AMENDING THE PROVISIONS OF THE PENSION LAWS FOR PEACETIME SERVICE TO INCLUDE RESERVE OFFICERS AND MEMBERS OF THE ENLISTED RESERVES

MAY 3, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. GASQUE, from the Committee on Pensions, submitted the

following

REPORT

[To accompany H. R. 2887]

The Committee on Pensions, to whom was referred the bill (H. R. 2887) to amend the provisions of the pension laws for peacetime service to include Reserve officers and members of the enlisted Reserves, having had the bill under consideration and having heard Gen. Frank T. Hines, Administrator of Veterans' Affairs, representatives of the War Department, Navy Department, Reserve Officers Association of the United States, Adjutant General Association, National Guard Association, American Legion, Veterans of Foreign Wars, Military Order of the World War, American Veterans Association, Army and Navy Union, and other persons representing those who would become beneficiaries thereunder, respectfully submit the following report, with the recommendation that the bill (H. R. 2887), as amended by the committee, do pass.

In compliance with paragraph 2A of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows: Veterans' Regulation 1 (a), part II, paragraph 1 (a), is shown in small roman type; new matter proposed by this bill is shown in italics; and the committee amendment proposed to the existing regulation is shown in large roman type:

1. (a) For disability resulting from personal injury or disease contracted in line of duty or for aggravation of a preexisting injury or disease contracted or suffered in line of duty when such disability was incurred in or aggravated by active military or naval service other than in a period of war service as provided in part I, the United States will pay to any person thus disabled and who was honorably discharged from such period of service in which such injury or disease was incurred, or preexisting injury or disease was aggravated, a pension as hereinafter provided, ★5-4-37

but no pension shall be paid if the disability is the result of the person's own misconduct: Provided, That service as a Reserve officer or member of the Enlisted Reserves of the United States Army, Navy, or Marine Corps, while performing military or naval service for training purposes shall be considered as active military or naval service for the purpose of granting benefits under part II except, that as to the persons included in this proviso, the requirement of an honorable discharge shall not be for application.

The committee amendment to this bill is shown as follows:

"Provided, That active service, including service for training purposes, performed by a Reserve officer or member of the Enlisted Reserves of the United States Army, Navy, or Marine Corps, shall be considered as active military or naval service for the purpose of granting benefits under part II hereof, and it shall not be required that such Reserve officer or enlisted man shall have been discharged from the service. Pension under this paragraph shall not be paid concurrently with active duty pay or employees' compensation. Where a person who is eligible for pension hereunder is also eligible for the benefits of Employees' Compensation Act he shall elect which benefit he shall receive. This amendment shall be effective June 15, 1933, but payment of pension hereunder shall be effective from the date of receipt in the Veterans' Administration of application therefor or the date of enactment of this amendment, whichever is the later."

ENDORSEMENT OF BILL

This bill, as amended by the committee, has the endorsement of the Veterans' Administration (which includes the Bureau of the Budget), The War Department, American Legion, the Veterans of Foreign Wars, the Reserve Officers' Association of the United States, American War Veterans' Association, Military Order of the World War, and the Army and Navy Union. Representatives of the Adjutants General Association and the National Guard Association appeared at the hearings and stated that they were not opposed to the bill.

GENERAL INFORMATION

The purpose of this bill is to restore to the members of the Reserve Corps their eligibility for pension, and in this connection it might be well to consider the historical background of benefits afforded Army and Naval Reservists and their dependents for disability or death as a result of injury incurred while undergoing training. Prior to June 15, 1933, pension was payable under the general pension law on account of disability or death incurred as the result of injury or disease suffered by the members of the Reserve Corps of the Army while on active duty, including training duty. However, by the terms of an amendment of that date to section 112 of the National Defense Act (32 U. S. C. 160), such benefits were no longer authorized. This condition arose by reason of the insertion of the amendment of 1933 and the phrase "except for training" as applied to members of the Army Reserve which precluded payment of pension benefits in these cases. In order to correct this discrimination, the War Department sought remedial legislation during the Seventy-fourth Congress, which was introduced in the form of S. 4026. This bill sought to amend section 112 of the National Defense Act by striking out the phrase "except for training." This bill passed the House and Senate and was submitted to the President for his approval. However, as it passed the House of Representatives, an amendment was added

covering the National Guard, but on account of which the bill was disapproved by the President. As previously stated, in the memorandum of disapproval, the President under date of June 23, 1936, stated that—

the bill in its original form as passed in the Senate and as reported by the House of Representatives would have restored those pension benefits to members of the Officers' Reserve Corps and the Enlisted Reserve Corps which were withdrawn from them by the act of June 15, 1933. Thus, it provided appropriate benefits to a deserving group of the Federal military forces at a nominal expense to the Government.

The President then gave the reasons why the object sought to be accomplished by the amendment impelled him to withhold his approval of the bill. These reasons as stated by the President in his memorandum of disapproval indicated that

the National Guard, except when called or ordered into the active service of the United States in emergency is essentially a State force. As amended on the floor of the House of Representatives and passed by the Congress, the bill would have the effect of placing the National Guard in active Federal duty status while undergoing training in State service. It would then place upon the Federal pension rolls, persons not in the Federal service at the incident of their incapacity. This would constitute such a radical innovation in the policy which has been generally followed since the beginning of our Government that I must withhold my approval of the bill.

The President then indicated that in his opinion no such legislation proposing to grant pension benefits to the National Guard should be enacted until it has received an extensive study and report of its administrative expense, and possible far-reaching effect.

The committee feels that while there is considerable merit to their claim, yet the committee cannot ignore the recommenadtion or the expression of the President of the United States set forth in his memorandum of disapproval of Senate 4026, Seventy-fourth Congress, which bill contained an amendment providing pension benefits for members of the National Guard. The President indicated that before any laws were enacted granting pension benefits to members of the National Guard that there is very clear and convincing necessity for an extensive study and report of its administrative expense and possible far-reaching effect, together with the fact that it would constitute a radical innovation in the policy pertaining to pensions. In the light of the President's statement, it is felt proper that the committee should consider the question of pensions for members of the National Guard under separate legislation. The committee is giving serious study to this matter at the present time.

Prior to the act of February 28, 1925 (34 U. S. C. 762), the members of the Naval Reserve Corps and their dependents were entitled to pension benefits payable under the general pension law on account of disability or death incurred as a result of disease or injury suffered by a member of the Naval Reserve Corps while on active duty, including training duty. However, provision was made in section 14 of the act of February 28, 1925, for granting to them and their dependents the benefits of the Employees' Compensation Act on account of injury (not disease) or death incurred while performing active duty. This act of February 28, 1925, operated to revoke any benefits for the Naval Reserve for pension.

It will thus be seen that prior to June 15, 1933, benefits were payable to Army reservists and their dependents on account of disease or death as a result of training duty, but that such benefits have been

denied since the amendment of that date to section 112 of the National Defense Act; that in an effort to overcome what was considered to be an inequality, the War Department sought legislative relief in the form of S. 4026 of the Seventy-fourth Congress, which failed of enactment for the reasons stated. It will thus be seen that prior to February 28, 1925, pension benefits were payable to naval reservists and their dependents on account of disability or death resulting from disease or injury as a result of training, but that such benefits have been denied since that date. However, the naval reservists, from that time on, have been entitled to benefits in the form of employees' compensation, limited, however, to disability or death due to injury as distinguished from disease. Thus, it will be seen that naval reservists are now entitled to partial benefits, while the Army reservists have been denied any benefits since June 15, 1933.

The Navy Department stated in their report on the bill that there was a possibility that the provisions of this bill would have the effect of repealing the benefits which they now receive under section 14 of the Employees' Compensation Act of February 28, 1925 (34 U. S. C. 762), and if this were so, the Navy Department would not be in favor of the bill, and in order that there might be no mistake about this question, the committee received a report from the Employees' Compensation Commission, which report clearly sets forth the fact that the bill, in its original form or including the proposed amendment submitted by the Veterans' Administration, would in no way have any tendency to repeal the act of February 28, 1925, but would permit the members of the Naval Reserves to elect which benefit they preferred to take, either under the Employees' Compensation Act or under the provisions of the existing pension laws. The amendment of the Veterans' Administration clearly sets forth the right of election. Further assurance is given in the report from the Employees' Compensation Commission by the citing of the decision of the Comptroller General of the United States of May 19, 1935, of the case of James P. Mitchell, No. A-61098, reported in volume 14 C. G., page 816. It is not the intent nor the understanding of the committee that this bill will in any way repeal section 14 of the act of February 28, 1925. With this assurance, the representative of the Navy Department stated at the hearing before the committee that there would be no objections on the part of the Navy Department to the enactment of this bill.

The cost of this legislation, as estimated in 1936, would amount to $2,210 per year, as shown by the report from the Secretary of War. The present bill taking care of injury or disease incurred since June 15, 1933, would enhance that cost somewhat, but the total cost of the bill would be negligible.

It has been pointed out by the Administrator of Veterans' Affairs and the Secretary of War that there is considerable justice and merit in this measure. Both Departments have pointed out the fact that there are two ways in which relief could be granted to this deserving group. The first method would be by an amendment to section 112 of the National Defense Act, as was attempted in the Seventy-fourth Congress. The second method would be as provided in this bill by amending the pension laws to include this group. The committee is of the opinion that the method as provided in this bill is the most desirable for the reason that it has a tendency toward uniformity, and if the first method were adopted, namely, an amendment to the

National Defense Act, it would only apply to the Army Reserves and it is the opinion of the committee that the Reserves of the Army, Navy, and Marine Corps should be on a parity with reference to pension for injuries or disease contracted in service in line of duty.

With reference to the amendment which was proposed by the Administrator of Veterans' Affairs, the committee after careful consideration of same, feels that by broad and liberal interpretation it will provide a proper protection to the Reserves so as to include authorized duty when it is for training purposes. This matter can well be taken care of by the War and Navy Departments in their reports to the Veterans' Administration, and as General Hines stated in his testimony before the committee, this would be the basis upon which an interpretation of the law would be made by the Veterans' Administration.

It is believed that if part II of Veterans' Regulation No. 1 (a) is included in this report that it will be of material benefit to those who are not now familiar with the rate of pension being paid to persons who rendered military or naval service during time of peace. The present laws and rates are as follows:

PAYMENT OF PENSION FOR DISABILITY OR DEATH INCURRED DURING PEACETIME SERVICE

I. (a) For disability resulting from personal injury or disease contracted in line of duty or for aggravation of a preexisting injury or disease contracted or suffered in line of duty when such disability was incurred in or aggravated by active military or naval service other than in a period of war service as provided in part I, the United States will pay to any person thus disabled and who was honorably discharged from such period of service in which such injury or disease was incurred, or preexisting injury or disease was aggravated, a pension as hereinafter provided, but no pension shall be paid if the disability is the result of the person's own misconduct.

(b) For the purposes of paragraph I (a) of part II hereof every person employed in the active military or naval service for six months or more shall be taken to have been in sound condition when examined, accepted, and enrolled for service, except as to defects, infirmities, or disorders noted at time of the examination, acceptance, and enrollment, or where evidence or medical judgment is such as to warrant a finding that the disease or injury existed prior to acceptance and enrollment.

(c) Any veteran or the dependents of any deceased veteran otherwise entitled to pension under the provisions of part II of this regulation shall be entitled to receive the rate of pension provided in part I of this regulation if the disability or death resulted from an injury received in line of duty in actual combat in a military expedition or military occupation.

II. For the purposes of part II, paragraph I (a) hereof, if the disability results from injury or disease

(a) If and while the disability is rated 10 per centum the monthly pension shall be $6.00.

(b) If and while the disability is rated 20 per centum the monthly pension shall be $9.00.

(c) If and while the disability is rated 30 per centum the monthly pension shall be $13.00.

(d) If and while the disability is rated 40 per centum the monthly pension shall be $18.00.

(e) If and while the disability is rated 50 per centum the monthly pension shall be $22.00.

(f) If and while the disability is rated 60 per centum the monthly pension shall be $27.00.

(g) If and while the disability is rated 70 per centum the monthly pension shall be $31.00.

(h) If and while the disability is rated 80 per centum the monthly pension shall be $36.00.