1. Compensation: (a) Living veterans: Korean conflict.. 319 1,695,837 1,659,764 1,712,476 World War I.. World War II. 86 73 Spanish-American War.. 1,156 1,113 1,022 World War I.. 63,286 63,648 62,400 66 1 Selected resources as of June 30 are as follows: Accounts receivable (benefit overpayments collectible from beneficiaries) 1963, $13.852 thousand (1964 adjustment. $21 thousand): 1964. $14,988 thousand; 1965, $14,988 thousand; 1966. $14,988 thousand. This appropriation provides for the payment of compensation, pensions and other related benefits and allowances to veterans and their dependents as authorized by law. In June 1964 there were an estimated 22,013,000 living veterans of all wars and peacetime service of which 14.5%, or 3,197,000 were receiving benefits under this appropriation. In addition, 1,814,000 dependents of 1,239,000 deceased veterans were receiving benefits. The increased cost in the current and budget years is primarily attributable to the pension program because of 461,781 462,939 462,024 (1) accretions to the rolls resulting from the aging of veterans, (2) continuing sharp increases resulting from 2,157,617 2,122,703 2,174,500 liberalizations afforded widows and children under the 258,968 53,513 54,240 54,792 71,702 79,002 84,776 16 37 22 23,793 20,124 950,507 930,384 16,901 937,726 167,773 196,026 245,054 12,438 14,753 18,725 33 34 32 Veterans' Pension Act of 1959 and (3) the enactment of Public Law 88-664, effective January 1, 1965, which increased most rates of disability and death pension for an estimated additional cost of $50 million in 1965 and $96,226 thousand in 1966. Five other new laws having minor cost effect were also enacted and are reflected in the estimates. A supplemental appropriation in 1965 of $108 million is anticipated as shown under Proposed for separate transmittal. Legislation will be proposed to facilitate the cycling of benefit payments throughout the month. This will result 269,589 in greater efficiency and savings to the Government without loss to the beneficiary. 5 Spanish-American World War II. 1,991 Spanish-American War.. 51,668 World War I.. 307,154 320,560 339.918 Korean conflict.. 18,766 Peacetime service.. 8 22,315 27,419 1. Compensation.-Compensation is payable to living veterans for a disability connected with military service and compensation or dependency and indemnity compensation is payable to eligible dependents of deceased veterans for death connected with military service. (a) Living veterans.-The caseload of living veterans reflects a static trend through 1966. An increase in average payment is estimated for 1965 and 1966 attributable to changes in family composition and in the average degree of impairment of veterans' disabilities. AVERAGE NUMBER OF VETERANS AND COSTS 10 Total program costs, funded. 3,958,031 3,963,423 4,144,666 Change in selected resources 1 Total obligations (object class 42.0)-3.959,188 3,963,423 4,144,666 Korean conflict.. 21 Unobligated balance available, start of year. 24 Unobligated balance available, end of year. 1,498,309 1,493.000 1,486,000 214,031 218,787 223,100 226,600 140,505 152,800 164,800 1,986,837 1,990,915 1,994,100 1,994,485 Total cost (in thousands).. $1,665,898 $1,695,837 $1,709,764 $1,712,476 (b) Deceased veterans.-The overall caseload continues to decline while the average payment per case rises due to increased rates under new legislation effective October 1, = 1963, and increases in DIC payments to widows attributable to the Uniformed Services Act of 1964. AVERAGE NUMBER OF CASES AND COSTS 47 1966 estimate 650 39,309 39,615 40,000 2. Pensions.-Benefits are payable to wartime veterans and dependents of deceased veterans for non-serviceconnected disability and death. Most of these payments were increased by Public Law 88-664 effective January 1, 1965. (a) Living veterans.-The normal caseload increase was significantly less in 1964 than in prior years because the major World War I category peaked in 1963. This factor, together with the elimination of certain recoupment privileges in computing pension income provided by Public Law 88-664, will cause a net decrease in overall caseloads in 1965 and 1966. A decline in the annual average payment occurred in 1963 and 1964. The increases in average payment in 1965 and 1966 are due to higher rates available under Public Law 88-664 effective January 1, 1965. AVERAGE NUMBER OF VETERANS AND COSTS officers 3. Other (a) Retired officers.-Emergency (World War I) and certain officers (Regular Establishment) retired for service-connected disability are entitled to special retirement benefits at rates substantially higher than the normal compensation payments. (b) Adjusted service and dependents pay.-Claims made pursuant to the provisions of the World War Adjusted Compensation Act of 1924, as amended, are payable from this appropriation. Qualified veterans are entitled to receive adjusted service pay if the amount of his adjusted service credit was $50 or less. If the amount of adjusted service credit was more than $50 the veteran was entitled to receive an adjusted service certificate. The payment of adjusted service certificates was heretofore paid from the Adjusted service certificate fund established by the above cited act. The elimination of the Adjusted service certificate fund is proposed in 1966, with remaining funds being paid into the Compensation and Pensions appropriation. Future redemptions and adjustments will be processed through this appropriation. (c) Subsistence allowance.-Subsistence allowance payments to disabled veterans enrolled in vocational rehabilipriation. The decrease in 1966 is due to a reduction in tation and education programs are made from this approthe number of veterans eligible for this benefit. (d) Burial benefits.-Under present statutes (38 U.S.C. 901, 902) the Administrator is authorized to (1) provide an allowance of $250 (plus transportation charges where death occurs under Veterans Administration care) to cover and (2) furnish a flag to drape the casket of each deceased the burial and funeral expenses of a deceased veteran veteran entitled thereto. The increases in obligations are directly related to the estimated increase in the number of deaths of veterans in civil life. (e) Special allowance, dependents.-Under certain conditions a special allowance (38 U.S.C. 412) is payable to dependents of certain veterans who died after December 31, 1956, but who were not fully and currently insured under the Social Security Act. The award is based upon a certification to Veterans Administration by the Social Security Administration. (f) Invalid lifts.-The Administrator may furnish an invalid lift, if medically indicated, to any veteran in receipt of pension under (38 U.S.C. 617) based on the need of regular aid and attendance. (g) Tort claim settlements.-Provides for payment of amounts of compromises or settlements under (28 U.S.C. 2677) of those tort claims which are potentially subject to offset against benefits under the provisions of (38 U.S.C. 351). Regular benefit payments under law are suspended until the total amount of the settlement is recouped. actual 1964 actual 1965 estimate 1966 estimate Prior to Spanish-American War....... Adjusted service and dependents pay.. (1) Subsistence allowance.. 4,290 5,441 Spanish-American War. World War I. World War II.. Korean conflict. Peacetime service.. 70,005 66,622 63,800 61,500 Burial benefits 2. 190,762 199,084 3 359,400 3 376,400 526,100 Special allowance, dependents. 321,300 Invalid lifts 2 30,800 Tort claims 2 $64,907 $64,838 779,743 840,848 894,790 941,830 Under existing legislation, 1965.-A supplemental appropriation of $108 million is required to cover costs of (1) increases above the previously projected trend in average disability compensation payments, (2) increases in World War II death pension cases, and (3) increases in disability and death pension rates due to enactment of Public Law 88-664, effective January 1, 1965. Under proposed legislation, 1966. The proposal to even the mailing of benefit payments through the month. while not adversely affecting the benefit structure will result in a one-time expenditure savings of $150 million. READJUSTMENT BENEFITS For the payment of benefits to or on behalf of veterans as authorized by part VIII, Veterans Regulation No. 1(a), as saved from repeal by section 12(a) of the Act of September 2, 1958 (72 Stat. 1264), and chapters 21, 33, 35, 37, and 39 of title 38, United States Code, and for supplies, equipment, and tuition authorized by chapter 31 of title 38, United States Code, [$37,100,000 $36,500,000, to remain available until expended. (38 U.S.C. 3021; Independent Offices Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Expenditures.. 1 Selected resources as of June 30 are as follows: Accounts receivable.. Unpaid authorizations. Total selected resources.---- 1965 1966 esli mate mate 699 699 This appropriation provides education and training allowances for veterans of the Korean conflict; educational assistance allowances for eligibles under the War Orphans' Educational Assistance Act of 1956, as amended, and special assistance to disabled veterans in the form of vocational rehabilitation, housing grants and automobiles or other conveyances. A supplemental appropriation for 1965 of $8.8 million is anticipated under Proposed for separate transmittal. 1. Education and training. Since the training program for Korean conflict veterans terminates in 1965, no funds are requested in the budget year. Children in training under the War Orphans' Educational Assistance Act of 1956, as amended, will increase in number mainly due to new legislation (Public Law 88-361) approved July 7, 1964 which extends educational benefits to the children of veterans who are permanently and totally disabled due to military service. AVERAGE NUMBER OF TRAINEES AND COSTS Korean conflict veterans: Average number of trainees... 26,819 22,000 17,600 1. Military and naval insurance.-Payments are made for claims on war-risk insurance issued to servicemen and veterans of World War I. Although no policies of this insurance remain in force, payments for death and disability claims continue. Payments are made also to the U.S. Government life insurance fund for claims (1) traceable to extra hazards of military service, and (2) for claims while insured was under premium waiver provisions in active military service. (a) Payment to U.S. Government life insurance fund. Transfers are made to reimburse the fund for the above (b) Disability awards. (2) Gratuitous insurance.. (3) Waiver of overpayments.. (4) Death while under waiver of pre miums... (b) Direct payments to policyholders and beneficiaries.— (1) Claims are paid on nonparticipating National service life insurance policies issued to World War II veterans with service-connected disabilities. (2) Claims may be paid in certain instances in which applicants for insurance were rejected for medical reasons and subsequently died in line of duty. (3) Claims are paid on death which occurred after application but before effective date of a National service life insurance policy. (4) Claims may be paid in certain cases in which insurance was discontinued because the insured was discharged to accept a commission, was absent without leave, or was court-martialed. (5) Payments are made to policy holders who terminate their insurance for the cash value of their policies and to policy holders who have matured endowments. 2. National service life insurance. This appropriation pays certain expenses of the National service life insurance fund and receives premiums and pays claims on nonparticipating insurance policies issued to certain disabled veterans of World War II. Authorization of appropriation of premium receipts is provided by 38 U.S.C. 719(b). (a) Payment to National service life insurance.-(1) For death claims traceable to extra hazards of service an amount is transferred from this appropriation, which, when added to the reserve of the policy, is equal to the actuarial value of the claim. In the event of total disability traceable to the extra hazards of service, an amount is transferred from this appropriation sufficient to meet the current payments from the fund. (4) Claims on discontinued insurance... (5) Cash surrenders and matured endowments.... 257 249 (3) Claims where applicant died between date of application and effective date..... ន 3. Service-disabled veterans insurance fund.-Payments are made to the Service-disabled veterans insurance fund to supplement the premium and other receipts of the fund in amounts necessary to pay claims on insurance policies issued to veterans with service-connected disabilities but who were otherwise insurable. 4. Servicemen's indemnities.-Beneficiaries of serviceservice or within a period of 120 days after separation men who died prior to January 1, 1957, while in active from active service are entitled to receive an indemnity in the amount of $10 thousand less any National service life insurance and/or U.S. Government life insurance carried by the deceased. Payments are made to beneficiaries in 120 equal installments, plus interest at the rate of 2.25%% per year. The program will be completed January 1, 1967. |