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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 (1) accretions to the rolls resulting from the aging of veterans, (2) continuing sharp increases resulting from liberalizations afforded widows and children under the 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.
Prior to Spanish-American War.
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.
World War I..
World War II..
Average payment per case,
(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
Total cost (in thousands)..
1,016,003 133,650 9,735
Prior to Spanish-American War.......... Spanish-American War..
World War I...
World War II.
22 18,579 1,008,900 159,091 11,473 179
Average payment per case, per year.. Total cost (in thousands)..
15 15,600 980,800 182,800 13,400 175
$974 $964 $1,003 $1,039 $1,151,123 $1,154,581 $1,196,775 $1,218,454
12,800 937,400 206,800 15,500 170
(b) Deceased veterans.-Based on recent experience a steady increase in caseload is projected for 1965 and 1966. The annual average payment is projected to increase because of the higher rates available under Public Law 88-664 effective January 1, 1965.
AVERAGE NUMBER OF CASES AND COSTS
1966 estimate 2,105 61,500 517,700 526,100
779,743 840,848 894,790 $701 $696 $712 $729 $546,690 $585,345 $637,038 $686,874
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 being paid into the Compensation and Pensions certificate fund is proposed in 1966, with remaining funds priation. Future redemptions and adjustments will be approprocessed 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 the burial and funeral expenses of a deceased veteran and (2) furnish a flag to drape the casket of each deceased 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.
Identification code 29-00-0137-0-1-803
Program by activities:
1. Education and training:
1965 1966 estimate estimate
(a) World War II...
(b) Korean conflict veterans.
169 23,488 10,888
11 33,915 24,805
Total education and training... 58,731
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.
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)
1965 1966 estimate estimate
Program and Financing (in thousands of dollars)—Continued
Program by activities-Continued
2. Special assistance to disabled veterans: (a) Vocational rehabilitation....... (b) Housing grants..... (c) Automobiles or other conveyances for disabled veterans....
Total special assistance to disabled veterans..
21 Unobligated balance available, start of 24 Unobligated balance available, end of year.
New obligational authority (appropriation).
Total program costs, funded. Change in selected resources 1.
New obligational authority:
Transferred from Veterans Insurance and Indemnities (78 Stat. 661)
Relation of obligations to expenditures: 71 Total obligations (affecting expenditures).. 72 Obligated balance, start of year.. 74 Obligated balance, end of year....
1 Selected resources as of June 30 are as follows:
Accounts receivable.. Unpaid authorizations..
Total selected resources....
Korean conflict veterans:
Average number of trainees.. Average cost per trainee.. Children:
4,250 4,645 3,284 4,724 4,410 4,410
Average number of trainees.. Average cost per trainee.......
10,261 10,335 8,974 68,993 38,311 36,500 -30
1965 1966 estimate estimate
1,085 1,055 1,055 1,055
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.
36,500 823 -823
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
1963 1966 1965 actual actual estimate estimate 50,012 25,520 7,300 $1,248 $1,329 $1,427
15,573 15,543 16,400 17,100 $1,651 $1.596 $1.607 $1.610
(2) Gratuitous insurance was issued to aviation cadets and to certain persons who were unable to make application for National service life insurance. Under a court ruling in 1964 gratuitous insurance payments are made to illegitimate children previously denied recognition.
(3) The fund is reimbursed when recovery of erroneous payments or overpayments is waived.
(4) The fund is reimbursed for death claims on policies under waiver of premiums while the insured is on active military duty.
(1) Claims for extra hazards of service:
(b) Disability awards.
(2) Gratuitous insurance...
(3) Waiver of overpayments..
(4) Death while under waiver of pre
2. National service life insurance. This appropriation pay's 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.
Average payment per case, 1964
231 13,500 222
(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.
(4) Claims on discontinued insurance.....
161 5,271 2,533
Average payment per case 1964
85 90 234 269
Caseload 1965 1966 actual estimate estimate
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,
1964 actual 1965 estimate 1966 estimate 15.553