.
VA Consultation With DoD Not Required
NVLSP also commented that there was no legal mandate that VA follow
DoD guidance following consultation with the uniformed services under
38 U.S.C. 1980A(j), and even if such consultation was required, there
is no evidence that DoD has publicly stated their opposition to the
change in standard from the 2023 final rulemaking.
First and foremost, 38 U.S.C. 1980A(j) does not require DoD to
provide public statements as to the nature of the consultation or
position prior to VA implementing TSGLI rulemaking. VA supports DoD's
ongoing consultation on the TSGLI regulations as the program evolves
because, although VA may promulgate TSGLI regulations, it is within the
exclusive purview of the uniformed services to certify TSGLI claims,
and VA plays no role in the adjudication process under 38 U.S.C.
1980A(f). Furthermore, DoD staff meet with VA staff and other
Department officials each year as required by statute (38 U.S.C. 1974),
and DoD involvement in TSGLI warrants a fair measure of deference from
VA when evaluating and responding to feedback from DoD. Adopting
regulations that contradict DoD feedback may not only be costly and
inconsistent with actuarially sound business principles but also would
not be aligned with improvements to the customer experience for the
TSGLI program, which were implicit in the purpose, design, and intent
of the TSGLI Year Ten Review.
Additionally, in the case of the regulatory publication error in
March 2023, the uniformed services under DoD
[[Page 59979]]
were the first to identify the issue in late Spring 2023 and raise the
concern to VA that this change was never contemplated during the
intensive collaboration with DoD and the services in the TSGLI Year Ten
Review. Their concern arose from whether VA had made a change in OTI
vs. TBI losses related to severity of injury in opposition to the long-
standing rationale of the program they understood and supported. VA
assured DoD and the uniformed services that the change was an
inadvertent typographical error, and no change had been intended.
Based on the foregoing, VA adopts the proposed rule, without
change, as a final rule.
Executive Orders 12866, 13563, and 14192
VA examined the impact of this rulemaking as required by Executive
Orders 12866 (Sept. 30, 1993) and 13563 (Jan. 18, 2011), which 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. The Office of Information and
Regulatory Affairs has determined that this final rule is not a
significant regulatory action under E.O. 12866.
Through this rulemaking, VA will restore the intended payment
schedule for TSGLI benefits, thereby preventing confusion and
unnecessary re-processing of claims. Absent this rulemaking, VA staff
would continue to spend more time adjudicating appeals and handling
inconsistencies from the current payment structure. While VA is unable
to quantify measurable cost savings, these qualitative benefits will
generate positive outcomes to society, such as reductions in burden and
confusion among stakeholders. This final rule is a deregulatory action
under Executive Order 14192 as it removes an unintended burden and
provides a net positive benefit to society.
Economic Impact: There are no costs or savings associated with this
final rule. This rule ensures the TSGLI is managed according to
actuarially sound principles, maintaining the TSGLI premium at a low
rate. TSGLI is funded by the premiums that Service members pay for
TSGLI coverage, and as such, there will be no cost to the Government
with this final rulemaking.
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule will not have a
significant economic impact on a substantial number of small entities
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). The overall impact of this final rule would be of no benefit or
detriment to small businesses. Therefore, pursuant to 5 U.S.C. 605(b),
the initial and final regulatory flexibility analysis requirements of 5
U.S.C. 603 and 604 do not apply.
Unfunded Mandates
This final rule will not result in the expenditure by State, local,
and Tribal governments, in the aggregate, or by the private sector, of
$100 million or more (adjusted annually for inflation) in any one year.
Paperwork Reduction Act
Although this final rule contains collection of information under
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521), there are no provisions associated with this rulemaking
constituting any new collection of information or any revisions to the
existing collection of information. The collection of information for
38 CFR 9.21 is currently approved by the Office of Management and
Budget (OMB) and have been assigned OMB control number 2900-0919.
Assistance Listing
The Assistance Listing number and title for the program affected by
this document is 64.103, Life Insurance for Veterans.
Congressional Review Act
Pursuant to Congressional Review Act) (5 U.S.C. 801 et seq.), the
Office of Information and Regulatory Affairs designated this rule as
not a major rule, as defined by 5 U.S.C. 804(2).
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Signing Authority
Douglas A. Collins, Secretary of Veterans Affairs, approved this
document on October 8, 2025, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Taylor N. Mattson,
Alternate Federal Register Liaison Officer, Department of Veterans
Affairs.
For the reasons stated in the preamble, VA amends 38 CFR part 9 as
set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
0
2. Amend Sec. 9.21 by revising paragraphs (c)(20)(i) through (iv) to
read as follows:
Sec. 9.21 Schedule of Losses.
* * * * *
(c) * * *
(20) * * *
(i) The amount payable at the 30th consecutive day of ADL loss is
$25,000.
(ii) The amount payable at the 60th consecutive day of ADL loss is
an additional $25,000.
(iii) The amount payable at the 90th consecutive day of ADL loss is
an additional $25,000.
(iv) The amount payable at the 120th consecutive day of ADL loss is
an additional $25,000.
* * * * *
[FR Doc. 2025-23682 Filed 12-22-25; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on December 23, 2025.
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