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entitlement to pensions since July 1, 1960, it was declared that that pension act was based on the principle of need, and of giving the greatest pension to those in the greatest need.

Among some of the avowed purposes of Public Law 86-211 were to correct loopholes and existing inequities, and provide a fairer test of need.

Pursuant to this objective, the waiver provision of certain kinds of income, which then prevailed, and I might add still prevails—in the old pension law, were repealed.

Now, it is understood that the administration is recommending, in anticipation of an increase in social security payments, that all or part of social security income increases can be waived for those veterans and widows whose incomes will exceed the maximum income limitations, because of the increased income, and thereby cause their veteran pension payment to be reduced or in some cases stopped.

H.R. 506 has approached this problem by providing for an increase in the income limitations. This is only a modest increase of $200 proposed in each bracket, and it is considered to be sufficient to offset the proposed 15-percent increase in social security payments.

At this point, Mr. Chairman, it might be said that even the 15 percent-the $200, will not quite be enough for the 15 percent, but at any rate it is recommended that the increase in income limitations be sufficient to offset whatever the Congress in its wisdom approves for social security increases.

There have been no increases in veteran pension income limitations since 1959.

A reversion to the waiver principle will not only do violence to the basic philosophy of the veterans' pension program, but could be the prelude and invitation to much mischief concerning the determination of need in the future.

The spokesman for the administration in 1959, who appeared before this committee when it was considering the Veterans' Pension Act of 1959, was the then Chief Benefits Director, William J. Driver, now the Administrator of Veterans' Affairs. He stated at that time:

We also feel that there are some loopholes in the law, some of which we mentioned this morning. The question of waiving monies from other retirement funds in some few selected cases and not being able to do so in others, we think, constitutes a loophole which should be corrected.

Since the enactment of this Pension Act of 1959, there have been many, many bills before this committee which would permit the exclusion or waiver of certain kinds of income in determining entitlement to pension payments of veterans and widows.

The official view of the administration concerning these proposals was recently stated in a response of the Veterans' Administration to several bills which were under consideration by this subcommittee last year, when the Administrator stated as follows:

Any of the bills, if enacted, would have the effect of permitting persons ineligible for pension benefits because of excess income to become eligible therefor by not counting as income money available for their support. The authorization of such exclusion would not be in keeping with the philosophy of the programs which provide benefits based on need.

In addition, enactment might well stimulate requests for comparable exclusions by persons receiving retirement income from other Government or private

sources.

The Veterans of Foreign Wars strongly recommends, instead of a waiver provision, that an across-the-board increase in the income limitations is the fairest and most equitable method of coping with the proposed social security increase.

By increasing the income limitations, you will also be resolving many problems which may be arising because of increased retirement income, either public or private, for veterans and widows.

Another point which may be lost sight of is the discrimination inherent in a waiver provision.

Veterans and widows would be required to give up or forfeit one kind of retirement income from the Federal Government in order to be entitled to another kind of retirement income from the Federal Government.

To force veterans and widows to give up their rightfully earned social security retirement benefits, on the one hand, so that they can be entitled to their rightfully earned pension payments, on the other hand, smacks of some kind of gross inequity.

The fair and equitable way is to increase the income limitations. which will take into account all income, and not discriminate against a relative few who are not under social security.

The administration has apparently reversed itself on the principle of waiver of income for pension purposes, because it sees a net savings to the Government.

The anticipated savings would be at the expense of a small handful of veterans or their widows, who are living in the most modest, and sometimes destitute circumstances.

It appears that the Bureau of the Budget has asserted its heavy hand in this reversal of a longstanding policy against waiver of income for veterans and widows.

The Veterans of Foreign Wars vigorously recommends that the provisions of H.R. 506 be incorporated in any legislation which is recommended for approval by the full committee.

The Veterans of Foreign Wars strongly supports the provisions which will provide additional assistance to veterans and widows with very serious health problems.

Our organization is hoping that H.R. 506, or a similar bill, will receive quick approval by the Congress, and be enacted into law as soon as practicable.

Mr. Chairman, my testimony this morning has been limited so far to H.R. 506.

It is our understanding that the subcommittee has under consideration all pension bills introduced in the House in this 90th Congress, but that legislation carrying out the Presidential recommendation in this area in his historic message to the Congress on January 31 will be given primary consideration.

Our organization has adopted many resolutions respecting the pension program, and with your permission, it would be deeply appreciated if all these resolutions can be made a part of my statement. Mr. DORN. Without objection, it is so ordered.

Documents referred to follow :)

RESOLUTION No. 2

VETERANS' ADMINISTRATION PENSION PROGRAM

Be it Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That we seek approval of the following recommendations through legislation:

1. Substantial pension rates, income limitations, and regular aid and attendance allowance increases.

2. Classification of participation in campaigns and expeditions involving hostilities as wartime service for pension purposes.

3. Authorize exclusion from annual income expenses of last illness and burial of the veteran's child.

4. Authorize 20 percent exclusion of the amount of public or private retirement benefits.

Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION No. 8

TO LIBERALIZE VETERANS AND WIDOWS PENSION PROGRAM

Whereas the Veterans Pension Program limits pension payments because of income and disability requirements; and

Whereas the Veterans Pension Programs do not increase and keep abreast with the changes in our economy; and

Whereas increases in public and private retirement benefits cause the loss or reduction in pension payments for veterans and widows; and

Whereas Veterans Pension Programs tend to become static causing those who receive pensions dire hardship and loss of income; and

Whereas pension payments for widows are unrealistically low; and

Whereas the determination of employability in many cases deprives a person of veterans pension; and

Whereas there is no recognition for type and service rendered by a veteran so that veterans who served overseas receive the same basic pension as those who did not serve overseas; and

Whereas because pension programs do not keep up with the increased cost of living, there is a need for the pension program to be reviewed periodically: now, therefore, Be it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That proper legislation be introduced and supported that will provide increases in the income limitations for living veterans or their widows and children and liberalize the requirements for determining permanent and total disability, and employability; and increase the payment to those who fought overseas by at least 10 percent. Increase to 20 percent the exclusion from private or public retirement income in determining the income limitations for pension entitlement; and a substantial increase in the unrealistically low pension payments for veterans, widows and children of veterans.

Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION No. 34

OPPOSING CORPUS OF ESTATE CLAUSE, PUBLIC LAW 26-211

Whereas Public Law 26-211, commonly termed the "Non Service Connected Pension Law" contains a Corpus of Estate clause; and

Whereas this clause is incorporated into the Act, to preclude the granting of pensions to hundreds of thousands of veterans otherwise eligible; and

Whereas the basic principle of all veterans legislation is and must continue to be, a concept that an honorably discharged veteran of the Armed Forces of the United States is an individual who has rendered service to his country

above and beyond the duty of an ordinary citizen and is therefore entitled to the special privilege of a pension when because of age, or infirmities, he is no longer able to earn a living, and this concept cannot tolerate the theory that mere possession of a small estate should preclude payment of pension. Be

it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That we call upon the Congress of the United States to repeal forthwith, the Corpus of Estate clause now contained in Public Law 26-211, and to desist from enacting any other Corpus of Estate clause, as a part of this Public Law.

Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION No. 73

EQUALIZE OLD AND NEW PFNSION LAWS

Whereas veterans receiving pension under the new law are entitled to an additional $100.00 per month if in need of aid and attendance; and

Whereas veterans receiving pension under the old law who are in need of aid and attendance receive a considerable less amount of increased pension; Whereas many veterans receiving pension under the old law who are in need of aid and attendance are required to enter private Nursing Homes; and

Whereas the cost of Nursing Home care is continually increasing, and the financial burden of such Nursing Home Care for veterans receiving pension under the old law is becoming more and more prohibitive; Now, therefore, be it Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That the amount of pension of veterans receiving benefits under the old law who are in need of aid and attendance be increased comparable to that allowed veterans receiving pension under the new law.

Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION No. 74

INCREASE PENSIONS UNDER OLD LAW

Whereas the amount of pension received by veterans under the old law, not in need of aid and attendance, has remained the same for many years; and

Whereas veterans receiving pension under the new law have been granted an increase in pension; and

Whereas the cost of living has increased year after year, and there should not be discrimination against those veterans who prefer to continue to receive pension under the old law: Now, therefore, be it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That the amount of pension entitlement by veterans receiving benefits under the old law be increased.

Adopted by the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION No. 101

EXEMPT SOCIAL SECURITY FROM INCOME

Whereas present law requires that Veterans' pensions be reduced whenever Veterans' earnings, pensions or income from other sources, including Social Security, reach certain levels; and

Whereas said requirements cause undue hardship and suffering, and is manifestly unfair to Veterans whose pensions are thereby reduced: Now, therefore, be it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That we unanimously urge the amendment of the present

laws and regulations governing Veterans' pensions, to eliminate Social Security payments payable to a Veteran, whether by reason of retirement or disability, in computing the outside earnings or pensions for purposes of Veterans pensions. Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States held at New York, New York, August 21 through 26, 1966.

RESOLUTION NO. 116

WORLD WAR I PENSION BILL

Whereas the veterans of World War I in many cases served in untold adverse conditions in defense of this country in time of national emergency; and

Whereas the veterans of World War I for years have sought legislation for a separate and just pension; and

Whereas many World War I veterans experienced severe hardship during the depression and many subsequent years due to disability and loss of earning power, thereby not having ability to afford an adequate living and opportunity to prepare for advanced age; and

Whereas many World War I veterans have only minimum Social Security and savings; and

Whereas these veterans served during a time when no thought of retirement plans, annuities and Social Security were considered: Now, therefore, be it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That we go on record seeking legislation for a separate and liberal pension for World War I veterans to consist of the following:

1. Income for pension purposes will be only that derived from veterans employment.

2. Less than full time employment will be considered to meet requirements for unemployability.

3. There shall be no corpus of estate test.

4. Income limits will be as follows: $2,400 for veterans without dependents; $3,600 for veterans with one or more dependents.

5. The amount of pension payable will not be less than $100 per month.

6. Any pension rate will be increased by 10% in the case of overseas or campaign service.

Adopted at the 67th National Convention of the Veterans of Foreign Wars of the United States-Held at New York, New York August 21 through 26, 1966.

RESOLUTION NO. 143

WORLD WAR I PENSION

Whereas the veteran of World War I in many cases served under untold adverse conditions in defense of this country in the national emergency; and

Whereas many World War I veterans experienced severe hardship during the depression in many subsequent years due to disability and loss of earning power and by not having the ability to afford adequate living and opportunities to prepare for advanced age; and

Whereas many World War I veterans have only minimum Social Security and savings and other retirement plans: Now, therefore, be it

Resolved, by the 67th National Convention of the Veterans of Foreign Wars of the United States, That we go on record seeking legislation for a separate and liberal pension for World War I veterans to consist of the following:

1. Income for pension purposes will be only that derived from a veteran's employment.

2. Less than full time employment will be considered to meet requirements for unemployability.

3. There be no corpus of estate.

4. Income limits will be as follows:

1. $2400 for veterans without dependents

2. $3600 for veterans with one or more dependents

5. The amount of pension payable will not be less than $100 per month.

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