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ADMINISTRATION'S PROPOSED LEGISLATION FOR FISCAL YEAR 1983

The following items are included in the President's legislative program for the Second Session of the 97th Congress and have been included in his fiscal year 1983 Budget.

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COMMITTEE ON VETERANS' AFFAIRS PROPOSED LEGISLATION, FISCAL YEAR 1983

Compensation, pension, and insurance:

Estimated budget authority

costs

Authorize compensation entitlement to certain Insignificant (less than $1 ROTC members.

Authorize DIC in limited number of cases where eligibility under Section 410 (b) is denied solely due to VA error in assigning date of total disability.

million). Insignificant.

Authorize active duty SGLI optional increased Insignificant. coverage.

Readjustment benefits:

Authorize new GI Bill (H.R. 1400)

Amend chapters 41, 42, and 43, of title 38, U.S.C., to enhance employment/reemployment rights of certain veterans.

Insignificant in fiscal years 1983 and 1984. Fiscal year 1985 estimate$171.3 million. Insignificant.

Authorize reemployment rights for National None.
Guard or Reserves completing active duty

training (H.R. 5209).

Burial benefits: Provide burial and funeral ex- Insignificant. penses to certain deceased veterans whose re

mains are unclaimed.

Medical care:

Authorize extension of Exchange Medical In- Funding as necessary by formation program.

Appropriations Commit

tee.

Extend authority for contract medical care in None (included in medical Puerto Rico and the Virgin Islands.

Extend authority for VA grants for construction of State nursing homes.

care). Funding as necessary by Appropriations Commit

tee.

Extend authority for VA grants to medical Funding as necessary by schools.

Appropriations Commit

tee.

Authorize flexible hours or compressed work- None.

week for VA nurses.

In accordance with the instructions of the Chairman of the Committee on the Budget, the Honorable James R. Jones, in his letter of February 17, 1982, this section of the Committee's Report to the Committee on the Budget conforms with the recommendations for simplifying formats by reducing required detail and basing Committee estimates on the current Congressional Budget Office policy baseline which reflects the Congressional Budget Office's latest economic assumptions.

I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION [In millions of dollars]

COMMITTEE: VETERANS' AFFAIRS

Fiscal year

1983

1984

1985

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C. Programs authorized by Committee but funded in annual appro- BA priations.

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a. Presidential Initiatives: (Proposed legislation included in
appropriation requests).

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Compensation:

1. Delay payment of first full month of entitlement.... BA

Current law provides that the effective date of eligibility for compensation is the date following discharge or the date of the claim if submitted more than 1 year following separation. Proposed legislation would pay no monetary benefits for any portion of the month of initial entitlement and would delay payment until first day of following month. The Administration expects to save $9 million in fiscal year 1983 by this measure.

The Committee considers this proposal would impact adversely on service-connected disabled veterans. A totally disabled or paralyzed veteran could be separated from service on the first day of the month and, because VA benefits are payable from the day following separation, not be eligible for VA benefits for more than 4 weeks.

The Committee rejects the proposal.

2. Reduce compensation at end of month of dependency BA
loss, versus end of year.

Current law provides that if a veteran loses a de-
pendent, his allowance for that dependent is paid
through the end of the calendar year in which the loss

occurs.

This proposal would diminish the benefits for the service-connected disabled veteran. A consequence of adopting the proposal would be the creation of small overpayments caused by delays in notification and adjustment, which would create unfavorable_reactions as well as administrative expenses. Cost savings of $1.4 million are projected by the Administration.

The Committee rejects the proposal.

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I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION-Con. [In millions of dollars]

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Eliminate dependency allowance for veterans rated BA
less than 50 percent disabled.

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Present law provides payment of additional compensation for dependents of veterans rated 30-100 percent disabled. This proposal would raise the threshold for payment of dependency allowance from 30 to 50 percent, as the Administration considers veterans rated 30-40 percent disabled as having "minor disabilities". Veterans with an amputation below the knee are rated 40 percent disabled. Veterans rated 30-40 percent disabled include those who suffered the anatomical loss of an eye or an injury to the skull. Typically, such disabilities are sustained in combat. The Administration projects a cost saving of $135.3 million in fiscal year 1983.

The Committee adamantly opposes this proposal. 4. Limit compensation benefits payable for unemployability to veterans in receipt of other Federal benefits. Effective October 1, 1983, the Administration proposes to limit compensation payments to veterans rated totally disabled because of unemployability, if such veterans receive other Federal disability or retirement benefits at a cost saving in fiscal year 1984 of $282.5 million. Such veterans would be eligible for either their regular schedular entitlement or total disability compensation payments, offset by benefits from Social Security, Civil Service retirement, Black Lung benefits, etc. The fiscal year 1984 date was chosen due to time required to implement the proposal. Compensation for service-connected disabilities has never been subject to a means test. This proproposal is far-reaching and a complete departure from the concept that compensation replaces lost earning capacity caused by a service-connected disability. It is discriminatory in that it penalizes the individual adjudicated as being unable to work and who is not in the job market. However, it does not affect other service-connected disabled veterans such as multiple amputees who may receive income from Social Security, Federal retirement, employment, or other sources.

The Committee rejects the effects of this proposal on the fiscal year 1984 and subsequent budgets.

Pensions:

Total-Compensation.....

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1. Issue benefit checks in even dollars.....

The President proposes issuing benefit checks in even dollars as a cost saving measure projected to save $10.8 million.

Non-service-connected pension is a needs-based program whereby all available income is considered in determining the rate of pension. Pension is computed at an annual rate by deducting an individual's family income from the support level provided by law. The annual rate is always in even dollars but paid generally in twelve equal payments. Therefore, the monthly rate usually is in uneven amounts. Under present law a widow with absolutely no income is eligible for an annual VA pension of $3,224 or $277 monthly. This represents the sole support of such an individual.

Should this proposal be enacted, a widow truthfully reporting as little as $1 in additional income would have her annual pension rate recomputed at $3,223 or $276.91, down from $277. The $0.91 would be discarded in the name of "savings" and her new monthly rate would be $276.

One of the strongest arguments in favor of Public Law 95-588 was the assurance to all Members of Congress that never again would an increase in income cause a disproportionate reduction in pension. If this proposal was enacted, we could no longer make this statement. We are unable to correlate the administration's claim of a "safety net", and a proposal to take pennies away from this needy or destitute group of individuals.

The Committee adamantly opposes this measure.

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