None of the bills take cognizance of the enactment of title 38 of the United States Code into positive law by Public Law 85-857, effective January 1, 1959. Accordingly, should any of them receive favorable consideration, formal amendment would be required. Eligible survivors of any veteran whose service-connected total disability was the primary cause of death or contributed substantially in producing death would, of course, be entitled under existing law to service-connected death benefits. However, these bills would authorize the payment of service-connected death benefits to the survivors of certain service-connected totally disabled veterans who died from an accident or other cause unrelated to their service. The benefit of dependency and indemnity compensation is payable by the Veterans' Administration to widows, children, and parents where the death is shown to be service connected. The rates for a widow, for example, range from $122 to $337 monthly depending on the basic pay of the service person. In contrast, pension of $50.40 per month is payable to the eligible widow of a veteran of World War I, World War II, or the Korean conflict whose death is not service connected. The Veterans' Administration does not have available data upon which to base an accurate estimate of the cost of the bills, if enacted. The bills propose to extend the liberal service-connected death benefits to cases where it is not established that the death resulted from the service-connected total disability. Enactment of any of the bills, therefore, would result in a new highly discriminatory benefit in the nature of a service pension for surviving dependents of certain disabled veterans. As we do not believe there is any sound justification for this type of legislation we are unable to recommend its favorable consideration by your committee. The Bureau of the Budget advises that there is no objection to the presentation of this report to the committee and that enactment of the proposed legislation would not be in accord with the program of the President. Sincerely yours, Hon. OLIN E. TEAGUE, SUMNER G. WHITTIER, Administrator. VETERANS' ADMINISTRATION, Chairman, Committee on Veterans' Affairs, DEAR MR. TEAGUE: This refers to your request for a report on H.R. 9744, 86th Congress, a bill to prohibit the severance of a serviceconnected disability which has been in effect for 10 or more years, except when based on fraud. H.R. 9744 is identical with H.R. 113, 86th Congress, on which the Veterans' Administration submitted a report to your committee on July 24, 1959 (Committee Print No. 99), a copy of which is enclosed. The views expressed in that report are equally applicable to H.R. 9744. Very truly yours, T. F. DALEY, Associate General Counsel for Legislative Services. [No. 99] COMMITTEE ON VETERANS' AFFAIRS, HOUSE OF REPRESENTATIVES VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. OLIN E. TEAGUE, Chairman, Committee on Veterans' Affairs, DEAR MR. TEAGUE: The following comments are submitted in response to your request for a report on H.R. 113, 86th Congress, a bill to prohibit the severance of a service-connected disability which has been in effect for 10 or more years, except when based on fraud. This will also serve as a report on H.R. 949, 86th Congress, which is similar in purpose to H.R. 113. The bill provides that "a service connection which has been made for compensation, pension, or insurance purposes under laws administered by the Veterans' Administration, and which has been in force for 10 or more years, shall not be severed thereafter unless on a showing that the rating originally granting service connection was based on fraud." ** As you know, the laws administered by the Veterans' Administration dealing with benefits for veterans and their dependents have been revised, codified, and enacted as title 38, United States Code, effective January 1, 1959. Therefore, in keeping with the purpose of the new codification, it is suggested that any proposals such as the subject bills, on which the committee may take further action, be revised in format so as to amend specifically the new title 38. For the purposes of title 38, United States Code, the term "compensation" is defined therein as a monthly payment made by the Administrator to a veteran because of service-connected disability, or to a widow, child, or parent because of the service-connected death of the veteran occurring before January 1, 1957. In view of this definition of the term "compensation," the question arises whether the bill would apply to "dependency and indemnity compensation," defined in title 38 as a monthly payment made to a widow, child, or parent because of a service-connected death occurring after December 31, 1956. The term "pension" is defined in title 38 as a monthly payment made to a veteran because of service, age, or non-service-connected disability, or to a widow or child because of the non-service-connected death of the veteran. Service connection is not relevant to the payment of non-service-connected disability pension to war veterans or of non-service-connected death pension to widows and children of veterans of World War I and prior wars. However, under sections 543 and 544 of title 38 death pension is payable to widows and children of World War II and Korean conflict veterans who meet certain service requirements only if at the time of the non-service-connected death (1) the veteran had a service-connected disability for which compensation would have been payable if 10 percent or more in degree disabling; or (2) he was receiving (or entitled to receive) compensation or retirement pay based upon a service-connected disability. The bill apparently assumes there is a basic relationship between service connection and the benefit of insurance. Insurance is based on a contractual right and is normally not concerned with the matter of service connection. If a veteran with a service-connected disability for compensation purposes is granted national service life insurance under title 38, United States Code, section 722, or reinstates his U.S. Government life insurance under title 38, United States Code, section 759, such insurance is incontestable except for fraud, nonpayment of premiums, or on the ground that the applicant was not a member of the military, naval, or air forces of the United States, and the matter of service connection is not a factor. There is only a remote possiblity that the bill, if enacted, would enable a few policyholders of U.S. Government life insurance who would not otherwise be eligible, to reinstate their insurance under section 759, or to be granted premium waiver under section 760 of title 38, United States Code. The size of the Veterans' Administration compensation program (over 2,400,000 active cases presently on the rolls) makes it inevitable that in the application of the numerous provisions of law and regulations to the cases considered service connection will be erroneously authorized on occasion. Errors in adjudication may arise from misinterpretation or misapplication of the law or facts. Under existing law the Veterans' Administration has the authority to correct clear and unmistakable errors (unless there is involved a 20-year total rating protected under sec. 110 of title 38, mentioned below). During the 83d Congress your committee considered bills involving service connection identical in purpose with the current bills, H.R 113 and H.R. 949. At that time there was under consideration by your committee a related proposal with respect to disability ratings which became Public Law 311, 83d Congress (now restated in 38 U.S.C. 110). This law provides that a rating of total disability or permanent total disability which has been made for compensation, pension, or insurance purposes under laws administered by the Veterans' Administration, and which has been continuously in force for 20 or more years, shall not be reduced thereafter, except upon a showing that such rating was based on fraud. Under existing procedure, service connection once granted is not severed unless it is shown to have resulted from clear and unmistakable error. The bill would require the perpetuation of such error if it were not discovered until the lapse of 10 or more years after service connection of the disability. The mere fact that a veteran has enjoyed benefits for 10 or more years to which he had no entitlement does not appear to be a valid reason for imposing on the Government the burden of continuing such benefits throughout his lifetime. and for granting benefits to his surviving dependents. The Veterans' Administration does not have adequate data on which to accurately estimate the cost of the bill, if enacted. For the foregoing reasons, the Veterans' Administration does not recommend favorable consideration of either bill by your committee. The Bureau of the Budget advises that there is no objection to the submission of this report to the committee and that the Bureau strongly recommends against favorable consideration of the proposed legislation. Sincerely yours, BRADFORD MORSE, Pending bills for service-connected disabled veterans Explanation of bill Prohibits the severance of service-connected disability ratings which have been in effect for 10 or more years. To make the rates of compensation for peacetime disability and death the same as wartime disability and death. Relates to effective date for payment of additional compensation because of dependents. Provides a conclusive presumption of soundness under certain conditions in wartime cases. Provides a 2-year presumption of service connection for malignant tumors (cancer). Grants a 2-year presumptive period of service connection for psychoses. Includes the reinfection type of pulmonary tuberculosis in the presumptive serviceconnection period. To "freeze" as of Jan. 1, 1959, the Veterans' Administration Schedule for Rating Disabilities, 1945 edition. Provides a 3-year presumption for tuberculosis in peacetime cases. Prohibits the severance of service connection for any disability which has been in effect for 10 or more years. Provides additional compensation for veterans with dependents where the disability is rated not less than 10 percent and includes children in excess of 3. Prohibits the severance of service-connected disability which has been in effect for 10 or more years. Provides that for the purpose of all laws administered by the VA, gain from the sale of a home by a beneficiary shall not be considered as income. Prohibits the severance of service connection for any disability which has been in effect for 10 or more years. Prohibits the reduction of rating of service connection for any disability which has been in effect for 10 or more years. Provides 3-year presumption of service connection for chronic and tropical diseases. Provides a 3-year presumptive period for chronic functional psychoses. Provides dependency and indemnity compensation to survivors of certain deceased veterans having more serious service-connected disabilities. Provides a presumption of service-connected death in the case of any veteran who was rated totally disabled on or after the age of 62 years. Provides for a presumption of service-connected death in the case of any veteran who was rated totally disabled where the rating has been in effect for 10 or more years or after the age of 50 years. Provides a presumption of service-connected death in the case of any World War I veteran who had total disability rating for 12 or more years or for a period of 10 or more years on or after 50 years of age or after the age of 64. Increases the wartime disability compensation rates for 10 percent from $19 to $20; for 20 percent from $36 to $40; for 30 percent from $55 to $60; for 40 percent from $73 to $80; for 90 percent from $179 to $180; and for total from $225 to $250. Provides a 3-year presumptive period for chronic functional psychoses. Authorizes the Administrator of Veterans' Affairs to fix special compensation rates for more severely disabled veterans. Increases the rates of compensation for survivors of certain veterans whose death was service connected. Pending bills for service-connected disabled veterans-Continued Explanation of bill Authorize the granting of death compensation To provide that findings of disability made for To increase the presumptive period to 3 years To increase the rates of death compensation. To provide that hospital ratings of 100 percent Provides a statutory award of $67 monthly for former prisoners of war who were incarcerated for a period of 6 months or longer. To permit certain veterans to receive both the full rate of compensation and also a proportionate amount of pension. Prohibits the severance of service connection To provide that aid and attendance allowance Prohibits reduction in aid and attendance al- Increases rates of death compensation for wid- Increases rates of disability compensation to $240 monthly for total with percentage ratings for lesser disabilities; $475 for most severely disabled; increases statutory award rate from $47 to $55 and in case of tuberculosis from $67 to $75; and permits payment of additional compensation for veterans less than 50 percent disabled. |