allowance, is increased to $725 per month. Special monthly compensation for specific injuries under section 314 (1) through (n) are increased to $340, $390 and $440, respectively. The rate for section 314(r) is increased to $200 and section 314(s) is increased to $290. No increase is provided in the present rate of $47 per month under section 314 (k), or in the rate of $67 under section 314(q).

(ii) The rates of compensation for service-connected disability based upon service in the Regular Establishment during time of peace are 80 percent of the rates of compensation for disability incurred in time of war, also further adjusted upward or downward to the nearest dollar.

(2) Section 1(b) provides that the Administrator may adjust administratively consistent with increases authorized by section 1(a) the rates of disability compensation payable and protected under laws enacted prior to Title 38, United States Code.

(3) Section 4 of Public Law 87-645 determines the effective date of this act to be October 1, 1962. No payments shall be made by reason of this act for any period prior to this effective date. However, section 4 also provides an additional adjustment of three times the monthly increase, for October only, for those entitled to an increase in compensation on October 1, 1962, computed on the increase payable for that date.

(c) Effective date. Section 4 of Public Law 87-645 provides that this act shall take effect on October 1, 1962. No payments will be made by reason of this act for any period before such effective date. The effective date of awards will be in accordance with the provisions of controlling regulations, provided that in no event will benefits under the cited act be awarded for any period prior to October 1, 1962. (Instruction 1, 38 U.S.C. 314, Public Law 87-645)

[27 F.R. 9652, Sept. 29, 1962]

§ 3.1572 Instructions relating to

the

payment of additional aid and attendance allowance under 38 U.S.C. 314(r) during periods of hospitalization at Government expense.

(a) Provisions of the law. (1) Section 1(a) (15) and section 2 of Public Law 87-645 provide for the amendment of section 314(r) of Title 38, United States Code, to read as follows:

If any veteran, otherwise entitled to the compensation authorized under subsection

(o), or the maximum rate authorized under subsection (p), is in need of regular aid and attendance, he shall be paid, in addition to such compensation, a monthly aid and attendance allowance at the rate of $200 per month, subject to the limitations of section 3203 (f) of this title. For the purposes of section 334 of this title, such allowance shall be considered as additional compensation payable for disability.

(2) Section 2 of the act also provides for the addition of subsection (f) to section 3203 of Title 38, United States Code as follows:

Where any veteran in receipt of an aid and attendance allowance described in section 314(r) of this title is hospitalized at Government expense, such allowance shall be discontinued from the first day of the second calendar month which begins after the date of his admission for such hospitalization for so long as such hospitalization continues. In case a veteran covered by this subsection leaves a hospital against medical advice and is thereafter readmitted to hospitalization, such allowance shall be discontinued from the date of such readmission for so long as such hospitalization continues.

(b) Effects of the act. This act has the effect of permitting payment to those otherwise entitled of the additional aid and attendance allowance authorized by 38 U.S.C. 314 (r) during certain periods during which the entitled veteran is hospitalized at Government expense. Prior to the effective date of this act the additional aid and attendance allowance authorized by 38 U.S.C. 314 (r) was not payable for any period when the veteran was hospitalized at United States Government expense.

(c) Adjustments under the law. (1) On and after October 1, 1962, the effective date of this act, an award of additional aid and attendance allowance under 38 U.S.C. 314(r) will be discontinued from the first day of the second calendar month which begins after the date of admission for such hospitalization for so long as such hospitalization continues. The effective date of reduction will not be extended by reason of time spent on leave, furlough or other authorized absence.

(2) Where a veteran subject to this provision leaves a United States Government hospital against medical advice (including disciplinary discharges) and is thereafter readmitted to such hospitalization, the additional allowance authorized by 38 U.S.C. 314(r) shall be discontinued from the date of such re

admission for so long as such hospitalization continues.

(3) Where a veteran is subject to the discontinuance provisions of this act, a temporary authorized absence from the hospital of less than 30 days will not require adjustment of the award. The additional allowance for regular aid and attendance for such periods will be authorized after the veteran has been discharged from the hospital. Where a veteran is placed on authorized absence of 30 days or more, the additional allowance will be restored effective the date of departure from the hospital, if otherwise in order.

(4) Where entitlement under 38 U.S.C. 314(r) is otherwise in order, payments of the additional aid and attendance allowance discontinued because of hospitalization under the provisions of this act will be restored effective the date of release from the hospital whether discharge or release is approved or unapproved.

(d) Veterans hospitalized commencing in September 1962. (1) The additional aid and attendance allowance authorized by this law is payable for veterans who entered into a period of hospitalization in September 1962 and who are hospitalized on October 1, 1962. Awards may be adjusted to authorize the additional $200 commencing October 1, 1962.

(2) Where award action is required to reduce the veteran's award because of hospitalization during the month of September 1962, the additional aid and attendance allowance will be discontinued effective the date of entrance into the hospital. The additional $200 will be authorized from October 1 through October 31, 1962.

(e) Effective date of the act. Section 4 of Public Law 87-645 provides that this act shall take effect on the first day of the first calendar month which begins after the date of enactment of this act. No payments shall be made by reason of this act for any period before such effective date. The effective date of awards will be in accordance with the provisions of controlling Veterans Administration regulations, provided that in no event will benefits under the cited act be awarded for any period prior to October 1, 1962. (Instruction 2, 38 U.S.C. 314(r) and 3203, Public Law 87-645) [27 F.R. 9653, Sept. 29, 1962]

§3.1573 Presumption of service-connected multiple sclerosis under 38 U.S.C. 312(4) as amended by section 3, Public Law 87-645.

(a) Provisions of the law. Section 3 of the law amends section 312 (4) of Title 38, United States Code, by striking out "three" and inserting in lieu thereof "seven." Section 312 thus reads in pertinent part:

For the purposes of section 310 of this title, and subject to the provisions of section 313 of this title, in the case of any veteran who served for ninety days or more during a period of war

shall be considered to have been incurred in or aggravated by such service, notwithstanding there is no record of evidence of such disease during the period of service.

(b) Effect of the act. The law extends the presumptive period of service connection from 3 to 7 years following wartime service. It is applicable to both disability and death claims.

(c) Effective date. The law is effective October 1, 1962. No benefit based solely on the liberalizing provisions of this law may be made effective prior to October 1, 1962.

(1) Pending claims. The effective date of an award under this act as to a claim pending on the effective date of the act will be October 1, 1962, if evidence otherwise establishes entitlement on that date. For the purpose of this subparagraph, a pending claim will include:

(i) A claim not previously adjudicated.

(ii) A previously disallowed claim pending consideration on appeal.

(iii) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry on which action was pending on October 1, 1962.

(iv) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry on or after October 1, 1962, but within the appeal period.

(2) New claims. A claim is required in all cases not in a pending status.

(i) Where a claim identifying the benefit sought is received within 1 year after October 1, 1962, and evidence of entitlement was of record on or before

that date, compensation will be payable effective October 1, 1962.

(ii) For the purposes of this act, a report of Veterans Administration examination or Veterans Administration hospitalization will be accepted as a claim if the report relates to multiple sclerosis.

(iii) All other claims, formal or informal, received on or after October 1, 1962, will be considered initial claims for the purposes of this law and the effective date of benefits will be determined under the applicable law and Veterans Administration regulations relating to original claims. (Instruction 3, 38 U.S.C. 312, Public Law 87-645)

[27 F.R. 9653, Sept. 29, 1962]

§ 3.1574

Denial of benefits because of conduct of widow.

(a) Provisions of section 1 of the law. Section 1 of the law amends section 101 of Title 38, United States Code, by revising subsection (3) to read as follows:

(3) The term "widow" means (except for purposes of Chapter 19 of this title) a woman who was the wife of a veteran at the time of his death, and who lived with him continuously from the date of marriage to the date of his death (except where there was a separation which was due to the misconduct of, or procured by, the veteran without the fault of the wife) and who has not remarried or (in cases not involving remarriage) has not since the death of the veteran, and after enactment of the 1962 amendment to this paragraph, lived with another man and held herself out openly to the public to be the wife of such other man.

(b) Effect of section 1 of the act. Section 1 is similar to but broader than our "inference of remarriage" (or "presumption of remarriage") rule, which has been in effect for many years. Under our rule an inference of remarriage is held to exist when there is proof of each of the following:

(1) A cohabitation by the widow with a man as man and wife; and

determining

cal rule is applied in whether there is an inference of marriage of the child of a veteran. Section 1 of Public Law 87-674 provides for denial of benefits except gratuitous insurance to a widow where, since the death of the veteran and subsequent to September 19, 1962, date of enactment of this law, she has lived with another man and held herself out openly to the public to be the wife of such other man. Therefore, reputation will no longer be a requirement for application of the bar to benefits and the existence of an impediment to marriage will be immaterial, except as to gratuitous National Service life insurance benefits and cases involving an inference of marriage of the child of a veteran. This law effects no change in the present administrative rule and practice pertaining to these excepted cases.

(c) Adjudication and vocational rehabilitation and education procedures. The restrictive provisions of section 1 are for prospective application and have no retroactive effect. They will apply only in cases where the veteran's widow has lived with another man since the date of enactment of this law and to benefits other than gratuitous National Service life insurance. A relationship which is secretive, or which consists of occasional short interludes (such as overnight, over a weekend, or for a week) or which is otherwise ostensibly illicit in nature will not be a bar to benefits. The parenthetical statement "(in cases not involving remarriage)” does not require a definite determination of lack of marriage before invoking the bar to benefits.

(d) Effective date. Section 1 of Public Law 87-674 is effective from date of enactment, September 19, 1962. The effective date of discontinuance of benefits based on the new statutory standard in this law will be the day preceding date of commencement of the relationship but not prior to September 19, 1962. The effective date of discontinuance of benefits based on the administrative "inference of remarriage" rule will be the day preceding date of commencement of the relationship or date of last payment, whichever is later but in no event later than September 19, 1962. Where additional benefits are payable to a widow for periods prior to inception of the relationship, any amounts paid for periods after that date will be recouped from such additional payment. (Instruction 1, 38 U.S.C. 101, Public Law 87-674.) [27 F.R. 9945, Oct. 10, 1962]

§3.1575 Restoration of benefits for

widows and children upon annulment of their remarriage or marriage. (a) Provisions of the law. (1) Section 2 of the law amends 38 U.S.C. 103 by adding at the end thereof subsections (d) and (e) as follows:

(d) The remarriage of the widow of a veteran shall not bar the furnishing of benefits to her as the widow of the veteran if the remarriage is void, or has been annulled by a court with basic authority to render annulment decrees unless the Veterans' Administration determines that the annulment was secured through fraud by either party or collusion.

(e) The marriage of a child of a veteran shall not bar recognition of such child as the child of the veteran for benefit purposes if the marriage is void, or has been annulled by a court with basic authority to render annulment decrees unless the Veterans' Administration determines that the annulment was secured through fraud by either party or collusion.

(2) Section 3 of the law amends 38 U.S.C. 3010 by adding at the end thereof subsection (f) as follows:

(f) The effective date of the award of benefits to a widow or of an award or increase of benefits based on recognition of a child, upon annulment of a marriage shall be the date the judicial decree of annulment becomes final if a claim therefor is filed within one year from the date the judicial decree of annulment becomes final; in all other cases the effective date shall be the date the claim is filed.

(b) Effect of sections 2 and 3 of the act. (1) Section 2 of the act retains the provision, formerly in 38 U.S.C. 101(3), that remarriage of the widow of a veteran shall not bar payment of benefits to her as the widow of the veteran if the purported remarriage is void. In addition, it provides for restoration of benefits to the widow of a veteran if her remarriage has been annulled by a court with basic authority to render annulment decrees without regard as to whether the remarriage was void or only voidable. It also provides that the marriage of a veteran's child shall not bar the payment of benefits to or for such child if the child's marriage is void, or has been annulled by a court with basic authority to render annulment decrees. The only exception to these provisions is where the Veterans Administration determines that the annulment was obtained through fraud by either party or by collusion.

(2) A claim for benefits is required under section 3 of the act. This section also establishes effective dates for benefits awarded solely by reason of the liberalizing provisions of the second section of the law.

(c) Claims. A claim (formal or informal) for benefits under this law will be required. Pending claims for benefits or restoration of benefits will be considered claims under this law and no further claim will be required. Pending claims will include:

(1) A claim not previously adjudicated. (2) A

previously disallowed

pending appellate consideration.

claim

(3) A previously disallowed claim reopened by receipt of any claim, evidence or inquiry on which action was pending on September 19, 1962.

(4) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry after September 19, 1962, but within the appeal period.

(d) Effective date. This act is effective from date of enactment, September 19, 1962. No benefit based solely on its liberalizing provisions may be effective prior to September 19, 1962.

(1) Annulment granted. Under this law where a judicial decree of annulment has been granted the effective date of an award of benefits to a widow or of an award or increase of benefits based on recognition of a child will be the date the judicial decree of annulment becomes final if claim therefor is filed within 1 year from such date, but such effective date shall not be prior to September 19, 1962; in all other cases the effective date of benefits under this law shall be the date the claim is filed.

(2) Void marriage or remarriage; no annulment decree granted. Where an annulment decree has not been obtained but the Veterans Administration determines in a legal opinion that the marriage of a child or remarriage of a widow is void the effective date of an award or increased award will be the date the child or widow ceased to cohabit with the other party to the void marriage or the date the Veterans Administration receives the evidence showing that the marriage was void, whichever is later. (See § 3.402(c).) (Instruction 2, 38 U.S.C. 103 and 3010, Public Law 87-674)

[27 F.R. 9946, Oct. 10, 1962]

Subpart B-Burial Benefits

§3.1600 Payment of burial expenses of deceased veterans.

(a) Wartime veterans. When a veteran of any war dies on or after August 19, 1958, an amount not to exceed $250 (250 Philippine pesos in those cases covered in § 3.8 (c) and (d)) is payable on the burial and funeral expenses and transportation of the body to the place of burial, if otherwise entitled within the further provisions of §§ 3.1600 through 3.1611. For this purpose the period of any war is as defined in § 3.2, except that World War I extends only from April 6, 1917, through November 11, 1918, or if the veteran served with the United States military forces in Russia, through April 1, 1920.

(b) Peacetime veterans. A veteran of service other than during a war period has basic entitlement:

(1) If he was discharged or retired from active service for a disability incurred or aggravated in line of duty. The official service department records showing that the veteran was discharged or released from service for disability incurred in line of duty will be accepted for this purpose, notwithstanding that the Veterans Administration has determined, in connection with a claim for monetary benefits, that the disability was not incurred in line of duty; or

(2) If he was at the time of his death in receipt of, or but for receipt of retirement pay would have been entitled to receive disability compensation; or

(3) Where the official service records show discharge for a reason other than disability but also show a service-connected disability for which the veteran was receiving treatment at time of discharge and the Veterans Administration determines that the facts were sufficient to have warranted a discharge for disability incurred in line of duty. If the veteran was not under treatment for such disability at time of discharge, entitlement exists if the Veterans Administration determines that the disability in medical judgment was of such character, duration and degree as to have justified a discharge for disability incurred in line of duty. Payments will be for the same purposes and in the same amounts as provided in paragraph (a) of this section.

The pe

(c) Character of discharge. riod of active service upon which claim is based must have been terminated by discharge or release from active service under conditions other than dishonorable.

(d) Determinations. Where a claim for burial allowance would be or has been disallowed because the service department holds that the disability was not incurred in line of duty and evidence is submitted which permits a different finding, the decision of the service department is not binding and the Veterans Administration will determine line of duty. The burden of proof will rest upon the claimant.

Except as

(e) Persons not included. provided in § 3.1605 (c) burial allowance is not payable in the following cases: (1) A discharged or rejected draftee or selectee.

(2) A member of the National Guard who reported to camp in answer to the President's call for World War I or World War II service, but who, when medically examined was not finally accepted for active military service.

(3) An alien who does not come within the purview of § 3.7(b).

(4) Philippine Scouts enlisted on or after October 6, 1945, under section 14, Public Law 190, 79th Congress.

(5) Temporary members of the Coast Guard Reserve.

CROSS REFERENCES: Definitions; veterans. See § 3.1(d).

Protection; burial allowance. See § 3.954. § 3.1601 Claims and evidence.

(a) Claims. Claims for reimbursement or direct payment of burial and funeral expenses and transportation of the body must be received by the Veterans Administration within 2 years after the permanent burial or cremation of the body. Claims may be executed by:

(1) The undertaker, if entire bill or any balance is unpaid (if unpaid balance is under $250 only amount of unpaid balance will be payable to the undertaker); or

(2) The individual whose personal funds were used to pay burial, funeral and transportation expenses; or

(3) The executor or administrator of the estate of the veteran or the estate of the person who paid the expenses of the veteran's burial or provided such