Where the

(2) Additional amounts. veteran's service-connected disability is evaluated at 100 percent, additional compensation of $12 is payable for each living child. Pro rata amounts of additional compensation are payable where the disability is evaluated from 50 percent to 90 percent, adjusted upward or downward to the nearest dollar (counting fifty cents and over as a whole dollar).

(c) Effective date. The law becomes effective the first day of the second calendar month which begins after the date of enactment, June 8, 1960. The provisions of this paragraph apply to claims which are allowed solely because of its liberalizing provisions and are subject to the rule that the effective date may not be earlier than August 1, 1960.

(1) Pending claims. Where otherwise in order, the effective date of an award as to a claim based on 50 percent or more disability pending on the date of enactment will be August 1, 1960. Pending claims will include:

(i) A claim not previously adjudicated. (ii) A previously disallowed claim pending appellate consideration.

(iii) A previously disallowed claim reopened by receipt of any claim, evidence

or inquiry on which action was pending on June 8, 1960.

(iv) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry after June 8, 1960, but within the appeal period.

(2) New claims. All other claims, formal or informal, received on or after June 8, 1960, will be considered initial claims for the purpose of this law and the effective date will be determined under applicable laws and regulations relating to original claims but not earlier than August 1, 1960. Where a claim identifying the benefit sought is received within one year from August 1, 1960, and evidence of entitlement is of record on August 1, 1960, benefits will be payable from August 1, 1960. (Instructions 1 and 1-A, 38 U.S.C. 315, Pub. Law 86-499) §3.1566 Additional disability compen

sation for certain seriously disabled

veterans.

(a) Provisions of the law. This law amends 38 U.S.C. 314, by adding subsection (s) as follows:

(s) If the veteran has a service-connected disability rated as total, and (1) has additional service-connected disability or disabilities independently ratable at 60 per centum or more, or, (2) by reason of his service-connected disability or disabilities, is permanently housebound, then the monthly compensation shall be $265. For the purpose of this subsection, the requirement of "permanently housebound" will be considered to have been met when the veteran is substantially confined to his house (ward or clinical areas, if institutionalized) or immediate premises due to a service-connected disability or disabilities which it is reasonably certain will remain throughout his lifetime.

(b) Effect of the act. This act establishes a new statutory rate of disability compensation. It provides a monthly rate of compensation of $265 for wartime disability and $212 for peacetime disability. These rates, with additional allowances for dependents, are applicable to two types of cases:

(1) A veteran who has a service-connected disability rated as total and has additional service-connected disability or disabilities independently ratable at 60 percent or more.

pages 12, 13, and 14, 1945 Schedule for Rating Disabilities (Loose Leaf Edition).

(ii) "Additional service-connected disability or disabilities independently ratable at 60 per centum or more" means one disability or a combination of disabilities which, separate and distinct from the total disability, have an evaluation of 60 percent or more, the amputation rule being observed where applicable. The fact that these separate disabilities and the total disability result from a common etiological agent, for example, one injury or rheumatoid arthritis, will not preclude entitlement under this subsection. Total ratings by reason of "individual unemployability" are based on all serviceconnected disabilities, therefore, there can be no "additional” disability in these cases for the purpose of this act.

NOTE: Where the separate 60 percent disability also establishes entitlement under 38 U.S.C. 314(k) payment will be based on subsections (j) plus (k) since this affords the greater benefit. In such cases subsection (s) will not be applied.

(2) A veteran who has a service-connected disability rated as total and by reason of his service-connected disability or disabilities, is permanently housebound.

(i) A veteran will be considered housebound when he is substantially confined to dwelling and immediate premises or, if institutionalized, to ward or clinical areas. Ability to make short excursions from dwelling, hospital or clinic assisted or unassisted, is not inconsistent with "substantial confinement." A veteran meeting the foregoing condition will be considered "permanently housebound" when it is reasonably certain that the disability or disabilities and resultant confinement will remain throughout his lifetime. Such permanency will be determined on the facts in each case.

(ii) "By reason of his service-connected disability or disabilities" requires that the restriction of activity be a direct result of the service-connected disability or disabilities, independent of any coexisting disablement due to nonserviceconnected conditions. It cannot be a matter of election or choice; there must be a direct relationship between the nature and extent of the service-connected disabilities and the limitation of activities.

(c) Effective date. The law was approved July 14, 1960, and becomes effective September 1, 1960. No benefit based

87166-63-11

solely on the liberalizing provisions of this law may be effective prior to September 1, 1960.

(1) Pending claims. Where otherwise in order the effective date of an award as to a claim pending on the date of approval of the act will be September 1, 1960. 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 July 14, 1960.

(iv) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry after July 14, 1960, but within the appeal period.

(2) New claims. Claims, formal or informal, received on or after July 14, 1960, will be considered initial claims for the purpose of this act and the effective date will be determined under applicable laws and regulations relating to original claims but not earlier than September 1, 1960.

(i) Where a claim identifying the benefit sought is received within 1 year from September 1, 1960, and evidence of entitlement is of record on or before September 1, 1960, benefits will be payable from September 1, 1960.

(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 a disability which may establish entitlement to this benefit. (Instructions 1 and 1-A, 38 U.S.C. 314, Pub. Law 86-663) (72 Stat. 1114; 38 U.S.C. 210)

§3.1567 Title 38, United States Code 560, 561 and 562, as changed by Public Law 87-138, Medal of Honor Roll; persons eligible and provisions relating to special pension.

(a) Effect of the act. Public Law 87138 increases the special monthly pension rate for Medal of Honor holders from $10 to $100 per month; lowers the age requirement from 65 to 50; and eliminates the requirement of honorable discharge from service. The benefit is payable in addition to any other gratuitous Veterans Administration benefit and is based upon certification from the appropriate service department that the Medal of Honor holder has been entered on the special Medal of Honor Roll.

Page 157

(b) Effective date. Awards under Public Law 87-138 will be prepared by Adjudication Divisions in the monthly amount of $100 effective as of the date of application, but not prior to September 1, 1961. (Instruction 1, Public Law 87138)

[26 F.R. 8454, Sept. 8, 1961]

§3.1568

Increased dependency and indemnity compensation in certain wartime cases.

(a) Effect of the act. The effect of Public Law 87-268 is to authorize payment of increased dependency and indemnity compensation to certain wartime beneficiaries. Only cases in which a widow and five or more children are entitled to dependency and indemnity compensation and cases in which one child of a Spanish-American War veteran or of a veteran of prior wars is entitled to benefits will be affected by this law. The monthly rate of dependency and indemnity compensation payable to a claimant will be not less than the rate of death pension the claimant would be entitled to if the veteran's death had occurred under circumstances which would permit payment of death pension. However, the benefit payable in applicable cases will be dependency and indemnity compensation and not death pension. The law applies to any case in which the claimant is receiving or is entitled to receive dependency and indemnity compensation irrespective of whether the veteran's death occurred before, on, or after December 31, 1956.

(b) Claims—(1) Previously adjudicated cases. A claim (formal or informal) for increased benefits under this law (38 U.S.C. 412(b)) will be required when the claimant is in receipt of dependency and indemnity compensation.

(2) Original claims. An original application (VA Form 21-534) will be ac-cepted as including a claim under this law and a specific or separate claim is not required. Claims pending on October 1, 1961, will be considered original claims and no further application will be required.

(c) Apportioned cases-(1) Claims. Where a widow's award of dependency and indemnity compensation is apportioned for one or more children who are not in her custody a claim for increase filed by the fiduciary of a child will be considered a claim under this law on behalf of the widow and the other children. If such a claim is filed necessary request

for evidence of the widow's annual income and net worth will be addressed to the widow and not to the fiduciary of the child.

(2) Awards. Should an increased rate be payable under this law in an apportionment case the award will be apportioned under § 3.461, pertaining to dependency and indemnity compensation and not under § 3.460, which relates to death pension.

(d) Effective dates. The date of enactment of this act was September 21, 1961. The law is effective from October 1, 1961. No increase in monthly rates of dependency and indemnity compensation based solely on its provisions may be made effective prior to October 1, 1961. (1) In the case of any person receiving dependency and indemnity compensation on October 1, 1961, increased benefits provided by this law shall be payable from October 1, 1961, if claim is filed within 1 year from that date and evidence of entitlement is of record or received within 1 year from the date of request.

(2) Any claim pending on October 1, 1961, will be considered an original claim and no further application will be required. The effective date of dependency and indemnity compensation under this law will be October 1, 1961, if evidence of entitlement is of record or received within 1 year from date of request.

(3) As to all other claims, formal or informal, the effective date of dependency and indemnity compensation under this law will be determined under applicable laws and regulations relating to original claims and claims for increase but not earlier than October 1, 1961. (Instruction 1, 38 U.S.C. 412, Public Law 87-268)

[26 F.R. 10552, Nov. 9, 1961]

§3.1569 Payment of disability compensation with deduction of lump-sum readjustment pay.

(a) Effect of the law—(1) Prior provisions. Public Law 676, 84th Congress provided lump-sum readjustment pay for reservists with at least 5 years of continuous active duty who were involuntarily released from such active duty. A person entitled to readjustment pay who was also eligible for compensation could elect to receive either benefit, but not both, his election becoming final with respect to all prior service, thereby prohibiting a subsequent reelection of the other benefit. Election of readjust

ment pay did not act as a bar to disability compensation based on subsequent service. Election of readjustment pay did not act as a bar to receipt of pension, nor did receipt of pension bar receipt of readjustment pay.

(2) Present provisions. Under Public Law 87-509 readjustment pay is calculated on a more liberal basis. It provides as to such releases after its enactment date that such persons may receive readjustment pay in addition to compensation subject to deduction from the compensation of an amount equal to 75 percent of the readjustment pay. Public Law 87-509 also provides that notwithstanding an election under Public Law 676, 84th Congress, to receive lump-sum readjustment pay, any person who made such an election may be awarded compensation to which he is otherwise entitled, subject to deduction from the compensation of an amount equal to 75 percent of the readjustment pay. This provision is effective as of the date of enactment. Informal information has been received from the Department of Defense that veterans who elected to receive compensation under Public Law 676, 84th Congress may not now elect to receive readjustment pay. Compensation to which the person is entitled on the basis of subsequent service is not subject to deduction. There continues to be no bar to the receipt of pension and readjustment pay.

(b) Effective date. The law becomes effective June 28, 1962, with respect to an award of compensation subject to recoupment of readjustment pay.

(1) Original claims. (i) As to veterans separated from service under the provisions of Public Law 87-509 on or after June 29, 1962, the effective date will be the day following separation from service if claim is filed within 1 year from that date; otherwise from date of claim.

(ii) As to veterans separated from service prior to June 29, 1962, the effective date will be the date claim is filed or June 28, 1962, whichever is the later.

(2) Reopened claims. Where a claim for compensation was disallowed because of an election to receive readjustment pay and it does not come within the definition of a pending claim under subparagraph (3) of this paragraph, the effective date of an award of compensation will be the date of claim or June 28, 1962, whichever is the later.

(3) Pending claims. Where otherwise in order, the effective date of an award as to a claim pending on the date of enactment will be June 28, 1962. Pending claims will include:

(i) A claim not previously adjudicated.

(ii) A previously disallowed claim pending appellate consideration.

(iii) A previously disallowed claim reopened by receipt of any claim, evidence or inquiry on which action was pending on June 28, 1962.

(iv) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry after June 28, 1962, but within the appeal period. (Instruction 1, Public Law 87-509.)

[27 F.R. 8354, Aug. 22, 1962] §3.1570 Instructions relating to rates

of compensation to be assigned certain veterans with service-connected blindness of one eye and non-serviceconnected blindness of the other eye or with service-connected loss or loss of use of one kidney and non-serviceconnected involvement of the other kidney.

(a) Provisions of the law. A new section numbered 360 has been added to chapter 11, title 38, United States Code. This new section reads as follows: "Where any veteran has suffered (1) blindness in one eye as a result of service-connected disability and has suffered blindness in the other eye as a result of nonservice-connected disability not the result of his own willful misconduct, or (2) has suffered the loss or loss of use of one kidney as a result of service-connected disability, and has suffered severe involvement of the other kidney such as to cause total disability, as a result of nonservice-connected disability not the result of his own willful misconduct, the Administrator shall assign and pay to the veteran concerned the applicable rate of compensation under this chapter as if his blindness in both eyes or such bilateral kidney involvement were the result of service-connected disability."

(b) Effects of the act. Prior to this law, if a veteran entered service with blindness of one eye and incurred blindness in the other eye as a result of service, he would be entitled to the statutory rates of compensation payable for service-connected blindness of both eyes. However, if a veteran entered service with two good eyes, incurred blindness of one eye in service, and then sub

sequent to service suffered blindness of the other eye as a result of nonserviceconnected cause, he would be entitled to compensation only for unilateral blindness. This act now equates the two situations so that in the latter case the veteran is now entitled to the statutory rates of compensation payable for service-connected blindness of both eyes. Similarly, prior to this law, if a person entered service with loss or loss of use of one kidney and while in service incurred severe involvement of the other kidney, such veteran could be given a total rating for compensation. However, where a person incurred the loss or loss of use of one kidney in service and subsequent to service incurred severe involvement of the other kidney not the result of service-connected disability, the rating for compensation could not be more than 30 percent, the rating for unilateral involvement only. Under this act such person may receive a total rating for compensation purposes or a statutory rate under 38 U.S.C. 314 (1)-(s).

(1) Possible entitlement to grant for an automobile under 38 U.S.C. Ch. 39. Under this law if a veteran is granted statutory rates of compensation for blindness of both eyes incurred in World War II or the Korean conflict he would have potential entitlement to a grant for an automobile or other conveyance under 38 U.S.C. Ch. 39. However, in order for entitlement to be actually established, a claim for such benefits must be filed within the time limits prescribed by 38 U.S.C. 1905.

(2) Possible entitlement to assistance in obtaining specially adapted housing under 38 U.S.C. Ch. 21. Certain veterans granted the statutory rates of compensation for bilateral blindness under this law, may also have potential entitlement to assistance in obtaining specially adapted housing under 38 U.S.C. Ch. 21, if in addition to having blindness in both eyes with light perception only, they also have service-connected loss or loss of use of one lower extremity, and locomotion without the aid of a wheelchair is precluded.

(c) Effective date. The law was approved August 28, 1962, and becomes effective August 28, 1962. No benefit based solely on the liberalizing provisions of this law may be effective prior to August 28, 1962.

(1) Pending claims. Where otherwise in order the effective date of an award as to a claim pending on the date of ap

proval of this act will be August 28, 1962. For the purposes 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 August 28, 1962.

(iv) A previously disallowed claim reopened by the receipt of any claim, evidence or inquiry after August 28, 1962, but within the appeal period.

(2) New claims. Claims, formal or informal, received on or after August 28, 1962, will be considered initial claims for the purpose of this act and the effective date will be determined under applicable laws and regulations relating to original claims but not earlier than August 28, 1962.

(i) Where a claim identifying the benefit sought is received within 1 year from August 28, 1962, and evidence of entitlement is of record on or before August 28, 1962, benefits will be payable from August 28, 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 a disability which may establish entitlement to this benefit. (Instruction 1, 38 U.S.C. 360, Public Law 87-610.)

[27 F.R. 9474, Sept. 25, 1962]

§ 3.1571 Increased compensation.

(a) Effect of the law. Public Law 87645 provides increased monthly compensation rates to all veterans in receipt of service-connected compensation except to those receiving only statutory awards for arrested tuberculosis under 38 U.S.C. 314(q) or payments made under 38 U.S.C. 314(k). It also provides for those entitled to an increase on October 1, 1962, an additional lump-sum adjusted amount for that month equal to three times the increase in rate.