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Approximately 77 per cent of veterans receiving disability pension also receive Social Security Administration Old Age and Survivors' Insurance, and about 76 per cent of veterans' surviving dependents receive Social Security benefits. Consequently, effective January 1, 1973, over 1.2 million veterans and survivors suffered a reduction in death or disability pension payments as a result of the 20 per cent Social Security benefit increase provided for in Public Law 92-336. According to the Veterans Administration, another 20,000. consisting of 14,200 veterans and 5,800 survivors, were dropped from the pension rolls. Of these, 15,000 suffered an aggregate income loss ranging from $3.14 to $14 a month.

The American Legion believes that war veterans and their survivors should have the full measure of the Social Security increases provided by PL 92–386 without any significant reduction in their pensions.

In enacting the 20 per cent increase in the Social Security benefit, Congress did so for the purpose of offsetting the dollar loss in purchasing power. Failure to protect the purchasing power of veterans and their survivors in effect penalizes them while granting nonveterans the full measure of cost-of-living increases. To offset the effects of the increased Social Security payments on the aggregate income of VA pensioners and to assist them in meeting the continuing increase in the cost-of-living, The American Legion recommends legislation to

(a) amend the table of rates and income limitations applicable under subsection 521 (b) to provide as follows:

"If the veteran is unmarried (or married but not living with and not reasonably contributing to the support of his spouse) and has no child, pension shall be paid according to the following formula

"If annual income is $300, or less, the monthly rate of pension shall be $150. For each $1 of annual income in excess of $300 up to and including $1000, the monthly rate shall be reduced 3 cents; for each $1 of annual income in excess of $1000 up to and including $1500, the monthly rate shall be reduced 4 cents; for each $1 of annual income in excess of $1500 up to and including $1800, the monthly rate shall be reduced 5 cents; for each $1 of annual income in excess of $1800 up to and including $3000, the monthly rate shall be reduced 6 cents. No pension shall be paid if annual income exceeds $3000."

(b) amend the table of rates and income limitations under subsection 521 (c) applicable to married veterans or veterans with children to provide as follows:

"If the veteran is married and living with or reasonably contributing to the support of his spouse, or has a child or children, pension shall be paid according to the following formula

"If annual income is $300 or less, the monthly rate of pension shall be $170 for a veteran and one dependent. For each $1 of annual income in excess of $300 up to and including $900, the particular monthly rate shall be reduced 2 cents; for each $1 of annual income in excess of $900 up to and including $3200, the monthly rate shall be reduced 3 cents; and for each $1 annual income in excess of $3200 up to and including $4200 the monthly rate shall be reduced 4 cents. No pension shall be paid if annual income exceeds $4200. With $10 a month to be added to these rates for each additional dependent."

(c) amend the table of rates and income limitations under subsection 541 (b) applicable to widows without children as follows:

"If there is no child, pension shall be paid according to the following formula"If annual income is $300 or less, the monthly rate of pension shall be $105. For each $1 of annual income in excess of $300 up to and including $600, the monthly rate shall be reduced 1 cent; for each $1 of annual income in excess of 600 up to and including $1900, the monthly rate shall be reduced 3 cents; and for each $1 of annual income in excess of $1900 up to and including $3000 the monthly rate shall be reduced 4 cents. No pension shall be paid if annual income exceeds $3000."

(d) amend the table of rates and income limitations under subsection 541 (c) and (d) applicable to a widow with one or more children as follows: "If there is a widow and one child, pension shall be paid according to the following formula

"If annual income is $300 or less, the monthly rate of pension shall be $128. For each $1 of annual income in excess of $300 up to and including $1400, the monthly rate shall be reduced 1 cent; for each $1 of annual income in excess of $1400 up to and including $2700, the monthly rate shall be reduced 2 cents; and for each $1 of annual income in excess of $2700 up to and including $4200, the monthly rate shall be reduced 3 cents. Whenever the monthly rate payable

to the widow under the foregoing formula is less than the amount which would be payable to the child under section 542 of this title if the widow were not entitled, the widow will be paid at the child's rate. No pension shall be paid if the annual income exceeds $4200. If there is a widow and more than one child, the monthly rate payable under subsection (c) shall be increased by $22 for each additional child."

(e) amend section 542 (c) of title 38, United States Code, so as to increase the unearned annual income limitation from $2000 to $2600 in the case of a child where no widow is entitled to receive death pension.

(f) amend section 521 (f) (1) of title 38, United States Code, to liberalize the spouse's income provisions so as to provide that where a veteran is living with his spouse, all unearned income of the spouse which is reasonably available to or for the veteran in excess of $2400 shall be considered as the veteran's income.

As the Subcommittee knows, the present spouse's unearned income exclusion of $1200 was established by Public Law 86-211 effective July 1, 1960. In establishing the $1200 exclusion, the Congress reasoned that this amount would be 'needed to meet the cost of the spouse's clothing and other necessities and therefore not available for the veteran's maintenance, although the basic purpose of this provision was to preclude the veteran from transferring assets to the spouse to qualify for disability pension.

Between 1960 and April 30, 1973 the Consumer Price Index (1967=100) has risen from 88.7 to 130.7, a change of 47.3 per cent. Because of the increased expenditures for personnel necessities and services, less of the spouse's income is available for the veteran's maintenance.

We are aware, Mr. Chairman, of the Administration's proposal, announced in the VA Fiscal Year 1974 Budget, to seek legislation to amend 38 USC, Chapter 15, so as to provide that all of the spouse's income, both earned and unearned, shall be counted as the veteran's in determination of his entitlement to disability pension. For several fundamental reasons, the Legion opposes the purpose of the Administration's legislative proposal.

In addition to the foregoing, we suggest that the following amendments would further improve the death and disability pension program for veterans and their surviving widows and children.

Amend section 521 of title 38, United States Code, so as to provide that when any veteran attains age 72, or older, his disability pension shall be increased $25 monthly.

Veterans age 72 or older generally have need for added income to enable them to meet increased expenditures for medication and transportation, and sometimes housing.

Amend section 521 of title 38, United States Code, to provide that where the status of a veteran with a dependent changes because of the death of the dependent, the increased amount paid because of the need for aid or attendance of another person ($110) shall continue even though his income exceeds the statutory limitation and the pension is terminated.

An illustration of the problem in the case of a veteran with a dependent: Reported annual income is $2700. Aid and attendance of another person is required because of blindess or helplessness. Total pension from the Veterans Administration is $188 ($78 plus $110). On death of the dependent, even though he is still helpless or blind, the pension of $78, because of excessive income for a veteran without dependent, is discontinued, and so is the $110 rate for aid and attendance.

Section 612(h) of title 38, with respect to furnishing drugs and medicines, deals more equitably with cases of similar disability. It provides that the Administrator shall furnish to each veteran receiving increased pension by reason of being in need of regular attendance, such drugs and medicines may be ordered on prescription of a duly licensed physician as specific therapy in the treatment of any illness suffered by such veteran. It further provides that the Administrator shall continue to furnish such drugs and medicines to any such veteran in need of aid and attendance whose pension payments have been discontinued solely because his annual income is greater than the applicable annual income limitation, but only so long as his annual income does not exceed such annual income limitations by more than $500.

Amend section 521 (d) of title 38, United States Code, to increase the monthly aid and attendance allowance to $121.

Public Law 91-588, effective January 1, 1971, increased the aid and attendance allowance to the present monthly rate of $110. Veterans entitled to this aid and

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attendance allowance suffer from chronic permanent disease or disability. Consequently, they have a continuing need for medical or nursing bed care. All of us are familiar with the expenses associated with chronic long-term illness. We urge that this allowance be increased to $121.

Amend section 503 of title 38, United States, Code, with respect to the manner of determining annual income for pension of certain persons entitled to annuities under the Railroad Retirement Act of 1937, as amended.

Veterans Administration Regulations provide that when a railroad worker with dependents is awarded, prior to retirement age, total permanent disability for the purpose of an annuity under the Railroad Retirement Act, the entire payment for the purpose of pension income determination belongs solely to the disabled worker. Yet, on retirement, because of age provisions under the Act, the added amount because of dependents or family is not counted. The amendment proposed would permit, as in Social Security payments and under the Railroad Retirement Act as amended, the exclusion from annual income determinations for pension of those amounts payable for dependents of those workers retired because of disability prior to retirement because of age.

Amend section 3203 so as to increase the amount of pension payable under this section to a veteran without dependents receiving hospital, domiciliary, or institutional care at VA expense, and to provide for a lump sum payment at the time of discharge from such care.

Section 3203 now provides that where any veteran having neither wife nor child is being furnished hospital treatment, institutional, or domiciliary care by the Veterans Administration, no pension in excess of $30 per month shall be paid to or for the veteran for any period after

(a) the end of the second full calendar month following the month of admission for treatment or care, or (b) readmission for treatment or care within six months following termination of a period of treatment of not less than two full calendar months.

Since July 1, 1960, the effective date of the new pension provisions as enacted by PL 86-211, the maximum monthly disability pension payments have been increased in excess of 50 per cent because of the continued increase in the cost-of-living. As you know, a hospitalized veteran has experienced similar increases in those personal necessities and other expenses which are not covered in his hospital benefits.

Many long-term hospital or domiciliary patients have no income other than the $30 per month payable by authority of section 3203. Under present law, the difference in the amount of pension to which he would otherwise be entitled, is not payable as a lump sum on discharge from Veterans Administration care. Provision for the payment of a lump sum at time of discharge from care would materially assist the veteran on his return to the community in obtaining lodging and other necessities.

For these reasons, Mr. Chairman, we urge the amendment of section 3203 to provide as follows:

"Where any veterans having enither wife, child, nor other financial or legal obligations is being furnished hospital treatment, institutional, or domiciliary care by the Veterans Administration, any pension otherwise payable shall continue without reduction until the first day of the seventh calendar month following the month of admission of such veteran for treatment or care. If treatment or care extends beyond that period, the pension payment shall not exceed 50 per centum of the amount otherwise payable or $55 per month, whichever is the greater. If such veteran is discharged from such treatment or care upon certification by the officer in charge of the hospital, institution, or home that maximum benefits have been received or that release is approved, he shall be paid in a lump sum such additional amounts as would equal the total sum by which his pension has been reduced under this section, but not to exceed $1000."

Amend section 3010, so as to provide―

"That the effective date of disability pension shall be the date that permanent and total disability and need is established, if application for such benefits is received by the Veterans Administration within one year from that date."

Under the provisions of title 38. United States Code, the effective date of an award of death compensation, dependency and indemnity compensation, or death pension, where application is received within one year from the date

of death of the veterans or serviceman, shall be the first day of the month in which death occurred.

But the effective date for payment of disability pension shall not be earlier than the date of receipt of application therefor.

There are instances where a veteran's disability precludes his immediately filing a claim but, although he is otherwise eligible, payments may not be made prior to the VA receipt of his application.

We urge the amendment of section 3010 so as to provide that the effective date for payment of disability pension shall be the date that permanent and total disability and need is established if application therefor is received within one year from that date.

This concludes our prepared statement, Mr. Chairman.

Attached are copies of those resolutions relating to the position of The American Legion on death and disability pension. We ask that these be made a part of the record.

We appreciate your receiving our views.

NATIONAL EXECUTIVE COMMITTEE MEETING OF THE AMERICAN LEGION,
OCTOBER 18-19, 1972, RESOLUTION NO. 13

RESOLUTION NO. 13

Commission: National Veterans Affairs and Rehabilitation.

Title: Sponsor and support legislation to amend section 3203, title 38, United States Code, so as to increase the amount of pension payable to a hospitalized veteran under this section, and to provide for a lump sum payment at the time of discharge or release from such hospitalization.

Whereas, 38, USC, 3203 provides where any veteran having neither wife nor child is being furnished hospital treatment, institutional, or domiciliary care by the Veterans Administration, no pension in excess of $30 per month shall be paid to or for the veteran for any period after (a) the end of the second full calendar month following the month of admission for treatment or care, or (b) readmission for treatment or care within six months following termination of a period of treatment or care of not less than two full calendar months; and

Whereas, since July 1, 1960 the maximum pension payments to single veterans as provided by PL 86-211, as amended, have been increased in excess of fifty percent because of the continued increase in living costs; and

Whereas, a hospitalized or domiciled veteran has also experienced the same or similar increases in his living expenses which are not covered in his hospital benefits; and

Whereas, the average long-term hospital or domiciliary patient has no money whatsoever to face or start life once he is discharged other than the $30 per month provided by this section; and

Whereas, by providing a lump sum payment at the time of discharge to adjust to life outside of VA institution would give the veterans the economic support needed on return to the community; Now, therefore, be it

Resolved, by the National Executive Committee of The American Legion in regular meeting assembled in Indianapolis, Indiana, October 18-19, 1972, that The American Legion shall sponsor and support legislation to amend section 3203, title 38. United States Code, to read as follows:

Where any veteran having neither wife, child, nor other financial or legal obligations is being furnished hospital treatment institutional or domiciliary care by the Veterans Administration, any pension otherwise payable shall continue without reduction until the first day of the seventh calendar month following the month of admission of such veteran for treatment or care. If treatment or care extends beyond that period, the pension payment shall not exceed 50 per centum of the amount otherwise payable or $55 per month, whichever is the greater. If such veteran is discharged from such treatment or care upon certification by the officer in charge of the hospital, institution, or home, that maximum benefits have been received or that release is approved, he shall be paid in a lump sum such additional amounts as would equal the total sum by which his pension has been reduced under this section, but not to exceed $1000.

54TH ANNUAL NATIONAL CONVENTION OF THE AMERICAN LEGION, CHICAGO, ILL., AUGUST 22, 23, 24, 1972

RESOLUTION NO. 367 (GEORGIA)

Committee: Veterans Affairs and Rehabilitation.

Subject: Amend 38, USC, 3010, to provide that effetcive date of disability pension shall be the date that permanent and total disability and need is established, if application for such benefits is received within one year from that date.

Whereas, many war veterans have become totally and permantly disabled many months prior to being able to file a claim for pension or having one filed in their behalf; and

Whereas, under present law the effective date for payment of pension to eligible veterans is the date their claim is received by the Veterans Administration and not the date they become totally and permanently disabled; and Whereas, for disability compensation the effective date of such awards is the day following separation from service if application is filed within one year from that date; and

Whereas, for death pension, death compensation or DIC, the effective date of such awards shall be from the date of the veteran's death, if filed within one year from that date; Now, therefore, be it

Resolved, by The American Legion in National Convention assembled in Chicago, Illinois, August 22, 23, 24, 1972, that The American Legion sponsor and support legislation to amend 38, USC, 3010 to provide that the effective date of disability pension shall be the date that permanent and total disability and need is established, if an application for such benefits is received within one year from that date.

54TH ANNUAL NATIONAL CONVENTION OF THE AMERICAN LEGION, CHICAGO, ILL., AUGUST 22, 23, 24, 1972

RESOLUTION NO. 399 (NEBRASKA)

Committee: Veterans' Affairs and Rehabilitation.

Subject: Sponsor and support legislation to amend title 38, USC, to improve the death and disability pension benefits programs for veterans of World War I, World War II, the Korean Conflict, and the Vietnam Era, and for their widows and children.

Whereas, the pension program established by the Congress of the United States for veterans of World War I, World War II, the Korean Conflict, and the Vietnam Era, and for their widows and children, is a needs program designed to help relieve or prevent need which is or is presumed to be due to permanent and total disability associated with unemployability, or that which follows the death of the primary means of support-the veteran spouse; and

Whereas, the needs of these veterans and their survivors are more and more demanding of their limited incomes because of the continuing rise in the cost of food, housing, clothing, medical services, and other essentials; and Whereas, notwithstanding the many beneficial changes accomplished by the enactment of PL 92-198 in the death and disability pension program for these veterans and their survivors, The American Legion is convinced that additional improvement need be made to make this program one which is responsive to their economic needs and one which will assure maintenance of these benefits at a level above that provided under welfare or public assistance programs; now. therefore, be it

Resolved, by The American Legion in National Convention assembled in Chicago, Illinois, August 22, 23, 24, 1972. That The American Legion shall sponsor and support legislation to accomplish the following amendments to chapter 15. title 38, United States Code:

1. (a) Amend the table of rates and income limitations applicable under subsection 521 (b) to provide as follows:

If the veteran is unmarried (or married but not living with and not reasonably contributing to the support of his spouse) and has no child, pension shall

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