Stover, Francis W. (See Veterans of Foreign Wars.) Subcommittee on Compensation and Pension: Bills considered, agency Chairman (See Dorn, Hon. Wm. Jennings Bryan.) Taaffe, J. T., Jr. (See Veterans' Administration.) Owen, Olney B., Chief Benefits Director_ Veterans of Foreign Wars: Resolutions 1224-1231 1221-1224, 1231, 1232 1247-1250 Stover, Francis W., Director, National Legislative Service___ Veterans of World War I of the USA, Inc.: Houston, Herbert M., legis- PENSION AND DEPENDENCY/INDEMNITY COMPENSATION BILLS WEDNESDAY, OCTOBER 13, 1971 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMPENSATION AND PENSION, Washington, D.C. The subcommittee met at 10 a.m., pursuant to call, in room 334, Cannon House Office Building, Hon. W. J. Dorn, presiding. Mr. DORN. The subcommittee will come to order. The Subcommittee on Compensation and Pension is meeting this morning to begin hearings on two of the major veterans' programs. Namely, dependency and indemnity compensation payable to widows, children, and certain parents of veterans who die from service-connected causes and the program of disability and death pension payable to veterans who are totally disabled from non-service-connected conditions and to the widows and orphans of deceased war veterans who have died from non-service-connected causes. We have a large number of bills pending before the subcommittee on each of these subjects and without objection, copies will be made a part of the record at this point. Also, without objection, we will enter for the record all of the reports received from the Administrator of Veterans' Affairs which have been submitted to the committee up to this date on the mentioned bills. (The bills and reports referred to follow :) (963) VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. OLIN E. TEAGUE, Chairman, Committee on Veterans' Affairs, DEAR MR. CHAIRMAN: This is in reply to your request for a report on H.R. 4527, 92d Congress. The bill proposes to modify the method of computing income for purposes of payment of dependency and indemnity compensation to eligible parents. Chapter 13 of title 38, United States Code (dependency and indemnity compensation), restates a portion of the Servicemen's and Veterans' Survivor Benefits Act (Public Law 881, 84th Cong., August 1, 1956). This act established a new death benefits program of dependency and indemnity compensation for survivors of veterans dying from service-connected causes on or after January 1, 1957. Any person eligible for benefits under the earlier death compensation program based on a veterans' death prior to January 1, 1957, may make an irrevocable election to receive benefits under the current dependency and indemnity compensation system. Under 38 U.S.C. 415, dependency and indemnity compensation is payable to parents of a veteran dying from a service-connected or compensable disability. Such benefits are provided on a sliding scale based upon annual income and whether they are living together. In determining annual income of parents for purposes of dependency and indemnity compensation, consistent with the philosophy of need underlying this phase of the death benefit program, all payments of any kind or from any source are included except those specifically excluded by 38 U.S.C. 415(g) (1) and (2). Death compensation is payable to veterans' parents for deaths prior to January 1, 1957, upon a showing of dependency, without specification of maximum income limitations. The income standards used in determining the dependency, of a mother or father under 38 U.S.C. 315, cited in the proposal, are those authorized under the provisions of 38 U.S.C. 102(a). Under the provisions of 38 U.S.C. 102(a)(2), dependency is presumed where the monthly income for a mother or father not living together is not more than $105, or when the monthly income for a mother and father living together is not more than $175, plus, in either case, an income allowance of $45 for each additional member of the family whom the father or mother is under a legal or moral obligation to support. In determining monthly income, 38 U.S.C. 102(a) (3) provides that any payments under laws administered by the Veterans' Administration because of disability or death 2 or payments of bonus or similar cash gratuity by any State based on service in the Armed Forces, are excluded. Also, annuities under the retired serviceman's family protection plan are excluded pursuant to 10 U.S.C. 1441; and certain other payments are excluded by regulation in accordance with authority vested in the Administrator by 38 U.S.C. 102(a)(1). Where the income exceeds the mentioned amounts, dependency is determined on the facts in the individual case, including the regulatory requirement respecting consideration of the corpus of the claimant's estate. The described 38 U.S.C. 102(a)(1) standards apply in determining dependency of parents for purposes of payment of death compensation as well as for ascertaining eligibility of living veterans to additional disability compensation based on dependency of parents. Due to lack of necessary data, we are unable to estimate the cost of the bill, if enacted. There appears some uncertainty as to the intended scope of the bill. It appears to us that the measure would repeal the present method of computing income for parents under 38 U.S.C. 415(g), and would substitute standards which are applicable to the death compensation program. While it would provide certain annual income exclusions not presently applicable to the dependency and indemnity compensation program for parents, it would at the same time eliminate certain existing exclusions under 38 U.S.C. 415(g). Itis difficult to ascertain an overall advantage or disadvantage which would flow from most of the income exclusions which would be acquired or lost by parents if H.R. 4527 were enacted, owing to the fact that such exclusions generally relate to one-time payments which are not easily balanced one against the other. A significant disadvantage would clearly result, however, from loss of the 10-percent retirement income exclusion, which is presently of continuing benefit under the parents' dependency and indemnity program but would be lost if H.R. 4527 becomes law. Under the circumstances, I cannot recommend favorable consideration of H.R. 4527. Advice has been received from the Office of Management and Budget that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely, DONALD E. JOHNSON, Vet. Letters 92-46 VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS AFFAIRS. Hon. OLIN E. TEAGUE, Washington, D.C., June 18, 1971. Chairman, Committee on Veterans' Affairs, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: We are pleased to respond to your request for a report on H.R. 614, 92d Congress. The purpose of the bill as indicated by its title is to shorten the World War I service requirement for the purposes of establishing eligibility for pension under the current program. H.R. 614 would, insofar as World War I service is concerned, eliminate the 90 days' service requirement to qualify for pension under the current program. The measure, however, would not affect, and thus retain, such service requirement to qualify for pension based on service in subsequent war periods under that program. It would authorize pension for any period of service during World War I other than service for "a short period of time" immediately following entry into service during which the veteran was being examined or otherwise processed and such processing resulted in discharge or release from active service. The bill is unclear and would require clarification as to the intended meaning of "short period of time". For example, is it intended that the service of a veteran who was thus processed and discharged after 89 days should, or should not, qualify for pension? In other words, is 89 days a "short period of time" within the purview of the bill? The requirement of 90 days' active service has been generally recognized by the Congress as a prerequisite to the payment of pension since Civil War pensions were authorized by a law approved on June 27, 1890. It is required that the veteran must have served 90 days or more in the applicable period, or if such veteran served less than 90 days, he must have been discharged from service for a service-connected disability. Service pension at lower rates is provided for certain veterans of the Spanish-American War group based upon 70 days service. The service pension laws pertaining to veterans of the Indian Wars require 30 days' service, or, if less than 30 days' service, service through a recognized campaign. The minimum period of service for this particular group is less than that generally required and undoubtedly is due to the large numbers of campaigns of short duration in such wars. It is estimated that the first year additional cost of H.R. 614 would be approximately $32.920,000, affecting about 31,100 pensioners, and that such additional cost would decline to approximately $26,400,000 in the fifth year, affecting about 26,400 pensioners. |