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Victims fund raises questions from families: Where's the best place to go for aid
By SHANNON McCAFFREY WASHINGTON – Relatives and victims of the Sept. 11 terrorist attacks must decide whether to accept compensation from the federal government or seek damages through the courts.
Going to court might lead to higher payments. But it would take longer and the outcome would be uncertain.
Some questions and answers about the situation:
Q: What is the government fund?
A: Congress approved the "September 11th Victim Compensation Fund" as part of a bailout bill for the airline industry. The fund is intended to cover lost wages and victims' pain and suffering.
Q: Who is eligible?
A: Victims of the Sept. 11 terrorist attacks and their families. Same-sex partners are eligible to apply for benefits if rules in the home state of the victim allow them to collect.
Q: How much will each victim's family get?
A: Families of people killed will receive an immediate payment of $50,000, and injured victims will get $25,000 as soon as their applications are processed. The minimum award for the families of those killed is $250,000. However, the average award is expected to be $1.65 million, according to Kenneth Feinberg, who oversees the fund.
Q: How will compensation be calculated?
A: The awards will be based on the victim's family size, age and earnings up to $240,000. The cap was established to ensure there aren't massive disparities in payments to very low and very high income victims.
Q: How much will be paid out?
A: It's expected victims will receive a total of $6 billion, with $4.8 billion coming from the federal government and $1.2 billion from other sources, such as insurance from the airlines.
Q: How many people have applied so far?
A: Seventy-eight people have filed paperwork to begin the application process. No checks have been issued yet.
Q: Can victims and their families also sue to collect damages?
A: If a victim or family member seeks compensation from the government fund they forfeit their right to sue any entity other than a terrorist organization.
Q: What about all the money raised by charities for victims of Sept. 11? Will those who collect money from the government still be able to collect charitable contributions?
A: Victims and their families may accept money from charitable groups without reducing the amount they receive from the federal government. However, compensation from life insurance policies and pension funds will be subtracted from the government award.
Q: How much has been raised by charities and how much has been distributed?
A: Charities raising money for victims of Sept. 11 have taken in $1.5 billion and distributed $476 million, according to the Chronicle of Philanthropy. The largest sum was raised by the American Red Cross, which collected $667 million through its Liberty Fund.
Q: What else is Congress doing for the victims and their families?
A: Congress voted to waive 2000 and 2001 income tax liability for the Sept. 11 victims. Those who don't earn enough to pay income tax would receive a minimum benefit of $10,000. It also shields the first $8.5 million in assets from the federal estate tax for 2001. Disability benefits for those injured in the terrorist attacks are excluded from taxation.
Q: What about victims of other attacks like Oklahoma City or anthrax?
A: They are not covered in the Sept. 11 fund and no similar fund has been set up for them. But Congress this year made them eligible for the same tax benefits as the Sept. 11 victims.
___ On the Net:
Victims Compensation Fund: www.usdoj.gov/victimcompensation
APNP-01-03-02 0248CST
Associated Press Writer