Under date of June 15, 1939, the Administrator of Veterans' Affairs advised the War Department that if a retired enlisted man files a claim for compensation or pension with the Veterans' Administration and furnishes an official statement from the War Department that his retired enlisted pay has been discontinued pursuant to an acceptable waiver, compensation or pension may be awarded him if he is otherwise entitled thereto. Pursuant to this ruling, 20 retired enlisted men of the Regular Army and 9 of the Philippine Scouts have waived their retired pay in order to accept pensions and compensation. There are approximately 10,426 retired enlisted men of the Regular Army and 697 retired enlisted men of the Philippine Scouts. Distribution of these men by grade and rates of retirement pay are shown in the table attached to this letter. All these retired men have served during a war period. Approximately 2,000 of the retired enlisted men of the Regular Army receive the retirement pay of a warrant officer under the provisions of section 8, act of June 6, 1924 (43 Stat. 472). The Department would have no objection to the enactment of the bill insofar as it would affect the War Department. The War Department is unable to estimate the additional costs of the proposed legislation. The Bureau of the Budget has advised that there would be no objection to submitting this report to the committee. I. II III IV I II. III. IV V Sincerely yours, HARRY H. WOODRING, Secretary of Wer. Records show the following number of enlisted men on the retired list REGULAR ARMY, DECEMBER 1939 1 NOTE. All retired men have over 30 years' service. Approximately 2,000 retired enlisted men receive the retirement pay of a warrant officer (sec. 8, act of June 6, 1924). The retirement pay in the majority of cases amounts to $138.75 per month. 1 Retired compensation includes "allowances" amounting to $15.75. Retired compensation includes "allowances" amounting to $10.50. The CHAIRMAN, Committee on INVALID PENSIONS, NAVY DEPARTMENT, Washington, May 27, 1940. House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of February 9, 1940, relative to the bill (H. R. 2765) to remove discriminations against disabled retired enlisted men of the Army, Navy, Marine Corps, and Coast Guard who served in war, and to your request for the views and recommendations of the Navy Department thereon, including a break-down as to the pay and the number of men in each of the seven grades of the enlisted personnel of the Navy and Marine Corps. The bill (H. R. 2765) provides that retired enlisted men of the Army, Navy, Marine Corps, and Coast Guard who are disabled as a result of service in war or who may be entitled to pension under existing law shall hereafter be granted compensation or pension under Veterans' Administration laws on parity with other war veterans, provided that pension or compensation shall not be awarded to any retired enlisted men at a rate in excess of an amount which when combined with his retired pay makes a total from both sources of $100 per month. The act of March 3, 1891 (26 Stat. 1082; 38 U. S. C., sec. 26), which provides that "no pension shall be allowed or paid to any officer, noncommissioned officer, or private in the Army, Navy, or Marine Corps of the United States, either on the active or retired list," in the opinion of the Navy Department, should not be changed. While it does not seem equitable that an enlisted man who would be entitled to a pension but for the fact that he is in receipt of retired pay should receive from the Government less pay than the amount of the pension, under the present practice of the Veterans' Administration such a man may receive the pension by waiving his retired pay. The Navy Department considers that a man should not receive both retired pay and a pension. The following table shows the number of enlisted men of the Navy on the retired list by pay grades, based upon a count of July 1, 1939, which is the latest count available. A. A table showing the number of enlisted men of the Navy on the retired list, by pay grades, and cause for retirement It will be noted that 75 percent of the aggregate number are in pay grade 1, drawing an average pay in excess of the maximum provided by H. R. 2765. To obtain accurate information as to the number on the retired list who had war service and also the average pay by pay grades would require a check of the individual records of the 7,911 or more men concerned. However, out of 100 records taken at random of retired men, it was found that 97 percent had war service (6 Spanish-American War and 91 World War). The application of this method in an effort to approximate the average pay of each grade would not produce a satisfactory result, and it is believed that the average pay of the Navy would closely approximate that of the Marine Corps. Applying this percentage to the 7,911 men on the retired list, 475 served in the Spanish-American War, all of whom would undoubtedly be eligible for pension either by reason of age or of disability. The majority of the men transferred to the retired list from the Fleet Reserve by reason of disability (1,334 in number) would also no doubt be eligible for pension. Of the remaining approximately 6,100, no statement can be made as to their entitlement to pension, or the cost thereof, as each case would be adjudicated by the United States Veterans' Administration and rated according to the degree of disability. With respect to the request of the committee for a break-down as to the pay and number in each pay grade of the personnel of the Marine Corps, the following is furnished: A1.-Retired enlisted men of the Marine Corps Of the 786 retired enlisted men, 113 (see table B below) served in the Span American War and would undoubtedly be eligible for pension by reason of a regardless of actual disability, and 52 (see table C below) were transferred to Marine Corps Reserve after 16 or 20 years' active service and later transfer from the Reserve to the retired list because of physical disability and would the fore be eligible for pension. How many of the remaining 621 retired men wa be eligible for pension should the proposed legislation be enacted is not know B.-Retired marines who served in the Spanish-American War C.-Retired Marines placed on retired list from Reserve because of physical disabil No estimate of cost with respect to the Marine Corps can be given as each case would have to be reviewed individually by the Veterans' Administration before the rate of pension or compensation could be ascertained. The Navy Department recommends against enactment of the bill H. R. 2765 The Navy Department has been advised by the Bureau of the Budget that there would be no objection to the submission of this report. Sincerely yours, LEWIS COMPTON, Acting. Hon. JOHN LESINSKI, Chairman, Committee on Invalid Pensions, VETERANS' ADMINISTRATION, House of Representatives, Washington, D. C. MY DEAR MR. LESINSKI: This is with further reference to that part of your letter of May 7, 1940, relative to my conversation with you concerning possible dis cussions with the War and Navy Departments on the subject of monetary bene fits for dependents. The matter of possible combinations of pension and retirement benefits, or one system supplementing the other, as well as other aspects of this subject, has been considered with the Departments mentioned, but no definite conclusions may be reported as yet. It is apparent that difficulty would lie in correlation of administration of two such systems by different agencies. However, further studies are being made, and you are assured that at such time as a definite report is possible you will be promptly advised. Very truly yours, Hon. JOHN LESINSKI, FRANK T. HINES, Administrator. VETERANS' ADMINISTRATION, Chairman, Committee on Invalid Pensions, House of Representatives, Washington, D. C. MY DEAR MR. LESINSKI: This is with further reference to that part of your letter of May 7, 1940, requesting a further report on H. R. 2765, a bill to remove discriminations against disabled retired enlisted men of the Army, Navy, Marine Corps, and Coast Guard who served in war, setting forth therein the effects of the amendment as proposed by former Representative Hoeppel. H. R. 2765, Seventy-sixth Congress, as introduced in the House of Representatives on January 18, 1939, and on which the Veterans' Administration rendered a report to your committee, under date of July 5, 1939, provides as follows: "That retired enlisted men of the Army, Navy, Marine Corps, and Coast Guard who are disabled as a result of service in war or who may be entitled to pension under existing law shall hereafter be granted compensation or pension under Veterans' Administration laws on parity with other war veterans: Provided, That pension or compensation shall not be awarded to any retired enlisted men at a rate in excess of an amount which when combined with his retired pay makes a total from both sources of $100 per month. "SEC. 2. All Acts and/or parts of Acts in conflict with the provisions of this Act are hereby repealed." The revised draft proposed by Mr. Hoeppel, in the hearings conducted by your committee on March 28, 1940, the transcript of which accompanied your letter, and is returned herewith, reads as follows: "That retired enlisted men of the Army, Navy, Marine Corps, and Coast Guard who served 90 days or more in any war in which the United States participated, and who are disabled as a result of service in war, or who may be entitled to compensation or pension under laws pertaining to war veterans, shall hereafter be entitled to compensation or pension on parity with other war veterans: Provided, that compensation or pension shall not be awarded to any retired enlisted man at a rate in excess of an amount which when combined with his retired pay makes a total from both sources of $100 per month: and provided further, that where compensation or pension is awarded to a retired enlisted man based on war service, his retired pay shall be reduced one-thirtieth for each year of war service rendered by the enlisted man for which compensation or pension is paid by the Veterans' Administration. Any major fraction of a year to be considered as one year. "SEC. 2. All acts and/or parts of acts in conflict with the provisions of this act are hereby repealed." The revised draft would permit the payment of compensation or pension for service-connected or non-service-connected disability or for age to retired enlisted men of the armed forces who served 90 days or more in any war in which the United States participated, in an amount which when combined with the retired pay would make a total from both sources of $100 per month. The second proviso would reduce the retired pay one-thirtieth for each year of war service rendered by the retired enlisted man for which compensation or pension is paid by the Veterans' Administration. However, this limitation is not applicable to the amount of compensation or pension payable and as a result the total payable from both sources would probably equal $100 per month in many cases. As was stated in the report of the Veterans' Administration on H. R. 2765, the act of March 3, 1891 (38 U. S. C. 26), contains the provision that "hereafter no pension shall be allowed or payable to any officer, noncommissioned officer, or private in the Army, Navy or Marine Corps of the United States, either on the active or retired list." Section 212 of the World War Veterans' Act, 1924, as amended, (38 U. S. C. 422), contains the proviso: "That compensation under this title shall not be paid while the person is in receipt of active service or retirement pay, this proviso to be effective as of April 6, 1917." The revised draft, as well as the original bill, would therefore nullify the foregoing provisions of law by permitting the payment of retired pay to persons in receipt of pension or compensa 240652-40- 2 Considering the report of the Veterans' Administration of July 5, 1939, on H. R. 2765, and in view of the foregoing the Veterans' Administration is unable to recommend the revised draft to the favorable consideration of the committee. Advice has been received from the Bureau of the Budget that there would be no objection by that office to the presentation of this report to the committee. Very truly yours, FRANK T. HINES, STATEMENT OF HON. JOHN HENRY HOEPPEL, EDITOR, NATIONAL DEFENSE, ARCADIA, CALIF. Mr. HOEPPEL. Mr. Chairman and gentlemen of the committee, I have this bill, H. R. 2765, which General Hines reported on and I am pleased to note that the General did not recommend against the passage of this bill, but merely stated that he was unable to recommend it. General Hines offered no objection to the bill. This bill seeks to give to retired enlisted men of the Army who receive less than $100 a month retired pay the right to obtain a pension or compensation where they would otherwise be entitled to the same under existing Veterans' Administration laws. To illustrate that, I will just briefly refer to one case. Here is a letter from a comrade who served during the Philippine Insurrection in the Philippines. He served in the World War and was disabled in the World War. He is a veteran of two wars. He was retired after 30 years' service and receives $56.25 per month retired pay only. Now, just as an assumption, assume he had a brother who served with him in the Spanish-American War, and he served 90 days and immediately quit the service and then entered the civil service. This brother who entered the civil service received civil-service pay plus any pension to which he was entitled until he eventually retired from the civil service. When he retired from the civil service he then receives $100 per month retired pay, plus, in this instance, $60 a month pension. In other words, he has a total pension of $160 per month, whereas the man who did not leave the service, but who continued in the service, only received his activeduty pay during the time he was in the service and after he retired he receives only, as shown here, $56.25 per month. In other words, by a comparison with a hypothetical brother he is penalized to the extent of $103.75, because he served his Nation in two wars and continued in the military service. What we are proposing in this bill is to give to retired enlisted men equality with men who are in the civil service who are also war veterans so that in either event if they have war service connected disabilities or any disabilities for which pensions are payable that they be entitled to receive up to a maximum of $100 a month, both retired pay and pension. If he was to get absolute equality with the civil service man he would receive his retired pay, plus the full amount of pension or compensation to which he would be entitled, but we are not asking for that. This bill was submitted to the War Department and under date of yesterday the War Department reported and stated as follows, that the Department would have no objection to the enactment of the bill insofar as it would affect the War Department. Now, I drafted this bill and I wrote it so it would only help those who served in war and who are either war-service connected or entitled to a pension so that their maximum income may be $100 a month. |