You asked for background information on the Soldiers,' Sailors' and Marines' Fund, including its history and purposes, aid criteria, and disbursement decisions.

SUMMARY

The Soldiers,' Sailors' and Marines' Fund is a self-sustaining trust fund created by the legislature in 1919 to provide benefits, such as food, clothing, medical or surgical aid, and general care and relief, to needy eligible veterans and their dependents and surviving spouses.

The law defines general eligibility criteria and conditions. It requires the American Legion, which disburses the aid and determines applicant eligibility, to delineate procedures in its bylaws for establishing proof of eligibility, and it requires the state treasurer to approve the procedures.

To qualify for aid, a veteran must demonstrate need and live in Connecticut when he applies for and when he is receiving aid. He must have served in a branch of the U. S. military or a government associated with the United States during specified wars. Eligibility is also contingent upon the veteran having been honorably discharged from service. An eligible veteran's spouse living with the veteran, surviving spouse living with him when he died, or dependent children under age 18 are also eligible for aid.

A veteran will be denied aid if he (1) has adequate resources to support himself and his family, (2) attempts to secure aid through misrepresentation or fraud, or (3) created the need for aid by violating the law. Aggrieved applicants can appeal.

The state treasurer is the fund's sole trustee. He must administer the fund and invest its principal in authorized securities to provide necessary income to carry out the fund's purposes. According to the assistant fund administrator, last fiscal year, the trust fund principal was approximately $ 57 million.

The Soldiers,' Sailors' and Marines' Fund office employs an average of 16 full-time people.

FUND

Purpose

The Soldiers,' Sailors' and Marines' Fund was established to provide financial and other relief to eligible veterans. Specifically, the fund must be used for:

furnishing food, wearing apparel, medical or surgical aid or care or relief to, or in bearing the funeral expenses of, soldiers, sailors or marines who performed service in time of war as defined in subsection (a) of section 27-103, in any branch of the military service of the United States, or who were engaged in any of the wars waged by the United States during said periods in the forces of any government associated with the United States, who have been honorably discharged therefrom or honorably released from active service therein. . . or to their spouses who are living with them, or to their widows or widowers who were living with them at the time of death, or dependent children under eighteen years of age who may be in need of the same (CGS § 27-140).

Disbursement of Aid

The American Legion is responsible for determining applicant eligibility for aid and making payments. It must establish, and the state treasurer must approve, procedures in its bylaws for establishing proof of eligibility. It must disburse the funds according to these procedures and send quarterly financial statements to the state treasurer showing who got aid and how much (CGS § 27-138). According to the fund's assistant

administrator, in FY, 2000-01, approximately $ 1. 83 million was disbursed for 6,833 cases. (Copies of the procedures and the financial statement for the quarter ending December 31, 2001 are attached. )

Procedures Governing Aid Disbursements

According to the procedures,

the fact that investment earnings from the trust fund are the only funds available to carry out the stated purposes, necessarily imposes limitations as to the sum and scope of the aid. When aid is approved, it must be provided in amounts within approved standards and over such temporary periods of time as is reasonably necessary to permit the family, local community, State and/or Federal Government to provide or develop resources necessary to meet the full extent of the need (Soldiers,' Sailors' and Marines' Fund procedural manual, 2001).

Money is available for (1) weekly care and relief (including food and clothing); (2) paying rent, mortgage interest, and utilities; (3) medical expenses; (4) some dental expenses; (5) medical supplies, prosthetic devices, orthopedic shoes and appliances; (6) eye examination and eyeglasses; (7) audiological examination and hearing aids; (7) funeral expenses; and (8) home health care.

Money is not available for (1) paying taxes, insurance premiums (except medical insurance), mortgage principal, alimony or child support, or past due debts or bills; (2) repaying loans; (3) buying real estate or capital goods; or (4) buying securities, bonds, or mutual fund shares.

Aid Applications

Applications for aid must be made to the fund representative in the community where the applicant lives or, in his absence, to the representative in the town or city nearest to the applicant's residence.

The applicant must declare any real and personal property he owns and document his income from all sources. Property up to a certain value is not considered as asset available for supporting the household; all income is considered, regardless of source. Aid will be denied or discontinued if the veteran secures or attempts to secure it through fraud, misrepresentation, or submission of inaccurate information. Aid will also be denied if the veteran's resources are found to be adequate to meet his needs or those of his family unit or, with exception, the need was caused by an illegal act or misconduct. Aid may be granted if supporting information shows that the violation or misconduct is reasonably related to, or the result of, physical or mental illness or certain environmental factors. Misconduct includes misuse of funds, evasion of responsibility, voluntary idleness, refusal to work, and failure to cooperate with government officials on recommended or available rehabilitation plans or programs.

Aggrieved parties can appeal following steps outlined in the procedures.

Fund Management

The Soldiers,' Sailors' and Marines' Fund is a trust fund. It is in the custody of the state treasurer, who is the sole trustee. In the past, the fund was augmented periodically with a tax on cigarette but has been self-sustaining since 1960. For administrative and accounting purposes, the Soldiers,' Sailors' and Marines' Fund consists of three separately accounted funds: an operating fund, administered by the state comptroller and American Legion's treasurer; an American Legion fund, administered by the American Legion's treasurer; and a trust fund, administered by the state treasurer.

The operating fund is used for administrative, burial, and headstone expenses. The American Legion Fund is used to provide aid to needy veterans. The trust fund principal is invested by the state treasurer. Payments for operating the program must be made from interest accumulations. Any excess balance in the operating fund, other than a contingency reserve of $ 100,000, must be transferred annually to the trust fund principal.

If the accumulated interest and earnings cannot provide necessary benefits, the Finance Advisory Committee is authorized to make appropriations to the fund. The appropriation together with the available accumulated interest and earnings cannot exceed the interest and earnings from the preceding fiscal year. But state law allows disregarding this limitation in an emergency (CGS §§ 27-138 to 140).

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