General and special funds--Continued MEDICAL CARE-Continued wage board employees between June 30, 1961, and June 30, 1963. Object Classification (in thousands of dollars)—Continued COMPENSATION AND PENSIONS For the payment of compensation, pensions, gratuities, and allowances (including burial awards authorized by section 902 of title 38, United States Code, and subsistence allowances for vocational rehabilitation), authorized under any Act of Congress, or regulation of the President based thereon, including emergency officers' retirement pay and annuities, the administration of which is now or may hereafter be placed in the Veterans Administration, and for the payment of adjusted-service credits as provided in sections 401 and 601 of the Act of May 19, 1924, as amended, [$3,832,000,000] $3,921,000,000, to remain available until expended. (72 Stat. 1263, 1264; 38 U.S.C. 1504, 3021, 3109, 3202 and 3203; 38 U.S.C. chaps. 11, 13, 15, 23 and 55; Independent Offices Appropriation Act, 1963.) Program and Financing (in thousands of dollars) 1962 1963 1964 actual estimate estimate Program by activities: 1. Compensation: (a) Living veterans: Spanish-American War Subtotal.. (b) Deceased veterans: Korean conflict. Peacetime service.. Change in selected resources.. Total obligations....... 2. Pensions: Average salary, grades established by 38 U.S.C. (a) Living veterans: Subtotal.. Total, compensation.. Prior to Spanish-American War.. Spanish-American War.. World War I.. 119,591 9,054 136,973 152,424 10,476 38 34 12,096 33 1,632,388 1,736,363 1,799,840 (d) Special allowance, dependents (72 42,513 44,194 45,745 117 3. Other: (a) Retired officers.. 6,509 6,509 (b) Subsistence allowance.. (c) Initial burial allowance.. Stat. 1128)... (e) Invalid lifts (72 Stat. 1140). Total, other.... 990 3,702,329 3,835,076 3,921,000 5,208 3,707,536 3,835,076 3,921,000 1 Selected resources as of June 30 are as follows: Accounts receivable (benefit overpayments collectible from beneficiaries), 1961, $9,043 thousand; 1962, $14,251 thousand; 1963, $14,251 thousand; 1964, $14,251 thousand. This appropriation provides for compensation, pensions, and other related benefits and allowances that are authorized veterans and their survivors. As of June 1962 there were an estimated 22,275 thousand living veterans of all wars and peacetime service of which 14.1%, or 3,150,211 were receiving benefits under this appropriation. In addition, 1,595,465 dependents of 1,122,048 deceased veterans were receiving benefits. The increased cost in the current and budget years is primarily attributable to the pension program (where accretions to the rolls are primarily the result of the aging of veterans) and to the enactment of Public Law 87-645, approved September 7, 1962, at an additional cost of $98.2 million in 1963 and 1964. Public Law 87-815, approved October 15, 1962, extended vocational rehabilitation benefits to peacetime veterans and is estimated to cost $1.6 million in 1963 and $7.8 million in 1964 for subsistence allowance. Forecasts of average caseloads and average annual payments per case have been based on analyses of trends in each category with consideration given to specific conditions which might affect the separate classes of beneficiaries. It is anticipated that a supplemental appropriation of $42 million will be required for 1963. This supplemental is included in the following program and performance statement, but not included in the accompanying program and financing schedule. 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 basic rates of disability compensation were increased from 5.3 to 11.1% for rates payable to veterans disabled 10 to 100% and for special monthly compensation in amounts ranging from 8.6 to 20.8% as outlined in section 1 of Public Law 87-645. The basic rates of disability compensation provided in wartime cases range from $20 for 10% disability to $250 per month for total disability. Certain cases are compensated for specific disabilities as prescribed by law, to a maximum of $725 a month per case. An additional allowance is payable for dependents of veterans rated 50% or more disabled to a maximum of $100 a month per case, plus $12 monthly for each child in excess of three. Generally all rates of peacetime disability compensation are 80% of wartime rates. per year.. $1,567,603 $1,561,141 $1,637,119 $1,624, 159 2. Pensions. Benefits are payable to wartime veterans and dependents of deceased veterans for non-serviceconnected disability and death. A declining rate of increase is projected through the budget year, as explained below: (a) Living veterans.—In general, pensions are payable to wartime veterans who are unable to secure substantially gainful employment as a result of a permanent and totally disabling non-service-connected disability. The legally prescribed standards for determining eligibility are especially liberal for veterans who have attained 65 years of age. Subsequent to enactment of the Veterans' Pension Act of 1959 a sliding scale of pensions has been payable based on income and family status, ranging from a minimum of $40 monthly to a single veteran with $1,200-$1,800 annual income, to a maximum of $100 monthly to a veteran with three or more dependents whose income is $1,000 or less annually. These are increased by $70 monthly when the veteran needs regular aid and attendance. The caseload continues to increase but at a declining rate with less significant gains projected in the World War I category in 1963 and 1964. The average monthly payment is projected to increase in 1963 based on the assumption that more World War I veterans protected under Public Law 86-211 will elect higher rates. (b) Deceased veterans.-Under current legislation pensions are payable to widows and children of World War I, World War II, and Korean conflict veterans on the same basis. A sliding scale of pension based on income and family status is payable ranging from $25 monthly to a maximum of $105 monthly (plus $15 for each additional child over 3). The estimated caseload reflects a more normal increase in 1964 than in 1963 where the delayed effect of the equalization feature (Public Law 86-211) continues. A minor decrease in average payment is projected in 1964, attributable to the diminishing effect of equalization, particularly in the World War II category. AVERAGE NUMBER OF CASES AND COSTS 1964 estimate 2,912 68,300 COMPENSATION AND PENSIONS Program and Financing (in thousands of dollars) A supplemental appropriation of $42 million is anticipated to cover costs of: 1. Paying statutory increased rates of compensation to certain service-connected disabled veterans under the 495,000 provisions of Public Law 87-645, approved September 7, 240,000 20,000 49 3. Other (a) Retired officers.-Emergency officers (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) Subsistence allowance.-Subsistence allowance payments to disabled veterans in vocational rehabilitation and education programs are made from this appropriation. Consideration has been given to the cost effects of Public Law 87-815, approved October 15, 1962, in 1963 and 1964. (c) Initial burial allowance.-Under present statutes the Administrator is authorized to provide an allowance of $250 (plus transportation charges where death occurs under VA care) for the funeral expenses of a deceased veteran. The estimated increases in obligations are directly related to the estimated increase in the number of deaths of veterans in civil life. (d) Special allowance, dependents.-Under certain conditions a special allowance (72 Stat. 1128) 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 1962. 3. Subsistence allowance payable to peacetime veterans as provided by Public Law 87-815, approved October 15, 1962. 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, [$91,500,000] $101,100,000, to remain available until expended. (38 U.S.C. 3021; 75 Stat. 806; Independent Offices Appropriation Act, 1963.) Program and Financing (in thousands of dollars) appropriation to supplement income of the fund as required. 3. Special assistance to disabled veterans.-Disabled veterans requiring vocational rehabilitation are provided educational assistance for tuition, supplies, and equipment. The estimates include requirements of Public Law 87-815, approved October 15, 1962, which provided for the extension of vocational rehabilitation benefits to peacetime veterans. Assistance also is available to provide grants for specially adapted housing to veterans having suffered the loss of both feet, and to paraplegic veterans. In addition, up to $1,600 is allowed certain disabled veterans toward the purchase of automobiles or other conveyances. Based on an analysis of load forecasts and average costs, total costs are projected as follows: Unobligated balance brought forward (−)...| −14,515 Unobligated balance carried forward............. -1,604 Tuition: 1,604 Average cost per trainee.... 4,182 4,510 7,100 $756 $724 $711 $708 A supplemental appropriation for 1963 is anticipated. for separate transmittal. Object Classification (in thousands of dollars) 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; for transfer of funds to the Loan guaranty revolving fund to supplement income of the fund as required; and special assistance to disabled veterans for those requiring vocational rehabilitation, housing grants, and automobiles or other conveyances. 1. Education and training.-It is estimated that the number of Korean conflict veterans receiving benefits will decline sharply. Orphan trainees will reach a peak in 1963, and then gradually decline. A trend analysis of trainee loads by major training category, and average costs per trainee follow: 1961 1962 1963 1964 actual actual estimate estimate Program by activities: 3,888 1,450 500 220 1. Education and training, Korean conflict veterans.... 3,433 2. Loan guaranty.-Beginning with 1962, guaranty claims and costs of loan and property acquisitions were paid from the Loan guaranty revolving fund, where detailed breakdown is shown. However, the authorizing legislation (74 Stat. 533) provides for transfer from this Financing: Total program costs, funded-obligations.... New obligational authority (proposed supplemental appropriation) 63,575 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 purposes. Description Death and disability awards. Average payment per award. 1962 actual 1963 estimate 1964 estimate b. Direct payments to policyholders and beneficiaries. (1) Disability awards.-Payments of $5.75 per month per $1 thousand of war-risk insurance held are made to veterans becoming permanently and totally disabled for as long as the disability shall continue. (2) Death awards.-Upon the death of a veteran receiving payments for disability, the remaining value of the policy is paid to the beneficiary as a death award. Description Program by activities: 1962 actual 1963 estimate 1964 estimate Operating costs, funded: 1. Military and naval insurance: (a) Payment to U.S. Government life insurance fund....... (b) Direct payments to policyholders and beneficiaries... 2,590 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. The permanent indefinite 8,555 appropriation of premium receipts is authorized (38 U.S.C. 719(b)). 864 9,419 2,700 16,116 31,020 95 a. Payments to National service life insurance fund.-(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. (2) Gratuitous insurance was issued to aviation cadets and to certain persons who were unable to make application for National service life insurance. Payments will be made in 1963 and 1964 to otherwise qualified illegitimate children. (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. 3 6,102 39,918 per case 1962 1962 actual 1963 1964 estimate estimate (a) Death awards... $6,656 31,000 (b) Disability awards. 153 (2) Gratuitous insurance.. 685 475 (3) Waiver of overpayments. 20 20 (4) Death while under waiver of pre miums.... 800 31,000 b. Direct payments to policyholders and beneficiaries.(1) Claims are paid on nonparticipating National service life insurance policies issued to World War II veterans |