89-010 O

AUGUST 29, 1977.-Ordered to be printed

Reported under the authority of the Senate of August 5, 1977

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1977

(315)

CONTENTS

Page

7

Committee amendment..

Introduction__

Summary of H.R. 1862 as reported..

Background and discussion:

Increases in disability compensation (title I).

Increases in survivors' dependency and indemnity compensation rates (title II)..

Increase in annual clothing allowance (title III).

Extension of time for completion of cardiovascular-amputation study (section 401)__

Extension of specially adapted housing eligibility (section 402).. Payment of Veterans' Administration benefits by means other than check (section 403)

Payment of benefits on preceding weekday other than Saturday for months in which the first day falls on a Saturday, Sunday, or a legal public holiday (section 403)..

Reaffirmation of congressional intent with respect to limited waiver of sovereign immunity (section 404).

Cost estimates__

Regulatory impact statement_

Section-by-section analysis..

Record of votes cast in Committee..

Agency reports---

Changes in existing law made by H.R. 1862 as reported.

47

Tables, entitled

Table 1.-Average cost and caseload of veterans' disability and survivor compensation cases

Table 2.-U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index___

10

Table 3.-Comparison of compensation rates under present law and under H.R. 1862 as reported.

11

Table 4.-History of wartime service-connected compensation increases-1957 to present...

12

Table 5.-Additional dependents allowances paid to certain disabled

veterans..

13

Table 6.-Average cost and caseload of survivor compensation casesTable 7.-Comparison of DIC rates under present law and H.R. 1862 as reported.

15

16

35 6

(III)

Reported under the authority of the Senate of August 5, 1977

Mr. CRANSTON, from the Committee on Veterans' Affairs, submitted the following

REPORT

[To accompany H.R. 1862]

The Committee on Veterans' Affairs, to which was referred the bill (H.R. 1862) to amend title 38, United States Code, to increase the rates of disability compensation for disabled veterans; to increase the rates of dependency and indemnity compensation for their survivors; and for other purposes, having considered the same, reports favorably thereon with an amendment in the nature of a committee substitute and recommends that the bill, as amended, do pass.

96-189 O - 77 - 21

(1)

7

INTRODUCTION

The Subcommittee on Compensation and Pension, chaired by Senator Herman E. Talmadge, conducted a hearing on June 21, 1977, to review the Veterans' Administration's service-connected disability compensation and dependency and indemnity compensation programs. The hearing also examined pending legislation, including Senator Talmadge's bill, S. 1703, the Veterans Disability Compensation and Survivor Benefits Act of 1977, cosponsored by all the Members of the Committee on Veterans' Affairs.

The Subcommittee received testimony in person or by submission from representatives of the Veterans' Administration, the American Legion, the Disabled American Veterans, the Veterans of Foreign Wars, AMVETS, the Veterans of World War I, the Paralyzed Veterans of America, the Blinded Veterans Association, the Society of Military Widows, and the Non Commissioned Officers Association.

By agreement of the Subcommittee on Compensation and Pension, H.R. 1862 was sent to the full Committee for consideration. The full Committee on Veterans' Affairs met on July 15, 1977, amended, unanimously approved, and ordered favorably reported to the Senate H.R. 1862 with an amendment in the nature of a substitute.

Subsequently, on July 22, 1977, the Committee, based on revised Consumer Price Index estimates received in a letter dated July 20, 1977, from the Director of the Congressional Budget Office, revised the rate increase upward from 6.3 percent to 6.6 percent; also, the Committee added two amendments, items (10) and (11) under "Summary of H.R. 1862 As Reported," immediately below. In addition, the Committee by poll subsequently made further modifications in the text of the bill as ordered to be reported.

SUMMARY OF H.R. 1862 AS REPORTED

The basic provisions of the Veterans Disability Compensation and Survivor Benefits Act of 1977 would:

(1) Provide a 6.6-percent cost-of-living increase for disabled veterans in basic compensation rates and in the rates payable for more serious disabilities;

(2) Provide a 6.6-percent increase in the additional allowances for spouses, children, and dependent parents paid to veterans rated 50-percent disabled or more;

(3) Provide a 6.6-percent increase in dependency and indemnity compensation (DIC) benefits payable to surviving spouses of veterans whose deaths were service-connected, including the additional allowances payable for dependent children and to those in need of aid and attendance;

(4) Provide a 6.6-percent increase in benefits payable to the children of veterans whose deaths were service-connected, when there is no surviving spouse;

(5) Provide a 6.6-percent increase in benefits payable to surviving children who have become permanently incapable of selfsupport prior to the age of 18;

(6) Increase (by 6.6 percent) from $190 to $203 the annual clothing allowance paid to certain seriously disabled veterans whose disability tends to tear or wear out their clothing;